Post to the General ledger and Subsidiary Ledger accounts

Assignment Help Accounting Basics

Reference no: EM132274913

Accounting Cycle Question -

Balloons Ltd was recently formed and it began operations on 1 April 2015. Balloons Ltd is registered for GST and the GST rate is 15%. The details in the transaction advise when GST had been included. GST payments are due to IRD by the 20th of the following month. During the first month of operation of the business, the following events and transactions occurred:

April 1 Shareholders invested $65,000 cash in exchanges for shares.

April 2 Paid office rent for the month $1,060 by cheque #001 (excluding GST)

April 3 Purchased inventory from Plastics Ltd $3,000, terms 10/7, n/30 (excluding GST).

April 9 Sold balloons to Party Place $460, including GST (cost price $200), terms 10/7, n/30.

April 10 Paid Plastics Ltd by cheque for the amount due.

April 12 Received payment from Party Place in settlement for amount due.

April 16 Cash sales amounted to $2,415 including GST (cost price $1,050).

April 25 Paid advertising for the month from the Herald $115, including GST.

April 26 Bought inventory from Toy Warehouse $345, including GST, cheque was issued.

April 30 Bought a computer from Comp World $1200, excluding GST, on account. Sold balloons to Party Place $690, including GST (cost price $300), terms 10/7, n/30.

Required -

1. Enter the opening balances in the ledger accounts as of 1 April 2015 using T- accounts.

2. Journalise the transactions.

3. Post to the General ledger and Subsidiary Ledger accounts (Using running balance accounts).

4. Prepare Pre-adjustment Trial Balance for the month.

Attachment:- Templates.rar

Reference no: EM132274913

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