Reference no: EM132839931
Question: Simmo Shops uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30. During May, Simmo Shops completed these transactions (figures are GST inclusive unless stated otherwise): (GST is 10%) if include in answers
All amount is in the rupees;
May 1 Owner began Simmo Shops by contributing 10,000 cash.
2 Issued invoice no. 290 for sale on credit to S. D. Cooper, 4 400. Simmo Shops' cost of this inventory was 2 780.
4 Sold inventory for cash, 6 820 (net cost, 3 640).
8 Collected interest revenue of 240. (Ignore GST)
9 Issued invoice no. 291 for sale on credit to Redlands Associates, $12 375 (net cost, 6 600).
12 Received 4 312 cash from S. D. Cooper in full settlement of her account receivable, net of the discount, from the sale of 2 May.
15 Sold inventory on credit to P. E. Freetime, issuing invoice no. 292 for 1 485 (net cost, 820).
17 Issued credit memo to P. E. Freetime for 1 485 for defective goods returned by Freetime. Also accounted for receipt of the inventory at net cost.
18 Issued invoice no. 293 for credit sale to S. D. Cooper, 3,652 (net cost, 1 940).
19 Received 12 127.50 from Redlands in full settlement of its account receivable from 9 May.
24 Sold supplies to an employee for cash of 160, which was Simmo Shops' cost. (ignore GST).
29 Sold goods on credit to Redlands Associates, issuing invoice no. 294 for 3 630 (cost, 2 000).
31 Received cash in full, from S. D. Cooper on credit sale of 18 May. There was no discount.
Requirements:
Enter the transactions in a Sales journal, a Cash Receipts journal, and a General journal or Sales Returns journal, as appropriate.
Open four-column general ledger accounts using Simmo Shops' account numbers that follow.
|
Cash
|
111
|
Salesrevenue
|
411
|
|
Accountsreceivable
|
112
|
Salesdiscounts
|
412
|
|
Supplies
|
116
|
Salesreturnsandallowances
|
413
|
|
Prepaidinsurance
|
117
|
Interestrevenue
|
419
|
|
Inventory
|
118
|
Costofsales
|
511
|
|
Furniture
Accum. Dep Furniture
|
151
152
|
Salaryexpense
Electricityandgasexpense
|
531
541
|
|
Accountspayable
|
211
|
Depreciation Expense
|
551
|
|
Salaries Accrued /Payable
GST Clearing
Capital
|
214
240
301
|
Supplies expense
Insurance Expense
|
561
571
|
Open these accounts in the subsidiary ledgers: Accounts receivable ledger-Redlands Associates, P. E. Freetime and S. D. Cooper.
Post daily to the Accounts Receivable ledger. On 31 May post to the general ledger.
Total each column of the special journals. Show that total debits equal total credits in each special journal.
Balance the total of the customer account balances in the Accounts Receivable ledger against Accounts Receivable in the General ledger.
Attachment:- Assignment Two Sales Cash Rec General Journals.rar