Question

Assignment 2

Accounting Information Systems

Selected accounts from the chart of accounts of Salah Company are shown below.

112 Accounts Receivable

201 Accounts Payable

120 Merchandise Inventory

401 Sales Revenue

157 Equipment

505 Cost of Goods Sold

Salah Company uses special journals and a general journal. The following transaction occurred during September 2017.

Sept. 2 Sold merchandise on account to Ali, invoice no. 101, $620, terms n/30. The cost of the merchandise sold was $420.

10 Purchased merchandise on account from Tarek $650, terms 2/10, n/30.

21 Sold merchandise on account to Salim, invoice no. 102 for $800, terms 2/10, n/30. The cost of the merchandise sold was $480.

25 Purchased merchandise on account from Meriem $860, terms n/30.

26 Sold merchandise on account to Ali, invoice no. 103, $310, terms n/30. The cost of the merchandise sold was $210.

27 Sold merchandise to Ahmed for $700 cash. The cost of the merchandise sold was $400.

29 Purchased office equipment on account from Meriem $6,500.

Instructions:

(a) Record the transaction(s) for September that should be journalized in the sales journal , the purchases journal and the general journal.

(b) Post to both the general and Subsidiary ledger accounts (assume that all accounts have zero beginning balance).

(c) Prove the equality of the posting from the special journals.

Answer 1

Answer a) Sales Journal, Purchase Journal And General Journal.

Sales Journal
Date	Account Debited	Invoice No.	Accounts Receivable (112)	Cost of goods sold (505)
2017			To sales Revenue (401)	To Merchandise Inventory (120)
02. Sept, 2017	Ali	101	620	420
21. Sept, 2017	Salim	102	800	480
26. Sept, 2017	Ali	103	310	210
27. Sept, 2017	Cash	-	700	400
		Total	$2,430	$1,510

.

Purchase Journal
Date	Account Credited To	Invoice No.	Merchandise Inventory (120) DR.
2017			To Account Payable (201) CR.
10. Sept, 2017	Tarek	-	650
25. Sept, 2017	Meriem	-	860
		Total	$1,510

General Journal
Date	Account	Debit	Credit
29. Sept, 2017	Equipment (157)	6500
	To Accounts Payable (201)		6500
	(Being Office Equipment on Account for $6500)

Answer Subsidiary and General Ledgers

Accounts receivable
Subsidiary Ledgers
Ali
Date	Ref. (Invoice)	Debit	Credit	Balance
02. Sept, 2017	101	620	0	620
26. Sept, 2017	103	310	0	930
Salim
Date	Ref. (Invoice)	Debit	Credit	Balance
21. Sept, 2017	102	800	0	800
Ahmed
Date	Ref. (Invoice)	Debit	Credit	Balance
27. Sept, 2017	-	700	700	0
Accounts Receivable
General Ledger
Date	Ref. (Invoice)	Debit	Credit	Balance
02. Sept, 2017	101	620	0	620
21. Sept, 2017	102	800	0	1420
26. Sept, 2017	103	310	0	1730
27. Sept, 2017	-	700	700	1730
Accounts Payable
Subsidiary Ledger
Tarek
Date	Ref.	Debit	Credit	Balance
10. Sept, 2017	-	0	650	(650.00)
Meriem
Date	Ref.	Debit	Credit	Balance
25. Sept, 2017	-	0	860	(860.00)
Equipment (157)
Date	Ref.	Debit	Credit	Balance
29. Sept, 2017	-	0	6500	(6,500.00)
Accounts Payable
General Ledger
Date	Ref.	Debit	Credit	Balance
10. Sept, 2017	-	0	650	(650.00)
25. Sept, 2017	-	0	860	(1,510.00)
29. Sept, 2017	-	0	6500	(8,010.00)