Question

Question 2

Although Sahra now pays Stone & Co Accounting Specialists Pty Ltd to manage the accounting function of the business, she likes to prepare a few journals when she has time. The following general journal entries for the business ‘Vacation’ were prepared by Sahra for transactions occurring in October, however she needs your assistance in posting them to the General Ledger. Sahra has posted the opening balances into the general ledger and they are correct.

Required:

Post the General Journals recorded below to the General Ledger provided on the following page. Remember to foot each ledger to determine the ledger balance.

  

Date	Details	Debit ($)	Credit ($)
2 November	I.T. Expense	4 000
	Cash at Bank		500
	Accounts Payable		3 500
	(Upgrade of webpage functionality and layout)
10 November	Equipment	2 895
	Cash at Bank		2 895
	(business purchased speakers for the shop)
16 November	Cash at Bank	285
	Equipment		285
	(Sold old sewing machine for cash)
21 November	Sewing Mannequin	395
	Capital		395
	(Sahra contributed a sewing mannequin from her home to the business)
26 November	Accounts Payable	3 897
	Cash at Bank		3 897
	(Paid for supplies purchased in October)
30 November	Cash at Bank	1 200
	Beachwear Sales		1 200
	(Sales of beachwear at local surfing event)

Post the journals from above to the General Ledger provided below. All ledgers below must be footed (the balance must be made clear either by way of ‘c/d’ / ‘b/d’ notation, the wording ‘balance’ next to the amount, highlight the balance or with a circle around the balance).

Cash at Bank (CAB)

November 1

Balance

23 000

Sewing Mannequin

	Balance $395

Equipment

Accounts Payable

November 1

Balance

1 500

Capital

November 1

Balance

32 000

Beachwear Sales

November 1

Balance

129 320

I.T. Expense

November 1

Balance

6 239

Answer 1

Notes:

1- Opening balances are shown as Balance b/d (for November and December opening balances).

2- Closing balance are shown as Balance c/d (for November closing)

3- All ledger accounts are totaled to calculate closing balance of the ledger account

4- Closing balance of November (Opening balance for December) are shown in bold letters.