Question

During March, the business engaged in the following transactions, All figures are GST (GST is 15%)inclusive where applicable:

Journalise each transaction. Key journal entries by transaction letter, using the format below:

General Journal

Transactions		Accounts	Debit ($)	Credit ($)

1 March: Borrowed $45,000 from the bank and signed a bill payable in the name of the business.

2 March: Paid cash of $40,000 to acquire a motor vehicle.

4 March: Performed service for a customer and received cash of $5,000.

10 March: Purchased supplies on credit, $300.

14 March: Performed customer service and earned revenue on credit, $2,600.

Answer 1

Solution:-

Transaction	Date	Accounts	Debit	Credit
Borrowed $45,000 from the bank and signed a bill payable in the name of the business.	01-Mar	Cash    dr	45,000
		To Notes payable     cr.		45,000
(GST Not applicable on this)
Paid cash of $40,000 to acquire a motor vehicle.	02-Mar	Motor Vehicle dr	40,000
		To Cash   cr		40,000
If GST shown separately		Motor Vehicle dr	34,783
		Input Tax Credit dr	5,217
		To Cash   cr		40,000
Performed service for a customer and received cash of $5,000	04-Mar	Cash dr	5,000
		To Service Revenue cr		5,000
If GST shown separately		Cash dr	5,000
		To Service Revenue cr		4,348
		To GST Payable   cr		652
Purchased supplies on credit, $300.	10-Mar	Purchases A/c dr	300
		To A/cs Payable (Creditors) cr		300
If GST shown separately		Purchases A/c dr	261
		Input Tax Credit dr	39
		To A/cs Payable (Creditors) cr		300
Performed customer service and earned revenue on credit, $2,600	14-Mar	A/cs Receivable   dr	2,600
		To Service Revenue cr		2,600
If GST shown separately		A/cs Receivable   dr	2,600
		To Service Revenue cr		2,261
		To GST Payable cr		339