In: Accounting
We have purchased 20 items of inventory at $2,500 each on 26 July 2019 from Suppliers on account. Ignore GST
Suppliers is your only creditor. Assume a perpetual inventory system, as per the Practice Set.
All numerical answers should consist of digits from 0 to 9 (no symbols, spaces or commas).
Dates should be entered as dd/mm/yy (eg 01/06/19).
Each box must have an answer - If it would normally be blank enter 0.
Select whether the following are impacted by this transaction.
Inventory AnswerYesNo
Subsidiary Ledgers AnswerYesNo
Which special journal will this transaction be recorded in? AnswerSalesPurchasesCash ReceiptsCash PaymentsGeneral
What is the most likely date that this transaction will be posted to:
The General Ledger: Answer
The Subsidiary Ledger: Answer
Enter the transaction into the journal provided, update inventory and post to the subsidiary and general ledger.
Purchases Journal (P1)
AnswerDebitsCredits | AnswerCreditsDebits | |||||
Date |
Account Credited |
Terms |
Post Ref |
Inventory |
Supplies |
Accounts Payable |
Answer | Answer | AnswerT0 | Answer | Answer | Answer |
Inventory Record
Purchases | Sales | Inventory on Hand | |||||||
Date | No. of Units | Unit Cost | Total Cost | No. of Units | Cost | Total Cost | No. of Units | Unit Cost | Total Cost |
01/07/19 | 5 | 2000 | 10000 | ||||||
Answer | Answer | Answer | Answer | Answer | Answer | Answer | |||
Accounts Payable Subsidiary Ledger
Suppliers | ||||
Date | Ref | Debit | Credit | Balance |
01/07/19 | 20000 | |||
Answer | Answer | Answer | Answer | Answer |
General Ledger
Accounts Payable | ||||
Date | Ref | Debit | Credit | Balance |
01/07/19 | 20000 | |||
Answer | Answer | Answer | Answer | Answer |
Inventory | ||||
Date | Ref | Debit | Credit | Balance |
01/07/19 | 35000 | |||
Answer | Answer | Answer | Answer | Answer |
Assume you pay the full amount owing to Suppliers on 02/08/19.
Complete the journal recording this payment:
Answer Journal (CP1)
AnswerDebitsCredits | AnswerCreditsDebits | |||
Date |
Account Debited |
Post Ref |
Accounts Payable | Cash |
Answer | Answer | Answer | Answer |
Inventory Yes
Subsidiary Ledgers Yes
Which special journal will this transaction be recorded in? PurchasesGeneral
What is the most likely date that this transaction will be posted to:
The General Ledger: 26/07/09
The Subsidiary Ledger: 26/07/09
Purchases Journal (P1)
AnswerDebitsCredits | AnswerCreditsDebits | |||||
Date |
Account Credited |
Terms |
Post Ref |
Inventory |
Supplies |
Accounts Payable |
26/07/19 | Accounts Payable | 0 | 20 | Inventory | 50000 |
Inventory Record
Purchases | Sales | Inventory on Hand | |||||||
Date | No. of Units | Unit Cost | Total Cost | No. of Units | Cost | Total Cost | No. of Units | Unit Cost | Total Cost |
01/07/19 | 5 | 2000 | 10000 | ||||||
26/07/19 | 20 | 2500 | 50000 | 20 | 2500 | 50000 | |||
Accounts Payable Subsidiary Ledger
Suppliers | ||||
Date | Ref | Debit | Credit | Balance |
01/07/19 | 20000 | |||
26/07/19 | 0 | 0 | 50000 | 50000 |
General Ledger
Accounts Payable | ||||
Date | Ref | Debit | Credit | Balance |
01/07/19 | 20000 | |||
26/07/19 | 0 | 0 | 50000 | 70000 |
Inventory | ||||
Date | Ref | Debit | Credit | Balance |
01/07/19 | 35000 | |||
26/07/19 | 0 | 50000 | 0 | 85000 |
payment of the full amount owing to Suppliers on 02/08/19.
Journal entry for this payment:
Answer Journal (CP1)
Debits | Credits | |||
Date |
Account Debited |
Post Ref |
Accounts Payable | Cash |
02/08/19 | Accounts Payable | 70000 | 70000 |