Question

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

Answer 1

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