Comprehensive Journal Posting and Reconciliation

Question:

This is a comprehensive question, using all the journals, posting to general ledger and subsidiary accounts receivable and accounts payable ledgers and reconciling the subsidiary ledgers with the control accounts in the general ledger.

Answer:

CASH PAYMENTS JOURNAL
Date		Account	Cheq no	Post Ref	Debits				Credits
					Accounts Payable	Inventory	Salary expense	Other Accounts	Cash at Bank	Discount Received*
					Accounts Payable	Inventory	Salary expense	Other Accounts	Cash at Bank	Discount Received*	Mar	5	Furniture	473	151	1080.00	1,080.00
Mar	10	Inventory	474	118		770.00			770.00
Mar	13	Delwood Plaza	475	211	5,900.00				5,723.00	177.00
Mar	22	Prepaid Insurance	476	117				1,345.00	1,345.00
Mar	25	Electricity and gas expense	477	541				380.00	380.00
Mar	30	Houghton Supplies	478	211	680.00				680.00
Mar	31	Salary expense	479	531			1,100.00		1,100.00


					6,580.00	770.00	1,100.00	2,805.00	11,078.00	177.00
Post Balances to General Ledger accounts					211	118	531	X	111	414
								11,255.00		11,255.00

	* This account has been created additionally as no corresponding account exist for discount received.

SALES JOURNAL

Date

Account

Invoice Number

Post Ref

Terms

Accounts Receivable

Cost of Sales

Mar

L. E. Wooten

191

112 (c)

2/10, n/30

2,350.00

1,390.00

Mar

Canberra Associates

192

112 (a)

2/10, n/30

6,250.00

3,300.00

Mar

J. R. Wakeland

193

112 (b)

2/10, n/30

740.00

410.00

Mar

L. E. Wooten

194

112 (c)

2/10, n/30

1,825.00

970.00

Mar

Canberra Associates

195

112 (a)

2/10, n/30

1,800.00

1,000.00

12,965.00

7,070.00

Post Balances to General Ledger accounts

112 / 411

511 / 118

PURCHASES JOURNAL
Date		Account	Terms	Post Ref	Accounts Payable
Date		Account	Terms	Post Ref	Accounts Payable	Mar	3	Delwood Plaza	3/10, n/60	211 (a)	5,900.00
Mar	20	Jasper Sales	net 30	211 (c)	2,150.00
Mar	28	Houghton Supplies	2/10, n/30	211 (b)	420.00


					8,470.00
Post Balances to General Ledger accounts					118 / 211

GENERAL JOURNAL
Date		Details	Post Ref	Debit	Credit


Mar	13	Supplies	116	680.00
		Houghton Supplies	211		680.00
		(Supplies purchased on credit, terms net end of month)

Mar	17	Sales returns and allowances	413	740.00
		J. R. Wakeland	112		740.00
		(Credit note issued for return of goods)

Mar	17	Inventory	118	410.00
		Cost of Sales	511		410.00
		(Cost of sales reversed on return)

Mar	22	Furniture	151	775.00
		Delwood Plaza	211		775.00
		(Purchase of furniture at credit term 3/10, n/60)

Mar	29	Houghton Supplies	211	420.00
		Inventory	118		420.00
		(Returned defective inventory)

General Ledger

DEBIT			CREDIT
Date	Details	Amt. $	Date	Details	Amt. $
		Cash at Bank A/c 111
31st Mar	Total from cash receipt journal	13,863.00	31st Mar	Total from cash payment journal	11,078.00
			31st Mar	Closing balance	2,785.00

		13,863.00			13,863.00




		Accounts Receivable A/c 112
31st Mar	Total from sales journal	12,965.00	17th Mar	Credit note issued	740.00
			31st Mar	Total from cash receipt journal	10,425.00
			31st Mar	Closing balance	1,800.00
		12,965.00			12,965.00





		Supplies A/c 116
13th Mar	Purchase on credit	680.00	24th Mar	Supplies sold	80
			31st Mar	Closing balance	600.00

		680.00			680.00

		Prepaid Insurance a/c 117
22nd Mar	Insurance purchased	1,345.00
			31st Mar	Closing balance	1,345.00

		1,345.00			1,345.00


		Inventory A/c 118
17th Mar	Inventory returned by client	410.00	29th Mar	Inventory returned by us	420.00
31st Mar	Total from cash payment journal	770.00	31st Mar	Total from cash receipt journal	1,820.00
31st Mar	Total from purchase journal	8,470.00	31st Mar	Total from sales journal	7,070.00
			31st Mar	Closing balance	340.00

		9,650.00			9,650.00

		Furniture A/C 151
5th Mar	Purchased furniture for cash	1080.00
22nd Mar	Purchased furniture on credit	775.00	31st Mar	Closing balance	1,855.00

		1855.00			1,855.00

		Accounts Payable A/c 211
29th Mar	Inventory returned	420.00	13th Mar	Purchase on credit	680.00
31st Mar	Total from cash payment journal	6,580.00	22nd Mar	Purchased furniture on credit	775.00
31st Mar	Closing balance	2,925.00	31st Mar	Total from purchase journal	8,470.00
		9,925.00			9,925.00



		Sales Revenue a/c 411
			31st Mar	Total from cash receipt journal	3,410.00
31st Mar	Closing balance	16,375.00	31st Mar	Total from sales journal	12,965.00

		16,375.00			16,375.00




		Sales discounts 412
31st Mar	Total from cash receipt journal	172.00	31st Mar	Closing balance	172.00

		172.00			172.00



		Sales Returns and Allowances 413
17th Mar	Credit note issued	740.00	31st Mar	Closing balance	740.00

		740.00			740.00

		Discount received - 414
31st Mar	Closing balance	177.00	31st Mar	Total from cash payment journal	177.00

		177.00			177.00

		Interest Revenue A/c 419
31st Mar	Closing balance	120.00	8th Mar	Interest received	120

		120.00			120

		Cost of Sales A/c 511
31st Mar	Total from cash receipt journal	1,820.00	17th Mar	Inventory returned	410.00
31st Mar	Total from sales journal	7,070.00	31st Mar	Closing balance	8,480.00

		8,890.00			8,890.00

		Salary expense 531
31st Mar	Total from cash payment journal	1,100.00	31st Mar	Closing balance	1,100.00

		1,100.00			1,100.00

		Electricity and Gas expense 541
25th Mar	Expesnes paid	380.00	31st Mar	Closing balance	380.00

		380.00			380.00

Accounts Receivable Subsidiary Ledger

DEBIT			CREDIT
Date	Details	Amt. $	Date	Details	Amt. $
		Canberra Associates (a)
9th Mar	Sales on credit	6,250.00	19th Mar	Cash received	6250.00
29th Mar	Sales on credit	1,800.00	31st Mar	Closing balance	1800.00

		8,050.00			8050.00




		JR Wakeland (b)
15th Mar	Sales on credit	740.00	17th Mar	Credit note issued	740.00


		740.00			740.00




		L E Wooten (c)
2nd Mar	Sales on credit	2,350.00	12th Mar	Cash received	2350.00
18th Mar	Sales on credit	1,825.00	31st Mar	Cash received	1825.00

		4,175.00			4,175.00

Accounts Payable Subsidiary Ledger

DEBIT			CREDIT
Date	Details	Amt. $	Date	Details	Amt. $
		Delwood Plaza (a)
13th Mar	Cash paid	5,900.00	3rd Mar	Purchase on credit	5,900.00
31st Mar	Closing balance	775.00	22nd Mar	Purchased furniture on credit	775.00

		6,675.00			6,675.00




		Houghton Supplies (b)
29th Mar	Inventory returned	420.00	13th Mar	Purchase on credit	680.00
30th Mar	Cash paid	680.00	28th Mar	Purchase on credit	420.00

		1,100.00			1,100.00





		Jasper Sales (c)
31st Mar	Closing balance	2,150.00	20th Mar	Purchase on credit	2,150.00

		2,150.00			2,150.00

Reconciliation of subsidiary Accounts Receivable Ledger with General Ledger Control Account for Accounts Receivable

Account name	Balance at month end
Canberra Associates (a)	1800.00
JR Wakeland (b)	0
L E Wooten (c)	0

Balance at month end	1800.00


as per Accounts Receivable Control Account in the General Ledger	1,800.00

Reconciliation of subsidiary Accounts Payable Ledger with General Ledger Control Account for Accounts payable

Account name	Balance at month end
Delwood Plaza (a)	775.00
Houghton Supplies (b)	0
Jasper Sales (c)	2,150.00

Balance at month end	2925.00


as per Accounts Payable Control Account in the General Ledger	2,925.00