Question

Zion Ltd started operation on 1^st May 2020, buying and selling Computers at Macquarie Park. Journalise the following transactions for the month of May for Zion Ltd using a period inventory system (assumes 10% GST applies):

May 2 Purchased 150 computers for $1,200 (GST exclusive) each on account from Officeworks.

May 7 Returned 14 damaged computers purchased from Officeworks.

May 10 Sold 50 computers for $2,000 (GST exclusive) each on account.

May 15 A customer returned 4 computers sold on May 10.

Narrations are not required.

Answer 1

Date	Account Title	Debit	Credit
May 2	Purchases	180000
	GST on Purchases	18000
	Account Payable- Office works		198000
May 7	Account Payable- Office works	18480
	Purchases Return		16800
	GST on Purchases		1680
May 10	Account Receivables	110000
	Sales		100000
	GST on Sales		10000
May 15	Sales Return	8000
	GST on Sales	800
	Account Receivables		8800