E6.6 Vanessa Bosnat uses special journals and a general journal. The following transactions occurred during May 2016.
May 1. V. Bosnat invested $30 000 cash in the business.
May 2. Sold inventory to J. Simon for $12 000 cash. The cost of the inventory sold was $8400.
May 3. Purchased inventory for $18 000 from L.M. Farr using cheque no. 101.
May 14. Paid salary to S. Little $1400 by issuing cheque no. 102.
May 16. Sold inventory on account to B. Jones for $1800, terms n/30. The cost of the inventory sold was $1260.
May 22. A cheque for $18 000 is received from R. Dusto in full for invoice 101; no discount given.
(a) Draw up a multicolumn cash receipts journal (see gure 6A.4, p. 363) and a multicolumn cash payments journal ). (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalised in the cash receipts journal and cash payments journal.
(a) Cash journal (Receipts and payments)
Dr. Cr.
date | Particular | J.F | Cash | Bank | Date | Particular | J.F | Cash | Bank |
(b) Transactions recorded
Dr. Cr.
Date | Particular | J.F | Cash | Bank | Date | Particular | J.F | Cash | Bank |
May 1 | To capital | 30000 | May 3 | By purchases | 18000 | ||||
May 2 | To sales | 12000 | May 14 | By salary | 1400 | ||||
May 22 | To R. Dusto | 1800 | |||||||
General journal
Date | Particular | DEBIT ($) | CREDIT ($) |
May 2 | Cost of goods sold a/c dr. | 8400 | |
To sales a/c | 8400 | ||
(Being goods sold and inventory reduced) | |||
May 16 | B. Jones a/c Dr. | 1800 | |
To sales | 1800 | ||
(Being goods sold on account) | |||
Cost of goods sold a/c dr. | 1260 | ||
To inventory a/c | 1260 | ||
(Being goods sold and inventory reduced) |
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