Assignment - Principle to Accounting

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Question 1 (Total 10 Marks)

Instructions: Indicate in which journal the transactions given below would be recorded by placing the appropriate journal abbreviation in the space provided.

AbbreviationJournal
GJGeneral Journal
CBCash & Bank Book
SJSales Journal
SRSales Return Journal
PJPurchases Journal
PRPurchases Return Journal
CB
1.Received cash on outstanding amount from customer.
SR
2.Customer returned merchandise sold on account.
CB
3.Sold merchandise to customer for cash.
GJ
4.Owner withdrew merchandise for personal use.
GJ
5.Paid shipping charges on merchandise purchased on account. GJ
6.Purchased office equipment on credit.
PJ
7.Credit purchase from supplier.
GJ
8.Recorded adjusting entries.
SR
9.Returned damage merchandise to supplier which has not paid yet. SJ
10.Sold merchandise to customer on account.

Question 2 (Total 22 Marks)
Instructions: Given the entry information in Silva Trading, prepare appropriate entries for the month of August 2012:

0.Aug.1Sold merchandise for cash $300.

Dr Cash$300

Cr Sales$300

1.Aug.2Purchased merchandise from ABC Co. on account for $5,000; terms 2/10, n/30.

2.Aug.4Sold excess land for $7,000 accepting a 2-year, 12% note. The land was purchased for $7,000 last year.

3.Aug.6Sold merchandise to D. Stone on account for $930, terms 2/10, n/30.

4.Aug.8Accepted a sales return of defective merchandise from D. Stone—credit granted was $280.

5.Aug.11Purchased merchandise from Tanner Hardware on account for $1,800; terms 1/10, n/30.

6.Aug.12Paid freight of $200 on the shipment from ABC Co. in cash.

7.Aug.15Received payment in full from D. Stone by cash.

8.Aug.19Paid ABC Co. in full by cheque.

9.Aug.20Paid Tanner Hardware in full by cheque.

10.Aug.27Purchased office supplies for $250 cash.

Question 2

Answer:

|Date |Account |Debit ($) |Credit ($) | |Aug. 1 |Cash |300 | | | |Sales | |300 | |Aug. 2 |Purchases |5,000 | | | |ABC Co. | |5,000 | |Aug. 4 |Notes receivable |7,000 | | | |Land | |7,000 | |Aug. 6 |D. Stone |930 | | | |Sales | |930 | |Aug. 8 |Sales return |280 | | | |D. Stone | |280 | |Aug. 11 |Purchases |1,800 | | | |Tanner Hardware | |1,800 | |Aug. 12 |Carriage inward |200 | | | |Cash...
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