Case Study - Part 1
a) You are working for the partnership of A Blake, C Dairy & E Ferguson. You are required to prepare general journal entries for the following transactions and post them to the general ledger.
Transactions that have occurred during the year:
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July 2
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Partnership is established. Each partner contributes $20,000 cash. Paid Palmer Real Estate for quarterly rent $2,860
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August 5
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Bought stock from Finn Traders $26,220 (on credit)
note: Finn Traders is not registered for GST
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October 2
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Paid Palmer Real Estate for quarterly rent $2,860
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December 10
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Bought Office Furniture from Harvey Norman, on credit.
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21
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Paid Finn Traders account $26,220
Paid Harvey Norman $3,057 to clear debt (no discount was applicable)
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January 2
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Paid Palmer Real Estate for quarterly rent $2,860
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February 2
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A Blake withdrew cash $2,000
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8
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Sold stock on credit $9,108 (Cost Price $3,570)
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March 9
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Paid wages $2,850 (net of $400 PAYGW) Received payment from debtor $9,108
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30
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Paid Advertising $1,650
Sold stock on credit $5,500 (Cost Price $2,300)
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April 2
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Paid Palmer Real Estate for quarterly rent $2,860 Received payment from debtor $4,950
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9
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Paid wages $2,850 (net of $400 PAYGW)
Sold stock on credit $13,200 (Cost Price $4,950)
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May 9
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Paid wages $2,850 (net of $400 PAYGW) Received payment from debtor $13,200
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June 9
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Paid wages $2,850 (net of $400 PAYGW)
Sold stock on credit $25,080 (Cost Price $7,750)
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29
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Received $1,750 commission revenue (nil GST) Paid wages $2,030 (net of $170 PAYGW)
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Note: The partnership of A Blake, C Dairy & E Ferguson is registered for GST. The partnership's standard payment terms are 10% 7 days Net 30.
b) You are also required to prepare a Trial Balance for the partnership of A Blake, C Dairy & E Ferguson as at 30 June.