Q2.

Perpetual Inventory System - GST version (10 Marks)

On 28 February 2019, Darwin-based entity, Phonee Partners, had inventory of 480 phones at a
total cost of $153 600. The business maintains a perpetual inventory system. The following
transactions occurred during March 2019: Assume the business is registered for GST.

Phonee Partner’s chart of accounts contained the following accounts: Cash at Bank, Sales,
Accounts Receivable, Discount Allowed, Inventory, Sales Returns and Allowances, Accounts
Payable, Cost of Sales, Discount Received, GST Payable, GST Receivable.

Required
Prepare journal entries for the above transactions for the month of March 2019 for Phonee
Partners. (10 Marks)

Solution 1
i)
General ledger accounts

Account Receivable 1200

Post Post
Date Explanation Debit Date Explanation Credit
Ref Ref
05-Apr- $ 30-Apr- $
B. Morran SJ Balance c/d
20 2,508.00 20 8,756.00
16-Apr- $
Bryde Ltd SJ
20 2,904.00
26-Apr- $
G Green SJ
20 2,024.00
29-Apr- $
Bryde Ltd SJ
20 1,320.00
$ $
8,756.00 8,756.00
 Account Payable (2200)
Post Post
Date Explanation Debit Date Explanation Credit
Ref Ref
$ 05-Apr-
30-Apr-20 Balance c/d Smythe Ltd PJ $ 1,650.00
3,201.00 20
08-Apr-
Ellis Ltd PJ $ 858.00
20
19-Apr-
R. Rober PJ $ 693.00
20
$
$ 3,201.00
3,201.00

GST Payable(2300)
Inv Inv
Date Explanation Debit Date Explanation Credit
No. No.
$ 10-Apr-
30-Apr-20 Balance c/d Sale 345 $ 228.00
796.00 20
16-Apr-
Sale 346 $ 264.00
20
26-Apr-
Sale 347 $ 184.00
20
29-Apr-
Sale 348 $ 120.00
20
$
$ 796.00
796.00

GST Receivable(1300)
Inv Inv
Date Explanation Debit Date Explanation Credit
No. No.
$ 30-Apr- $
05-Apr-20 Purchase 354 Balance c/d
150.00 20 291.00
$
08-Apr-20 376
78.00
$
19-Apr-20 828
63.00
$ $
291.00 291.00

(ii)
Purchase Journal(5100)
Invoice GST Accounts
Date Account Terms Purchases
No. Receivable Payable
Smythe 2/10
05-Apr-20 354 $ 1,500.00 $ 150.00 $ 1,650.00
Ltd n/30
 2/10
08-Apr-20 376 Ellis Ltd $ 780.00 $ 78.00 $ 858.00
n/30
2/10
19-Apr-20 828 R. Rober $ 630.00 $ 63.00 $ 693.00
n/30
Total $ 2,910.00 $ 291.00 $ 3,201.00

Sales Journal (4100)

Invoice GST Accounts
Date Account Terms Sales
No. Payable Receivable
B. $
10-Apr-20 345 $ 228.00 $ 2,508.00
Morran 2,280.00
Bryde $
16-Apr-20 346 $ 264.00 $ 2,904.00
Ltd 2,640.00
$
26-Apr-20 347 G Green $ 184.00 $2,024.00
1,840.00
Bryde $
29-Apr-20 348 $ 120.00 $ 1,320.00
Ltd 1,200.00
$
Total $ 796.00 $ 8,756.00
7,960.00

(iii)
Journal Entries
Date Particulars Debit Credit
05-Apr-20 Inventory 1500
GST Receivable 150
Account Payable 1650
Purchase Merchandise on credit from Smythe
Ltd

08-Apr-20 Inventory 780

GST Receivable 78
Account Payable 858
Purchase Merchandise on credit from Ellis Ltd

10-Apr-20 Account Receivable 2508

Inventory 2280
GST Payable 228
 Sold Merchandise on credit
to B Marron

16-Apr-20 Account Receivable 2904

Inventory 2640
GST Payable 264
Sold Merchandise on credit
to Bryde Ltd

19-Apr-20 Inventory 630

GST Receivable 63
Account Payable 693
Purchased Merchandise on
credit R Robber

26-Apr-20 Account Receivable 2024

Inventory 1840
GST Payable 184
Sold Merchandise on credit
to G Green

29-Apr-20 Account Receivable 1320

Inventory 1200
GST Payable 120
Sold Merchandise on credit
to Bryde Ltd

(iv)
Accounts payable subsidiary ledger
Smythe Ltd
Date Post Ref Debit Credit Balance
05-Apr-20 PJ $ 1,650.00 $ 1,650.00

Ellis Ltd
Date Post Ref Debit Credit Balance
08-Apr-20 PJ $ 858.00 $ 858.00

R. Rober
Date Post Ref Debit Credit Balance
19-Apr-20 PJ $ 693.00 $ 693.00
 Schedule of account
Receivable on 30 Apr
Smythe Ltd $ 1,650.00
Ellis Ltd $ 858.00
R. Rober $ 693.00
Total $ 3,201.00

Accounts receivable subsidiary ledger

B. Morran
Date Post Ref Debit Credit Balance
05-Apr-20 SJ $ 2,508.00 $ 2,508.00

Bryde Ltd
Date Post Ref Debit Credit Balance
16-Apr-20 SJ $ 2,904.00 $ 2,904.00
29-Apr-20 SJ $ 1,320.00 $ 4,224.00

G Green
Date Post Ref Debit Credit Balance
26-Apr-20 SJ $ 2,024.00 $ 2,024.00

Schedule of account
receivable on 30 Apr

B. Morran $ 2,508.00
Bryde Ltd $ 4,224.00
G Green $ 2,024.00
Total $ 8,756.00