QUESTION 1: General Journal, General Ledger, Trial Balance (42 marks} Part A (25 marks)

Aaron Cheney is the sole proprietor of “Tasty Morsels”, a business providing high quality catering services for weddings, special events, corporate functions and private dinners.



Below is a list of transactions that took place during the month of August 2018.

Record each of the following transactions (where required), using the blank General Journal provided on the following pages. Journals must be correctly formatted and include a narration (explanation) for each entry.


August 1            Tasty Morsel paid the August electricity bill of $375 in cash.

August 3            Tasty Morsel purchased 15 white fine china dinner settings at a cost of $225 each. The purchase was paid in cash.

August 5            Tasty Morsel catered a wedding with 250 guests at a price of $110 per head. The bride and groom paid 25% in cash, with the remaining balance due to be paid within 30 days.

August 12            Tasty Morsel purchased a new laptop computer for $1480 on credit, with payment due in full by the end of the month.

August 14           Classic Cleaning Ltd cleaned the kitchen and left an invoice for $240, with payment terms of 30 days.

August 19          Tasty Morsel paid waiting staff wages of $2250.

August 27            Tasty Morsel received the balance owing for the wedding that was catered on August 5.

August 29           Aaron called an emergency plumber to unblock a drain in his home. He paid 5270 using the business bank account.

August 31             Tasty Morsel paid the outstanding amount from the purchase of the laptop computer on August 12.


Date Details Debit ($) Credit ($)



Part B (12.5 marks)


“Pearly Whites” is a dental practice owned and operated by Dr. Phil McCavity. The journal entries listed below for the month of July 2018 have already been completed.

Post the General Journals recorded below to the General Ledgers provided on the following pages. Remember to foot (balance) each ledger to determine the closing balance (refer to hints below).


Date Details Debit ($) Credit ($)
1 July Cash at Bank 43 000  
  Office Equipment 7 000  
  Capital — P. McCavity   50 000
  (The owner, P. McCavity, contributed office equipment costing $7 000 and cosh of 543 000)
5 July Dental Equipment 134 000  
  Cash at Bank   15 200
  Loan   118 800
  (The business purchased dental equipment for $134 000 and paid $15 200 in cash and the balance with a loan)
11 July Drawings 2 000  
  Cash at Bank   2 000
  (The owner, P. McCavity, paid his orthodontist an instalment for his daughter’s braces using the business bank account)
15 July Loan 5 700  
  Cash at Bank   5 700
  (The business repaid $5 700 off the loon raised on 5 July)
25 July Cash at Bank 13 000  
  Accounts Receivable   13 000
  (The business received payment $13 000 for credit sales made in June)
31 July Cash at Bank 20 200  
  Accounts Receivable 17 300  
  Sales   37 500
  (Dental procedures for the month – $20 200 in cash and the remaining balance to be collected from customers)


Hints to assist in completing the ledgers:

  • Do not delete the opening balances given.
  • The ledgers are formatted using tables therefore it is best to navigate through the ledgers using the ‘tab’ function.
  • When using tables, it is often easier to click on the “¶” function so you are able to see the formatting.

It is acceptable to shorten the account names in descriptions i.e. Cash at Bonk = CAB


Cash at Bank (CAB)

July 1 Balance 66 946      



Accounts Receivable (A/R)

July 1 Balance 13 040      



Dental Equipment

July 1 Balance 40 275      



Office Equipment

July 1 Balance 96 000      









      July 1 Balance 464 952



Capital – P McCavity

      July 1 Balance 193 062



Drawings – P McCavity

July 1 Balance 60 600      







Part C (4.5 marks)



Post the updated General Ledger balances calculated in Part B to the Trial Balance below.

Total both the debit and credit columns on completion.


Pearly Whites

Trial Balance

31 July 2018


  Debit ($) Credit ($)
Cash at Bank    
Accounts Receivable    
Inventory 195 768  
Dental Equipment  
Accum Depreciation – Dental Equipment 43 467
Cash Register and Scanning Equipment 67 626
Accum Depreciation – Cash Register and Scanning Equipment 45 126
Office Equipment    
Accounts Payable   26 250
Repairs and Maintenance Payable   14 739
Capital – P. McCavity    
Drawings – P. McCavity    
Sales Returns & Allowances 1 576  
Electricity Expense 29 964  
Telephone Expense 2 050  
Advertising Expense 13 451  
Office Supplies Expense 2 561  
Office Gas Expense 1 129  
Water Expense 5 874  
Discount Allowed 2 863  
Rent Expense 162 897  
Repairs and Maintenance Expense 12 658  
Interest Expense 12 318  

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