QUESTION 1: General Journal, General Ledger, Trial Balance (35 marks)

Paul is the sole proprietor of Auldana Custom Concrete Foundations (ACCF), a specialist construction company.  The following is a list of transactions that took place during the month of May 2016.



May 1                    The business purchased additional equipment costing $22,400 by increasing the loan with the bank.


May 5                    The construction of a housefoundation was completed and the client was invoiced. The client paid $8,500 in cash and agreed to pay the remaining $33,500 over the following ten months.


May 10                                 Paul withdrew $1,200 cash for personal use.


May 15                                 An Advertising Bill for $1,680 was paid for in cash.


May 17                 Paul hurt his wrist at work and visited his local Doctor. The consultation cost $65, which he paid for using his own credit card.


May 23                 The business paid $750 off the loan owed for the purchase of equipment on May 1.


May 29                 The business received $3,350 from the debtor relating to the transaction on May 5.





  1. Prepare the General Journal entries where required to record each transaction.  Include a narration (explanation) for each journal entry.                                                   (14 marks)



  1. Post thejournals from (a) above to the General Ledgers provided, ensuring a balance for each ledger is included.                                                                                                                (14 marks)



  1. Complete the attached Adjusted Trial Balance provided for the account balances calculated in the General Ledger from (b) above.                                                                                (7 marks)


  1. Prepare theGeneral Journal entries where required to record each transaction.  Include a narration (explanation) for each journal entry.



Date Details Debit ($) Credit ($)




  1. Post the journals from (a) above to the General Ledger provided.   All ledgers below must be footed.


Cash at Bank

May 1 Balance 5817


Accounts Receivable

May 1 Balance 16896      



May 1 Balance 46800      


Drawings – ACCF

May 1  Balance 28 080



      May 1 Balance 98 625





  May 1 Balance 664800



Advertising Expense

May 1 Balance 26910      






  1. Complete the attached Adjusted Trial Balance provided. Please total both the debit and credit column on completion.




AS AT 31 MAY 2016

Debit ($) Credit ($)
Cash at Bank
Accounts Receivable
Inventory 140400
Prepaid Insurance 4914
Office Supplies on hand 3276
Furniture & Fittings 21 030
Accumulated Depreciation – Furniture &Fittings 11 934
Accumulated Depreciation –  Equipment 18720
Accounts Payable 27 027
Loan Payable
Paul’s ACCF – Capital 54 972
Paul’s ACCF – Drawings
Sales Revenue
Sales Returns and Allowances 9924
Cost of Sales 412308
Discount received 12957
Freight inwards 9360
Sales Salary Expense 68328
Delivery Expense 18252
Advertising Expense
Rent Expense 28 548
Office Salaries Expense 33750
Electricity Expense 7 656
Discount Allowed 6786


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