C hapter 19: The journal

Contents of chapter
This chapter explains the nature of the journal. It also demonstrates some of the uses which can be made of it.

Questions about the journal have always been badly answered by accountancy students, at all levels.

Following the advice in Section 19.8, showing workings and then the answer, students should do far better than
before. Warn them that they MUST put the headings ‘Workings’ and ‘Answers’; otherwise, the examiner may well
take the workings as being their answer.

Notes for teachers

Students get needlessly confused about the journal. They should understand:
1
IT IS A FORM OF DIARY ONLY.

For certain kinds of transactions, the entries need explanation. These explanations are shown in the
journal. The format is:

Dr Cr
$ $
State which account is to be debited XXX
State which account is to be credited XXX
Narrative: the explanation of the entries

All journal entries contain:

2
• The date
• The name of the account(s) to be debited and the amount(s)
• The name of the account(s) to be credited and the amount(s)
• A description and an explanation of the transaction
• A reference number given for the source documents

For most students it is easier if they:

3
(i) First, work out what the transactions are in a T-account form.
(ii) Second, write up the journal.

Students should remember that the journal is used to record items which do not pass through the other
4
books of original entry. The main uses of the journal are shown in Section 19.3.

102
Answers to MCQs and exercises
19.1 B 19.2 C 19.3 D 19.4 C 19.5 D

19.6
The Journal
Dr Cr
20X8 $ $
Jan 1 Buildings 20,000
Fixtures 9,000
Stock 1,275
Debtors: K Sing 492
L Mok 1,360
Bank 9,134
Cash 42
Creditors: W Ng 545
T Wing 292
Loan from T Lee 2,400
Capital 38,066
41,303 41,303

Cash Book
Cash Bank
20X8 $ $
Jan 1 Balances 42 9,134

Sales Ledger
K Sing
20X8 $
Jan 1 Balance 492

L Mok
20X8 $
Jan 1 Balance 1,360

Purchases Ledger
W Ng
20X8 $
Jan 1 Balance 545

T Wing
20X8 $
Jan 1 Balance 292

General Ledger
Buildings
20X8 $
Jan 1 Balance 20,000

Fixtures
20X8 $
Jan 1 Balance 9,000

103
 Stock
20X8 $
Jan 1 Balance 1,275

Loan from T Lee

20X8 $
Jan 1 Balance 2,400

Capital
20X8 $
Jan 1 Balance 38,066

19.7X
The Journal
Dr Cr
20X9 $ $
May 1 Stock 3,460
Fixtures 2,800
Machinery 3,650
Debtors: W Sun 45
T Sze 275
Bank 1,384
Cash 98
Creditors: T Wong 722
W Chan 240
Capital 10,750
11,712 11,712

Cash Book
Cash Bank
20X9 $ $
May 1 Balances 98 1,384

Sales Ledger
W Sun
20X9 $
May 1 Balance 45

T Sze
20X9 $
May 1 Balance 275

Purchases Ledger
T Wong
20X9 $
May 1 Balance 722

W Chan
20X9 $
May 1 Balance 240

General Ledger
Stock
20X9 $
May 1 Balance 3,460

104
 Fixtures
20X9 $
May 1 Balance 2,800

Machinery
20X9 $
May 1 Balance 3,650

Capital
20X9 $
May 1 Balance 10,750

19.8
The Journal
Dr Cr
20X5 $ $
May 1 Motor vehicle 6,790
Chan Garage 6,790
Bought a motor vehicle on credit.
" 8 Unique Offices 490
Office furniture 490
Returned office furniture to supplier.
" 14 Drawings 45
Purchases 45
Drawings of goods.
" 28 Drawings 76
Insurance 76
Insurance paid by the business was in respect of the owner.
" 29 Machinery 980
Systems Accelerated 980
Bought machinery on credit.

19.9X
The Journal
Dr Cr
20X7 $ $
Apr 1 Fixtures 1,809
W Hung 1,809
Bought fixtures on credit.
" 4 Drawings 500
Purchases 500
Drawings of goods.
" 9 Purchases 28
Drawings 28
Returned goods taken as drawings.
" 12 Office equipment 500
K Lee 500
Accepted some office equipment in full settlement of debt.
" 18 W Hung 65
Fixtures 65
Returned some fixtures to supplier.
" 30 Office equipment 2,190
Super Offices 2,190
Bought office equipment on credit.

105
 19.10
The Journal
Dr Cr
20X6 $ $
May 1 Premises 2,000
Van 450
Fixtures 600
Stock 1,289
Debtors:
T Hung 40
C Ng 180
Bank 1,254
Cash 45
Creditors:
W Yiu 60
Y Hop 200
Capital 5,598
5,858 5,858
" 14 Van 300
Better Motors 300

Cash Book
Discount Cash Bank Discount Cash Bank
20X6 $ $ $ 20X6 $ $ $
May 1 Balances 45 1,254 May 1 Rent 15
" 16 T Hung 2 38 " 4 Motor expenses 13
" 16 C Ng 11 209 " 7 Drawings 20
" 16 K Oi 2 38 " 24 W Yiu 4 76
" 16 Sunflower Ltd 4 76 " 24 Y Hop 10 190
" 24 A Wing 3 57
" 27 Salaries 56
" 30 Rates 66
" 31 Better Motors 300
" 31 Balance c/f 12 855
19 45 1,615 17 45 1,615

Purchases Journal Returns Inwards Journal

20X6 $ 20X6 $
May 2 W Yiu 20 May 11 K Oi 16
" 2 T Lee 56 " 11 Sunflower Ltd 18
" 2 H Ho 38 " 31 Transferred to returns inwards account 34
" 2 A Wing 69
" 22 J Wang 89
" 22 Blue Sky Co 72 Returns Outwards Journal
" 31 Transferred to purchases account 344 20X6 $
May 19 A Wing 9
" 31 Transferred to returns outwards account 9
Sales Journal
20X6 $
May 3 K Oi 56
" 3 T Sun 78
" 3 Sunflower Ltd 98
" 3 K Kwan 48
" 3 L Lau 118
" 3 C Ng 40
" 9 T Sun 22
" 9 L Ping 67
" 31 Transferred to sales account 527

106
Purchases Ledger T Sun
W Yiu $ $
$ $ (3) Sales 78 (31) Balance c/f 100
(24) Bank 76 (1) Balance 60 (9) Sales 22
(24) Discounts received 4 (2) Purchases 20 100 100
80 80
Sunflower Ltd
Y Hop $ $
$ $ (3) Sales 98 (11) Returns inwards 18
(24) Bank 190 (1) Balance 200 (16) Bank 76
(24) Discounts received 10 (16) Discounts allowed 4
200 200 98 98

T Lee K Kwan
$ $ $ $
(31) Balance c/f 56 (2) Purchases 56 (3) Sales 48 (31) Balance c/f 48

H Ho L Lau
$ $ $ $
(31) Balance c/f 38 (2) Purchases 38 (3) Sales 118 (31) Balance c/f 118

A Wing L Ping
$ $ $ $
(19) Returns outwards 9 (2) Purchases 69 (9) Sales 67 (31) Balance c/f 67
(24) Bank 57
(24) Discounts received 3 General Ledger
69 69 Premises
$ $
J Wang (1) Balance 2,000 (31) Balance c/f 2,000
$ $
(31) Balance c/f 89 (22) Purchases 89 Van
$ $
Blue Sky Co (1) Balance 450 (31) Balance c/f 750
$ $ (14) Better Motors 300
(31) Balance c/f 72 (22) Purchases 72 750 750

Sales Ledger Fixtures

T Hung $ $
$ $ (1) Balance 600 (31) Balance c/f 600
(1) Balance 40 (16) Bank 38
(16) Discounts allowed 2 Stock
40 40 $ $
(1) Balance 1,289 (31) Balance c/f 1,289
C Ng
$ $ Capital
(1) Balance 180 (16) Bank 209 $ $
(3) Sales 40 (16) Discounts allowed 11 (31) Balance c/f 5,598 (1) Balance 5,598
220 220
Rent
K Oi $ $
$ $ (1) Bank 15 (31) Balance c/f 15
(3) Sales 56 (11) Returns inwards 16
(16) Bank 38 Motor Expenses
(16) Discounts allowed 2 $ $
56 56 (4) Cash 13 (31) Balance c/f 13

107
 Drawings K Yuk
$ $ Trial Balance as at 31 May 20X6
(7) Cash 20 (31) Balance c/f 20 $ $
Bank 855
Cash 12
Better Motors
T Lee 56
$ $ H Ho 38
(31) Bank 300 (14) Van 300 J Wang 89
Blue Sky Co 72
Salaries T Sun 100
K Kwan 48
$ $
L Lau 118
(27) Bank 56 (31) Balance c/f 56
L Ping 67
Premises 2,000
Rates Van 750
$ $ Fixtures 600
(30) Bank 66 (31) Balance c/f 66 Stock 1,289
Capital 5,598
Rent 15
Discounts Allowed
Motor expenses 13
$ $ Drawings 20
(31) Total for the month 19 (31) Balance c/f 19 Salaries 56
Rates 66
Discounts Received Discounts allowed 19
Discounts received 17
$ $ Purchases 344
(31) Balance c/f 17 (31) Total for the month 17 Sales 527
Returns inwards 34
Purchases Returns outwards 9
$ $ 6,406 6,406
(31) Total for the month 344 (31) Balance c/f 344

Sales
$ $
(31) Balance c/f 527 (31) Total for the month 527

Returns Inwards
$ $
(31) Total for the month 34 (31) Balance c/f 34

Returns Outwards
$ $
(31) Balance c/f 9 (31) Total for the month 9

108
19.11X
The Journal Sales Journal
Dr Cr 20X8 $
20X8 $ $ Jul 2 T Sin 112
Jul 1 Buildings 12,000 " 2 Yellow Rose Ltd 240
Fixtures 2,800 " 2 L Ho 100
Motor vehicles 7,200 " 2 H Chow 160
Stock 1,355 " 16 L Ho 190
Debtors: H Chow 440 " 16 W Young 340
T Sin 688 " 31 Transferred to sales account 1,142
L Ho 60
Bank 4,564
Cash 170 Purchases Journal
Loan from W Ming 4,000 20X8 $
Creditors: K Yip 120 Jul 6 T Ngai 70
T Ngai 543 " 6 W Lee 500
W Lee 80 " 6 Lok Sauce Co 60
Capital 24,534 " 6 K Yip 200
29,277 29,277 " 18 W Lee 420
" 18 T Ngai 90
" 11 Fixtures 1,000 " 31 Transferred to purchases account 1,340
Superfittings Ltd 1,000

Returns Inwards Journal Returns Outwards Journal

20X8 $ 20X8 $
Jul 23 T Sin 27 Jul 24 T Ngai 140
" 27 H Chow 40 " 24 W Lee 92
" 31 Transferred to returns inwards account 67 " 31 Transferred to returns outwards account 232

Cash Book
Discount Cash Bank Discount Cash Bank
20X8 $ $ $ 20X8 $ $ $
Jul 1 Balance 170 4,564 Jul 1 Motor expenses 133
" 4 Capital 800 " 8 Postage 167
" 29 H Chow 30 530 " 14 Repairs 120
" 29 L Ho 18 332 " 21 Telephone 199
" 25 Drawings 200
" 28 K Yip 16 304
" 28 Lok Sauce Co 3 57
" 29 Wages 220
" 30 Superfittings Ltd 600
" 31 Motor vehicles 2,000
" 31 Balance c/f 184 2,212
48 970 5,426 19 970 5,426

Sales Ledger
H Chow L Ho
20X8 $ 20X8 $ 20X8 $ 20X8 $
Jul 1 Balance 440 Jul 27 Returns inwards 40 Jul 1 Balance 60 Jul 29 Bank 332
" 2 Sales 160 " 29 Bank 530 " 2 Sales 100 " 29 Discounts allowed 18
" 29 Discounts allowed 30 " 16 Sales 190
600 600 350 350

T Sin Yellow Rose Ltd

20X8 $ 20X8 $ 20X8 $ 20X8 $
Jul 1 Balance 688 Jul 23 Returns inwards 27 Jul 2 Sales 240 Jul 31 Balance c/f 240
" 2 Sales 112 " 31 Balance c/f 773
800 800

109
 W Young Motor Vehicles
20X8 $ 20X8 $ 20X8 $ 20X8 $
Jul 16 Sales 340 Jul 31 Balance c/f 340 Jul 1 Balance 7,200 Jul 31 Balance c/f 9,200
" 31 Bank 2,000
Purchases Ledger 9,200 9,200
K Yip
20X8 $ 20X8 $ Stock
Jul 28 Bank 304 Jul 1 Balance 120 20X8 $ 20X8 $
[($120 + $200) " 6 Purchases 200 Jul 1 Balance 1,355 Jul 31 Balance c/f 1,355
× 0.95]
" 28 Discounts received 16
Loan from W Ming
320 320
20X8 $ 20X8 $
Jul 31 Balance c/f 4,000 Jul 1 Balance 4,000
T Ngai
20X8 $ 20X8 $ Motor Expenses
Jul 24 Returns outwards 140 Jul 1 Balance 543
20X8 $ 20X8 $
" 31 Balance c/f 563 " 6 Purchases 70
Jul 1 Bank 133 Jul 31 Balance c/f 133
" 18 Purchases 90
703 703
Postage

W Lee 20X8 $ 20X8 $

Jul 8 Cash 167 Jul 31 Balance c/f 167
20X8 $ 20X8 $
Jul 24 Returns outwards 92 Jul 1 Balance 80
" 31 Balance c/f 908 " 6 Purchases 500 Superfittings Ltd
" 18 Purchases 420 20X8 $ 20X8 $
1,000 1,000 Jul 30 Bank 600 Jul 11 Fixtures 1,000
" 31 Balance c/f 400
Lok Sauce Co 1,000 1,000

20X8 $ 20X8 $
Jul 28 Bank ($60 × 0.95) 57 Jul 6 Purchases 60 Repairs
" 28 Discounts received 3 20X8 $ 20X8 $
60 60 Jul 14 Bank 120 Jul 31 Balance c/f 120

General Ledger Telephone

Capital 20X8 $ 20X8 $
20X8 $ 20X8 $ Jul 21 Cash 199 Jul 31 Balance c/f 199
Jul 31 Balance c/f 25,334 Jul 1 Balance 24,534
" 4 Cash 800 Drawings
25,334 25,334 20X8 $ 20X8 $
Jul 25 Cash 200 Jul 31 Balance c/f 200
Buildings
20X8 $ 20X8 $ Wages
Jul 1 Balance 12,000 Jul 31 Balance c/f 12,000 20X8 $ 20X8 $
Jul 29 Cash 220 Jul 31 Balance c/f 220
Fixtures
20X8 $ 20X8 $ Sales
Jul 1 Balance 2,800 Jul 31 Balance c/f 3,800 20X8 $ 20X8 $
" 11 Superfittings Ltd 1,000 Jul 31 Balance c/f 1,142 Jul 31 Total for the month 1,142
3,800 3,800
Purchases
20X8 $ 20X8 $
Jul 31 Total for the month 1,340 Jul 31 Balance c/f 1,340

110
 Returns Inwards T Wai
20X8 $ 20X8 $ Trial Balance as at 31 July 20X8
Jul 31 Total for the month 67 Jul 31 Balance c/f 67 Dr Cr
$ $
Sales 1,142
Returns Outwards
Purchases 1,340
20X8 $ 20X8 $ Returns inwards 67
Jul 31 Balance c/f 232 Jul 31 Total for the month 232 Returns outwards 232
Bank 2,212
Discounts Allowed Cash 184
Debtors: T Sin 773
20X8 $ 20X8 $
Yellow Rose Ltd 240
Jul 31 Total for the month 48 Jul 31 Balance c/f 48
W Young 340
Creditors: T Ngai 563
Discounts Received W Lee 908
20X8 $ 20X8 $ Capital 25,334
Jul 31 Balance c/f 19 Jul 31 Total for the month 19 Buildings 12,000
Fixtures 3,800
Motor vehicles 9,200
Stock 1,355
Loan from W Ming 4,000
Motor expenses 133
Postage 167
Superfittings Ltd 400
Repairs 120
Telephone 199
Drawings 200
Wages 220
Discounts allowed 48
Discounts received 19
32,598 32,598

19.12
The Journal
Dr Cr
20X6 $ $
May 1 Van 15,000
Office equipment 7,200
Machinery 2,400
Stock 1,050
Debtors:
F Chu 360
P Fong 250
Bank 3,560
Cash 656
Loan from Asia Bank 10,000
Creditors:
K Ho 286
M Sze 190
Capital 20,000
30,476 30,476
" 7 Machinery 1,500
Sun Company 1,500

111
 Cash Book
Discount Cash Bank Discount Cash Bank
20X6 $ $ $ 20X6 $ $ $
May 1 Balance 656 3,560 May 3 Rent 1,800
" 11 P Fong 14 336 " 7 Delivery 60
" 15 Sales 350 " 14 Drawings 70
" 28 F Chu 400 " 17 W Kan 45 1,080
" 28 J Tong 29 551 " 17 K Ho 39 741
" 21 Motor expenses 90
" 27 M Sze 190
" 30 Utilities expenses 120
" 30 Travelling expenses 330
" 31 Balance c/f 546 826
43 1,406 4,447 84 1,406 4,447

Purchases Journal Returns Inwards Journal

20X6 $ 20X6 $
May 1 W Kan ($1,300 × 0.9) 1,170 May 8 F Chu 30
" 1 K Ho ($540 × 0.95) 513 " 24 J Tong ($80 × 0.9) 72
" 25 W Kan ($550 × 0.9) 495 " 31 Transferred to returns inwards account 102
" 25 M Sze 200
" 31 Transferred to purchases account 2,378
Returns Outwards Journal
20X6 $
Sales Journal May 9 W Kan ($50 × 0.9) 45
20X6 $ " 9 K Ho ($20 × 0.95) 19
May 4 J Tong ($580 × 0.9) 522 " 31 Transferred to returns outwards account 64
" 4 F Chu 150
" 4 P Fong 100
" 19 J Tong 130
" 19 P Fong ($490 × 0.9) 441
" 31 Transferred to sales account 1,343

Sales Ledger Purchases Ledger

F Chu K Ho
$ $ $ $
(1) Balance 360 (8) Returns inwards 30 (9) Returns outwards 19 (1) Balance 286
(4) Sales 150 (28) Cash 400 (17) Bank 741 (1) Purchases 513
(31) Balance c/f 80 (17) Discounts received
510 510 [($286 + $513 – $19)
× 5%] 39
799 799
P Fong
$ $
(1) Balance 250 (11) Bank 336 M Sze
(4) Sales 100 (11) Discounts allowed $ $
(19) Sales 441 ($350 × 4%) 14 (27) Cash 190 (1) Balance 190
(31) Balance c/f 441 (31) Balance c/f 200 (25) Purchases 200
791 791 390 390

J Tong W Kan
$ $ $ $
(4) Sales 522 (24) Returns inwards 72 (9) Returns outwards 45 (1) Purchases 1,170
(19) Sales 130 (28) Bank 551 (17) Bank 1,080 (25) Purchases 495
(28) Discounts allowed (17) Discounts received
[($522 + $130 [($1,170 – $45) × 4%] 45
– $72) × 5%] 29 (31) Balance c/f 495
652 652 1,665 1,665

112
General Ledger
Van Discounts Allowed
$ $ $ $
(1) Balance 15,000 (31) Balance c/f 15,000 (31) Total for the month 43 (31) Balance c/f 43

Office Equipment Discounts Received

$ $ $ $
(1) Balance 7,200 (31) Balance c/f 7,200 (31) Balance c/f 84 (31) Total for the month 84

Machinery Purchases
$ $ $ $
(1) Balance 2,400 (31) Balance c/f 3,900 (31) Total for the month 2,378 (31) Balance c/f 2,378
(7) Sun Company 1,500
3,900 3,900
Sales

Stock $ $
(31) Balance c/f 1,693 (15) Cash 350
$ $ (31) Total for the month 1,343
(1) Balance 1,050 (31) Balance c/f 1,050
1,693 1,693
Loan from Asia Bank
Returns Inwards
$ $
(31) Balance c/f 10,000 (1) Balance 10,000 $ $
(31) Total for the month 102 (31) Balance c/f 102
Capital
$ $ Returns Outwards
(31) Balance c/f 20,000 (1) Balance 20,000 $ $
(31) Balance c/f 64 (31) Total for the month 64
Rent
$ $ T Yuen
(3) Bank 1,800 (31) Balance c/f 1,800 Trial Balance as at 31 May 20X6
Dr Cr
Sun Company $ $
$ $ Bank 826
(31) Balance c/f 1,500 (7) Machinery 1,500 Cash 546
F Chu 80
P Fong 441
Delivery
M Sze 200
$ $ W Kan 495
(7) Cash 60 (31) Balance c/f 60 Van 15,000
Office equipment 7,200
Drawings Machinery 3,900
$ $ Stock 1,050
(14) Cash 70 (31) Balance c/f 70 Loan from Asia Bank 10,000
Capital 20,000
Motor Expenses Rent 1,800
Sun Company 1,500
$ $ Delivery 60
(21) Cash 90 (31) Balance c/f 90 Drawings 70
Motor expenses 90
Utilities Expenses Utilities expenses 120
$ $ Travelling expenses 330
(30) Cash 120 (31) Balance c/f 120 Discounts allowed 43
Discounts received 84
Travelling Expenses Purchases 2,378
Sales 1,693
$ $
Returns inwards 102
(30) Cash 330 (31) Balance c/f 330
Returns outwards 64
34,036 34,036

113
 19.13X
The Journal Purchases Journal
Dr Cr 20X8 $
20X8 $ $ Sep 1 L Siu ($870 x 0.9) 783
Sep 1 Premises 35,000 " 1 P Tang 280
Machinery 23,500 " 1 F Law ($460 x 0.95) 437
Stock 1,890 " 21 B Lam ($500 x 0.95) 475
Debtor: " 21 N Chow 220
T Ko 394 " 21 V Yau ($1,000 x 0.9) 900
D Wong 443 " 31 Transferred to purchases account 3,095
Cash 1,870
Loan from Star Bank 20,000
Creditor: Sales Journal
V Yau 600 20X8 $
L Siu 237 Sep 3 S Pun ($1,050 x 0.9) 945
Bank 520 " 3 E Chan ($480 x 0.95) 456
Capital 41,740 " 10 D Wong ($340 x 0.95) 323
63,097 63,097 " 10 E Chan 120
" 31 Transferred to sales account 1,844
" 15 Motor vehicle 15,000
Asia Motors 15,000
" 20 Drawings 500 Returns Outwards Journal
Purchases 500 20X8 $
Sep 8 V Yau 40
" 8 P Tang 16
Returns Inwards Journal
" 8 F Law ($20 x 0.95) 19
20X8 $ " 27 B Lam ($40 x 0.95) 38
Sep 13 S Pun ($50 x 0.9) 45
" 31 Transferred to returns outwards account 113
" 13 D Wong ($20 x 0.95) 19
" 31 Transferred to returns inwards account 64

Cash Book
Discount Cash Bank Discount Cash Bank
20X8 $ $ $ 20X8 $ $ $
Sep 1 Balance b/d 1,870 Sep 1 Balance b/d 520
" 2 D Wong 300 " 11 Utilities expenses 290
" 5 T Ko 394 " 11 Rates 540
" 6 Commission received 2,100 " 16 L Siu 51 969
" 17 S Pun 45 855 " 23 V Yau 73 1,387
" 24 Star Bank 10,000 " 28 Motor expenses 480
" 26 Sales 1,000 " 30 Overdraft interest 22
" 30 Balance c/f 860 11,451
45 2,170 14,349 124 2,170 14,349

Sales Ledger
T Ko S Pun
20X8 $ 20X8 $ 20X8 $ 20X8 $
Sep 1 Balance 394 Sep 5 Bank 394 Sep 3 Sales 945 Sep 13 Returns inwards 45
" 17 Bank [($945 – $45)
× 0.95] 855
D Wong
" 17 Discounts allowed 45
20X8 $ 20X8 $
945 945
Sep 1 Balance 443 Sep 2 Cash 300
" 10 Sales 323 " 13 Returns inwards 19
" 30 Balance c/f 447 E Chan
766 766 20X8 $ 20X8 $
Sep 3 Sales 456 Sep 30 Balance c/f 576
" 10 Sales 120
576 576

114
Purchases Ledger
V Yau Star Bank
20X8 $ 20X8 $ 20X8 $ 20X8 $
Sep 8 Returns outwards 40 Sep 1 Balance 600 Sep 30 Balance c/f 30,000 Sep 1 Balance 20,000
" 23 Bank " 21 Purchases 900 " 24 Bank 10,000
[($600 + $900 30,000 30,000
– $40) x 0.95] 1,387
" 23 Discounts received 73 Capital
1,500 1,500
20X8 $ 20X8 $
Sep 30 Balance c/f 41,740 Sep 1 Balance 41,740
L Siu
Commission Received
20X8 $ 20X8 $
Sep 16 Bank [($237 + $783) Sep 1 Balance 237 20X8 $ 20X8 $
× 0.95] 969 " 1 Purchases 783 Sep 30 Balance c/f 2,100 Sep 6 Bank 2,100
" 16 Discounts received 51
1,020 1,020 Utilities Expenses
20X8 $ 20X8 $
Sep 11 Cash 290 Sep 30 Balance c/f 290
P Tang
20X8 $ 20X8 $ Rates
Sep 8 Returns outwards 16 Sep 1 Purchases 280
" 30 Balance c/f 264 20X8 $ 20X8 $
Sep 11 Cash 540 Sep 30 Balance c/f 540
280 280

Motor Vehicle
F Law
20X8 $ 20X8 $
20X8 $ 20X8 $ Sep 1 Asia Motors 15,000 Sep 30 Balance c/f 15,000
Sep 8 Returns outwards 19 Sep 1 Purchases 437
" 30 Balance c/f 418 Asia Motors
437 437
20X8 $ 20X8 $
Sep 30 Balance c/f 15,000 Sep 15 Motor vehicle 15,000
B Lam
20X8 $ 20X8 $ Drawings
Sep 27 Returns outwards 38 Sep 21 Purchases 475 20X8 $ 20X8 $
" 30 Balance c/f 437 Sep 20 Purchases 500 Sep 30 Balance c/f 500
475 475
Motor Expenses
N Chow 20X8 $ 20X8 $
20X8 $ 20X8 $ Sep 28 Cash 480 Sep 30 Balance c/f 480
Sep 30 Balance c/f 220 Sep 21 Purchases 220
Bank Overdraft Interest
20X8 $ 20X8 $
General Ledger
Sep 30 Bank 22 Sep 30 Balance c/f 22
Premises
20X8 $ 20X8 $ Purchases
Sep 1 Balance 35,000 Sep 30 Balance c/f 35,000
20X8 $ 20X8 $
Sep 30 Total for the Sep 20 Drawings 500
Machinery month 3,095 " 30 Balance c/f 2,595
20X8 $ 20X8 $ 3,095 3,095
Sep 1 Balance 23,500 Sep 30 Balance c/f 23,500

Sales
Stock
20X8 $ 20X8 $
20X8 $ 20X8 $
Sep 30 Balance c/f 2,844 Sep 26 Bank 1,000
Sep 1 Balance 1,890 Sep 30 Balance c/f 1,890
" 30 Credit sale for
the month 1,844
2,844 2,844

115
 Returns Outwards R Tam
20X8 $ 20X8 $ Trial Balance as at 30 September 20X8
Sep 30 Balance c/f 113 Sep 30 Total for the month 113 Dr Cr
$ $
Cash 860
Returns Inwards
Bank 11,451
20X8 $ 20X8 $ D Wong 447
Sep 30 Total for the month 64 Sep 30 Balance c/f 64 E Chan 576
P Tang 264
Discounts Received F Law 418
B Lam 437
20X8 $ 20X8 $
N Chow 220
Sep 30 Balance c/f 124 Sep 30 Total for the month 124
Premises 35,000
Machinery 23,500
Discounts Allowed Stock 1,890
20X8 $ 20X8 $ Star Bank 30,000
Sep 30 Total for the month 45 Sep 30 Balance c/f 45 Capital 41,740
Commission received 2,100
Utilities expenses 290
Rates 540
Motor vehicle 15,000
Asia Motors 15,000
Drawings 500
Motor expenses 480
Bank overdraft interest 22
Purchases 2,595
Sales 2,844
Returns outwards 113
Returns inwards 64
Discounts allowed 45
Discounts received 124
93,260 93,260

116