CERTIFIED ACCOUNTING TECHNICIAN LEVEL 1

MODULE 4

KEY TO CORRECTION

E1:
GENERAL LEDGER Page 1

Account: Cash
Date Explanation J.R. Debit Credit Balance
April 30 April 1-30 receipts CRJ-1 477,040 477,040
Oct 31 October 1-30 payments CPJ-1 203,600 273,440

Account: Accounts Receivable

Date Explanation J.R. Debit Credit Balance
April 30 April 1-30 sales on account SJ-1 94,000 94,000
30 April 1-30 collections CRJ-1 32,000 62,000

Account: Accounts Payable

Date Explanation J.R. Debit Credit Balance
Apr 30 April 1-30 purchases on account PJ-1 284,000 284,000
30 Returns to suppliers GJ-1 11,000 273,000
Oct 9 Returns to suppliers GJ-1 5,000 268,000
30 Returns to suppliers GJ-1 8,000 260,000
30 October 1-30 payments CPJ- 152,000 108,000
1

Account: Owner, Capital

Date Explanation J.R. Debit Credit Balance
Apr 30 Additional Investment CRJ1 400,000 400,000
 General Ledger Page 2

Account: Owner, Drawing

Date Explanation J.R. Debit Credit Balance
Oct. 30 For personal use CPJ1 15,000 15,000

Account: Sales
Date Explanation J.R. Debit Credit Balance
Apr 30 April 1-30 sales on account SJ-1 94,000 94,000
April 1-30 cash sales CRJ-1 46,000 140,000

Account: Sales Discount

Date Explanation J.R. Debit Credit Balance
Apr 30 Customer discount CRJ-1 960 960

Account: Salaries Expense

Date Explanation J.R. Debit Credit Balance
Apr 30 April 1-15 payroll CPJ-1 12,000 12,000

Account: Insurance Expense

Date Explanation J.R. Debit Credit Balance
Apr 30 Annual premiums CPJ- 2,000 2,000
1

Account: Purchases
Date Explanation J.R. Debit Credit Balance
Oct 31 October 1-31 purchases on account PJ-1 284,000 284,000
October 1-31 cash purchases GJ-1 19,000 303,000
 General Ledger Page 3

Account: Freight In
Date Explanation J.R. Debit Credit Balance
Oct. 31 Freight on purchases of merchandise CPJ-1 3,000 3,000

Account: Purchase Returns & Allowances

Date Explanation J.R. Debit Credit Balance
Apr 29 Returns to suppliers GJ-1 11,000 11,000
Oct 9 Returns to suppliers GJ-1 5,000 16,000
30 Returns to suppliers GJ-1 8,000 24,000

Account: Purchase Discounts

Date Explanation J.R. Debit Credit Balance
Oct. 31 Discounts from suppliers CPJ-1 2,820 2,820

SUBSIDIARY LEDGERS Page 1

ACCOUNTS RECEIVABLE

Customer: R. Yuuki

Date Explanation J.R. Debit Credit Balance

April 10 Sales on account SJ-1 32,000 32,000
19 Collected in full CRJ-1 32,000 0

Customer: B Cruz

Date Explanation J.R. Debit Credit Balance

April 12 Sales on account SJ-1 62,000 62,000
 SUBSIDIARY LEDGERS Page 2

ACCOUNTS PAYABLE

Supplier: Supply Company

Date Explanation J.R. Debit Credit Balance
Oct. 1 Purchases on account PJ-1 54,000 54,000

Supplier: Camp Company

Date Explanation J.R. Debit Credit Balance
Oct. 6 Purchases on account PJ-1 92,000 92,000
9 Returns due to wrong specifications GJ-1 5,000 87,000
10 Full payment CPJ-1 87,000 0

Supplier: Cetra Company

Date Explanation J.R. Debit Credit Balance
Oct 17 Purchases on account PJ-1 39,000 39,000
30 Returns GJ-1 11,000 28,000

Supplier: Palace Company

Date Explanation J.R. Debit Credit Balance
Oct. 19 Purchases on account PJ-1 26,000 26,000

E2

1. A 6.E 11.D 16.B 21.D

2.D 7.A 12.D 17.C 22.D
3.C 8.E 13.D 18.C 23.A
4.E 9.C 14.C 19.D 24.E
5.C 10.D 15.C 20.D 25.B