Topic 3 Journals and Ledgers

Class discussion question

In September 2019, Niem Duong opened a car hire business. The following transactions
occurred during the first month of the business .The business is registered for GST. All
transactions are shown as GST exclusive unless stated otherwise.

Sept
1 Niem opened a bank account to begin the business and deposited $500 000 of her own
money.
3 Paid $1200, plus GST, rent for the premises for September
4 Purchased ten motor vehicles costing $40 000, plus GST, each and equipment costing
$36 000, plus GST, with $343 600 cash and a commercial loan for the balance.
5 Purchased supplies costing $12 500, plus GST, on credit.
15 Recorded revenue for the first half of the month of $14 600, plus GST, in cash and
$28 500, plus GST, on credit.
18 Paid for supplies purchased on 5 September.
19 Paid insurance expense for September of $5000, plus GST
24 Received payment from customers on account of $13 640 and banked the receipts.
27 Purchased supplies costing $6,200 plus GST on credit
29 Recorded revenue for the second half of the month of $12,500, plus GST, in cash and
$32,800, plus GST, on credit.
30 Paid fuel expense of $16,200, plus GST in cash

Use the following account titles and numbers:

Required
a. Journalise the above transactions.
b. Post the entries from the general ledger to running balance general ledger accounts and
enter the posting references in the general journal.
c. Prepare a trial balance as at 30 September 2019.

Page 1 of 7
(a)
General Journal
2019

Page 2 of 7
Page 3 of 7
(b)

ACCOUNT: Cash at Bank Account No. 1-101

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Accounts Receivable Account No. 1-102

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: GST Paid Account No. 1-105

Date Explanation Post Debit Credit Balance
Ref

Page 4 of 7
ACCOUNT: Supplies Account No. 1-110
Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Equipment Account No. 1-120

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Motor Vehicles Account No. 1-130

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Accounts Payable Account No. 2-101

Explanation Post Debit Credit Balance
Ref

ACCOUNT: Loan Payable Account No. 2-110

Date Explanation Post Debit Credit Balance
Ref

Page 5 of 7
ACCOUNT: GST Collected Account No. 2-150
Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: N. Duong, Capital Account No. 3-101

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Revenue Account No. 4-101

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Rent Expense Account No. 5-110

Date Explanation Post Debit Credit Balance
Ref

ACCOUNT: Insurance Expense Account No. 5-120

Date Explanation Post Debit Credit Balance
Ref

Page 6 of 7
 ACCOUNT: Fuel Expense Account No. 5-130
Date Explanation Post Debit Credit Balance
Ref
30 Cash at Bank 16 200 16 200

(c)
NIEM DUONG, CAR HIRE
Trial Balance
as at 30 September 2019

Account Account Debit Credit

No.

Cash at bank 1-101

Accounts receivable 1-102
GST paid 1-105
Supplies 1-110
Equipment 1-120
Motor vehicles 1-130
Accounts payable 2-101
Loan payable 2-110
GST collected 2-150
N. Duong, Capital 3-101
Revenue 4-101
Rent expense 5-110
Insurance expense 5-120
Fuel expense 5-130

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