Test 1 Practice Set
E6.6 Record transactions in cash receipts and cash payments journal. (LO9, 10, 13)
Betty Boop uses special journals and a general journal. The following transactions occurred during
May 2023.
16May- Not to be recorded as it
Required is a non cash transaction
(a) Draw up a multicolumn cash receipts journal (see figure 6.15) and
a multicolumn cash payments journal (see figure 6.22). (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalised in the cash receipts
journal and cash payments journal.
IMP- if it is not mention if the company is perpetual or periodic look at the transaction
to check
Solution:
Betty Boop
(a) & (b)
Cash Receipts Journal
CR1
Date Account Ref. Cash Dr. Discount Account Sales Other Cost of sales Dr
May credited allowed receivable Cr. accounts Inventory Cr.
Dr. Cr. Cr
1 B. Boop capital 30000 30000
2 12000 12000 8400
18000
22 R Dusto 18000 18000
Total 60000 18000 12000 30000 8400
Betty Boop Cash Payments Journal
CP1
Date EFT Ref Account Ref Other Account Discount Cash
Dr. accounts payable received Cr
Dr Dr Cr.
3 101 Inventory 18000 18000
14 102 Salary expense 1400 1400
Total 19400 19400
, E4.5 Journalise purchase transactions. (LO2)
The following information relates to Hampton Pty Ltd.
1. On 5 April purchased inventory from R. Ward & Co. for $9000, terms 2/7, n/30.
2. On 6 April paid freight costs to Freight Masters of $450 on inventories purchased from R. Ward &Co.
3. On 7 April purchased equipment on account for $52 000.
4. On 8 April returned incorrect inventories to R. Ward & Co. and was granted a $1500 allowance.
5. On 11 April paid the amount due to R. Ward & Co.
Required
a) Prepare the journal entries to record the transactions listed in the records of Hampton Pty
Ltd.
b) Assume that Hampton Pty Ltd paid the balance due to R. Ward & Co. on 4 May instead of 11
April. Prepare the journal entry to record this payment.
(Note: Hampton Pty Ltd is GST registered, quoted amounts does not include GST)
With GST
Hampton Pty Ltd
Date Description Dr Cr
(a) (1) 5th April Inventory 9000
GST paid 900
Account payable 9900
(2) 6th April Freight in 450
GST paid 45
Cash 495
(3) 7th April Equipment 52000
GST paid 5200
Account payable 57200
(4) 8th April Account payable 1650
Inventory 1500
GST paid 150
(5) 11th April A/P 9900-
1650=8250
Cash 8085
Discount received (9000- 150
1500*2%) 15
GST paid
(b) May 4th A/P 8250
Cash 8250
E6.6 Record transactions in cash receipts and cash payments journal. (LO9, 10, 13)
Betty Boop uses special journals and a general journal. The following transactions occurred during
May 2023.
16May- Not to be recorded as it
Required is a non cash transaction
(a) Draw up a multicolumn cash receipts journal (see figure 6.15) and
a multicolumn cash payments journal (see figure 6.22). (Use page 1 for each journal.)
(b) Record the transaction(s) for May that should be journalised in the cash receipts
journal and cash payments journal.
IMP- if it is not mention if the company is perpetual or periodic look at the transaction
to check
Solution:
Betty Boop
(a) & (b)
Cash Receipts Journal
CR1
Date Account Ref. Cash Dr. Discount Account Sales Other Cost of sales Dr
May credited allowed receivable Cr. accounts Inventory Cr.
Dr. Cr. Cr
1 B. Boop capital 30000 30000
2 12000 12000 8400
18000
22 R Dusto 18000 18000
Total 60000 18000 12000 30000 8400
Betty Boop Cash Payments Journal
CP1
Date EFT Ref Account Ref Other Account Discount Cash
Dr. accounts payable received Cr
Dr Dr Cr.
3 101 Inventory 18000 18000
14 102 Salary expense 1400 1400
Total 19400 19400
, E4.5 Journalise purchase transactions. (LO2)
The following information relates to Hampton Pty Ltd.
1. On 5 April purchased inventory from R. Ward & Co. for $9000, terms 2/7, n/30.
2. On 6 April paid freight costs to Freight Masters of $450 on inventories purchased from R. Ward &Co.
3. On 7 April purchased equipment on account for $52 000.
4. On 8 April returned incorrect inventories to R. Ward & Co. and was granted a $1500 allowance.
5. On 11 April paid the amount due to R. Ward & Co.
Required
a) Prepare the journal entries to record the transactions listed in the records of Hampton Pty
Ltd.
b) Assume that Hampton Pty Ltd paid the balance due to R. Ward & Co. on 4 May instead of 11
April. Prepare the journal entry to record this payment.
(Note: Hampton Pty Ltd is GST registered, quoted amounts does not include GST)
With GST
Hampton Pty Ltd
Date Description Dr Cr
(a) (1) 5th April Inventory 9000
GST paid 900
Account payable 9900
(2) 6th April Freight in 450
GST paid 45
Cash 495
(3) 7th April Equipment 52000
GST paid 5200
Account payable 57200
(4) 8th April Account payable 1650
Inventory 1500
GST paid 150
(5) 11th April A/P 9900-
1650=8250
Cash 8085
Discount received (9000- 150
1500*2%) 15
GST paid
(b) May 4th A/P 8250
Cash 8250
