Question

Prepare general journal entries for transactions (a) to (l) below.

GST is applicable to this question. GST is only applicable to the purchase and sale of inventory. There are no dollar amounts in this question; you are expected to place a cross (X) in the relevant dollar column for each account name in the journal entry.

1. Purchase of inventory on credit.
2. Interest was paid; the interest expense was accrued last month.
3. Depreciation expense for the current month.
4. Sale of an item of PPE for cash, this resulted in a gain on sale.
5. Sale of inventory for cash.
6. Payment of accounts payable.
7. Cash purchase of inventory.
8. The directors declared a dividend.
9. Cash received from customers; they had purchased inventory last month on credit.
10. Accrue interest expense for the current month.
11. Cash purchase of PPE.
12. Wages were paid; a portion of which was accrued last month.

Answer 1

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