The sales ledger of Andrew Johnstone contains the following accounts on 1 March 20-09.

The following transacrtions took place during March:

3-Mar

7-Mar

15-Mar

17-Mar

20-Mar

24-Mar

28-Mar

28-Mar

a) Write the personal accounts in the trade receivables ledger of Andrew Johnstone for 1 March 20-09.
b) Complete the appropriate journals for each of the March entries
c) Record the transactions into the books of account (use a different colour to show March entries) and balance them at the end of the month.
d) Include a Trade Receivables Control Ledger account for March 20-9, balancing it at the end of the month.
e) Reconcile the control account balance with the trade receivables accounts at 1 March and 31 March 20-09
f) Complete a trial balance for the period ending 31 March 20-9.
qs 12.3 p225 & 12.5 p227 Andrew Johnstone supplies computer hardware to customers on a sales or return basis.
The following transactions with Jamal Supplies take place in April 20-9.
10-Apr Supplied Jamal supplies with 500 units of product AP on a sale or return invoice for £1500. Carriage is at Andrew Johnstone's
expense at £75 on credit to Computer Carriers.
22-Apr Jamal Supplies pays for 400 units by bank transfer.
30-Apr Inventory is valued at £14075, opening inventory is 12000.
30-Apr Business rates are prepaid £250 through the bank
30-Apr Electricity owing £110 ElextrixRUs
30-Apr Salaries are owing £385 A Smith
30-Apr Andrew Johnstone financial year ends
1-May Andrew Johnstone financial year starts.

a) You are to show accounting entries of Andrew Johnstone to record the sale or return transactions and carriage charges, including
the year-end transfer from the sales account to the income statement.
b) Prepare the business rates, electricity and salaries accounts to record the balances shown. Enter in the correct journal.
c) Prepare a trial balance
d)
Close off nominal accounts to prepare for putting in income statement. Remember that the c/d is written as Income Statement
on nominal accounts. All real accounts to do with the accounting equation eg assets, liabilities & capital are real and will have
b/d figiures into the next financial accounting period.
e) Prepare an income statement of Andrew Sandstone for the year ended 30 April 20-9, together with his statement of fonancial
position at that date.
 Sales Journal

Sales Journal
Date Details Invoice Reference Amount £
20-9
16-Jan Rowcester College RL 850

31-Jan Total 850

26-Feb Rowcester College RL 1050

28-Feb Total 1050
 Sales Returns Journal

Sales Returns Journal

Date Details Invoice Reference Amount £
20-9
27-Jan Rowcester College RL 100

31-Jan Total 100

 Purchases Journal

Purchases Journal
Date Details Invoice Reference Amount £
20-9
7-Jan Comp Supplies Limited PL 5000
25-Jan Comp Supplies Limited PL 6500

31-Jan Total 11500

24-Feb Comp Supplies Limited PL 5500

28-Feb Total 5500
 Purchses Returns Journal

Purchases Returns Journal

Date Details Invoice Reference Amount £
20-9

31-Jan Total 0

5-Feb Comp Supplies Limited PL 150

28-Feb Total 150

 Cash Book

Cash Book
Dr Cr
Date Details Ref Discount Cash £ Bank £ Date Details Ref Discount Cash £ Bank £
Allowed Received
20-9 20-9
11-Jan Software sales 1000 4-Jan Rent chq # 500
12-Jan Software sales 1250 20-Jan Comp Supplies Limited 5000
22-Jan Software sales 1450

31-Jan Total 0 0 3700 31-Jan Total 0 0 5500

Cash Book Feb 20-9

4-Feb Software sales 1550 2-Feb Rent chq # 500
10-Feb Software sales 1300 22-Feb Comp Supplies Limited chq # 6350
12-Feb Rowcester College 750
19-Feb Software sales 1600
25-Feb Software sales 1100

28-Feb Total 0 0 6300 28-Feb Total 0 0 6850

 General Journal

General Journal
Date Details Reference Dr £ Cr £
20-9
1-Jan Bank 10000
Capital 10000
Invested personal capital

5-Jan Shop fittings 1500

Bank 1500
Shop fittings for use in business

31-Jan Total 11500 11500

15-Feb Shop fittings 850

Bank 850
Shop fittings for use in business
28-Feb Total 850 850
 RECEIVABLES LEDGER

Date Details Ref Amount £ Date Details Ref Amount £

Rowcester College
Dr Cr
16-Jan Sales GL 850 27-Jan Sales Returns GL 100

1-Feb Balance b/d 750

26-Feb Sales 1050 12-Feb Bank 750
 PAYABLES LEDGER

Date Details Ref Amount £ Date Details Ref Amount £

Comp Supplies Limited
Dr Cr
20-Jan Bank 5000 7-Jan Purchases PL 5000
25-Jan Purchases PL 6500

5-Feb Purchase Returns 150 24-Feb Purchases PL 5500

22-Feb Bank 6350
 GENERAL LEDGER USE DEADCLIC

Date Details Ref Amount £ Date Details Ref Amount £

Sales Account (nominal)
Dr Cr
31-Jan Bank 1,000.00
12-Jan Bank 1,250.00
22-Jan Bank 1,450.00
31-Jan Sales journal RL 850.00

4-Feb Software sales 1,550.00

10-Feb Software sales 1,300.00
19-Feb Software sales 1,600.00
25-Feb Software sales 1,100.00
28-Feb sales journal RL 1,050.00

Purchases Account (nominal)

Dr Cr
31-Jan Purchases Journal PL 11,500.00
31-Jan Balance c/d 11,500.00
11,500.00 11,500.00
1-Feb Balance b/d 11,500.00
28-Feb Purchases journal 5,500.00

Bank Account
Dr Cr
1-Jan Capital 10,000.00 5-Jan Shop fittings 1,500.00
31-Jan Cash Book 3,700.00 31-Jan Cash book 5,500.00

28-Feb Cash Book 6,300.00 15-Feb Shop fittings 850.00

28-Feb Cash book 6,850.00

Rent Account (nominal)

Dr Cr
4-Jan Bank 500.00
 GENERAL LEDGER USE DEADCLIC

1-Feb Balance b/d 500.00

2-Feb Rent 500.00

Capital Account
Dr Cr
1-Jan Bank 10,000.00

Shop Fittings Account

Dr Cr
5-Jan Bank 1,500.00

1-Feb Balance b/d 1,500.00

15-Feb Bank 850.00

Sales Returns Account

Dr Cr
31-Jan Sales returns journal GL 100.00

1-Feb Balance b/d 100.00

Purchase Returns Account

Dr Cr
5-Feb Purchase returns journal GL 150.00
 GENERAL LEDGER USE DEADCLIC

Receivables Ledger Control Account

Dr Cr
1-Jan Balance b/d 0.00 31-Jan Cash/cheques received from trade receivables 0.00
31-Jan Cedit sales 850.00 31-Jan Cash discount alloweed 0.00
31-Jan Dishonoured cheques 0.00 31-Jan Sales returns 100.00
31-Jan Interest charged to trade receivables 0.00 31-Jan Irrecoverable debts written off 0.00
31-Jan Set-off/contra entries 0.00

1-Feb Balance b/d 750.00 28-Feb Cash/cheques received from trade receivables 750.00
28-Feb Cedit sales 1,050.00 28-Feb Cash discount alloweed 0.00
28-Feb Dishonoured cheques 0.00 28-Feb Sales returns 0.00
28-Feb Interest charged to trade receivables 0.00 28-Feb Irrecoverable debts written off 0.00
28-Feb Set-off/contra entries 0.00

Payables Ledger Control Account

Dr Cr
31-Jan Cash/cheques paid to trade receivables 5,000.00 Balance b/d 0.00
31-Jan Cash discount received 0.00 31-Jan Credit purchases 11,500.00
31-Jan Purchases returns 0.00 31-Jan Interest charged by trade payables 0.00
31-Jan Set-off/contra entries 0.00

28-Feb Cash/cheques paid to trade receivables 6,350.00 1-Feb Balance b/d 6,500.00
28-Feb Cash discount received 0.00 28-Feb Credit purchases 5,500.00
28-Feb Purchases returns 150.00 28-Feb Interest charged by trade payables 0.00
28-Feb Set-off/contra entries 0.00
Reconciliation of sales ledger control account with trade receivables balances
Date 1-Mar 31-Mar
Rowcester College 1050 1050
Arrow Valley Retailers 826.4 338.59
B Brick (Builders) Limited 59.28 0
Mereford Manufacturing Company 293.49 0
Redgrove Restorations 724.86 954.26
Wyvern Warehouse Limited 108.4 427.91
3062.43 2770.76
Andrew Johnstone
Income Statement for the year ended 30 April 20-9

£ £ £
Revenue 13,638.76
Less Sales returns - 321.67
Net revenue (or turnover) 13,317.09

Opening inventory (at 01 May 20-8) -

Purchases 17,000.00
Carriage inwards -
Less Purchases Returns - 150.00
Net purchases 16,850.00
16,850.00
Less Closing inventory (at 30 Apr 20-9) - 14,075.00
Less Cost of sales 2,775.00
Gross profit 10,542.09
Add Discount received -
Add Rent received -
Add Decrease in doubtful debts -
Add Profit on disposal -
Add Irrecoverable debts recovered -
10,542.09

Less expenses
Discount allowed - 23.37
Carriage outwards - 75.00
Rent - 1,000.00
Wages and salaries - 385.00
Business rates -
Electricity and gas - 110.00
Telephone -
Printing postage and stationery -
Insurance -
Other expenses -
Depreciation -
Increase in doubtful debt -
Irrecoverable debts - 59.28
Loss on disposal -
- 1,652.65

Profit for the year 8,889.44

Andrew Johnstone
Statement of financial position at 30 April 20-9

£ £ £
Cost Accumulated Net book value
Non-Current assets depreciation
Freehold premises - - -
Vehicle - - -
Equipment including shop fittings 2,350.00 - 2,350.00
2,350.00 - 2,350.00

Current assets
Inventories 14,075.00
Trade receivables 758.33
Provision of doubtful debts -
758.33
Prepayments 250.00
Income due (interest/loan repayment) -
Cash and cash equivalents 7161.43 22,244.76
Total assets 24,594.76

Capital account
At 1 May 20-8 -
Capital introduced during year 10,000.00
Profit for the year 8,889.44
18,889.44

Non-current liabilities
Mortgage -
Bank loan payable after 12 months - -

Current liabilities
Trade payables 5,210.32
Accruals 495.00
Income received in advance (sublet rent property) -
Bank overdraft -
Bank loan payable within 12 months - 5,705.32

Total capital and liabilities 24,594.76

- -