Accounting for a Trading Business #3

GST on purchases of assets or payments of expenses will always be a...

All of the following are recorded inclusive of GST except for?

• Accounts Payable

• Accounts Receivable

• Sales

• Bank

If cash sales are $440 incl. GST, which statement is correct?

• Cr Sales 440

• GST = 44

• Dr Bank 440

• Dr Bank 400

Identify the two transactions that include GST

• Drawings of inventories

• Drawings of cash

• Payment of wage

• Purchases of stationery

Identify the error made in the General Journal.

• Inventories should be $680

• GST Clearing should be Cr $68

• Cost of goods sold needs to be included

• GST Clearing should be Dr $62

Given the General Journal entry shown, identify the two correct statements regarding the Inventories ledger account.

• The ledger will show 900 in the debit column

• The ledger will show 900 in the credit column

• The particulars in the ledger will be Bank

• The particulars in the ledger will be GST Clearing

Given the general journal identify the correct transaction.

• Owner paid for personal groceries using the business bank account $880

• Owner withdrew $880 from business bank account for personal use

• Owner took home inventories for his family use, $800 incl. GST

• Owner took home inventories for his family use, $880 incl. GST

Identify the two correct statements given the general journal.

• The business purchased equipment for $1760 incl. GST

• The business purchased equipment for $1600 incl. GST

• The business purchased equipment for $800

• The business paid a deposit of $800

Identify the two errors shown in the General Journal if this is to record a sales return of $550 incl. GST

• Cost of goods sold should be a Cr; inventories should be a Dr

• It should be "sales returns" instead of "sales"

• Sales should be $550 and Bank $500

• GST Clearing should be $55 and Sales should be $495

Given the Sales Ledger account, identify the two correct statements.

• Credit sales of $800 incl. GST were made on May 22

• A sales return occurred on May 24, $220 incl. GST

• Gross profit earned on the sale on May 15 is $500

• Cash sales of $550 incl. GST were made on May 15