Cash Receipts Journal - Sale and purchase Journal - Credit Transactions - Accounts Receivable and Payable - Finance Assessment Answer

Assessment Task:

Cash Receipts Journal Finance Assessment Answer

This task relates to completing a set of accounts for business and preparing the financial statements for one financial period (being one month). 

Part 1: 

1.    Sales & Purchases Journal                 
2.    Cash Receipts Journal                 
3.    Cash Payments Journal                 
4.    Accounts Receivable Subsidiary Ledgers     
5.    Accounts Payable Subsidiary Ledgers         
6.    Inventory Cards 

Part 2: 

7.    General Journal                         
8.    General Ledger T Accounts                 
9.    Worksheet                         
10.    Trial Balance                     
11.    Income Statement                     
12.    Balance Sheet & Statement of Changes in Equity

Part 1

1    Record all the necessary entries in the relevant sales and purchases journals. Ensuring that only credit transactions are recorded in these journals. Ensure to include the totals. (hint: do the Proforma Sales Invoice first)

2    Record all the necessary entries in the relevant cash receipts journal. Ensuring that all cash transactions are recorded in this journal. Where a transaction is partially cash and partially credit, then it is recorded here. Ensure to include the totals. (hint: do the Goods Received Advice first)

3    Record all the necessary entries in the relevant cash payments journal. Ensuring that all cash transactions are recorded in this journal. Where a transaction is partially cash and partially credit, then it is recorded here. Ensure to include the totals.

4    Post all relevant credit sales to the accounts receivable subsidiary ledgers. Ensure to include all relevant opening balances and that you balance the ledger accounts correctly.

5    Post all relevant credit sales to the accounts payable subsidiary ledgers. Ensure to include all relevant opening balances and that you balance the ledger accounts correctly.

6    Prepare the inventory cards using the perpetual inventory method (moving average). Ensure to use only the cost price and show the closing inventory balance and the total cost of goods sold (COGS).
 
Ensure to read your teacher’s feedback to Part 1 before submitting Part 2 of your assignment.

Part 2

7    In the general journal, record all transactions that have not been recorded in the special journal (sales, purchases, cash receipts and cash payments journals from Part 1 above) as well as transactions relating to balance day adjustments. Narrations are not required. (Hint: do not record GST for the balance day adjustment entries). Closing entries are not required.

8    Post ALL journals to the relevant general ledger T accounts. For special journals from Part 1 above, you should just post the totals. Ensure to include all relevant opening balances and that you balance the ledger accounts correctly. Show your closing entries for all temporary accounts.

9    Using the general ledgers, complete the 10-column worksheet provided. Ensure that the respective total debits and credits are the same. (hint: the figures in the adjusted trial balance are the same as the general ledger accounts)

10    Using the completed worksheet, prepare the trial balance as at 31 January 2019.

11    Using the completed worksheet, prepare a classified Income Statement for the month ending 31 January 2019.

12    Using the completed worksheet, prepare a classified Balance Sheet as at 31 January 2019 and a Statement of Changes in Equity for the month ending 31 January 2019.