Trial Balance and Accounting Ledger

This assignment involves creating a trial balance for Sister's Tiling Services as at 31 March, 2018. The general ledger accounts include capital, cash at bank, building, accounts receivable, loan from bank, service fee revenue, commission revenue, and wages. The debit and credit amounts are calculated and displayed in the trial balance. This example demonstrates how to prepare a trial balance for a company with various financial transactions.

Running Head: Accounting Principle
1
Project Report: Accounting Principle

Accounting Principle
2
Contents
Question 1: GST calculations...........................................................................................3
Question 2: Transaction Analysis and Posting to the General Ledger.............................4
General Ledger.............................................................................................................4
Trial Balance.................................................................................................................5
References.........................................................................................................................7

Accounting Principle
3
Question 1: GST calculations
Transaction GST -
yes or
no?
If GST,
how
much?
Which source
document/s
would provide
evidence of the
transaction?
Paid for overseas flights $2,200 to attend a
conference
No (Hasan and
Sinning, 2017)
Purchased goods on credit from W Willis
$770
Yes 77 (Ramli et al,
2015)
Received and banked daily cash sales $1,807 Yes 180.7 (Tang, 2016)
Sold inventories on credit to B. Blake $979 Yes 97.9 (Bain et al, 2015)
Paid a cheque to Telstra $429 No (Murphy, 2015)
Banked daily cash sales $1 716 Yes 171.6
Bought goods on credit from M Miles $858 No (Ramli et al,
2015)
Interest received on investment account $63 Yes 6.3 (Datt, Nienaber
and Tran-Nam,
2017)
Monthly wages and salaries paid directly from
business bank account to various employees
$4,600
Yes 460 (Barkoczy, 2016)
Paid off some of the amount owing to M.
Miles $700
No (Gitman, Juchau
and Flanagan,
2015)
Dividend received from investment shares
$215
Yes 21.5 (Hasan and
Sinning, 2017)
Sent tax invoice to C Hunter for goods sold
$1,793
No (Woellner et al,
2016)
Received some money owing from an account
receivable, C. Hunter, $1,100
No (Barkoczy, 2016)
Returned some faulty goods which had been
bought on credit from W. Willis for $80
No (Datt, Nienaber
and Tran-Nam,
2017)
Recorded the interest which had been charged
on overdrawn bank account - $28
No (Bain et al,
2015)

Accounting Principle
4
Question 2: Transaction Analysis and Posting to the General Ledger
General Ledger:
General Ledger for Sister's Tiling services
Debit Credit
Date Details Amt $ Date Details Amt $
Capital a/c
31-03-
2018 Balance c/d 44000 01-01-2018 Balance d/f 40000
01-03-2018 From cash at bank 4000
44000 44000
Cash at Bank a/c
01-03-
2018 From capital 4000 29-03-2018 From Wages a/c 700
23-03-
2018 From Service revenue 600 31-03-2018 From loan from bank 800
25-03-
2018
From Commission
revenue 200 31-03-2018 Balance c/d 4450
30-03-
2018
From accounts
receivable 1150
5950 5950
Building a/c
01-01-
2018 Balance b/f 200000 31-03-2018 Balance c/d 200000
200000 200000
Accounts Receivable
a/c
28-03-
2018 From service revenue 350 30-03-2018 From Cash at Bank 1150
31-03-
2018 Balance c/d 800
1150 1150

Accounting Principle
5
Loan from bank a/c
31-03-
2018 From cash at bank 800 01-01-2018 Balnace b/f 160000
31-03-
2018 Balnace c/d 159200
160000 160000
Service fess revenue
a/c
31-03-
2018 Profit and loss a/c 950 23-03-2018 From cash at Bank 600
28-03-2018
From accounts
receivable 350
950 950
Commission
Revenue a/c
31-03-
2018 Profit and loss a/c 200 25-03-2018 From cash at bank 200
200 200
Wages a/c
00-01-
1900 Profit and loss a/c 700 29-03-2018 From cash at bank 700
700 700
Trial Balance
Sister’s Tiling Services
TRIAL BALANCE as at 31 March, 2018
General Ledger
Accounts
DEBIT CREDIT

Accounting Principle
6
Capital 44000
Cash at Bank 4450
Building 200000
Accounts Receivable 350 1150
Loan from Bank 159200
Service Fee Revenue 950
Commission Revenue 200
Wages 700
Total 205500 205500

Accounting Principle
7
References:
Bain, K., Walpole, M., Hansford, A. and Evans, C., 2015. The internal costs of VAT
compliance: Evidence from Australia and the United Kingdom and suggestions for
mitigation. eJournal of Tax Research, 13(1), p.158.
Barkoczy, S., 2016. Foundations of taxation law 2016. OUP Catalogue.
Datt, K., Nienaber, G. and Tran-Nam, B., 2017. GST/VAT general anti-avoidance
approaches: Some preliminary findings from a comparative study of Australia and South
Africa. In Australian Tax Forum (Vol. 32, No. 2, p. 377). Tax Institute.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Hasan, S. and Sinning, M., 2017. GST Reform in Australia: Implications of Estimating Price
Elasticities of Demand for Food.
Murphy, C., 2015, August. Fiscal equalisation of Australian states and territories: policy
options and welfare maximisation. In Arndt-Corden Department of Economics seminar
paper, August.
Ramli, R., Palil, M.R., Hassan, N.S.A. and Mustapha, A.F., 2015. Compliance costs of Goods
and Services Tax (GST) among small and medium enterprises. Jurnal Pengurusan (UKM
Journal of Management), 45.
Tang, C., 2016. Australian GST update—2015. World Journal of VAT/GST Law, 5(1), pp.32-
41.
Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2016. Australian Taxation
Law 2016. OUP Catalogue.