Business Ethics and Academic Misconduct

This assignment delves into the topic of academic misconduct within the context of the University of Western Australia's (UWA) Faculty of Business. It emphasizes the importance of ethical scholarship and clearly defines plagiarism as taking someone else's work and presenting it as one's own. The document outlines UWA's policies on academic misconduct, including penalties for such offenses. It also highlights the Faculty of Business's specific regulations regarding plagiarism and their use of tools like Turnitin to detect it. Students are required to sign a declaration confirming the originality of their work submitted.

Team Project Cover Sheet
FAMILY NAME FIRST NAME
(PRINT CLEARLY)
.............................................................................
...........................................................................
.
..........................................................................
STUDENT ID. NUMBER
..................................................................
.
.................................................................
..................................................................
UNIT NAME UNIT CODE DUE DATE
TUTORIAL OR L EC TURE DAY & TIME
(if applicable)
TEAM
NUMBER
(if applicable)
NAME OF TUTOR (if applicable)
TITLE/TOPIC OF PROJECT WORD COUNT NAME OF LECTURER
Late projects submitted outside office hours will be receipted at 8.30 a.m. the following working
day.

SALZBRUCK MUSICAL INSTRUMENTS
PTY LTD
–
ACCOUNTING PRACTICE SET

Table of Contents
INTRODUCTION................................................................................................................................................................6
Company Background................................................................................................................................................6
Accounting System Information.................................................................................................................................6
UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS...............................................................................7
As at 31 May 2018...........................................................................................................................................7
SUBSIDIARY LEDGERS...................................................................................................................................................8
Schedule of Accounts Receivable..............................................................................................................................8
As at 31 May 2018...........................................................................................................................................8
Schedule of Accounts Payable...................................................................................................................................8
As at 31 May 2018...........................................................................................................................................8
TRANSACTIONS................................................................................................................................................................9
For June 2018.............................................................................................................................................................9
Instructions...............................................................................................................................................................10
ADJUSTING ENTRIES.....................................................................................................................................................11
General Journal…………………………………………………………………………………………………..12
Cash Receipts Journal...............................................................................................................................................15
Cash Payments Journal.............................................................................................................................................16
Sales Journal.............................................................................................................................................................18
Purchases Journal.....................................................................................................................................................19
LEDGERS..........................................................................................................................................................................20
Accounts Receivable Subsidiary Ledger..................................................................................................................20
Accounts Payable Subsidiary Ledger.......................................................................................................................21
General Ledger.........................................................................................................................................................22
WORKSHEET....................................................................................................................................................................31
FINANCIAL STATEMENTS............................................................................................................................................33
Schedules of Subsidiary Ledgers..............................................................................................................................33
Income Statement.....................................................................................................................................................34
Statement of Changes in Equity...............................................................................................................................36
Balance Sheet...........................................................................................................................................................37
Post-closing Trial Balance........................................................................................................................................38
WRITTEN COMPONENT................................................................................................................................................39
STUDENT DECLARATION FOR COMPLETION OF WORK......................................................................................43

INTRODUCTION
The objective of this Accounting practice set is to provide students with an insight into the process of
recording transactions, completing adjusting and closing entries, and preparing financial statements for a
retail business.
Company Background
Salzbruck Musical Instruments Pty Ltd has been in business in Sydney since July, 2012. The company was
started by William Jacques and operates a shop which sells musical instruments on a wholesale basis to other
businesses on credit and cash terms. The company's share capital consists of 1,134,000 ordinary shares, issued at
$1 each, that are owned by various members of the Jacques family. The company employs a combination of
both sales and administration staff to operate the business.
Accounting System Information & Procedures
The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year.
To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain
its accounting records:
1. Sales Journal (SJ): to record all sales of inventory on credit
2. Purchases Journal (PJ): to record all purchases of inventory on credit
3. Cash Receipts Journal (CRJ): to record all cash receipts
4. Cash Payments Journal (CPJ): to record all cash payments
5. General Journal (GJ): to record all transactions other than the above.
Business transactions are recorded for Salzbruck Musical Instruments on a daily basis in one of these five
journals in the accounts.
Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgers
are used to record the separate details of Accounts Receivable and Accounts Payable. Transactions are posted
immediately to the relevant ledger account if they are entered into the general journal, the “other” column of the
Cash Receipts Journal or Cash Payments Journal, or if they affect any of the Accounts Receivable or Accounts
Payable subsidiary ledger accounts. Apart from these transactions, totals of the special journals are taken at the
end of the month and then posted to the appropriate accounts. The company uses a periodic inventory system.
In practice, the company would be required to collect and pay Goods and Services Tax (GST) on its sales and
purchases. However, for the purposes of this exercise, GST has been excluded.
Please Note: All amounts in this practice set should be rounded to the nearest dollar.

UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTS
As at 31 May 2018
Acc. No. Account Debit ($) Credit ($)
100 Cash at Bank 614,628
101 Accounts Receivable Control 238,140
102 Store Supplies 151,011
103 Inventory 781,200
104 Prepaid Store Rent (paid 1 March 2018) 739,620
105 Prepaid Insurance (paid 1 Nov. 2017) 11,340
150 Showroom Fittings 510,300
151 Accumulated Depreciation-Showroom Fittings
160 Equipment 173,250
161 Accumulated Depreciation - Equipment 85,050
200 Accounts Payable Control 153,594
201 Interest Payable
202 Utilities Payable
203 Wages Payable
204 Salaries Payable
205 Tax Payable
206 Dividend Payable
250 Mortgage Loan (due 31 July 2042) 606,942
300 Share Capital 1,134,000
301 Retained Profits (1 July 2017) 963,522
302 Dividends Declared
303 Profit and Loss Summary
400 Sales Revenue 4,045,734
401 Sales Discounts (Discount Allowed) 31,059
402 Sales Returns and Allowances 8,757
500 Purchases 1,926,855
501 Purchase Discounts (Discount Received) 24,192
502 Purchase Returns and Allowances 10,143
600 Freight-Out 2,898
601 Wages Expense - Sales Staff 968,121
602 Depreciation Expense - Showroom Fittings
603 Depreciation Expense - Equipment
604 Supplies Expense
605 Rent Expense
606 Insurance Expense
607 Advertising Expense 43,848
608 Interest Expense
609 Utilities expense 58,464
610 Tax Expense
611 Sundry Expenses 3,024
612 Salaries Expense – Office Staff 760,662
613 Bad Debts Expense
7,023,177 7,023,177

SUBSIDIARY LEDGERS
Schedule of Accounts Receivable
As at 31 May 2018
Note: Salzbruck Musical Instruments offers all customers Credit Terms 2/10, n/30, unless otherwise stated
Acc. No. Account Invoice
date
Amount ($)
101-1 Amadeus Cellos 27 May 95,256
101-2 Bach Guitars 16 May 48,132
101-3 Chopin Pianos 23 April 65,142
101-4 Ludwig Trumpets 11 May 29,610
$238,140
Schedule of Accounts Payable
As at 31 May 2018
Acc. No. Account Invoice
date
Credit terms Amount ($)
200-1 Schubert Synthesisers 29 May 2/10, n/60 43,470
200-2 Wagner Violins 22 May 1/10, n/45 110,124
$153,594

TRANSACTIONS
For June 2018
Date Transaction Week 1
June 1 Amadeus Cellos paid the entire balance of its account that was still outstanding.
Delivered goods to Bach Guitars for $68,292 and issued invoice #910. Issued cheque #153 to pay
$7,560 for delivery costs of inventory to their premises.
June 3 Paid the amount owing to Schubert Synthesisers. Cheque #154 was sent.
June 4 Total Cash Sales for the week were $19,278.
Week 2
June 8 Chopin Pianos Store paid $27,342 toward the amount it owes us.
June 9 Made a purchase from Wagner Violins for $58,590 for boutique lighting: Terms are 1/10, n/45 and
date of invoice was 8 June.
The firm issued cheque #155 for the purchase of store supplies amounting to $5,544.
June 10 Amadeus Cellos purchased inventory of $68,796. Invoice #911 was issued.
June 11 Some of the boutique light fittings purchased on 7 June from Wagner Violins were the wrong
design. Returned inventory in exchange for a Credit Note of $18,900.
June 12 Total Cash Sales for the week were $26,334.
Week 3
June 15 Purchased inventory from Schubert Synthesisers for $96,390. The invoice was dated 14 June.
Credit terms are 2/10, n/30.
June 16 Sold inventory to Chopin Pianos for $124,362 on invoice #912. Issued cheque #156 to pay for
delivery costs of $9,450.
June 16 Paid office staff salaries of $73,458. Cheque #157 was issued for payment.
Cheque #158 was issued to pay sales staff wages, $62,370.
June 18 The company issued cheque #159 to pay the amount still owing to Wagner Violins.
June 19 Total Cash Sales for the week were $25,011.

Week 4
June 22 Chopin Pianos returned $23,562 of inventory purchased on 14 June. Issued a Credit Note for the
transaction.
June 23 Issued cheque #160 for $12,600 to pay for the annual gift the company donates to the Smith
Family Charity Fund. The gift is to be recorded as a sundry expense in the accounts.
June 24 Purchased inventory from Wagner Violins, worth $93,870. The terms were 1/10, n/45. Date of the
invoice was 22 June.
June 25 Received the total amount owing from Chopin Pianos.
June 26 Total Cash Sales for the week were $39,312.
Week 5
June 28 Bach Guitars paid the entire balance of its still outstanding account.
June 29 Reduced $75,600 of the amount owing to Wagner Violins and Cheque #161 was issued.
June 29 A dividend of $177,100 was declared to the company shareholders. However, the dividend will
not be paid until September 30, 2018.
Paid sales staff wages, $62,370 and Cheque #162 was issued to meet the payment.
June 30 Issued additional shares to the owners of the Company for cash, and $126,000 was received and
banked.
Total Cash Sales for the week were $23,436.
INSTRUCTIONS
1) Enter the transactions on pages 8-9 into the appropriate Journal for the month of June 2018, Remember to post
Journal transactions to the ledger accounts as specified in the “Account System Information” section of the
introduction.
2) Total all Special Journal columns and post to the appropriate ledger account at the end of the month.
3) Prepare the unadjusted Trial Balance as at 30 June on the worksheet provided.
4) Prepare the adjusting entries shown on page10 in the General Journal and post to the relevant ledger accounts.
The enter the adjustments in the relevant worksheet columns and prepare an adjusted Trial Balance.
5) A stocktake on 30 June 2018 indicates that the balance of closing inventory is $1,416,492. Use this information to
complete the remaining columns of the worksheet.
6) Use the worksheet to prepare the Income Statement and Balance Sheet.
7) Complete the Schedule of Accounts Receivable and Schedule of Accounts Payable. Ensure the balances agree
with the totals in the control accounts.

8) Prepare closing entries and post to the relevant general ledger accounts.
9) Complete the post-closing Trial Balance as at June 2018.
ADJUSTING ENTRIES
a) The Showroom Fittings were installed on 1 July, 2017. They have a useful life of 9 years and no salvage value.
b) The Equipment was installed on 1 July, 2012. They have a useful life of 10 years and estimated salvage value of $3150.
c) Twelve months of store rent was prepaid on 1 March, 2018. Of the original prepaid amount, $246,537 worth of store
rent has now expired.
d) A count of store supplies indicates that $85,365 remain on hand at year end.
e) A one-year insurance policy was purchased on 1 November 2017 for $11,340.
f) Interest on the ANZ Bank Loan is charged at 7% per annum and is paid annually on 1 August (the interest expense
should be rounded off to the nearest dollar). The ANZ Bank Loan was originally taken out on the 1 August, 2017.
g) The company has been informed that Ludwig Trumpets has been declared bankrupt and Salzbruck Musical
Instruments Pty Ltd has agreed to write off the amount owing as a bad debt. The company uses the direct write-of
method to account for any bad debts in the books.
h) A telephone bill for $6,426 for June was received on 4 July, 2018. The amount has not yet been recorded. The company
records them as a utilities expense.
i) Office Staff are paid once per month, $73,458. The Office Staff were last paid on the 15 June, 2018. Exactly half of
one month Office Staff wages are still owing.
j) Sales Staff are paid fortnightly and work 7 days per week. The sales staff were last paid on the 29 June, 2018. One day
of the wages bill is still owed to the Sales Staff.
k) The estimated Tax Payable for the year ended 30 June, 2018 is $86,400. This amount is to be paid on 31 October, 2018.

General Journal
Date Account Debit Credit
01/06/18 Cash a/c Dr 95256
To Accounts receivable a/c 95256
(Being cash received from Amadeus Cellos)
Accounts receivable a/c Dr 68445
To sales a/c 68445
(Being goods delivered to Bach Guitars)
03/06/18 Accounts payable a/c Dr 43470
To Bank a/c 43470
(Being payment made through cheque schubert sythesisers)
08/06/18 Cash a/c Dr 27342
To creditors a/c 27342
(Being partly cash received from Chopin Pianos Store )
09/06/18 Purchase a/c Dr 58590
To accounts payable a/c 58590
(Being goods purchased Wagner Violins)
10/06/18 Accounts receivable a/c Dr 68796
To sales a/c 68796
(Being inventory purchased Amadeus Cellos)
11/06/18 creditors a/c dr 18900
To purchase return a/c 18900
10

(Being credit note issued Wagner Violins )
16/06/18 Accounts receivable a/c Dr 133812
To sales a/c 133812
(Being goods sold to Chopin Pianos)
Salaries a/c Dr 73458
To Bank a/c 73458
(Being salaries paid)
wages a/c Dr
To Bank a/c 62370
(Being salaries paid to sales staff) 62370
18/06/18 Accounts payable a/c Dr 168714
To cash a/c 168714
(Being payment made to creditor Wagner Violins.)
22/06/18 Revenue a/c Dr 23562
To Accounts receivable a/c 23562
(Being credit note issued Chopin Pianos)
23/06/18 Sundry expenses a/c Dr 12600
To Bank a/c 12600
(Being gift to charity Smith Family Charity Fund.)
24/06/18 purchases a/c Dr 93870
To accounts payable a/c 93870
11

(Being inventory purchased on credit Wagner Violins)
25/06/18 Cash a/c Dr 148050
To Accounts receivable a/c 148050
(Being cash received from debtor Chopin Pianos.)
28/06/18 Cash a/c Dr 147950
To Accounts receivable a/c 147950
(Being cash received from debtor Bach Guitars)
29/06/18 Accounts payable a/c Dr 18270
To cash a/c 18270
(Being payment made to creditor Wagner Violins)
Dividends a/c Dr 177100
To dividends payable a/c 177100
(Being dividend declared)
Salaries a/c Dr 62370
To Bank a/c 62370
(Being salaries paid to sales staff)
30/06/18 Cash at bank a/c Dr 126000
To stock a/c 126000
Adjusting entries
01/07/18
Depreciation a/c dr. 56700
To accumulated depreciation a/c 56700
12

(Being depreciation on asset purchased)
01/07/12
Depreciation a/c dr. 17010
To accumulated depreciation 17010
(Being equipment installed)
01/03/18 Rent expenses a/c dr 82179
To prepaid rent a/c 82179
(Being rent expired)
30/06/18 Store supplies a/c Dr 151011
To accounts payable a/c 65646
To cash in hand 85365
01/11/17 Prepaid insurance a/c Dr 7560
To insurance a/c 7560
(Being insurance policy purchased)
01/08/17
Interest expense a/c Dr 42486
To cash a/c 42486
(Being interest paid)
Bad debts a/c Dr 29610
To Accounts receivable a/c 29610
(Being bad debts written off Ludwig Trumpets)
04/07/18 utilities expenses 52038
13

Telephone expense a/c Dr 6426
To cash a/c 58464
(Being recorded expense)
15/06/18 Salaries a/c Dr 36729
To Salaries payable 36729
(Being salaries outstanding- office staff)
29/06/18 Salaries a/c Dr 138303
To outstanding salaries (staff) a/c 138303
(Being salaries outstanding)
30/06/18 tax expense a/c dr 86500
To tax a/c 86500
(Being estimated tax payable)
30/06/18 Closing inventory 1416492
Sales 4045734
Purchase Discount 24192
Purchase return 10143
To profit and Loss Summary 5496561
(To close off Temporary accounts with a normal credit
balance)
30/06/18 Profit and loss summary 5496561
opening inventor 781200
sales Discount 31059
sales return 8757
purchase 1926855
14

Freight out 2898
Wages expense- sales staff 968,121
Depreciation Expenses- Showroom
To bad debts Expenses 9215451
(To close off temporary accounts with a normal debit
balance)
Profit and Loss summary 5496561
To retained profits 5496561
(To close off profit to the retained profit account)
29/06/18 Dividends Declared 177100
To Dividend payable 177100
(To record declaration of dividends)
Retained profits 177100
To dividends declared 177100
(to close off dividends declared against retained profits)
15

CASH RECEIPTS JOURNAL
Date Account Post.
Ref.
Cash at Bank (100)
DR
Sales Discounts
(401)
DR
Sales
(400)
CR
Accounts Receivable
(101)
CR
Other
C
R
01/06/18 Accounts receivable a/c
Amadeus Cellos
95256
04/06/18 sales a/c 19278
08/06/18 Accounts receivable a/c
Chopin Pianos Store
27342
12/06/18 sales a/c 26334
16/06/18 Accounts receivable a/c
Chopin Pianos Store
133812
19/06/18 sales a/c 25011
25/06/1
8
Accounts receivable a/c
Chopin Pianos Store
148050
26/06/1
8
sales a/c 39312
16

28/06/1
8
Accounts receivable a/c
Bacj Guitars
116577
30/06/1
8
Stock 126000
30/06/1
8
Sales a/c 23436
TOTAL $126000 $ $133371 $521037 $
CASH PAYMENTS JOURNAL
Date Account Chq. No. Post Ref. Other
DR
Accounts Payable
(200)
DR
Purchases
(500)
DR
Cash at Bank
(100)
CR
Purchase Discounts
(501)
CR
03/06/18 Accounts payable a/c Dr
schubert sythesisers
43470
09/06/18 Purchase a/c Dr
Wagner Violins
58590
09/06/18 Purchase A/c dr. 5544
17

16/06/1
8
Salaries a/c dr. 73458
16/06/1
8
Salaries a/c dr. 62370
18/06/1
8
Accounts payable
Wagner Violins
168714
23/06/18 Sundry expenses 12600
29/06/18 Accounts payable
Wagner Violins
18270
30/06/1
8
Store supplies 85365
01/08/1
7
Interest Expenses 42486
04/07/1
8
Telephone expenses 6426
15/06/1
8
Outstanding salaries 36729
18

TOTAL $143155 $230454 $747684 $276279 $
19

SALES JOURNAL
Date Invoice No. Account Post
Ref.
Amount
01/06/18 Accounts receivable
Bach Guitars
68445
04/06/18 Cash a/c 19278
10/06/18 Accounts receivable
Amadeus Cellos
68796
12/06/18 Cash a/c 26334
16/06/18 Accounts receivable
Chopin Pianos
133812
19/06/18 Cash a/c 25011
26/06/18 Cash a/c 39312
30/06/18 Cash a/c 23436
TOTAL $404424
PURCHASES JOURNAL
Date Invoice Date Account Terms Post
Ref.
Amount
09/06/18 Cash a/c goods 58590
09/06/18 Bank a/c Supplies 5544
15/06/18 Accounts Payable
Schubert Synthesisers
inventory 96390
24/06/18 Accounts Payable
Wagner Violins
Inventory 93870
TOTAL $254394
20

LEDGERS
Accounts Receivable Subsidiary Ledger
Amadeus Cellos 101-1
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 95,256
01/06/18 Cash a/c 95256
10/06/18 Sales 68796
30/06/18 Balance c/f 68796 95256 26460
Bach Guitars 101-2
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 48,132
01/06/18 Sales 68445
28/16/18 Cash 147950
30/06/18 Balance c/f 68445 147950 31373
Chopin Pianos 101-3
Date Explanation Post.Ref. Debit Crsedit Balance
31-May Balance 65,142
08/06/18 Cash A/c 27342
16/06/18 Sales 133812
22/06/18 Revenue 23562
25/06/18 Cash A/c 148050
30/06/18 Balance c/f 133812 198954 0
Ludwig Trumpets 101-4
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 29,610
01/08/18 Bad debts 29610
30/06/18 Balance c/f 0
21

Accounts Payable Subsidiary Ledger
Schubert Synthesisers 200-1
Date Explanation Invoice
Date
Post.Ref. Debit Credit Balance
31-May Balance 43,470
03/06/18 Bank 43470
15/06/18 Purchase 96390
30/06/18 Balance c/f 43470 96390 9450
Wagner Violins 200-2
Date Explanation Invoice
Date
Post.Ref. Debit Credit Balance
31-May Balance 110,124
09/06/18 Purchase 58590
11/06/18 Purchase
return
18900
19/06/18 Cash 168714
24/06/18 Purchase 93870
29/06/18 Cash 18270
30/06/18 Balance c/f 205884 152460 163548
22

General Ledger
Cash at Bank 100
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 614,628
03/06/18 schubert
sythesisers
43470
09/06/18 Purchase 5544
16/06/18 Salaries 73458
16/06/18 Wages 62370
23/06/18 Sundry
Expenses
12600
29/06/18 Salaries 62370
30/06/18 Owner's equity 126000
30/06/18 Balance c/f 126000 259812 480816
Accounts
Receivable
Control 101
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 238,140
01/06/18 Cash 95256
01/06/18 Sales 68445
10/06/18 Sales 68796
16/06/18 Sales 133812
22/06/18 Revenue 23562
24/06/18 Cash 148050
28/06/18 Cash 147950
01/08/18 Bad debts 29610
30/06/18 Balance c/f 271053 444428 64765
Store Supplies 102
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 151,011
09/06/18 Purchase 5544
30/06/18 Balance c/f 5544 156555
Inventory 103
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 781,200
10/06/18 Amadeus
Cellos
68796
23

15/06/18 Schubert
Synthesisers
96390
24/06/18 Wagner
Violins
93870
30/06/18 Balance c/f 190260 68796 902664
Prepaid Store
Rent 104
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 739,620
01/03/18 Rent Expneses 82179
30/06/18 Balance c/f 82179 657441
Prepaid
Insurance 105
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 11,340
01/11/17 Insurance
expenses
7560
30/06/18 Balance c/f 3780 0
Showroom Fittings 150
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 510,300
01/07/18 Depreciation 56700
30/06/18 Balance c/f 453600
Accumulated Depreciation –
Showroom Fittings 151
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/07/18 Depreciation 56700
30/06/18 Balance c/f 56700
Equipment 160
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 173,250
01/07/18 Depreciation 17010
30/06/18 Balance C/f 156240
Accumulated Depreciation -
Equipment 161
Date Explanation Post.Ref. Debit Credit Balance
24

31-May Balance 85,050
01/07/18 Depreciation 17010
30/06/18 Balance c/f 102060 17010
Accounts Payable Control 200
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 153,594
03/06/18 bank 43470
09/06/18 Purchase 58590
15/06/18 Purchase 96390
18/06/18 Cash 168714
24/06/18 purchase 93870
29/06/18 Cash 18270
30/06/18 Store Supplies 65646
30/06/18 Balance c/f 230454 314496 69552
Interest Payable 201
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/08/17 Cash 42486
30/06/18 Balance c/f 42486
Utilities Payable 202
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
04/07/18 Telephone
expenses
6426
30/06/18 Balance c/f 6426
Wages Payable 203
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
29/06/18 O/s salaries 138303
30/06/18 Balance c/f 138303
Salaries Payable 204
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
15/06/18 O/s salaries 36729
25

30/06/18 Balance c/f 36729
Tax Payable 205
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30th June Tax expense 86500
30/06/18 Balance c/f 86500
Dividend
Payable 206
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30th June Dividend a/c 177100 177100
Mortgage Loan 250
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 606,942
30-June Balance 606,942
Share Capital 300
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,134,000
30/06/18 Cash at bank
a/c
126000 1163043
Retained Profits 301
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 963,522
30th June dividend 177100
Profit and loss
summary
5496561
Balance c/f 4355939 0
26

Dividends Declared 302
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
29/06/18 dividends
payable a/c
177100 177100
Profit & Loss Summary 303
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30th june Profit 5496561
Sales Revenue
400
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 4,045,734
1/6/2018 Accounts
receivable a/c
68445 4,114,179
4/6/2018 Cash a/c 19278 4,133,457
4,133,457
10/6/2018 Accounts
receivable a/c
68796 4,202,253
12/6/2018 Cash a/c 26334 4,228,587
16/06/18 Accounts
receivable a/c
133812 4,362,399
19/06/18 Cash a/c 25011 4,387,410
26/06/18 Cash a/c 39312 4,426,722
30/06/18 Cash a/c 23436 4,450,158
Sales Discounts 401
Date Explanation Post.Ref. Debit Credit Balance
27

31-May Balance 31,059
30th June Balance 31,059
Sales Returns & Allowances 402
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 8,757
22/06/18 Accounts
receivable
(chopin
pianos) a/c
23562 32319
Purchases 500
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,926,855
9/6/2018 creditors a/c 58590 1,985,445
15/06/18 accounts
payable a/c
96390 2,081,835
24/06/18 accounts
payable a/c
93870 2,175,705
Purchase Discounts 501
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 24,192
30th June Balance 24,192
Purchase Returns & Allowances 502
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 10,143
11/06/18 creditors a/c 18900 29043
Freight-Out 600
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 2,898
30th June Balance 2,898
Wages Expense – Sales Staff 601
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 968,121
16/06/18 Bank 62370
29/06/18 Bank a/c 62370 1092861
28

Depreciation Expense –
Showroom Fittings 602
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/07/18 Accumulated
depreciation
56700
30/06/18 Balance c/f 56700
Depreciation Expense –
Equipment 603
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/07/17 Accumulated
depreciation
102060
30/06/18 Balance c/f 102060
Supplies Expense 604
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
9/6/2018 Bank a/c 5544
30/06/18 accounts
payable a/c
65646
30/06/18 cash in hand 85365
30/06/18 Balance c/f 156555
Rent Expense 605
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/03/18 prepaid rent
a/c
82179
30/06/18 Balance c/f 82179
Insurance Expense 606
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/11/17 Prepaid
insurance a/c
11340
30/06/18 Balance c/f 11340
Advertising Expense 607
Date Explanation Post.Ref. Debit Credit Balance
29

31-May Balance 43,848
30-june Balance 43848 0
Interest Expense 608
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
01/08/17 Cash 42486
30/06/18 Balance c/f 42486
Utilities Expense 609
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 58,464
04/07/18 cash a/c 52038
30/06/18 Balance c/f 6426 0
Tax Expense 610
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30th June Tax 86500
30/06/18 Balance c/f 86500
Sundry Expenses 611
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 3,024
30-June Bank a/c 12600
30/06/18 Balance c/f 9576 0
Salaries Expense –
Office Staff 612
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 760,662
16/06/18 Bank 73458
29/06/18 outstanding
salaries a/c
138303
30/06/18 Balance c/f 972423 0
Bad Debts Expense 613
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30

01/08/17 Accounts
receivable a/c
29610
30/06/18 Balance c/f 29610
31

WORKSHEET – 30 JUNE 2018
Unadjusted Trial
Bal. Adjustments Adjusted Trial Bal. Income Statement Balance Sheet
Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash at Bank
614,628
126000 259812 480816 480816
Accounts Receivable
Control
238,140
271053 444428 64765 64765
Store Supplies 151,011 5544 156555 156555
Inventory
781,200
781200 781200 1416492 14164924
Prepaid Store Rent (Paid 1
Mar. 2018)
739,620
82179 657441 657441
Prepaid Insurance (Paid 1
Nov. 2017)
11,340
7560 3780 3780
Showroom Fittings 510,300 56700 453600 453600
Accumulated Depreciation –
Showroom Fittings 56700 56700 56700
Equipment
173,250
102060 71190 71190
Accumulated Depreciation -
Equipment
85,050
17010 102060 102060
Accounts Payable Control 153,594 276597 158760 69552 69552
32

Interest Payable 42486 42486 42486
Utilities Payable 6426 6426 6426
Wages Payable 138303 138303 138303
Salaries Payable 36729 36729 36729
Tax Payable 86500 86500 86500
Dividend Payable 177100 177100 177100
Mortgage Loan (due 31 Jul
2042) 606,942 606942 606942
Share Capital
1,134,000
126000 1163043 1163043
Retained Profits (1 July
2017)
963,522
963522
Dividends Declared 177100 177100 177100
Profit and Loss Summary
Sales Revenue 4,045,734 4450158 4450158
Sales Discounts
31,059
31059 31059
Sales Returns and
Allowances
8,757
32319 32319
Purchases
1,926,85
5
2175705 2175705
Purchase Discounts 24,192 24192 24192
Purchase Returns and
Allowances 10,143 29043 29043
Freight-Out
2,898
2898 2898
Wages Expense - Sales Staff 968,121 1092861 1092861
Depreciation Expense - 56700 56700 56700
33

Showroom Fittings
Depreciation Expense -
Equipment 17010 17010 17010
Supplies Expense 156555 156555
Rent Expense 7560 7560 7560
Insurance Expense 11340 11340
Advertising Expense
43,848
43848 43848
Interest Expense 42486 42486
Utilities Expense 58,464 110502 110502
Tax Expense 86500 86500 86500
Sundry Expenses
3,024
12600 15624 15624
Salaries Expense - Office
Staff
834120
36729 870849 870849
Bad Debts Expense 29610 29610 29610
TOTALS 7,273735 7200277 1239586 1311750 6229488 9349361 4468867 7015644 15892596 2823416
PROFIT/(LOSS)
73458
72164 3119873 2546777 13069180
34

FINANCIAL STATEMENTS
Schedules of Subsidiary Ledgers
Schedule of Accounts Receivable
as at 30 June 2018
Acc. No. Account Amount ($)
101-1 Amadeus Cellos 26460
101-2 Bach Guitars 31373
101-3 Chopin Pianos 0
101-4 Ludwig Trumpets 0
TOTAL $26460
Schedule of Accounts Payable
as at 30 June 2018
Acc. No. Account Amount ($)
200-1 Schubert Synthesisers 9450
200-2 Wagner Violins 163548
TOTAL $172998
35

Income Statement
for the year ending 30 June 2018
Gross Sales 4450158
Less: Sales Returns 32319
Less: Sales Discounts 31059
Net Sales 4386780
Opening inventories 781200
Purchase 2175705
Closing stock 902664
Cost of Goods Sold 2054241
Gross Profit 2332539
Other Revenue
Expenses
Selling Expenses
Accumulated Depreciation – Showroom
Fittings
56700
Accumulated Depreciation - Equipment 102060
Administration Expenses
Interest Payable 42486
Utilities Payable 6426
Wages Payable 138303
Salaries Payable 36729
Tax Payable 86500
Dividend Payable 177100
Financial Expenses
Supplies Expense 156555
Rent Expense 82179
Insurance Expense 11340
Advertising Expense 43848
Interest Expense 42486
Utilities Expense 110502
Sundry Expenses 15624
Salaries Expense - Office Staff 972513
Bad Debts Expense 29610
Total Expenses 2110961
Profit Before Income Tax 221578
Income Tax Expense 86500
Profit After Income Tax $135078
36

Statement of Changes in Equity
for the year ending 30 June 2018
Share Capital Retained Profits Total Equity
Opening Balance
as at 1 July 2017 1134000 963522 2097522
Dividend Payable 177100
1920422
Ending Balance as
at 30 June 2018 126000 2046422
37

Statement of Financial Position
as at 30 June 2018
Current Assets
Cash at bank 480816
Accounts Receivables 64765
Store supplies 156555
Inventories 902664
Prepaid Store Rent (Paid 1 Mar. 2018) 657441
Prepaid Insurance (Paid 1 Nov. 2017) 0
Total Current Assets 2262241
Non-Current Assets
Showroom Fittings 453600
Accumulated Depreciation – Showroom Fittings 56700
Equipment 71190
Accumulated Depreciation - Equipment 17010
Total Non-Current Assets 598500
TOTAL ASSETS 1663741
Current Liabilities
Accounts Payable Control 69552
Interest Payable 42486
Utilities Payable 6426
Wages Payable 138303
Salaries Payable 36729
Tax Payable 86500
Dividend Payable 177100
Total Current Liabilities 557096
Non-Current Liabilities
Mortgage Loan (due 31 Jul 2042) 606942
Total Non-Current Liabilities 606942
TOTAL LIABILITIES 1164038
Shareholder's Equity
Share Capital 1163043
Retained Profits (1 July 2017) 963522
Profit and loss 135078
Dividends Declared 177100
TOTAL LIABILITIES & EQUITY 3248581
38

Post-closing Trial Balance
As at 30 June 2018
Acc.
No. Account Debit ($) Credit ($)
Cash at Bank 480816
Accounts Receivable Control 64765
Store Supplies 156555
Inventory 902664
Prepaid Store Rent (Paid 1 Mar. 2018) 657441
Prepaid Insurance (Paid 1 Nov. 2017)
Showroom Fittings 453600
Accumulated Depreciation – Showroom Fittings 56700
Equipment 71190
Accumulated Depreciation - Equipment 17010
Accounts Payable Control 69552
Interest Payable 42486
Utilities Payable 6426
Wages Payable 138303
Salaries Payable 36729
Tax Payable 86500
Dividend Payable 177100
Mortgage Loan (due 31 Jul 2042) 606942
Share Capital 1163043
Retained Profits (1 July 2017)
**
Expression
is faulty **
Dividends Declared 177100
Profit and Loss Summary
Sales Revenue 4450158
Sales Discounts 31059
Sales Returns and Allowances 32319
Purchases 2175705
Purchase Discounts 24192
Purchase Returns and Allowances 29043
Freight-Out 2898
Wages Expense - Sales Staff 1092861
Depreciation Expense - Showroom Fittings 56700
Depreciation Expense - Equipment 102060
Supplies Expense 156555
Rent Expense 82179
Insurance Expense 11340
Advertising Expense 43848
Interest Expense 42486
Utilities Expense 110502
39

Tax Expense 86500
Sundry Expenses 15624
Salaries Expense - Office Staff 972513
Bad Debts Expense 29610
TOTALS
PROFIT/(LOSS) 135078
40

WRITTEN COMPONENT
41

42

43