Accounting Principles Portfolio: GST, Ledger, Trial Balance (BZ102)

This document presents a comprehensive solution to an accounting principles portfolio assignment. The first part analyzes various business transactions, determining the applicability of GST and calculating the payable or claimable amounts, along with identifying the necessary source documents. The second part focuses on transaction analysis and posting to the general ledger, using journal entries from a previous assignment for Sister's Tiling Service. Students are required to post from the journals to the general ledger accounts in "T" format and then prepare a trial balance. The assignment incorporates real-world scenarios and requires a solid understanding of accounting principles, including journal entries, ledger postings, and the preparation of a trial balance. References are provided to support the concepts presented in the assignment.

BZ102 – ACCOUNTING PRINCIPLES
PORTFOLIO QUESTIONS – Topics 3 & 4
Question 1
Assume that the following business is registered for GST.
For each of the following transactions, indicate in the table below
a) Whether or not GST is applicable, and if so, how much is payable or able to be
claimed as an input credit?
b) Indicate which source document/s would provide evidence of the transaction?
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 Flight tickets mentioning the date
and time
Purchased goods on credit from W
Willis $770
No
(Input
Credit)
77 Purchases Invoices
Received and banked daily cash
sales $1,807
Yes 180.7 Tax invoice
Sold inventories on credit to B. Blake
$979
Yes 97.9 Tax invoice
Paid a cheque to Telstra $429 No
Banked daily cash sales $1 716 Yes 171.6 Tax Invoice

Bought goods on credit from M Miles
$858
No
(Input
tax)
85.8
Interest received on investment
account $63
No
Monthly wages and salaries paid
directly from business bank account
to various employees $4,600
No
Paid off some of the amount owing to
M. Miles $700
No
Dividend received from investment
shares $215
No
Sent tax invoice to C Hunter for
goods sold $1,793
Yes 179.3 Tax Invoice
Received some money owing from
an account receivable, C. Hunter,
$1,100
No
Returned some faulty goods which
had been bought on credit from W.
Willis for $80
No
Recorded the interest which had
been charged on overdrawn bank
account - $28
No

Question 2
Transaction Analysis and Posting to the General Ledger
Refer to the Journal entries which were prepared for Question 3 in topics 1
and 2 portfolio tasks for Sister’s Tiling Service. (You may use the correct
journals which were provided as suggested solutions for that task)
Required -
a) Post from the journals to the general ledger accounts, in “T” format
(Use the General Ledger paper provided below)
b) Prepare a Trial Balance (refer attached)
(Original transactions from Weeks 1 and 2 are reproduced below for your convenience)
March 23 Performed tiling services ‘cash job’ of $600, which was banked
March 25 Received commission from Tiling Manufacturers Pty Ltd for being “best tradie” for the
month.
March 28 Attended building site and repaired floor tiling. Invoiced the builder $350, due 7 days.
March 29 Paid apprentice wages $700
March 30 Client paid invoice from last week, directly to Sisters Tiling bank account, $1150
March 31 Transferred $800 from bank account to pay monthly loan repayment.

General Ledger for Sister’s Tiling Service
DEBIT CREDIT
Date Details Amt. $ Date Details Amt. $
Capital A/c
1/1/18 Balance b/fwd 40,000
1/3/18 From Cash at Bank 4,000
31/03/18 Balance c/d 44000
Total 44000 Total 44000
Cash at Bank A/c
1/3/18 From Capital 4,000 29/03/18 From wages 700
23/3/18 From Service Fee
Revenue
600 31/03/18 From Loan
Repayment
800
30/03/18 From accounts
receivable
1150 31/03/18 Balance c/d 4250
Total 5750 Total 5750
Building A/c
1/1/18 Balance b/fwd 200,000 31/03/18 Balance c/d 200,000
Total 200,000 Total 200,000

DEBIT CREDIT
Date Details Amt. $ Date Details Amt. $
Accounts
Receivable A/c
28/03/18 From Service
Revenue
350 30/03/18 From Cash at
Bank
1150
31/03/18 Balance c/d 800
Total 1150 Total 1150
Loan from Bank A/c
31/03/18 From Cash at
Bank
800 1/1/18 Balance b/f 160,000
31/03/18 Balance c/d 159200
Total 160,000 Total 160,000
Service Fees
Revenue a/c
31/03/18 Balance c/d 950 23/03/18 From Cash at
Bank
600
28/03/18 From Account
Receivable
350
Total 950 Total 950
Commission
Revenue A/c
Wages A/c

29/03/18 From Cash at
Bank
700 31/03/18 Balance c/d 700
Total 700 Total 700

Sister’s Tiling Services
TRIAL BALANCE as at 31 March, 2018
General Ledger Accounts DEBIT CREDIT
Capital 44000
Cash at Bank 4250
Building 200000
Accounts Receivable 800
Loan from Bank 159200
Service Fee Revenue 950
Commission Revenue
Wages 700
$
204,950
$ 204,950

Reference
Carraher, S. and Van Auken, H., 2013. The use of financial statements for decision
making by small firms. Journal of Small Business & Entrepreneurship, 26(3), pp.323-
336.
Mawuli, A., 2014, May. Goods and services tax: An appraisal. In Paper presented at the
PNG Taxation Research and Review Symposium (Vol. 29, p. 30).
Needles, B.E., Powers, M. and Crosson, S.V., 2013. Principles of accounting. Cengage
Learning.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial
accounting. John Wiley & Sons.