Accounting and Financial Reporting for The Club Cafe - July 2019

This assignment solution covers the accounting processes for "The Club Cafe" for the month of July 2019. It begins with posting journals to the general ledger, including the cash receipts, cash payments, sales, purchases, sales returns and allowances, and purchases returns and allowances journals. The solution then details the preparation of the trial balance as of July 31, 2019. Additionally, the assignment involves working with subsidiary ledgers for accounts receivable and accounts payable. This includes posting transactions to the control accounts and subsidiary ledgers, preparing reconciliation schedules, and answering related theoretical questions. The provided solution includes all necessary workings, journal entries, and the final trial balance, offering a comprehensive guide to the accounting cycle for a small business. The assignment also includes a second part covering Beverley's Bakery with similar requirements for accounts receivable and payable.

There are 3 stages for this assignment. Please Complete all and with balance.
Posting to the ledger
Post journals to ledger in line with organisational input standards
Enter data into system according to organisational input standards and allocate transactions
to system and accounts
Extract and check trial balance and prepare other required interim reports
Determine scope of any special transactions to be made, and process the transactions
Review trial balance and interim reports for accuracy and completeness
Finalise and file trial balance and interim reports according to organisational and regulatory
requirements
Assessment
C Aroma commenced business on 1st July 2019 as The Club Caféserving drinks and snacks. You have been
provided with the journals for the month of July 2019, and are required to:
1. Post the journals to the General Ledger
2. Prepare a Trial Balance as at 31st July 2019
General Journal
Date Particulars Folio Debit Credit
2019
July 1 Cash at bank 15 000
Computer equipment 3 500
Stock 19 000
Premises 40 000
Mortgage on premises 25 000
Capital – C Aroma 52 500
Assets introduced by owner at
commencement of business
15 Drawings – C Aroma 330
Purchases 300
GST Paid 30
Withdrawal of stock by the owner

There are 3 stages for this assignment. Please Complete all and with balance.
Posting to the ledger

Cash Receipts Journal
Date
2019 Particulars Folio Ref No
Discount Expense
Acc. Rec.
Control
Cash
Sales
Sundries
GST
Collected BankAcc. Rec.
Control
GST
Collecte
d
Discount
Expense Amount Account
July 7 AMEX EFT
- gross 260
- merchant fee (20)
Merchan
t fee
exp.
- GST paid (2) GST
paid 238
15 Cash sales POS 1 200 120 1 320
22 EFTPOS sales POS 800 80 880
28 B Smith 132 10 1 9 230 230
31 Wilson Bank W26 38 Interest
Income 38
10 1 9 490 2 000 16 200 2 706
Cash Payments Journal
Date
2019 Particulars Folio Ref No
Discount Income
Acc. Pay.
Control
Cash
Purchases Wages
Sundries
GST
Paid Bank
Acc.
Pay.
Control
GST Paid Discount
Income
Amoun
t Account
July 10 Bright Electrics 501 360 36 396
12 S Hunter 502 55 5 50 2 145 2 145
16 Wages 503 550 550
24 L Sample 504 22 2 20 150 150
25 Leader Newspaper 505 132 132
C Aroma 506 200
Drawing
s– C
Aroma
200
30 Mortgage 507 2 000 Mortgag 2 000

e
31 L Castle 508 80 8 88
77 7 70 2 427 440 550 2 200 44 5 661

Sales Journal
Date
2019 Debtor Folio Ref No Sales Sundries GST
Collected
Acc. Rec.
ControlAmount Account
July 7 AMEX POS 250 25 275
10 R Riley 101 190 19 209
14 P Giles 102 50 5 55
25 A Sorensen
103 220
Sale of
non-current
asset
22 242
490 220 71 781
Purchases Journal
Date
2019 Creditor Folio Ref No Purchases Sundries GST Paid Acc. Pay.
ControlAmount Account
July 2 Leader Newspaper 53 120 12 132
11 G Taylor A45 570 57 627
19 J Paul 112 2 100 Computer
equipment 210 2 310
29 M Gregory 84 90 9 99
780 2 100 288 3 168
Sales Returns and Allowances Journal
Date
2019 Debtor Folio Ref No
Sales
Returns &
Allowances
Sundries GST
Collected
Acc. Rec.
ControlAmount Account
July 20 R Riley CN01 20 2 22
20 2 22
Purchases Returns and Allowances Journal
Date
2019 Creditor Folio Ref No
Purchases
Returns &
Allowances
Sundries
GST Paid Acc. Pay.
ControlAmount Account
July 29 G Taylor R22 130 13 143
130 13 143

Assessment
Title Subsidiary Ledgers
The Club Cafe
General Ledger
Stock Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
1ST JULY By bal b/d 19000
By bal c/d 19000
Cash at Bank Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
1ST JULY By bal b/d 15000
To Merchant fees
To Gst Paid
260 20
2
By Gst Collected 120
To sales 1200
To EFTPOS Sales 800
By Gst Collected 80
By Wages 550
To Sales a/c 221
To Discount income 9
To Gst 1
By purchases a/c 2095
By purchases 130
By drawings a/c 200
By mortgage 2000
By purchases a/c 80
By bal c/d 15691 7000 8691
Computer Equipment Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
1ST
JULY
By bal b/d 3500

Assessment
Title Subsidiary Ledgers
By bal c/d 3500 3500
Premises Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
1ST JULY By bal b/d 40000
By c/d 40000 40000
Mortgage on Premises Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By bal b/d 25000
Bank a/c 2000
By bal c/d 27000
Capital – C Aroma Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By bal b/d 52500
By bal c/d 52500
Drawings – C Aroma Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
To Purchases 300
To GST paid 30
To bank a/c 200
By bal c/d 530 530
Purchases Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By Drawings 300

Assessment
Title Subsidiary Ledgers
To Accounts Payable 360
To Accounts Payable 80
To Accounts Payable A/c 120
To Accounts Payable A/c 570
To Accounts Payable A/c 90
To bank a/c 2095
To Discount 50
To gst 5
To bank a/c 130
To discount 20
To Gst 2
To bank a/c 80
To gst a/c 8
3610 300 3310
GST Paid Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
Drawings A/c 30
By bank A/c 20
To cash a/c 36
To accounts payable 12
To accounts payable 57
To accounts payable 9
To Computer A/c 210
By purchases 5
By purchases 2
By purchases 8
By Bal c/d 344 45 299
Accounts Receivable Control Account
Date Particulars Folio Debit Credit Balance

Assessment
Title Subsidiary Ledgers
$ $ $
To merchant fee 20
To GST paid 2
To sales a/s 250
To gst collected 25
To sales a/s 190
To gst collected 19
To sales a/s 50
To gst Collected 5
By bal c/d 561 561 561
GST Collected Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
To sales A/c 120
To Sales A/c 80
By Sales 25
By Sales 19
By Sales 5
By Sales 22
By bank A/c 1
By bal c/d 200 72 128
Discount Expense Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By purchases 50
By purchases 20
By bal cd 70 70 70
Sales Account

Assessment
Title Subsidiary Ledgers
Date Particulars Folio Debit
$
Credit
$
Balance
$
By accounts receivables 250
By accounts receivables 190
By accounts receivables 50
By bank A/c 221
By bal c/d 711 711
Accounts Payable Control Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By Purchases a/c 120
By gst paid 12
By Purchases a/c 570
By gst paid 57
By Purchases a/c 90
By gst paid 9
By bal c/d 858 858
Discount Income Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By bank A/c 9
By bank a/c 9 9 9
Merchant Fees Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By bank A/C 20
Bal c/d 20 20
Interest Income Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By bank A/c 38

Assessment
Title Subsidiary Ledgers
To Interest payable 38 38
Wages Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
To cash a/c 550
By Bal c/d 550 550
Sales Returns and Allowances Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
To Riley 20
To gst 2
By bal c/d 22 22
Purchases Returns and Allowances Account
Date Particulars Folio Debit
$
Credit
$
Balance
$
By G taylor 130
By Gst 13
To bal c/d 143 143 143
Sale of Non-current asset account
Date Particulars Folio Debit
$
Credit
$
Balance
$
To Accounts receivables A/c 242
By bal c/d 242 242
The Club Cafe
Trial Balance as at 31 July 2019
ACCOUNT NAME DEBIT CREDIT
Stock 19000

Assessment
Title Subsidiary Ledgers
Cash 8691
Computer 3500
Premises A/c 40000
Mortgage on Premises Account 27000
Capital – C Aroma Account 52500
Drawings – C Aroma Account 530
Purchases 3310
Gst paid 299
Accounts receivable 561
Gst Collected 128
Discount expense 70
Sales 953
Accounts payable 858
Discount Income 9
Merchant fees 20
Interest Income 38
Wages 550
Sales returns 22
Purchase returns 143
Sundries 5116
TOTALS 81649 81649
Your client, Beverley, has called you and asked for help in managing her Accounts receivable and payables. She
has provided you with the completed journals for her business “Beverley’s Bakery”for July 2019. You are required
to:-
a) Post the journals to the Accounts Receivable and Accounts Payable control accounts
b) Post all relevant transactions to the Accounts Receivable and Accounts Payable subsidiary ledgers.
(You may need to create new subsidiary accounts where necessary)
c) Prepare the Accounts Receivable and Accounts Payable reconciliation schedules to ensure all entries are
correct and the accounts balance
d) Answer the theory questions. Your theory responses should be at least one paragraph each, with full
explanations. No bullet points.
Control account balances as at 1 July 2019:
Accounts Receivable Balances as at July 1st 2019
Debtor Balance
$
Poppy Seed Pty Ltd 1,500