Financial Accounting: Salzbruck Musical Instruments Practice Set

This document presents a comprehensive solution to the Salzbruck Musical Instruments Pty Ltd accounting practice set. It includes a general journal, cash receipts journal, cash payment journal, sales journal, and purchase journal. Furthermore, it provides accounts receivable and payable subsidiary ledgers, general ledgers, a worksheet, schedules of subsidiary ledgers, an income statement, a statement of changes in equity, a balance sheet, and a post-closing trial balance. The solution covers transactions for June 2018 and incorporates adjusting entries to accurately reflect the financial position of Salzbruck Musical Instruments. This detailed solution is ideal for students studying financial accounting and provides a step-by-step guide to completing the practice set, contributed by a student on Desklib.

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:

1FINANCIAL ACCOUNTING
Table of Contents
General Journal:...............................................................................................................................2
Cash Receipts Journal:.....................................................................................................................4
Cash Payment Journal:....................................................................................................................4
Sales Journal:...................................................................................................................................5
Purchase Journal:.............................................................................................................................5
Accounts Receivable Subsidiary Ledgers:......................................................................................6
Accounts Payable Subsidiary Ledgers:...........................................................................................7
General Ledgers:..............................................................................................................................7
Worksheet:.....................................................................................................................................17
Schedules of Subsidiary Ledgers:..................................................................................................18
Income Statement:.........................................................................................................................18
Statement of Changes in Equity:...................................................................................................19
Balance Sheet:...............................................................................................................................20
Post-Closing Trial Balance:...........................................................................................................21
Bibliography:.................................................................................................................................23

2FINANCIAL ACCOUNTING
General Journal:
General Journal
Date Account Post
Ref. Debit Credit
09-06-
2018 Showroom Fittings…..Dr. 150 58,590
To,Wagner Violins 200-2 58,590
11-06-
2018 Wagner Violins…..Dr. 200-2 18,900
To, Showroom Fittings 150 18,900
22-06-
2018 Sales Returns & Allowances….Dr. 402 23,562
To, Chopin Pianos 101-3 23,562
29-06-
2018 Dividend Declared….Dr. 302 1,77,100
To, Dividend Payable 206 1,77,100
30-06-
2018 Depreciation Expense- Showroom Fittings A/c……Dr. 602 56,700
To, Accum Depr. - Showroom Fittings A/c. 151 56,700
Depreciation Expense- Equipment A/c……Dr. 603 17,010
To, Accum Depr. - Equipment A/c. 161 17,010
Rent Expense A/c…..Dr. 605 2,46,537
To, Prepaid Store Rent A/c. 104 2,46,537
Supplies Expense A/c……Dr. 604 71,190
To, Store Supplies A/c. 102 71,190
Insurance Expense A/c……Dr. 606 7,560
To, Prepaid Insurance A/c. 105 7,560
Interest Expense A/c……Dr. 608 38,945
To, Interest Payable A/c. 201 38,945
Bad Debts Expense A/c……Dr. 613 29,610
To, Ludwig Trumpets A/c. 101-4 29,610

3FINANCIAL ACCOUNTING
Utilities Expense A/c……..Dr. 609 6,426
To, Utilities Payable A/c. 202 6,426
Salaries Expense - Office Staff A/c……Dr. 612 36,729
To, Salaries Payable A/c. 204 36,729
Wages Expense - Sales Staff A/c…….Dr. 601 8,910
To, Wages Payable A/c. 203 8,910
Tax Expense A/c…….Dr. 610 86,400
To,Tax Payable A/c. 205 86,400
Sales Revenue A/c……Dr. 400 44,40,555
Purchase Discounts A/c……Dr. 501 24,192
Purchase Returns & Allowance A/c…..Dr. 502 10,143
Inventory A/c……Dr. 103 14,16,492
To, Profit & Loss Summary A/c. 303 58,91,382
Profit & Loss Summary A/c……Dr. 303 56,32,535
To, Purchases A/c. 500 21,17,115
To, Sales Discounts A/c. 401 31,059
To, Sales Returns & Allowance A/c. 402 32,319
To, Freight- Out A/c. 600 19,908
To, Wages Expenses - Sales Staff A/c. 601 11,01,771
To, Depreciation Expense - Showroom Fittings A/c. 602 56,700
To, Depreciation Expense - Equipment A/c. 603 17,010
To, Supplies Expense A/c. 604 71,190
To, Rent Expense A/c. 605 2,46,537
To, Advertising Expense A/c. 607 43,848
To, Insurance Expense A/c. 606 7,560
To, Interest Expense A/c. 608 38,945
To, Utilities Expense A/c. 609 64,890
To, Tax Expense A/c. 610 86,400
To, Sundry Expenses A/c. 611 15,624
To, Salary Expenses - Office Staff A/c. 612 8,70,849
To, Bad Debts Expense A/c. 613 29,610
To, Inventory A/c. 103 7,81,200
Profit & Loss Summary A/c……Dr. 303 2,58,847
To, Retained Profit A/c. 301 2,58,847

4FINANCIAL ACCOUNTING
Retained Profit A/c……Dr. 301 1,77,100
To, Dividend Declared A/c. 302 1,77,100
Cash Receipts Journal:
CASH RECEIPTS JOURNAL:
Date Account Post.
Ref.
Cash at
Bank
(100)
Sales
Discounts
(401)
Sales
(400)
Accounts
Receivable
(101)
Other
DR DR CR CR CR
01-06-2018 Amadeus
Cellos 101-1 95,256 95,256
04-06-2018 Cash Sales 400 19,278 19,278
08-06-2018 Chopin
Pianos 101-3 27,342 27,342
12-06-2016 Cash Sales 400 26,334 26,334
19-06-2018 Cash Sales 400 25,011 25,011
25-06-2018 Chopin
Pianos 101-3 1,38,600 1,38,600
26-06-2018 Cash Sales 400 39,312 39,312
28-06-2018 Bach
Guitars 101-2 1,16,424 1,16,424
30-06-2018
Additional
Share
Capital
Issued
300 1,26,000 1,26,000
30-06-2018 Cash Sales 400 23,436 23,436
30-06-2018 TOTAL 6,36,993 0 1,33,371 3,77,622 1,26,000
Cash Payment Journal:
CAH PAYMENT JOURNAL:
Date Account Chq
. No.
Post
Ref.
Other
Accounts
Payable
(200)
Purchases
(500)
Cash at
Bank
(100)
Purchase
Discounts
(501)
DR DR DR CR CR
01-06-2018 Freight Out 153 600 7,560 7,560
03-06-2018 Schubert
Synthesisers 154 200-1 43,470 43,470

5FINANCIAL ACCOUNTING
09-06-2018 Purchase of
Store Supplies 155 102 5,544 5,544
16-06-2018 Freight Out 156 600 9,450 9,450
16-06-2018 Paid Office Staff
Salaries 157 612 73,458 73,458
16-06-2018 Paid Sales Staff
Wages 158 601 62,370 62,370
18-06-2018 Wagner Violins 159 200-2 1,49,814 1,49,814
23-06-2018 Donation to
Charity Fund 160 611 12,600 12,600
29-06-2018 Wagner Violins 161 200-2 75,600 75,600
29-06-2018 Paid Sales Staff
Wages 162 601 62,370 62,370
TOTAL 2,33,35
2 2,68,884 0 5,02,236 0
Sales Journal:
SALES JOURNAL
Date Invoice No. Account Post Ref. Amount
01-06-2018 910 Bach Guitars 101-2 68,292
10-06-2018 911 Amadeus Cellos 101-1 68,796
16-06-2018 912 Chopin Pianos 101-3 1,24,362
TOTAL 2,61,450
Purchase Journal:
PURCHASE JOURNAL
Date Invoice Date Account Terms Post Ref. Amount
15-06-2018 14-06-2018 Schubert Synthesisers 2/10,n/30 200-1 96,390
24-06-2018 22-06-2018 Wagner Violins 1/10,n/45 200-2 93,870
TOTAL 1,90,260

6FINANCIAL ACCOUNTING
Accounts Receivable Subsidiary Ledgers:
Amadeus Cellos 101-1
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 95,256
01-06-2018 Cash Receipts CRJ 95,256 0
10-06-2018 Credit Sales SJ 68,796 68,796
68,796
68,796
Bach Guitars 101-2
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 48,132
01-06-2018 Credit Sales SJ 68,292 1,16,424
28-06-2018 Cash Receipts CRJ 1,16,424 0
0
0
Chopin Pianos 101-3
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 65,142
08-06-2018 Cash Receipts CRJ 27,342 37,800
16-06-2018 Credit Sales SJ 1,24,362 1,62,162
22-06-2018 Sales Return GJ 23,562 1,38,600
25-06-2018 Cash Receipts CRJ 1,38,600 0
Ludwig Trumpets 101-4
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 29,610
30-06-2018 Bad Debt expense GJ 29,610 0
0
0
0

7FINANCIAL ACCOUNTING
Accounts Payable Subsidiary Ledgers:
Schubert Synthesisers 200-1
Date Explanation Invoice Date Post.Ref. Debit Credit Balance
31-May Balance 43,470
03-06-
2018 Cash Repayments CPJ 43,470 0
15-06-
2018 Credit Purchase 14-06-2018 PJ 96,39
0 96,390
96,390
96,390
Wagner Violins 200-2
Date Explanation Invoice Date Post.Ref. Debit Credit Balance
31-May Balance 1,10,124
09-06-
2018 Credit Purchase of Boutique Lighting 08-06-2018 GJ 58,59
0 1,68,714
11-06-
2018 Return of Lightings GJ 18,900 1,49,814
18-06-
2018 Cash Repayments CPJ 1,49,814 0
23-06-
2018 Credit Purchase 22-06-2018 PJ 93,87
0 93,870
29-06-
2048 Partial Cash Payment CPJ 75,600 18,270
18,270
General Ledgers:
Cash at Bank 100
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 6,14,628
30-06-2018 Total Cash Receipts CRJ 6,36,993 12,51,621
Total Cash Payments CPJ 5,02,236 7,49,385
7,49,385
7,49,385
Accounts Receivable Control 101
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 2,38,140

8FINANCIAL ACCOUNTING
22-06-2018 Sales Return GJ 23,562 2,14,578
30-06-2018 Total Credit Sales SJ 2,61,450 4,76,028
Total Cash Receipts CRJ 3,77,622 98,406
Bad Debt Expenses GJ 29,610 68,796
Store Supplies 102
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,51,011
09-06-2018 Cash Purchase CPJ 5,544 1,56,555
30-06-2018 Supplies Expense GJ 71,190 85,365
85,365
85,365
Inventory 103
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 7,81,200
30-06-2018 Closing Entry - P/L Summary GJ 7,81,200 0
Closing Inventory GJ 14,16,492 14,16,492
14,16,492
14,16,492
Prepaid Store
Rent 104
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 7,39,620
30-06-2018 Rent Expense GJ 2,46,537 4,93,083
4,93,083
4,93,083
4,93,083
Prepaid Insurance 105
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 11,340
30-06-2018 Insurance Expense GJ 7,560 3,780
3,780
3,780
3,780

9FINANCIAL ACCOUNTING
Showroom Fittings 150
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 5,10,300
09-06-2018 Credit Purchase of Boutique Lighting GJ 58,590 5,68,890
11-06-2018 Return of Lightings GJ 18,900 5,49,990
5,49,990
5,49,990
Accumulated Depreciation – Showroom Fittings 151
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Depreciation Expense - Showroom
Fittings GJ 56,700 56700
56700
56700
56700
Equipment 160
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,73,250
1,73,250
1,73,250
1,73,250
1,73,250
Accumulated Depreciation - Equipment 161
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 85,050
30-06-2018 Depreciation Expense - Equipment GJ 17,010 102060
102060
102060
102060
Accounts Payable Control 200
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,53,594
09-06-2018 Credit Purchase of Showroom Fittings GJ 58,590 212184
11-06-2018 Return of Lightings GJ 18,900 193284
30-06-2018 Total Credit Purchase PJ 1,90,260 383544
Total Cash Repayments CPJ 2,68,884 114660

10FINANCIAL ACCOUNTING
Interest Payable 201
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Interest Expenses GJ 38,945 38945
38945
38945
38945
Utilities Payable 202
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Utilities Expense GJ 6,426 6426
6426
6426
6426
Wages Payable 203
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Wages Expenses - Sales Staff GJ 8,910 8910
8910
8910
8910
Salaries Payable 204
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Salaries Expense - Office Staff A/c. GJ 36,729 36729
36729
36729
36729
Tax Payable 205
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Tax Expenses GJ 86,400 86400
86400
86400
86400

11FINANCIAL ACCOUNTING
Dividend Payable 206
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
29-06-2018 Dividend Declared GJ 1,77,100 177100
177100
177100
177100
Mortgage Loan 250
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 6,06,942
606942
606942
606942
606942
Share Capital 300
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 11,34,000
30-06-2018 Additional Share Capital Issued CRJ 1,26,000 1260000
1260000
1260000
1260000
Retained Profits 301
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 9,63,522
30-06-2018 Net Profit Transferred from P/L
Summary GJ 2,58,847 1222368.6
Dividend Declared GJ 1,77,100 1045268.6
1045268.6
1045268.6
Dividends Declared 302
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
29-06-2018 Dividend Payable GJ 1,77,100 1,77,100
Adjusted with Retained Profits GJ 1,77,100 0