BSBFIA303A/BSBADM309A Process Accounts Payable and Receivable

When you have completed SECTION TWO exercises, you should be competent in the following skills associated with ACCOUNTS PAYABLE:

Ø  explaining the purpose of journals

Ø  preparing entries for the accounts payable journals

o  correctly entering details of tax invoices received from suppliers into a columnar Purchases Journal

o  correctly entering details of adjustment notes received from suppliers into a columnar Purchases and Returns (and Allowances) Journal

o  correctly entering details of payment vouchers/cheques into a columnar Cash Payments Journal

Ø  posting to the Accounts Payable Ledger from the above journals, maintaining the accounting equation

Ø  reconciling invoices for payment to creditors.

Journals have three functions:

Ø  sort documents of a like nature together

Ø  summarise the detail from each document into the specialist journal

Ø  act as a means of transfer (from the set of journals) to the Accounts Payable Ledger cards

tax invoice Purchase Journal trade goods bought on credit

adjustment note Purchases Returns Journal returns of trade goods bought on credit

voucher/cheque Cash Payments Journal cash payments

Complete the following Purchases Journal exercises:

Sports Australia

Bantex Industries

SPORTS AUSTRALIA—Tax Invoices received from suppliers

OZZIE SPORTS
Raymond Terrace
ABN: 55 111 222 333 /

JUST GYMNASTICS

Raymond Terrace
ABN: 55 222 333 444
To: Sports Australia
Mayfield Tax Invoice 1123
Date: 09 September / To: Sports Australia
Mayfield Tax Invoice 1444
Date 10 September
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 690.00
69.00
621.00
62.10
$683.10 /

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 530.00
53.00
477.00
47.70
$524.70
JUMPIN’ JACKS
Nelson Bay
ABN: 55 333 444 555 / OZZIE SPORTS
Raymond Terrace
ABN: 55 111 222 333
To: Sports Australia
Mayfield Tax Invoice 1400
Date: 15 September / To: Sports Australia
Mayfield Tax Invoice 1175
Date: 18 September
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 480.00
48.00
432.00
43.20
$475.20 /

Trade GoodsLess Trade DiscountSubtotal

Add GST
TOTAL (GST inclusive) / 600.00
60.00
540.00
54.00
$594.00
JUMPIN’ JACKS
Nelson Bay
ABN: 55 3333 444 555 / JUST GYMNASTICS
Raymond Terrace
ABN: 55 222 333 444
To: Sports Australia
Mayfield Tax Invoice 1499
Date: 25 September / To: Sports Australia
Mayfield Tax Invoice 1603
Date: 29 September
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

Trade GoodsLess Trade DiscountSubtotal

Add GST
TOTAL (GST inclusive) / 2090.00
209.00
1881.00
188.10
$2069.10 /

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 575.00
57.50
517.50
51.75
$569.25

PURCHASES JOURNAL OF SPORTS AUSTRALIA Folio P1

Date200X

/ Tax Invoice / Particulars-Accounts Payable / Folio / Purchases / GST Outlaid (Paid) / Accounts Payable Control (Creditors)
SEP 09 / 1123 / Ozzie Sports / 621 / 00 / 62 / 10 / 683 / 10

BANTEX INDUSTRIES—Tax Invoices received from suppliers

VANGUARD CAMERAS
Sydney
ABN: 12 111 222 333 /

CANON AUSTRALIA

Sydney
ABN: 12 222 333 444
To: Bantex Industries
Newcastle Tax Invoice 123
Date: 08 June / To: Bantex Industries
Newcastle Tax Invoice 444
Date 10 June
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 700.00
70.00
630.00
63.00
$693.00 /

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 450.00
45.00
405.00
40.50
$445.50
THE CAMERA HOUSE
Newcastle
ABN: 12 333 444 555 / VANGUARD CAMERAS
Sydney
ABN: 12 111 222 333
To: Bantex Industries
Newcastle Tax Invoice 400
Date: 15 June / To: Bantex Industries
Newcastle Tax Invoice 300
Date: 18 June
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 750.00
75.00
675.00
67.50
$742.50 /

Trade GoodsLess Trade DiscountSubtotal

Add GST
TOTAL (GST inclusive) / 1800.00
180.00
$1620.00
162.00
$1782.00
THE CAMERA HOUSE
Seaham
ABN: 12 333 444 555 / CANON AUSTRALIA
Sydney
ABN: 12 222 333 444
To: Bantex Industries
Newcastle Tax Invoice 472
Date: 25 June / To: Bantex Industries
Newcastle Tax Invoice 544
Date: 29 June
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

Trade GoodsLess Trade DiscountSubtotal

Add GST
TOTAL (GST inclusive) / 2000.00
200.00
$1800.00
180.00
$1980.00 /

Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 440.00
44.00
396.00
39.60
$435.60

PURCHASES JOURNAL OF BANTEX INDUSTRIES Folio P1

Date

/ Tax Invoice / Particulars-Accounts Payable / Folio / Purchases / GST Outlaid (Paid) / Accounts Payable Control (Creditors)

Complete the following Purchase Returns and Allowances Journal exercises:

Sports Australia

Bantex Industries

Entertainment Australia

SPORTS AUSTRALIA—Adjustment Notes received from suppliers

OZZIE SPORTS
Raymond Terrace
ABN: 55 111 222 333 /

JUST GYMNASTICS

Raymond Terrace
ABN: 55 222 333 444
To: Sports Australia
Mayfield Adjustment Note 555
Date: 14 September Inv No 1123 / To: Sports Australia
Mayfield Adjustment Note 401
Date 17 September Inv No 1444
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

By Returns: (damaged)Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 190.00
19.00
171.00
17.10
$188.10 /

By Returns: (damaged)Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 230.00
23.00
207.00
20.70
$227.70

PURCHASES RETURNS AND ALLOWANCES JOURNAL OF SPORTS AUSTRALIA Folio PR1

Date200X

/ Adjust Note / Particulars-Accounts Payable / Folio / Purchases Returns / GST Outlaid (Paid) / Accounts Payable Control (Creditors)
SEP 14 / 555 / Ozzie Sports / 171 / 00 / 17 / 10 / 188 / 10

BANTEX INDUSTRIES—Adjustment Notes received from suppliers

VANGUARD CAMERAS
Sydney
ABN: 12 111 222 333 /

CANON AUSTRALIA

Sydney
ABN: 12 222 333 444
To: Bantex Industries
Newcastle Adjustment Note 421
Date: 15 June Inv No 123 / To: Bantex Industries
Newcastle Adjustment Note 224
Date 17 June Inv No 444
Qty / Particulars / Rate / Amount / Qty / Particulars / Rate / Amount

By Allowance: (broken)Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 300.00
30.00
270.00
27.00
$297.00 /

By Allowance: (broken)Trade Goods

Less Trade Discount
Subtotal
Add GST
TOTAL (GST inclusive) / 150.00
15.00
135.00
13.50
$148.50

PURCHASES RETURNS AND ALLOWANCES JOURNAL OF BANTEX INDUSTRIES Folio PR1

Date

/ Adjust Note / Particulars-Accounts Payable / Folio / Purchases Returns / GST Outlaid (Paid) / Accounts Payable Control (Creditors)

Complete the following Cash Payments Journal exercises:

Sports Australia

Bantex Industries

SPORTS AUSTRALIA—Cheque Butts

No 1298 02 September / No 1299 02 September
To Cash / To Cash
For PETTY CASH (IMPREST) / For WAGES
Cheque $220.00 / Cheque $600.00
No 1300 06 September / No 1301 08 September
To OZZIE SPORTS / To Supre Creations Ltd
For August A/c $330 less (discount $15.00 and GST Paid Adjustment $1.50) / For PURCHASE OF TRADE GOODS
(GST inclusive)
Cheque $313.50 / Cheque $550.00
No 1302 09 September / No 1303 16 September
To JUST GYMNASTICS LTD / To OZZIE SPORTS
For August A/c $198 less (discount $9.00
and GST Outlaid Adjustment $0.90) / For Tax Invoice 1123 less Adjustment Note555 ($495.00) less (discount $22.50 and GST Outlaid Adjustment $2.25)
Cheque $188.10 / Cheque $470.25
No 1304 16 September / No 1305 25 September
To Cash / To Chris Johns (owner) Doctor’s Fees
For WAGES / For DRAWINGS
Cheque $600.00 / Cheque $400.00
No 1306 30 September / No 1307 30 September
To Cash / To Cash
For WAGES / For PETTY CASH REIMBURSEMENT (Advertising$40.00 + GST Paid $4.00;
Stationery $50.00 + GST Paid $5.00)
Cheque $400.00 / Cheque $99.00
No 1308 30 September
To Mayfield Motors
For MOTOR VEHICLE
(GST inclusive)
Cheque $2640.00

Faculty of Business and Computing Section 2 Page 8 of 27

Business Administration 26 January 2009

BSBFIA303A/BSBADM309A Process Accounts Payable and Receivable

CASH PAYMENTS JOURNAL OF SPORTS AUSTRALIA Folio CP 1

Date200X

/

CH No

/ Account Debited /

Folio

/

Debits

/

Credits

Accounts Payable / Purchases / Other Accounts / GST Outlaid / Cash at Bank / Discount Received / GST Outlaid
SEP 02 / 1298 / Petty Cash (Imprest) / 220 / 00 / 220 / 00
1299 / Wages / 600 / 00 / 600 / 00
06 / 1300 / Ozzie Sports / 330 / 00 / 313 / 50 / 15 / 00 / 1 / 50

Faculty of Business and Computing Section 2 Page 8 of 27

Business Administration 26 January 2009

BSBFIA303A/BSBADM309A Process Accounts Payable and Receivable

BANTEX INDUSTRIES—Cheque butts

No 129 01 June / No 130 02 June
To Cash / To Cash
For PETTY CASH (IMPREST) / For WAGES
Cheque $150.00 / Cheque $900.00
No 131 06 June / No 132 07 June
To VANGUARD CAMERAS / To Nutex Ltd
For May A/c $770 less (discount $35.00 and GST Outlaid Adjustment $3.50) / For PURCHASE OF TRADE GOODS
(GST inclusive)
Cheque $731.50 / Cheque $594.00
No 133 08 June / No 134 15 June
To CANON AUSTRALIA / To VANGUARD CAMERAS
For May A/c $444.40 less (discount $20.20
and GST Outlaid Adjustment $2.02) / For Tax Invoice 123 less Adjustment Note421 ($396.00) less (discount $18.00 and GST Outlaid Adjustment $1.80)
Cheque $422.18 / Cheque $376.20
No 135 16 June / No 136 25 June
To Cash / To Luke’s School Fees (owner)
For WAGES / For DRAWINGS
Cheque $900.00 / Cheque $1100.00
No 137 30 June / No 138 30 June
To Cash / To Cash
For WAGES / For PETTY CASH REIMBURSEMENT (Maintenance$70.00 + GST Outlaid $7.00;
Postage $30.00 + GST Outlaid $3.00)
Cheque $900.00 / Cheque $110.00
No 139 30 June
To LikeNu Furniture
For OFFICE FURNITURE (3 desks)
(GST inclusive)
Cheque $891.00

Faculty of Business and Computing Section 2 Page 8 of 27

Business Administration 26 January 2009

BSBFIA303A/BSBADM309A Process Accounts Payable and Receivable

CASH PAYMENTS JOURNAL OF BANTEX INDUSTRIES Folio CP 1

Date

/

CH No

/ Account Debited /

Folio

/

Debits

/

Credits

Accounts Payable / Purchases / Other Accounts / GST Outlaid / Cash at Bank / Discount Received / GST Outlaid

Faculty of Business and Computing Section 2 Page 9 of 27

Business Administration 26 January 2009

BSBFIA303A/BSBADM309A Process Accounts Payable and Receivable

YOU HAVE COMPLETED TWO FUNCTIONS OF JOURNALS:

Ø  sorted documents of a like nature together

Ø  summarised the detail from each document into the specialist journal

tax invoice Purchase Journal trade goods bought on credit

adjustment note Purchases Returns Journal returns of trade goods bought on credit

voucher/cheque Cash Payments Journal cash payments

YOU NOW HAVE TO PERFORM THE THIRD FUNCTION OF A JOURNAL:

Ø  act as a means of transfer (from the set of journals) to the Accounts Payable Ledger cards

Once you have completed the posting of the three journals to the ledger cards, you must then check the arithmetical accuracy of your postings to the Accounts Payable Ledger by:

Ø  preparing a Schedule of Accounts Payable balances, and

Ø  reconciling the Schedule with the Accounts Payable Control account in the General Ledger.

Complete the following posting exercises:

Sports Australia

Bantex Industries


ACCOUNTS PAYABLE LEDGER OF SPORTS AUSTRALIA

OZZIE SPORTS AP 1

Date
200X / Particulars / Folio / Debit / Credit / Balance
SEP / 01 / Capital / G1 / 330 / 00 CR
06 / Cash Pay, Disc Recd, CH1300 / CP1 / 330 / 00 / 0 / 00 CR
09 / Purchases, Tax Invoice 1123 / P1 / 683 / 10 / 683 / 10 CR
14 / Purchases Ret & Allow, Adjust 555 / PR1 / 188 / 10 / 495 / 00 CR

JUST GYMNASTICS AP 2

Date
200X / Particulars / Folio / Debit / Credit / Balance
SEP / 01 / Capital / G1 / 198 / 00 CR

JUMPIN’ JACKS AP 3

Date
200X / Particulars / Folio / Debit / Credit / Balance
SEP / 01 / Capital / G1 / 891 / 00 CR

MEDOWIE BOWLING CLUB AP 4

Date
200X / Particulars / Folio / Debit / Credit / Balance
SEP / 01 / Capital / G1 / 440 / 00 CR

SCHEDULE OF ACCOUNTS PAYABLES BALANCES

of SPORTS AUSTRALIA

30 September
Account No / Account Name / Amount
AP 1 / Ozzie Sports
AP 2 / Just Gymnastics
AP 3 / Jumpin’ Jacks
AP 4 / Medowie Bowling Club
TOTAL

GENERAL LEDGER (extract)

ACCOUNTS PAYABLE CONTROL ACCOUNT Folio 2.1

Date
200X / Particulars / Folio / Debit / Credit / Balance
SEP / 01 / Capital / G1 / 1859 / 00 CR
30 / Purchases / P1 / 4915 / 35 / 6774 / 35 CR
Purchases Returns & Allowances / PR1 / 415 / 80 / 6358 / 55 CR
Cash Payments, Discount Received / CP1 / 1023 / 00 / 5335 / 55 CR


ACCOUNTS PAYABLE LEDGER OF BANTEX INDUSTRIES

VANGUARD CAMERAS AP 1

Date 200X / Particulars / Folio / Debit / Credit / Balance
JUNE / 01 / Capital / G1 / 770 / 00 CR

CANON AUSTRALIA AP 2

Date 200X / Particulars / Folio / Debit / Credit / Balance
JUNE / 01 / Capital / G1 / 444 / 40 CR

THE CAMERA HOUSE AP 3

Date 200X / Particulars / Folio / Debit / Credit / Balance
JUNE / 01 / Capital / G1 / 495 / 00 CR

SILHOUETTE PLUS AP 4

Date 200X / Particulars / Folio / Debit / Credit / Balance
JUNE / 01 / Capital / G1 / 440 / 00 CR

SCHEDULE OF ACCOUNTS PAYABLES BALANCES

of BANTEX INDUSTRIES

30 June
Account No / Account Name / Amount
AP 1 / Vanguard Cameras
AP 2 / Canon Australia
AP 3 / The Camera House
AP 4 / Silhouette Plus

TOTAL

/

GENERAL LEDGER (extract)

ACCOUNTS PAYABLE CONTROL ACCOUNT Folio 2.1

Date
200X / Particulars / Folio / Debit / Credit / Balance
JUNE / 01 / Capital / G1 / 2149 / 40 CR
30 / Purchases / P1 / 6078 / 60 / 8228 / 00 CR
Purchases Returns & Allowances / PR1 / 445 / 50 / 7782 / 50CR
Cash Payments, Discount Received / CP1 / 1610 / 40 / 6172 / 10 CR

ACCOUNTS PAYABLE RECONCILIATION

When you have studied this information and completed the exercises, you should be competent in the following skills:

Ø  explaining the purpose of preparing an ‘Aged’ Schedule of Accounts Payable balances and reconciling it with the Accounts Payable Control account in the General Ledger.