VCE Accounting Unit 3

1. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 1
Chapter 7 Test – The General Journal
Name ___________________________________________
Circle the correct response for each question:
1. (a) (b) (c) (d)
2. (a) (b) (c) (d)
3. (a) (b) (c) (d)
4. (a) (b) (c) (d)
5. (a) (b) (c) (d)
6. (a) (b) (c) (d)
7. (a) (b) (c) (d)
8. (a) (b) (c) (d)
9. (a) (b) (c) (d)
10. (a) (b) (c) (d)
11. (a) (b) (c) (d)
12. (a) (b) (c) (d)
13. (a) (b) (c) (d)
14. (a) (b) (c) (d)
15. (a) (b) (c) (d)
16. (a) (b) (c) (d)
17. (a) (b) (c) (d)
18. (a) (b) (c) (d)
19. (a) (b) (c) (d)
20. (a) (b) (c) (d)
21. (a) (b) (c) (d)
22. (a) (b) (c) (d)
23. (a) (b) (c) (d)
24. (a) (b) (c) (d)
25. (a) (b) (c) (d)
Total /25 marks

2. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 2
Chapter 7 Test – The General Journal
1. The purpose of the General Journal is to record:
a) All cash received and paid by the business
b) All sales made on credit
c) All stock purchased on credit
d) Transactions that do not fit into any of the four Special Journals
2. Which of the following transactions would not be recorded in the General Journal?
a) The owner withdrew cash from the business for personal use
b) The owner contributed a vehicle to the business
c) The owner withdrew stock from the business to give as a present for a friend
d) A debtor has been declared bankrupt and is to be written off as a bad debt
To commence a new business, the owner contributed the following items: cash $12,000; vehicle
with an agreed value of $19,000; and furniture $5,500. The owner financed the purchase of the
vehicle with a loan of $7,300.
3. The correct General Journal entry required to record this information is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
1 Jan Vehicle 19000
Furniture 5500
Loan 7300
Capital 17200
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
1 Jan Cash at bank 12000
Vehicle 19000
Furniture 5500
Loan 7300
Capital 29200
Commencing assets/liabilities

3. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 3
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
1 Jan Cash at bank 12000
Capital 12000
Vehicle 19000
Furniture 5500
Loan 7300
Capital 17200
Commencing assets/liabilities
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
1 Jan Vehicle 19000
Furniture 5500
Loan 7300
Capital 17200
Commencing assets/liabilities
4. Drawings and capital contributions made by the owner can be in the form of:
a) Cash
b) Stock
c) Computers
d) All of the above

4. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 4
On 3 January, the o e of Jake’s Gym Equipment contributed his personal computer (which
originally cost $3,000 when purchased two years ago) to the business at an agreed valued of $1,800.
5. The General Journal entry required to record this event is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
3 Jan Computer 3000
Capital 3000
Contribution of computer to business
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
3 Jan Stock 1800
Computer 1800
Contribution of computer to business
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
3 Jan Computer 1800
Capital 1800
Contribution of computer to business
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
3 Jan Computer 1800
Capital 1800

5. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 5
On 11 January, the o e of Jake’s G E uip e t took ho e a old offi e desk from the business
to use i his ho e. The fi ’s ost e e t Bala e “heet sho ed the alue of the desk as $ .
6. The General Journal entry required to record this event is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
11 Jan Drawings 100
Stock 100
Owner withdrew office desk
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
11 Jan Drawings 100
Office furniture 100
Owner withdrew office desk
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
11 Jan Advertising 100
Stock 100
Owner withdrew office desk
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
11 Jan Office furniture 100
Drawings 100
Owner withdrew office desk
7. The impact on the Balance Sheet of the firm as a result of this transaction is:
Assets Liabilities Owne ’s E uit
a) Decrease No effect Increase
b) Decrease Decrease Decrease
c) Decrease No effect Decrease
d) Increase No effect Increase

6. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 6
8. Donations of stock made by a business are treated as:
a) A e pe se alled Do atio s
b) A e pe se alled Ad e tisi g
c) A loss alled “to k Loss hi h i ludes othe ite s su h as theft a d da aged sto k
d) Drawings made by the owner
The owner of a clothing store decided to donate goods to the local Salvation Army as part of this
ea ’s Red “hield Appeal. O 8 February the firm donated the following items:
Quantity Item Cost Price Selling Price
6 Jumpers $40 $70
3 Pants $35 $65
4 Belts $7 $10
9. The General Journal entry required to record the donation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
28 Feb Donations 373
Stock 373
Donation of stock made to charity
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
28 Feb Advertising 655
Stock 655
Donation of stock made to charity
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
28 Feb Advertising 373
Stock 373
Donation of stock made to charity
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
28 Feb Advertising 373
Drawings 373
Donation of stock made to charity

7. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 7
During May a business donated stock costing $500 to a local school for its annual fete. However, the
o e fo got to e o d this t a sa tio i the fi ’s e o ds.
10. The effect on the Balance Sheet of the business as a result of this omission is:
Assets Liabilities O e ’s E uit
a) Overstated No effect Understated
b) Understated Understated Understated
c) Overstated No effect Overstated
d) Understated No effect Understated
11. Which of the following situations would not give rise to a bad debt?
a) Legal ad i e e ei ed f o a de to i di ati g that the de to o ’t pa
b) A debtor asking for a discount on their account for prompt payment
c) A debtor going bankrupt
d) A debtor fleeing interstate or overseas to avoid payment of their debt
A firm had a debtor named W. Sampson on its books with an amount owing of $820. On 13 June the
business has received advice that Sampson has declared bankruptcy and will only be able to pay 15
cents in the dollar and a cheque has been enclosed for this amount.
12. The General Journal entry to record this transaction will be:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
13 Jun Bad debts 697
Debtors control 697
Debtor written off as a bad debt
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
13 Jun Bad debts 123
Debtors control 123
Debtor – W. Sampson 123
Debtor written off as a bad debt

8. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 8
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
13 Jun Cash at bank 123
Bad debts 697
Debtors control 820
Debtor – W. Sampson 820
Debtor written off as a bad debt
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
13 Jun Bad debts 697
Debtors control 697
Debtor – W. Sampson 697
Debtor written off as a bad debt
A small business received advice that one of its debtors has been declared bankrupt. A bad debt of
$300 is to be recorded. However, in preparing the financial reports for the firm for the current
period, this item has not been recorded.
13. The i pa t of this o issio o the fi ’s I o e “tate e t is:
Revenues Expenses Net Profit
a) No effect Understated Overstated
b) No effect Understated Understated
c) No effect Overstated Understated
d) Overstated No effect Understated
14. The i pa t of this o issio o the fi ’s Bala e “heet is:
Assets Liabilities O e ’s E uit
a) Overstated No effect Understated
b) Overstated No effect Overstated
c) Understated No effect Understated
d) Understated No effect Overstated

9. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 9
The following transactions occurred between a business and one of its credit customers named I.
Goodwill during September:
Sep 2 Credit sale of goods for $3,200 plus GST of $320 (cost price $1,600)
Sep 17 Payment received off custo e ’s a ou t fo the a ou t of $ ,
Sep 21 Sale made on 30 day terms for $2,200 including GST (cost price $1,050)
Sep 30 Advice received that debtor has been declared bankrupt. All creditors will be paid 40
cents in the dollar.
15. The General Journal entry required to enter the bad debt on 30 September will be:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Jun Bad debts 2772
Debtors control 2772
Debtor – I. Goodwill 2772
Debtor written off as a bad debt
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Jun Bad debts 1936
Debtors control 1936
Debtor – I. Goodwill 1936
Debtor written off as a bad debt
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Jun Bad debts 1848
Debtors control 1848
Debtor – I. Goodwill 1848
Debtor written off as a bad debt
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Jun Cash at bank 1848
Bad debts 2772
Debtors control 4620
Debtor – I. Goodwill 4620
Debtor written off as a bad debt

10. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 10
On 30 April the owner of a business discovered that a payment of $220 plus $22 GST for rent was
incorrectly entered in the Cash Payments Journal as $200 plus GST of $20.
16. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Rent 200
GST clearing 20
Cash at bank 220
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash at bank 22
Rent 20
GST clearing 2
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Rent 20
GST clearing 2
Cash at bank 22
Correction of error in General Ledger
d) No entry is required in this situation

11. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 11
On 30 April the owner of a business took home $300 of stock for personal use. This was treated in
the fi ’s e o ds as a do atio to ha it .
17. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Drawings 300
Advertising 300
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Drawings 300
Stock 300
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Advertising 300
Drawings 300
Correction of error in General Ledger
d) No entry is required in this situation

12. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 12
On 30 April the owner of a business submitted a loan application to the bank for the amount of
$3,500 to purchase new equipment. The owner has priced the equipment at $3,000 plus $300 GST
but has borrowed a little bit extra in case the price rises.
18. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash at bank 3500
Loan 3500
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash at bank 200
Equipment 3000
GST clearing 300
Loan 3500
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Equipment 3000
GST clearing 300
Cash at bank 3300
Correction of error in General Ledger
d) No entry is required in this situation

13. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 13
On 30 April the owner of a business contributed a new vehicle with an agreed value of $12,000 to
the business. However, this was mistakenly recorded as a cash payment by the firm rather than as a
contribution from the owner.
19. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Vehicle 12000
Capital 12000
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Capital 12000
Cash at bank 12000
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Vehicle 12000
Cash at bank 12000
Correction of error in General Ledger
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash at bank 12000
Capital 12000
Correction of error in General Ledger

14. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 14
On 30 April the owner of a business discovered that a payment of $300 plus $30 GST for postage was
o gl e o ded i the fi ’s e o ds as a pa e t fo ages.
20. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Postage 300
Wages 330
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Postage 300
GST clearing 30
Wages 330
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Wages 330
Postage 300
GST clearing 30
Correction of error in General Ledger
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Wages 300
Postage 300
Correction of error in General Ledger

15. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 15
On 30 April the owner of a business incorrectly recorded credit sales of $500 plus GST of $50 to the
cash sales ledger. The cost price of the goods sold was $220.
21. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash sales 500
Debtors control 550
Credit sales 500
Cash at bank 550
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash sales 500
GST clearing 50
Credit sales 550
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Credit sales 500
Debtors control 550
Cash sales 500
Cash at bank 550
Correction of error in General Ledger
d) No entry is required in this situation

16. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 16
On 30 April the owner of a business wrongly recorded a payment of $440 plus $44 GST for rent as a
payment of $400 plus GST of $40 to the electricity ledger.
22. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Rent 440
Electricity 440
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Rent 440
Cash at bank 44
Electricity 480
GST clearing 4
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Rent 440
GST clearing 4
Cash at bank 44
Electricity 400
Correction of error in General Ledger
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Electricity 440
GST clearing 4
Cash at bank 44
Rent 400
Correction of error in General Ledger

17. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 17
On 30 April the owner of a business incorrectly recorded a cash payment of $700 to a creditor
named J. Jones as a cash payment to another creditor called J. Johnson.
23. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditor – J. Jones 700
Creditor – J. Johnson 700
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditor – J. Jones 700 700
Creditors control 700
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditor – J. Johnson 700
Creditor – J. Jones 700
Correction of error in General Ledger
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditor – J. Jones 700
Creditor – J. Johnson 700
Correction of error in General Ledger

18. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 18
On 30 April the owner of a business withdrew furniture for personal use costing $300, which was
incorrectly entered as a cash sale of $600 plus $60 GST.
24. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash sales 600
GST clearing 60
Cash at bank 660
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash sales 600
GST clearing 60
Cash at bank 660
Drawings 300
Cost of sales 300
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Drawings 300
Cost of sales 300
Cash sales 600
GST clearing 60
Cash at bank 60
Correction of error in General Ledger
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Drawings 300
Cash sales 300
Correction of error in General Ledger

19. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 7 – THE GENERAL JOURNAL
© Michael Allison, Trinity Grammar School.
Autho ’s pe issio e ui ed fo e te al use
Page | 19
On 30 April the owner of a business paid $400 to a creditor named B. Marshall but incorrectly
recorded the money as a cash receipt from a debtor called B. Marsh.
25. The General Journal entry required in this situation is:
a)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditors control 400
Creditor – B. Marshall 400
Debtors control 400
Debtor – B. Marsh 400
Cash at bank 800
Correction of error in General Ledger
b)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditors control 400
Creditor – B. Marshall 400
Debtors control 400
Debtor – B. Marsh 400
Correction of error in General Ledger
c)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Cash at bank 400
Creditors control 400
Creditor – B. Marshall 400
Debtors control 800
Debtor – B. Marsh 800
Correction of error in General Ledger
d)
General Journal
Date Particulars
General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
30 Apr Creditor – B. Marshall 400
Debtor – B. Marsh 400
Cash at bank 800
Correction of error in General Ledger