Presented below are the purchases and cash payments journals for Adhikari Group for its first month of operations (amounts in thousands).
In addition, the following transactions have not been journalized for July. The cost of all merchandise sold was 65% of the sales price.
Instructions
a. Open the following accounts in the general ledger.
b. Journalize the transactions that have not been journalized in the sales journal and the cash receipts journal (see Illustration 7.9).
c. Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.
d. Post the individual entries and totals to the general ledger.
e. Prepare a trial balance at July 31, 2020.
f. Determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
g. The following adjustments at the end of July are necessary.
1. A count of supplies indicates that ₹140 is still on hand.
2. Recognize rent expense for July, ₹500.
Prepare the necessary entries in the general journal. Post the entries to the general ledger.
h. Prepare an adjusted trial balance at July 31, 2020.
