9.5

DOUBLE-ENTRY FOR

INVENTORY

© Michael Allison, Trinity Grammar School. Author’s permission required for external use

General LedgerSource

Document

Covered in earl ier topics. To refresh…

9.5 DOUBLE-ENTRY FOR INVENTORY

Journal

Bought goods for cash

$700 (plus $70 GST)

Cash Payments

JournalCheque Butt

Bought goods on credit

for $600 (plus $60 GST)

Purchases

Journal

Purchase

Invoice

DEBITS CREDITS

Stock Control

700

GST Clearing

70

Cash

770

Stock Control

600

GST Clearing

60

Creditors Control

660

© Michael Allison, Trinity Grammar School. Author’s permission required for external use

Covered in earl ier topics. To refresh…

General LedgerSource

Document

Journal

Sold goods costing $300

for $500 plus $50 GST

for cash

Cash Receipts

JournalReceipt

DEBITS CREDITS

Cash

550

Cash Sales

500

GST Clearing

50

Cost of Sales

300

Stock Control

300

9.5 DOUBLE-ENTRY FOR INVENTORY

© Michael Allison, Trinity Grammar School. Author’s permission required for external use

Covered in earl ier topics. To refresh…

Source

Document

Journal

Sold goods costing

$400 for $900 plus

$90 GST to a

customer on credit

Sales

JournalSales Invoice

General Ledger

DEBITS CREDITS

Debtors Control

990

Credit Sales

900

GST Clearing

90

Cost of Sales

400

Stock Control

400

9.5 DOUBLE-ENTRY FOR INVENTORY