Chart of accounts The chart of accounts for SkatesOn contains the accounts and account numbers below.

100		Cash at bank
110		Accounts receivable
120		Inventory
130		Prepaid insurance
171		Shop equipment (cost)
172		Accumulated depreciation shop equipment
200		Accounts payable
210		Wages payable
220		PAYG withholding payable
230		Bank loan
300		Capital
310		Drawings
320		Profit or loss summary
400		Sales revenue
410		Sales returns and allowances
420		Discount received
500		Cost of sales
600		Depreciation expense
610		Discount allowed
620		Insurance expense
630		Interest expense
640		Rent expense
650		Wages expense

Transactions

June	1		The owner opened a bank account for the business with a deposit of $25,200. This is capital provided by him.
	1		Purchased shop equipment (computer, cash register, shelving etc.) from Shop Outfitters Pty Ltd for $41,880. This was paid for with a loan of $38,610 from the bank and cheque for $3,270 from the business bank account. The bank loan is repayable over 4 years.
	2		Purchased inventory (skateboards, roller blades, helmets and other protective gear) from Daintree Importers for $18,803 on terms on net 30.
	2		Paid $3,564 for a 1-year insurance policy covering fire, theft, and public liability.
	3		Paid rent of $2,200 for the shop for June.
	6		Cash sale of a skateboard and protective equipment for $477 (cost of sales $190).
	7		Returned some protective gear to Daintree Importers that was faulty and received an adjustment note (credit note) from them for $140.
	8		Credit sale to Serious Fun of skateboards and roller blades for $6,320 (cost of sales $2,676). This customer was given terms of 5/10, n/30.
	10		Purchased scooters from Scoot Imports for $10,190 on terms of 10/10, n/30.
	14		Paid Daintree Importers $5,410 of the amount owing to them.
	15		Credit sale to Action World of various inventory items for $7,392 (cost of sales $2,744). Terms net 30.
	16		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	17		Paid Scoot Imports the amount owing to them less the prompt payment discount.
	20		Credit sale to Toys Plus of 27 scooters at a discounted price of $426 each on terms of net 15. Cost of sales $5,850.
	21		Cash sale of inventory to the value of $719 (cost of sales $330).
	22		Issued an adjustment note (credit note) to Action World for 5 helmets at $109 each that were not the style they prefer to sell. The cost of the helmets to us was $40 each and they were put back into inventory.
	24		Paid wages to James Paget the sales assistant of $490 less PAYG Withholding of $39 for the five days he has been employed. In future he will be paid fortnightly.
	27		The owner withdrew $1,050 cash from the business bank account for his own personal use.
	28		Purchased scooters from Scoot Imports for $13,010 on terms of 10/10, n/30.
	29		Received and banked a cheque from Toys Plus for the amount owing by them.
	30		Credit sale to Serious Fun of scooters for $5,420 (cost of sales $2,170). Terms 5/10, n/30.
	30		A repayment of $1,090 was made on the bank loan.

The entries have been journalised below.

General journal
Date			Post
		Description	ref.	Debit	Credit
20XX
June	1	Cash at bank		25,200
		Capital			25,200
		(Owner's capital contribution)
	1	Shop equipment (cost)		41,880
		Cash at bank			3,270
		Bank loan			38,610
		(Computer, cash register, shelving etc. for shop;
		loan repayable over 4 years)
	2	Inventory		18,803
		Accounts payable/Daintree Importers			18,803
		(Inventory purchase on terms of net 30)
	2	Prepaid insurance		3,564
		Cash at bank			3,564
		(1 year insurance policy)
	3	Rent expense		2,200
		Cash at bank			2,200
		(June rent for shop)
	6	Cash at bank		477
		Sales revenue			477
		Cost of sales		190
		Inventory			190
		(Cash sale)
	7	Accounts payable/Daintree Importers		140
		Inventory			140
		Faulty protective gear returned to supplier
	8	Accounts receivable/Serious Fun		6,320
		Sales revenue			6,320
		Cost of sales		2,676
		Inventory			2,676
		(Credit sale on terms of 5/10, n/30)
	10	Inventory		10,190
		Accounts payable/Scoot Imports			10,190
		(Credit purchase on terms of 10/10, n/30)
	14	Accounts payable/Daintree Importers		5,410
		Cash at bank			5,410
		(Part payment of amount owing)
	15	Accounts receivable/Action World		7,392
		Sales revenue			7,392
		Cost of sales		2,744
		Inventory			2,744
		(Credit sale on terms of net 30)
	16	Cash at bank		6,004
		Discount allowed		316
		Accounts receivable/Serious Fun			6,320
		(Payment received less prompt payment discount)
	17	Accounts payable/Scoot Imports		10,190
		Discount received			1,019
		Cash at bank			9,171
		(Supplier paid less prompt payment discount)
	20	Accounts receivable/Toys Plus		11,502
		Sales revenue			11,502
		Cost of sales		5,850
		Inventory			5,850
		(Credit sale on terms of net 15)
	21	Cash at bank		719
		Sales revenue			719
		Cost of sales		330
		Inventory			330
		(Cash sale)
	22	Sales returns and allowances		545
		Accounts receivable/Action World			545
		Inventory		200
		Cost of sales			200
		(Helmets returned by customer put back into inventory)
	24	Wages expense		490
		PAYG withholding payable			39
		Cash at bank			451
		(Wages paid to James Paget)
	27	Drawings		1,050
		Cash at bank			1,050
		(Cash withdrawn for personal use)
	28	Inventory		13,010
		Accounts payable/Scoot Imports			13,010
		(Credit purchase on terms of 10/10, n/30)
	29	Cash at bank		11,502
		Accounts receivable/Toys Plus			11,502
		(Payment received from customer)
	30	Accounts receivable/Serious Fun		5,420
		Sales revenue			5,420
		Cost of sales		2,170
		Inventory			2,170
		(Credit sale on terms of 5/10, n/30)
	30	Bank loan		1,090
		Cash at bank			1,090
		(Loan repayment)

Post to the ledger accounts (T accounts for the general ledger, running balance accounts for the accounts payable and accounts receivable subsidiary ledgers).

Cash at bank

Accounts receivable

Inventory

Prepaid insurance

Shop equipment (cost)

Accounts payable PAYG withholding payable Bank loan Capital Drawings Sales revenue Sales returns and allowances Discount received Cost of sales Discount allowed Rent expense Wages expense