T4-Solutions to Additional Q-ns.docVIP

SOLUTIONS The Recording Process Tutorial 4- Class-work Question 1 Trading company GJ / GL / Trial balance Adam Smith Trading Company maintains inventory under the perpetual inventory system, and is engaged in the business of trading in garments and shoes. The following incidents took place during the month of July 2009. Adam Smith (the owner) brings in cash to start the business $ 25,000 Bought garments and shoes on credit (inclusive of GST) from ABC Clothing Ltd. $ 5,720 Paid cash for office expenses (GST inclusive) $ 330 Sold shoes (Cost