General Journal Entries

Question 1

Moving from single entry to double entry

Answer 1

Debit all Asset accounts, Credit all Liability accounts and then Credit Capital with the difference of A-L.

Question 2

Paid ATO for GST Settlement of $1000

Answer 2

Debit: GST Clearing $1000
Credit: Bank $1000

Question 3

Sales Return of inventory, selling price of $660 including GST (100% mark up on cost price)

Answer 3

Debit: Inventory $300, Sales $600, GST Clearing $60
Credit: Accounts Receivable $660, Cost of sales $300

Question 4

Unearned revenue, that is now earned

Answer 4

Debit: Unearned revenue, Bank or A/C Rec, Cost of sales
Credit: Sales, GST Clearing, Inventory