Unit 3: Managing resources for a trading GST business

A worked QCE Accounting Unit 3 answer on controlling accounts payable in a trading GST business. Covers recording credit purchases with GST, purchase returns, payments and discount received, the accounts payable control account, the subsidiary ledger, and reconciling the control account to the schedule of accounts payable.

A worked QCE Accounting Unit 3 answer on managing accounts receivable for a trading GST business. Covers recording credit sales with GST, writing off bad debts (and the GST adjustment), creating and adjusting the allowance for doubtful debts, recovering written-off debts, and reporting receivables at net realisable value under the accrual basis.

A worked QCE Accounting Unit 3 answer on balance day adjustments for a trading GST business. Covers the accrual basis, prepaid and accrued expenses, accrued and unearned revenue, the resulting current asset and current liability accounts, and how each adjustment corrects profit before the financial statements are prepared.

A worked QCE Accounting Unit 3 answer on preparing a cash budget for a trading GST business. Covers forecasting cash receipts from cash and credit sales, scheduling cash payments including GST remittance, the timing of accounts receivable collections, and calculating the budgeted closing bank balance to plan for surpluses and shortfalls.

A worked QCE Accounting Unit 3 answer on controlling cash in a trading GST business. Covers internal control over cash, recording GST-inclusive receipts and payments with correct double entry, the GST Clearing account, and preparing a bank reconciliation statement to verify the cash at bank balance against the bank statement.

A worked QCE Accounting Unit 3 answer on preparing fully classified financial statements for a sole-trader trading GST business. Covers the classified income statement (cost of goods sold, gross profit, expense categories, net profit), the classified balance sheet (current and non-current assets and liabilities, equity), accrual adjustments, and the accounting equation.

A worked QCE Accounting Unit 3 answer on valuing inventory in a trading GST business. Covers the perpetual inventory system, maintaining inventory cards under first-in first-out (FIFO), recording purchases, sales and cost of goods sold, inventory write-downs to net realisable value, and the effect of valuation on profit.

A worked QCE Accounting Unit 3 answer on non-current assets for a trading GST business. Covers recording acquisition cost with GST, the straight-line and reducing-balance depreciation methods, accumulated depreciation as a contra-asset, carrying amount, and the disposal entry that calculates the profit or loss on sale.