Question

On this page of the practice set, you are asked to record all of the transactions that occurred during the month of June into the General Journal of the business. The transactions for the month of June are as follows:

Date	Transaction description
1	Juliet Cohen invested $104,000 cash into the business.
1	Purchased Music Equipment for $48,000 cash.
1	Paid $8,000 for the next two month's advertising.
1	Obtained a long-term loan of $186,000 from the MRMC Bank.
3	Received $3,800 in cash from Mel O'Dius for music lessons provided on that day.
5	Purchased approximately two months worth of office supplies on credit for $3,300 from Black label.
5	Paid $160 for a non-refundable account set-up fee to the telephone provider.
9	Provided $4,200 of music lessons on credit for Obsenity Records.
12	Received $3,600 cash from D-Funkt Records for future music lessons.
16	Obsenity Records paid $1,500 in partial payment of their account.
18	Paid staff wages of $6,800 for the period up to and including yesterday.
22	Juliet Cohen withdrew $2,000 cash from the business.
23	Received a cash payment of $3,700 from students for music lessons provided on that day.
25	Made a partial payment of $1,650 for office supplies purchased on June 5.
29	Provided $6,000 of music lessons to KB Lo-Fi on credit.

Answer 1

DATE(JUNE)	PARTICULARS	DEBIT($)	CREDIT($)
1	CASH ACCOUNT Dr.	104000
	TO CAPITAL ACCOUNT		104000
	(Being capital of $104000 introduced in business on 1st June )
1	MUSIC EQUIPMENT ACCOUNT Dr.	48000
	TO CASH ACCOUNT		48000
	(Being music equipment i.e. fixed asset purchased for $48000 on 1st June)
1	PREPAID ADVERTISEMENT EXPENSE ACCOUNT Dr.	8000
	TO CASH ACCOUNT		8000
	(Being advertisement expense of $8000 paid in advance for the next 2 months on 1st June) ASSUMPTION: Expense is paid in cash
1	CASH ACCOUNT Dr.	186000
	TO LONG TERM BORROWING(MRMC BANK		186000
	(Being long term loan obtained from MRMC bank in cash on 1st June)
3	MEL O'DIUS(ACCOUNT RECEIVABLE) Dr	3800
	TO SALES ACCOUNT		3800
	(Being service provided to customer i.e MEL O'DIUS on 3rd June)
3	CASH ACCOUNT Dr	3800
	TO MEL O'DIUS(ACCOUNT RECEIVABLE)		3800
	(Being cash received from customer i.e MEL O'DIUS against service provided on 3rd June)
5	OFFICE SUPPLIES Dr	3300
	TO BLACK LABEL(ACCOUNT PAYABLES)		3300
	(Being office supplies received on credit from BLACK LABEL on 5th June)
5	TELEPHONE EXPENSE ACCOUNT Dr	160
	TO CASH ACCOUNT		160
	(Being telephone expense paid in cash on 5yh June)
9	OBENSITY RECORDS ACCOUNT (ACCOUNT RECEIVABLE)	4200
	TO SALES ACCOUNT		4200
	(Being service provided on credit to obensity records on 9th June)
12	CASH ACCOUNT Dr	3600
	TO ADVANCE FROM D-FUNKT RECORD (Being Avance money received for services to be provided in future on 12th June)		3600

DATE	PARTICULARS	DEBIT	CREDIT
16	CASH ACCOUNT Dr	1500
	TO OBENSITY RECORDS ACCOUNT (ACCOUNT RECEIVABLE)		1500
	(Being partial payment received against the service provided on 9th June to OBENSITY RECORDS)
18	WAGES ACCOUNT Dr	6800
	TO CASH ACCOUNT		6800
	(Being wages paid in cash on 18th June)
22	CAPITAL ACCOUNT Dr	2000
	TO CASH ACCOUNT		2000
	(Being capital withdrawal by Juliet Cohen on 22nd June)
23	CASH ACCOUNT Dr	3700
	TO SALES ACCOUNT		3700
	(Being cash received from customers for service provided on 23rd June)
25	BLACK LABEL(ACCOUNT PAYABLES) Dr	1650
	TO CASH ACCOUNT		1650
	(Being cash paid to Black label for office supplies purchased from it )
29	KB LP-FI (ACCOUNT RECEIVABLES) Dr	6000

	TO SALES ACCOUNT		6000
	(Being service provided on credit)

LET'S UNDERSTAND RULES FOR MAKING JOURNAL ENTRIES

1. THERE MUST BE 1 DEBIT AND 1 CREDIT & DEBIT MUST BE EQUAL TO CREDIT

2. THERE ARE 3 TYPES OF ACCOUNTS

2.1 PERSONAL ACCOUNT:- THESE ARE THE ACCOUNTS OF THE PARTIES WITH WHOM WE CARRY BUSINESS. FOR EXAMPLE:- ACCOUNT RECEIVABLE ACCOUNT, ACCOUNT PAYABLES ACCOUNT ETC.   RULE FOR PERSONAL ACCOUNT:- DEBIT THE RECEIVER AND CREDIT THE GIVER

2.2 REAL ACCOUNT:- THESE ARE THE ACCOUNT WHICH APPEARS IN BALANCE SHEET. FOR EXAMPLE FIXED ASSET ACCOUNT , CASH ACCOUNT ETC. RULE FOR REAL ACCOUNT:- DEBIT WHAT COMES IN AND CREDIT WHAT GOES OUT

2.3 NOMINAL ACCOUNT:- THESE ARE THE EXPENSE AND INCOME ACCOUNTS.RULE FOR NOMINAL ACCOUNT:- DEBIT EXPENSES AND LOSES AND CREDIT THE INCOMES AND GAINS