Question

Mary Sunny began business as Sunny Law Firm on November 1. Record the following November transactions by making entries directly to the T-accounts provided. Next, prepare a trial balance as of November 30.

Part A Mary invested $15,000 cash and a law library valued at $6,000.

Part B Purchased $7,500 of office equipment from John Bronx on credit. Part

C Completed legal work for a client and received $1,500 cash in full payment.

Part D Paid John Bronx $3,500 cash in partial payment of the amount owed.

Part E Completed $4,000 of legal work for a client on credit.

Part F Mary withdrew $2,000 cash from the business for personal use.

Part G Received $2,500 cash as partial payment for the legal work completed for the client in (e).

Part H Paid $2,500 cash for the secretary’s salary.

Answer 1

Dr. Capital a/c Cr.

Particulars	Amount	Particulars	Amount
To Cash a/c	2000	By Cash a/c	15000
To Balance c/d	19000	By Law Library a/c	6000
Total	21000	Total	21000

Dr. Cash a/c Cr.

Particulars	Amount	Particulars	Amount
To Capital a/c	15000	By John Bronx	3500
To legal service a/c	1500	By Capital a/c	2000
To legal service a/c	2500	By Salary a/c	2500
		By balance c/d	11000
Total	19000	Total	19000

Dr. Law Library Cr.

Particulars	Amount	Particulars	Amount
To Capital a/c	6000	By balance c/d	6000
Total	6000	Total	6000

Dr. Office equipment Cr.

Particulars	Amount	Particulars	Amount
To John Bronx a/c	7500	By balance c/d	7500
Total	7500	Total	7500

Dr. John Bronx Cr.

Particulars	Amount	Particulars	Amount
To Cash a/c	3500	By office furniture a/c	7500
To balance c/d	4000
Total	7500	Total	7500

Dr. Legal service Cr.

Particulars	Amount	Particulars	Amount
To balance c/d	5500	By Cash a/c	1500
		By Accounts receivable a/c	4000
Total	5500	Total	5500

Dr. Accounts receivable Cr.

Particulars	Amount	Particulars	Amount
To Legal service a/c	4000	By Cash a/c	2500
		By balance c/d	1500
Total	4000	Total	4000

Dr. Salary Cr.

Particulars	Amount	Particulars	Amount
To Cash a/c	2500	By balance c/d	2500
Total	2500	Total	2500

Trial Balance

Particulars	Debit	Credit
Capital	0	19000
Cash	11000	0
Law Library	6000	0
Office equipment	7500	0
John Bronx	0	4000
Legal work	0	5500
Salary	2500	0
Accounts receivable	1500	0
Total	28500	28500