Question

an Agency organized on January 1, 2019. The following transactions
occurred during the first month of its operation:
Jan. 1: Acquired its articles of incorporation from the company and issued 10,000
shares of capital stock in exchange for cash Rs. 10, 00,000
Jan. 5: Purchased office building at Rs. 500,000 in cash. The building is valued
Rs.200,000 and the remainder is assigned to the valuation of land.
Jan. 7: Signed 2-year promissory note for Rs.500, 000
Jan. 10: Purchased office equipment at a cost of Rs.500, 000, down payment made
Rs.200, 000 and agreeing to pay the balance amount in fifteen days.
Jan. 25: Paid the balance due on the office equipment.
Jan. 26: Sold advertising of Rs.400, 000 during the first month. Clients have until the
15th of the following month to pay their bills.
Jan. 28: Commission earned by the salespeople during the month. They will be paid
on the 7th of the following month.
Jan. 31: Received utilities bill of Rs. 5000.

required : Journal, T-account, Trial balance, and Net profit or Loss during the month.

Answer 1

Journal entries:
Date	Acc Titles	Dr. Rs	Cr. Rs
1-Jan	Cash	1000000
	Common Stock		1000000
	(10000 common stock issued)
5-Jan	Land	300000
	Building	200000
	Cash		500000
	(building purchased with land)
7-Jan	Cash	500000
	Note payable		500000
	(note signed for 2 years)
10-Jan	Off Equipment	500000
	Cash		200000
	Acc payable		300000
	(office equip purchased)
25-Jan	Acc payable	300000
	Cash		300000
	(Accounts payable paid)
26-Jan	Acc Receivable	400000
	Sales revenue		400000
	(advertising sold)
28-Jan	No entry, no amount & not paid
31-Jan	Utility exp.	5000
	Acc Payable		5000
	(utility bill payable)
Ledger:
Debit	Amount Rs	Credit	Amount Rs
Cash
1-Jan	1000000	5	500000
7	500000	10	200000
		25	300000
		CB	500000
Common Stock
		1	1000000
Office Building
5	200000
Land
5	300000
Note payable
		7	500000
Office equip.
10	500000
Acc Payable
25	300000	10	300000
CB	5000	31	5000
Acc Receivable
26	400000
Sales revenue
		26	400000
Utility expense
31	5000
Trial Balance :
Acc Titles	Dr. Rs	Cr. Rs
Cash	500000
Common Stock		1000000
Office Building	200000
Land	300000
Note payable		500000
Office equip	500000
Acc Payable		5000
Sales revenue		400000
Acc Receivable	400000
Utility exp.	5000
Total	1905000	1905000
Income Statement:
	Amount Rs
Sales	400000
Less: expenses:
Utility	5000
Net Operating Income	395000