Question

Q. NO. 19
1. Khalid invested in business Rs.40000, Furniture Rs.24,000, equipment Rs.15000
2. Purchase merchandise for cash Rs. 6000
3. Purchase office stationary for Rs.2000
4. Purchase goods on credit from Zahid Rs.10000
5. Sold merchandise on credit to Amir Rs.10000
6. Paid rent expense Rs.600
7. Sold merchandise for cash Rs. 3500
8. Billed to Mr. Bilal for service rendered Rs. 10000
9. Purchase supplies on credit from Aleem Rs. 800
10. Paid traveling expense Rs. 650
11. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
12. Received cash from Mr. Kareem Rs.1500
13. Khalid withdrew cash for personal use Rs. 3000
14. Paid insurance for the month Rs. 500
15. Received cash from Mr. Bilal Rs.8000

INSTRUCTION
a. Prepare journal entries
b. Post to ledger accounts
c. Prepare a trial balance at July 31,2015

Answer 1

a. JOURNAL ENTRIES

DATE	ACCOUNT TITLE	DEBIT	CREDIT
1	CASH	40,000
	FURNITURE	24,000
	EQUIPMENT	15,000
	OWNERS EQUITY OR CAPITAL		79,000
2	MERCHANDISE	6,000
	CASH		6,000
3	OFFICE STATIONERY	2,000
	CASH		2,000
4	PURCHASE (GOODS)	10,000
	ACCOUNTS PAYABLE - ZAHID		10,000
5	ACCOUNTS RECEIVABLE - AMIR	10,000
	SALES		10,000
6	RENT	600
	CASH		600
7	CASH	3,500
	SALES		3,500
8	ACCOUNTS RECEIVABLE - BILAL	10,000
	SERVICE REVENUE		10,000
9	PURCHASE (SUPPLIES)	800
	ACCOUNTS PAYABLE - ALEEM		800
10	TRAVELLING EXPENSES	650
	CASH		650
11	ACCOUNTS RECEIVABLE - KAREEM	4,000
	SALES		4,000
12	CASH	1,500
	ACCOUNTS RECEIABLE - KAREEM		1,500
13	WITHDRAWALS	3,000
	CASH		3,000
14	INSURANCE	500
	CASH		500
15	CASH	8,000
	ACOUNTS RECEIVABLE-BILAL		8,000

B. LEDGER

CASH:

ACCOUNTING TITLE	DEBIT	TITLE	CREDIT
OWNERS EQUITY	40,000	MERCHANDISE	6,000
SALES	3,500	OFFICE STATIONERY	2,000
ACCOUNTS RECEIVABLE - KAREEM	1,500	RENT	600
ACCOUNTS RECEIVABLE -BILAL	8,000	TRAVELLING EXP.	650
		WITHDRAWAL	3,000
		INSURANCE	500
		BALANCE	40,250
TOTAL	53,000		53,000

FURNITURE

TITLE	DEBIT	TITLE	CREDIT
OWNERS EQUITY	24,000	BALANCE	24,000
TOTAL	24,000		24,000

EQUIPMENT

TITLE	DEBIT	TITLE	CREDIT
OWNERS EQUITY	15,000	BALANCE	15,000
TOTAL	15,000		15,000

OWNERS EQUITY

TITLE	DEBIT	TITLE	CREDIT
		CASH	40,000
		FURNITURE	24,000
BALANCE	79,000	EQUIPMENT	15,000
TOTAL	79,000		79,000

MERCHANDISE

TITLE	DEBIT	TITLE	CREDIT
CASH	6,000	BALANCE	6,000
TOTAL	6,000		6,000

OFFICE STATIONERY

TITLE	DEBIT	TITLE	CREDIT
CASH	2,000	BALANCE	2,000
TOTAL	2,000		2,000

GOODS

TITLE	DEBIT	TITLE	CREDIT
ACCOUNTS PAYABLE	10,000	BALANCE	10,000
TOTAL	10,000		10,000

ACCOUNTS PAYABLE

TITLE	DEBIT	TITLE	CREDIT
		GOODS	10,000
BALANCE	10,800	SUPPLIES	800
TOTAL	10,800		10,800

ACCOUNTS RECEIVABLE

TITLE	DEBIT	TITLE	CREDIT
SALES	10,000	CASH	1,500
SERVICE REVENUE	10,000	CASH	8,000
SALES	4,000
		BALANCE	14,500
TOTAL	24,000		24,000

SALES

TITLE	DEBIT	TITLE	CREDIT
		ACCOUNTS RECEIVABLE - AMIR	10,000
		CASH	3,500
BALANCE	17,500	ACCOUNTS RECEIVABLE-KAREM	4,000
TOTAL	17,500		17,500

RENT

TITLE	DEBIT	TITLE	CREDIT
CASH	600	BALANCE	600
TOTAL	600		600

SERVICE REVENUE

TITLE	DEBIT	TITLE	CREDIT
BALANCE	10,000	ACCOUNTS RECEIVABLE-BILAL	10,000
TOTAL	10,000		10,000

SUPPLIES

TITLE	DEBIT	TITLE	CREDIT
ACCOUNTS PAYABLE-ALEEM	800	BALANCE	800
TOTAL	800		800

TRAVELLING EXPENSES

TITLE	DEBIT	TITLE	CREDIT
CASH	650	BALANCE	650
TOTAL	650		650

WITHDRAWALS

TITLE	DEBIT	TITLE	CREDIT
CASH	3,000	BALANCE	3,000
TOTAL	3,000		3,000

INSURANCE

TITLE	DEBIT	TITLE	CREDIT
CASH	500	BALANCE	500
TOTAL	500		500

C.TRIAL BALANCE

TITLE	DEBIT	CREDIT
CASH	40,250
FURNITURE	24,000
EQUIPMENT	15,000
OWNERS EQUITY		79,000
MERCHANDISE	6,000
OFFICE STATIONERY	2,000
GOODS	10,000
ACCOUNTS RECEIVABLE	14,500
SALES		17,500
RENT	600
SERVICE REVENUE		10,000
ACCOUNTS PAYABLE		10,800
SUPPLIES	800
TRAVELLING EXPENSES	650
WITHDRAWALS	3,000
INSURANCE	500
TOTAL	117,300	117,300