Question

Q21:
Following transactions were completed by Mr.khalid during the month of July,02.
July 1: Khalid invested in business cash Rs.55000, office supplies Rs.1500, office equipment Rs.45000
July3: Obtained loan from bank Rs.100,000
July 5: Purchase office equipment from Karim&Co. for Rs.25000 and paid Rs.12000
July 10: Paid rent for office premises in advance for three moths Rs.3000 per month.
July 12: Purchase goods on credit from ABC & Co. Rs 25000 July
15: Sold merchandise to Kashif Rs.5000 July 16 Paid salaries Rs.4500
July 20: Paid to Karim Rs.2000 July 23: Received form Kashif Rs.1500 Principles of Accounting 26
July 25: Paid to ABC & Co. Rs.3000 July 27: Paid installment of bank loan Rs 5000
July 30: Paid advertising expense Rs 3000

INSTRUCTION
Prepare journal entries
T -account
Trial Balance.

Answer 1

JOURNAL ENTRIES

JULY1 CASH A/C 55000

OFFICE SUPPLY 1500

OFFICE EQUIPEMENT 45000

TO CAPITAL 101500

(CAPITAL INTRODUCED)

. JULY3. CASH A/C DR 100000

TO BANK LOAN 100000

(TOOK BANK LOAN)

JULY 5.OFFICE EQUIPEMENT A/C DR 25000

TO KARIM A/C 25000

(OFFICE EQUPEMENT ACQUIRED FROM KARIM)

JULY 5. KARIM A/C DR 12000

TO CASH 12000

(12000 PAID TO KARIM)

JULY10. RENT PREPAID A/C DR 9000

TO CASH 9000

(ADVANCE PAYMENT OF RENT)

JULY12 PURCHASE A/C DR 25000

TO ABC AND COMPANY 25000

(PURCHASE GOODS FROM ABC COMPANY)

JULY15 KASIF A/C DR 5000

TO SALE 5000

(SOLD GOODS TO KASIF)

JULY16 SALARY A/C DR 4500

TO CASH 4500

(SALARY PAID)

JULY20 KARIM A/C DR 2000

TO CASH 2000

(CASH PAID TO KARIM)
JULY23 CASH A/C DR 1500

TO KASIF 1500

(CASH RECEIVED FROM KASIF)

JULY25   ABC CO A/C DR 3000

TO CASH 3000

(CASH PAID TO ABC)

JULY27 BANK LOAN A/C DR 5000

TO CASH 5000

(BANK LOAN PAID)

JULY30 ADVERTISEMENT A/C DR 3000

TO CASH 3000

(ADVERTISEMENT EXPENSES PAID)

TRAILBALANCE

DEBIT CREDIT

   CASH 118000

CAPITAL 101500

OFFICE SUPPLY 1500

OFFICE EQUIPEMENT 70000

BANK LOAN 95000

KARIM 11000

RENT PREPAID 9000

PURCHASE 25000

ABC AND COMPANY 22000

KASIF 3500

SALES 5000

SALARY 4500

ADVERTISEMENT 3000

234500    234500