Question

Q No.12
Use following title of accounts to complete journal entries of given transactions.

CASH
A/C RECEIVABLE
A/C PAYABLE
RENT EXPENSE
DRAWING
CAPITAL
SALARIES EXPENSE
FURNITURE
SERVICE INCOME
SUPPLIESEQUIPMENT

1. Mr. A deposited into bank Rs.50,000 to start a business
2. Paid rent for three months at Rs.2500 per month
3. Bought office equipment from B&Co. for Rs. 10000, paid to them Rs.3000 and promised to pay the balance after two months.
4. Rendered services to clients and received cash Rs. 5000
5. Purchase supplies for cash Rs. 400
6. Paid salaries to staff Rs. 5400
7. Bought furniture for Rs. 3200,paid to K&Co. Rs.1200 and promised to pay balance after one month
8. Withdrew cash for personal use Rs. 3000
9. Billed to Nasir for services rendered Rs. 12500
10. Received from Nasir Rs.5000

INSTRUCTION
a. Prepare journal entries
b. Post to ledger accounts
c. Prepare a trial balance at July 31,2005

Answer 1

Required (a)

JOURNAL
SI.No	Particulars	Debit	Credit
1	Cash Account	Dr	50,000
	To	Capital Account			50,000
2	Rent Account	Dr	7,500
	To	Cash			7,500
3	Equipment		Dr	10,000
	To	Cash			3,000
	To	Accounts Payable - B & Co.		7,000
4	Cash		Dr	5,000
	To	Service Income			5,000
5	Supplies		Dr	400
	To	Cash			400
6	Salaries		Dr	5,400
	To	Cash			5,400
7	Furniture		Dr	3,200
	To	Cash			1,200
	To	Accounts Payable - K & Co.		2,000
8	Drawings		Dr	3,000
	To	Cash			3,000
9	Accounts Receivable - Nasir	Dr	12,500
	To	Service Income			12,500
10	Cash			5,000
	To	Accounts Receivable - Nasir		5,000

Required (b)

Required (c)

Trial Balance
Particulars	Debit	Credit
Cash Account	39,500
Capital Account		50,000
Rent	7,500
Equipment	10,000
Accounts Payable		9,000
Service Income		17,500
Supplies	400
Salaries	5,400
Furniture	3,200
Drawings	3,000
Accounts Receivable	7,500
	76,500	76,500