Question

You have to Considered own example of your new company. On the basis of this prepare below points

1. Write a short description (2-3 sentences) of your new company. What industry is it in? What do you offer customers or clients?
2. Create 10 transactions and their corresponding journal entries for the month of September 2020.
   1. These transactions must affect: Assets, Liabilities, Owner’s Capital, Owner’s Drawings, Revenues and Expenses
3. Post the journal entries into a ledger or into T-accounts.
4. Prepare a trial balance.
5. Create 3 adjusting entries.
6. Prepare an adjusted trial balance.
7. Prepare an Income Statement, Owner’s Equity Statement and Balance Sheet.
8. Journalize your 4 closing entries.
9. Prepare a post-closing trial balance

Answer 1

a)

ABCD & Co is a Partnership firm incorporated by two partners named AB and CD. The entity engages in the business of Online Food Delivery.

b)

The online food delivery is a service that allows the user to order food from a desired food outlet via the internet. This can be done either by going directly to the website and placing an order or by using a mobile phone application. The introduction of online food delivery system has been a convenient addition, which has not only reduced long queues, but has also decreased the waiting time for ordered food delivery. The online food delivery system has already been adopted throughout the globe and its performance has been relatively good.

c)

Journal Entries in the books of ABCD & Co
Date	Particulars		Debit ($)	Credit ($)
01-Sep-20	Cash A/C	Dr	$100,000
	Furniture A/C	Dr	$200,000
	To AB Capital A/C			$300,000
	Being capital introduced by Partner AB
01-Sep-20	Cash A/C	Dr	$300,000
	Building A/C	Dr	$200,000
	To CD Capital A/C			$500,000
	Being capital introduced by Partner CD
02-Sep-20	Inventory A/C	Dr	$50,000
	To Caper Enterprises A/C			$50,000
	Being Goods purchased on credit
03-Sep-20	Solar Enterprises A/C	Dr	$30,000
	To Sales A/C			$30,000
	Being Goods Sold on credit
06-Sep-20	Dry Enterprises A/C	Dr	$30,000
	To Sales A/C			$30,000
	Being Goods Sold on credit
10-Sep-20	Bank A/C	Dr	$200,000
	To Loan A/C			$200,000
	Being Loan taken from Bank
15-Sep-20	AB Capital A/C	Dr	$50,000
	To Bank A/C			$50,000
	Being Drawings made by Partner AB
16-Sep-20	Caper Enterprises A/C	Dr	$30,000
	To Bank A/C			$30,000
	Being amount paid to Trade Payables
17-Sep-20	Bank A/C	Dr	$20,000
	To Dry Enterprises			$20,000
	Being amount received from Trade Receivables
30-Sep-20	Salaries A/C		$20,000
	To Bank A/C			$20,000
	Being Salaries paid
30-Sep-20	Electricity Charges		$3,000
	To Bank A/C			$3,000
	Being Electricity Charges paid

d) Ledger Accounts

Cash/Bank A/C
Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
1-Sep-20	AB Capital A/C	$100,000	15-Sep-20	AB Capital A/C	$50,000
1-Sep-20	CD Capital A/C	$300,000	17-Sep-20	Dry Enterprises	$20,000
10-Sep-20	Loan A/C	$200,000	30-Sep-20	Salaries A/C	$20,000
16-Sep-20	Caper Enterprises	$30,000	30-Sep-20	Electricity Charges	$3,000
			30-Sep-20	Balance C/f	$537,000
		$630,000			$630,000

AB Capital A/C
Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
15-Sep-20	To Drawings A/C	$50,000	1-Sep-20	By Cash A/C	$100,000
			1-Sep-20	BY Furniture A/C	$200,000
30-Sep-20	To Balance C/F	$250,000
		$300,000			$300,000

CD Capital A/C
Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
			1-Sep-20	By Cash A/C	$300,000
			1-Sep-20	BY Buildings A/C	$200,000
30-Sep-20	To Balance C/F	$500,000
		$500,000			$500,000