Question

The following transactions need to be entered to a general ledger. 1. Molly invested cash in business, $20,000. 2. Purchased 2 new ovens on account for $6300. 3. Molly paid rent for November, $1500. 4. Purchased food supplies on acct for $2000. 5. Deposited meal delivery fees, $3400. 6. Paid wages to workers, $2000. 7. Purchased kitchen supplies with cash, $500. 8. Deposited meal delivery fees, $3000. 9. Purchased food supplies on account, $2500. 10. Deposited meal delivery fees, $3200. 11. paid wages to workers, $2050. 12. Deposited meal delivery fees, $3050. 13. Paid phone bill, $200. 14. Paid utilities bill, $500. 15. Molly withdrew cash for personal use, $3000. Additional info to consider on ledger: 1) food supply remaining on hand, $2050, Beginning balance=$2100 2) kitchen supplies used, $600. Beginning balance=$1200 3) November rent used 4) depreciation of ovens, $75. 5) Wages earned, not yet paid. $950

Answer 1

CASH ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
1	TO CAPITAL	20,000	3	BY RENT	1,500
5	BY MEAL DELIVERY FEES	3,400	6	BY WAGES	2,000
8	BY MEAL DELIVERY FEES	3,000	7	BY PURCHASES	500
10	BY MEAL DELIVERY FEES	3,200	11	BY WAGES	2,050
12	BY MEAL DELIVERY FEES	3,050	12	BY MEAL DELIVERY FEES	3,050
			13	BY TELEPHONE EXPENSES	200
			14	BY UTILITIES	500
			15	BY DRAWINGS	3,000
				BY BALANCE C/D	19,850
		32,650			32,650
CAPITAL ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
	TO DRAWINGS	3,000	1	BY CASH	20,000
	TO BALANCE C/D	17,000
		20,000			20,000
OVEN (ASSET) ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
2	TO ACCOUNTS PAYABLE	6,300		BY DEPRECIATION ON OVENS	75
				BY BALANCE C/D	6,225
		6,300			6,300
ACCOUNTS PAYABLE
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
			2	BY OVEN (ASSET) ACCOUNT	6,300
			4	BY PURCHASES	2,000
			9	BY PURCHASES	2,500
	TO BALANCE C/D	11,750		BY WAGES	950
		11,750			11,750
RENT ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
3	TO CASH	1,500		BY PROFIT AND LOSS A/C	1,500
		1,500			1,500
PURCHASES ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
4	TO ACCOUNTS PAYABLE	2,000		TO PROFIT AND LOSS A/C	5,000
7	TO CASH	500
	(KITCHEN SUPPLIES ARE ASSUMED TO BE SYNONYMOUS TO FOOD SUPPLIES AND HENCE DEBITED TO PURCHASES ACCOUNT. ALTERNATIVELY, IF THE SAME REFERS TO ASSET, SHOULD BE RECORED IN KITCHEN SUPPLIES (ASSET) ACCOUNT)
9	TO ACCOUNTS PAYABLE	2,500
		5,000			5,000
MEAL DELIVERY FEES ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
			5	BY CASH	3,400
	TO PROFIT & LOSS A/C	12,650	8	BY CASH	3,000
			10	BY CASH	3,200
			12	BY CASH	3,050
		12,650			12,650
WAGES ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
6	TO CASH	2,000
11	TO CASH	2,050		BY PROFT & LOSS ACCOUNT	5,000
	TO ACCOUNTS PAYABLE	950
		5,000			5,000
TELEPHONE EXPENSES ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
13	TO CASH	200		BY PROFT & LOSS ACCOUNT	200
		200			200
UTILITIES ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
14	TO CASH	500		BY PROFT & LOSS ACCOUNT	500
		500			500
MOLLY'S DRAWINGS ACCOUNT
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
15	TO CASH	3,000		BY CAPITAL ACCOUNT	3,000
		3,000			3,000
DEPRECIATION EXPENSE ON OVENS
DEBIT					CREDIT
SL. NO.	PARTICULARS	AMOUNT ($)	SL. NO.	PARTICULARS	AMOUNT ($)
15	To OVEN	75		BY PROFIT & LOSS ACCOUNT	75
		75			75
NOTES:
1	ALL INCOME AND EXPENSES ARE TRANSFERRED TO PROFIT & LOSS ACCOUNT AT THE TIME OFCLOSURE OF LEDGER.
	AND THE BALANCE OF ASSETS AND LIABILITIES (INCLUDING CAPITAL) ARE CARRIED FORWARD TO NEXT ACCOUNTING PERIOD.
2	THE INFORMATION RELATING TO BALANCES OF FOOD SUPPLIES, KITCHEN SUPPLIES AT THE BEGINNING AND END ARE ADJUSTED
	IN THE STATEMENT OF PROFIT & LOSS.
	BALANCE AT THE BEGINNING OF THE ACCOUNTING PERIOF IS DEBITED TO THE STATEMENT OF PROFIT & LOSS AND
	BALANCE AT THE END OF THE ACCOUNTING PERIOD IS CREDITED TO THE STATEMENT OF PROFIT & LOSS.
	HOWEVER, STATEMENT OF PROFIT & LOSS IS NOT PRESENTED IN THIS SOLUTION, AS THE SAME IS NOT REQUIRED AS PER THE GIVEN QUESTION.