Question

Required

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1. Post to the ledger.

2. Prepare the trial balance of Harper Service as at 31 March 2018

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During March, the business engaged in the following transactions, All figures are GST (GST is 15%)inclusive where applicable:

Journalise each transaction. Key journal entries by transaction letter, using the format below:

General Journal

Transactions		Accounts	Debit ($)	Credit ($)

1 March: Borrowed $45,000 from the bank and signed a bill payable in the name of the business.

2 March: Paid cash of $40,000 to acquire a motor vehicle.

4 March: Performed service for a customer and received cash of $5,000.

10 March: Purchased supplies on credit, $300.

14 March: Performed customer service and earned revenue on credit, $2,600.

15 March: Paid $1,200 on account.

16 March: Paid the following cash expense: advertising, $3,000; rent, $1,500; and computer repair, $400.

22 March: Received $3,100 on account.

26 March: Received a $200 electricity and gas bill that will be paid next month.

28 March: Harper withdrew $1,800 for personal use.

Answer 1

Journal Entries

Transaction	Account	Debit	Credit
March, 1	Cash/Bank	45,000
	Bills Payable		45,000
March, 2	Motor Vehicle	40,000
	Cash		40,000
March, 4	Cash	5,000
	Service Revenue		5,000
March, 10	Supplies in Hand	300
	Accounts Payable		300
March, 14	Accounts Receivable	2,600
	Service Revenue		2,600
March, 15	Accounts payable	1,200
	Cash		1,200
March, 16	Advertising	3,000
	Rent	1,500
	Computer repair	400
	Cash		4,900
March, 22	Cash	3,100
	Account Receivable		3,100
March, 26	Electricity & Gas Expenses	200
	Accounts payable		200
March, 28	Drawings	1,800
	Cash		1,800

Ledger Accounts

Cash a/c

Particulars	Amount	Particulars	Amount
To Bills Payable	45,000	By Motor Vehicle	40,000
To Service Revenue	5,000	By Accounts Payable	1,200
To Account Receivable	3,100	By Advertising	3,000
		By Rent	1,500
		By Computer Repair	400
		By Drawings	1,800
		By Balance c/d	5,200

Bills Payable a/c

Particulars	Amount	Particulars	Amount
To Balance c/d	45,000	By Cash	45,000

Motor Vehicle a/c

Particulars	Amount	Particulars	Amount
To Cash	40,000	By Balance c/d	40,000

Service Revenue a/c

Particulars	Amount	Particulars	Amount
To Balance c/d	7,600	By Cash	5,000
		By Account Receivables	2,600

Supplies in Hand a/c

Particulars	Amount	Particulars	Amount
To Accounts Payable	300	By Balance c/d	300

Accounts Receivables a/c

Particulars	Amount	Particulars	Amount
To Service Revenue	2,600	By Cash	3,100
To Balance c/d	500

Accounts Payable a/c

Particulars	Amount	Particulars	Amount
To Cash	1,200	By Supplies in Hand	300
		By Electicity & Gas Expense	200
		By Balance c/d	700

Drawings a/c

Particulars	Amount	Particulars	Amount
To Cash	1,800	By Balance c/d	1,800

Electricity & Gas Expenses a/c

Particulars	Amount	Particulars	Amount
To Accounts Payable	200	By Balance c/d	200

Advertisement a/c

Particulars	Amount	Particulars	Amount
To cash	3,000	By Balance c/d	3,000

Rent a/c

Particulars	Amount	Particulars	Amount
To Cash	1,500	By Balance c/d	1,500

Computer Repair a/c

Particulars	Amount	Particulars	Amount
To Cash	400	By Balance c/d	400

Trial Balance of Harper Services at 31st March, 2018

Account	Debit	Credit
Cash	5,200
Account Receivable		500
Account Payable	700
Service Revenue		7600
Motor Vehicle	40,000
Electricity & Gas Expenses	200
Drawings	1,800
Supplies in hand	300
Bills Payable		45,000
Advertisment	3,000
Computer Repair	400
Rent	1,500
TOTAL	51,900	51,900

Note - Accounts Receivable has credit and Accounts payable has debit balance. They Normally have Debit and Credit Balances respectively.