Journal Entries for Advanced Problems | Advanced Journal Entries

 

 Basic Journal Entries 

Mixed basic journal entries:

Journal entry for business started (capital)

Journal entry for business goods (inventory, merchandise) purchases

Journal entry for business goods (inventory, merchandise) sold

Journal entry for assets purchase

Journal entry for assets sold (at loss or at profit)

Journal entry for full settlement (discount allowed and discount received)

Journal entry for loan taken, loan given and investment

Journal entry for operating expenses

Journal entry for outstanding expenses (expenses payable)

Journal entry for prepaid expenses (advance expenses)

Journal entry for drawings and withdrawals

Journal entry for purchase returns (return outward, return to creditors and suppliers)

Journal entry for sales returns (return inward, return from debtors and customers)

Journal entry for sundry income (commission, discount, interest, rent)

Journal entry for depreciation on fixed assets (tangible assets)

Journal entry for amortisation on fictitious assets (intangible assets)

Journal entry for appreciation on fixed assets (tangible assets)

Journal entry for bad debts, provision for bad debts and discount to debtors

Journal entry for bad debts recovered

Journal entry for goods (inventory, merchandise) lost and insurance claim

Journal entry for free samples

Journal entry for interest on capital

 

ADVANCED  PROBLEMS  OF  JOURNAL  ENTRIES

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 1

Manoj started AutoCAD consulting firm called MS AutoCAD Services., he has following transactions:

July 1: Cash contributed Rs 2,00,000 as capital.

July 2: Office equipment purchased on credit Rs 60,000.

July 3: Purchased motor bike for Rs 1,90,000; paying Rs 90,000 in cash and signing a loan agreement for the rest.

July 4: Paid Rs 6,000 for insurance and registration or bike

July 5: Office materials purchased on credit Rs 7,000.

July 6: Completed an AutoCAD assignment and received Rs 14,000 cash.

July 7: Received advance from a customer for assignment to be completed in August Rs 4,000

July 8: Invoiced a client for services completed Rs 12,000.

Required: Journalise the above transactions using the following chart of accounts code:

Accounts payable Account receivable Advance income Office materials

200 130 220 120

Cash  Insurance and registration Loan payable Vehicle

100 110 210 160

Capital Office equipment Service revenue

300 180 400

[Answer: *Invoiced = account receivable]

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 2

Butwal Trading House has following extracted information:    

Feb 2, Business started with cash Rs 2,50,000 bank Rs 75,000.

Feb 4, Purchase goods form SM Suppliers Rs 40,000 and paid Rs 10,000 partially.

Feb 5, Sold goods to XYZ Traders for 30,000 and received a cheque of Rs 5,000 partially.

Feb 6, Computer and printer purchased for Rs 40,000.

Feb 7, Goods purchased from MC Group for Rs 55,000 and paid Rs 40,000 in cash and balance by cheque.

Feb 9, Damage goods returned by XYZ Traders Rs 2,000.

Feb 10, Cheque issued to SM Suppliers Rs 29,000 full settlement.

Feb 11, Cash received in full settlement from XYZ Traders after discount Rs 500.

Feb 12, Advance rent paid to house owner Rs 15,000.

Feb 13, Commission received Rs 1,000 in cash.

Feb 14, Loan gave to friend Binesh Rs 25,000.

Feb 18, Commission Rs 4,000 received in advance.

Feb 19, Withdrew for domestic use cash Rs 5,000 goods worth Rs 1,500.

Feb 25, Salary payable to staff Rs 8,000.

Feb 26, Depreciation charged on computer Rs 1,000.

Required: Journal entries

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 3                      Service Firm Owner’s Equity

Queen Beauty Parlour has following financial data:

Balance Sheet of first quarter (Q1)

Liabilities	Amount	Assets	Amount
Owner’s equity	78,000	Cash	9,000
Account payable	18,000	Account receivable	40,000
		Office supplies	12,000
		Office equipment	35,000
	96,000		96,000

Other information for the second quarter (Q2):

1, Payment collected earlier client (account receivable) Rs 18,000.

2, Billed client for the service Rs 35,000.

3, Office supplies purchased on account Rs 4,000.

4, Commission received from job endorsed Rs 25,000.

5, Insurance premium paid Rs 6,000 for 12 months which includes Rs 1,500 advance.

6, Office equipment purchased Rs 3,000.

7, 10% Loan took Rs 32,000.

8, Payment made to account payable Rs 12,000.

9, Withdrew cash for house purpose Rs 23,500.

10, Office supplies purchased on account Rs 1,500.

11, Office rent paid Rs 4,000.

12, Salary paid to staff Rs 9,000.

Additional information:

(a) Office supplies used during the period of Rs 9,400.

(b) Interest payable on loan for three months.

(c) Charge depreciation on equipment Rs 2,500.

Required: Journal entries

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 4                      Service Shareholders’ Equity

EP Online Study LLC has the following transaction:

(1) Invested cash into business and converted into common stock of Rs 200,000.

(2) Purchase office supplies on account Rs 32,000.

(3) Office equipment purchased on account Rs 72,000.

(4) Office equipment purchased in cash Rs 80,000.

(5) Billed to client for service on account Rs 120,000.

(6) Service revenue received in cash Rs 84,000.

(7) Office expenses paid Rs 10,000.

(8) Cash collected from client Rs 80,000 from April 12.

(9) Paid 50% amount of equipment purchased on account bill.

(10) Paid full amount of office supplies purchased on account on April 6.

(11) Rent paid for the month Rs 4,000 and advance for Rs 16,000.

Additional information:

(1) Office expenses unpaid is Rs 7,500

(2) Charge depreciation on equipment @ 15%

(3) Office supplies in hand amounting Rs 12,300.

Required: Journal entries

 

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Click on link for YouTube videos topic wise :
Accounting Equation	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger Account	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance and Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)	http://tiny.cc/jlersz
Accounting Process	http://tiny.cc/mlersz
Accounting for Long Lived Assets	http://tiny.cc/plersz
Analysis of Financial Statement	http://tiny.cc/slersz

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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 5                       Service Shareholders’ Equity

EP Education Consultancy LLC has the following transaction:

(a) Invested cash into business and converted into ordinary shares of Rs 500,000.

(b) Office supplies purchased for cash Rs 5,000.

(c) Purchase office equipment for cash Rs 20,000.

(d) Office equipment purchased on account Rs 30,000.

(e) Consultancy fee received in cash Rs 20,000.

(f) Communication bills paid Rs 1,000.

(g) Paid half amount of equipment purchased on account bill.

(h) Salary paid to office assistant Rs 5,000.

(i) Total rent paid Rs 36,000 on demand of house owner; including rent for the current month Rs 6,000.

(j) Depreciation charged on equipment Rs 900.

Additional information:

(1) Consultancy fee receivable amounting Rs 41,500.

(2) Office supplies in hand Rs 7,600.

(3) Salary payable to office staff of Rs 8,400

Required: Journal entries

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 6                      Trading Owner’s Equity

KK Enterprises, grain wholesaler, has following information: (Amount in ’00)

Balance Sheet

Liabilities	Amount	Assets	Amount
Capital	230,000	Cash	50,000
		Debtor	150,000
		Furniture	30,000
	230,000		230,000

Other financial transactions are:

(1) Bank account opened by depositing cash of Rs 12,700

(2) Goods purchased from Bharat Rs 150,000; paid Rs 30,000 in cash and balance on-credit. 

(3) Unused furniture costing Rs 5,000 was disposed-off for Rs 2,000.

(4) A debtor of Rs 30,000 settled its account receiving cash discount of Rs 1,500 by cheque.

(5) Goods withdrawn by proprietor for personal use Rs 3,000.

(5) Goods sold on credit costing Rs 100,000 for Rs 130,000 and received Rs 90,000 partially.

(7) Settled Bharat’s account by paying Rs 118,000.

(8) Telephone and internet bill paid through online payment of Rs 1,550.

(9) Goods distributed as charity at Corona Pandemic Rs 13,250.

(10) Rent paid to house owner Rs 12,000 which includes Rs 2,000 as advance.

(11) Salary paid Rs 5,000 and still payable for the month Rs 7,500

Additional information:

(a) Goods purchased on account of Rs 35,600 omitted to record

(b) Charge depreciation on remaining furniture at 20%.

Required: Journal entries

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 7                      Trading Shareholders’ Equity  

PK Glass LLC has following financial data:

(a) Investment received Rs 700,000 to start business and converted into 70,000 equity shares @ Rs 10.

(b) Cash withdrew from bank Rs 185,000.

(c) Equipment purchased by cheque Rs 65,000.

(d) Goods purchased in cash 150,000 and on account Rs 250,000.

(e) Insurance premium paid Rs 4,500.

(f) Goods sold for cash Rs 150,000.

(g) Goods sold on account Rs 50,000.

(h) Cheque issued to supplier Rs 75,500.

(i) Cash received from customers Rs 22,500

(j) Defective goods returned to supplier worth Rs 2,500.

(k) Customer returned excess goods of Rs 4,200.

(l) Utilities bills (electricity, phone, internet, water bill) paid Rs 3,000.

(m) Salary paid in cash Rs 40,000 and still payable Rs 20,000.

(n) Rent paid for Rs 25,000 by cheque.

Additional information:

(1) Closing stock values Rs 301,700.

(2) Rent paid includes advance rent of Rs 7,000.

(3) Depreciation charged on equipment @ 20%

Required: Journal entries

 

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country 

AP: 8                       Trading Owner’s equity   

Nepal Trading House, a sole proprietorship, has the following extracted information:       

1, Business started with cash Rs 2,50,000 bank Rs 75,000.

2, Purchase goods form SM Suppliers Rs 40,000 and paid Rs 10,000 partially.

3, Sold goods to EP Traders for 30,000 and received a cheque of Rs 5,000 partially.

4, Computer and printer purchased for Rs 40,000.

5, Goods purchased from MC Group for Rs 55,000 and paid Rs 40,000 in cash and balance by cheque.

6, Damage goods returned by EP Traders Rs 2,000.

7, Cheque issued to SM Suppliers Rs 29,000 full settlement.

8, Cash received in full settlement from EP Traders after discount Rs 500.

9, Advance rent paid to house owner Rs 15,000.

10, Commission received Rs 1,000 in cash.

11, Loan gave to friend Binesh Rs 25,000.

12, Commission Rs 4,000 received in advance.

13, Withdrew for domestic use cash Rs 5,000 goods worth Rs 1,500.

14, Salary payable to staff Rs 8,000.

Additional information:

(a) Depreciation is charged on equipment @ 20%.

(b) Advance rent expired to the extent of Rs 12,000.

(c) Advance commission earned Rs 2,850.

Required: Journal entries

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