Journal entries long answer question is the comprehensive question and solution.
It is the summary of entire chapter of the journal entry.
It is designed for deep knowledge.
It is the base for ledger accounts and trial balance.
PROBLEM: 22
Manoj Sharma started AutoCAD consulting firm called MS AutoCAD Services; he has following transactions:
1: Cash contributed Rs 3,00,000 as capital.
2: Office equipment purchased on credit Rs 160,000.
3: Purchased motor bike for Rs 1,90,000; paying Rs 90,000 in cash and signing a loan agreement for the rest.
4: Paid Rs 6,000 for insurance of office assets.
5: Office supplies purchased on credit Rs 7,000.
6: Completed an AutoCAD assignment and received Rs 14,000 cash.
7: Received advance from a customer for assignment to be completed in August Rs 4,000
8: Invoiced a client for services completed Rs 12,000.
9: Cash paid of office equipment Rs 60,000.
10: Utility bills paid Rs 3,250.
Required: Journalise the above transactions by using accounting code and ledger folio number.
Account codes:
Accounts payable |
200 |
Cash |
100 |
Capital |
300 |
Account receivable |
130 |
Insurance |
110 |
Office equipment |
180 |
Advance income |
220 |
Loan payable |
210 |
Service revenue |
400 |
Office materials |
120 |
Vehicle |
160 |
Utility |
500 |
*Invoiced = account receivable
Journal Entries
In MS AutoCAD Services
Date |
Particulars |
|
A/c |
LF |
Debit |
Credit |
|
|
|
Code |
No. |
Amount |
Amount |
|
Cash account |
Dr |
100 |
2 |
300,000 |
|
July 1 |
To Capital account |
|
300 |
1 |
|
300,000 |
|
(Being- business started with cash) |
|
|
|
|
|
2 |
Office equipment |
Dr |
180 |
3 |
160,000 |
|
|
To Accounts payable |
|
200 |
4 |
|
160,000 |
|
(Being- office equipment purchased on credit) |
|
|
|
|
|
3 |
Motor Bike account |
Dr |
160 |
5 |
190,000 |
|
|
To Cash account To Loan payable account |
|
100 210 |
2 6 |
|
90,000 100,000 |
|
(Being- bike purchase and partial payment paid) |
|
|
|
|
|
5 |
Insurance |
Dr |
110 |
7 |
6,000 |
|
|
To Cash |
|
100 |
2 |
|
6,000 |
|
(Being- insurance policy bought) |
|
|
|
|
|
5 |
Office supplies account |
Dr |
120 |
8 |
7,000 |
|
|
To Accounts payable |
|
200 |
4 |
|
7,000 |
|
(Being- office materials purchased on credit) |
|
|
|
|
|
6 |
Cash account |
Dr |
100 |
2 |
14,000 |
|
|
To Service revenue |
|
400 |
9 |
|
14,000 |
|
(Being- revenue received) |
|
|
|
|
|
7 |
Cash account |
Dr |
100 |
2 |
4,000 |
|
|
To Advance service revenue |
|
220 |
10 |
|
4,000 |
|
(Being- advance revenue received) |
|
|
|
|
|
8 |
Accounts receivable account |
Dr |
130 |
11 |
12,000 |
|
|
To Service revenue |
|
400 |
9 |
|
12,000 |
|
(Being- billing for services rendered) |
|
|
|
|
|
|
Account payable account |
Dr |
200 |
4 |
60,000 |
|
|
To Cash account |
|
100 |
2 |
|
60,000 |
|
(Being: partial payment made for equipment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility bills account |
Dr |
500 |
12 |
3,250 |
|
|
To Cash account |
|
100 |
2 |
|
3,250 |
|
(Being: utility bills paid) |
|
|
|
|
|
#######
Click on link for YouTube videos topic wise : |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger Account |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Click on link for YouTube videos chapter wise: |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
#######
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