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Financial Accounting I – III
BBA |BBA-BI | BBA-TT | BCIS 1st
PU 2017 Fall Q. No. 14 [10 marks]
Baneshor and company registered a company which provides tax consulting services to the other business. Following are the transactions occurred for the first month of operation.
Jan 1, Received contribution of Rs. 2,00,000 from each of the two partners in exchange for shares of stock.
Jan 4, Purchase a computer and printer for a total of Rs. 50,000 with a down payment of Rs. 20,000 and remaining on account.
Jan 9, Sign a two year promissory note at the bank and cash received of Rs. 10,000.
Jan 10, Paid Rs. 4,000 for wages earned by employees for the first week of the month.
Jan 15, Collected Rs. 80,000 in cash from the series provided during the first half of January.
Jan 30, Billed Rs. 4,000 to local clients for by providing consulting service, clients are allowed to pay on 10th February.
Required:
a. Journal entries of the above transactions for the month of January.
b. T Accounts
c. Trial balance
a. Journal Entries
Jan 1
Cash a/c Dr. Rs. 4,00,000
Share capital a/c Rs. 4,00,000
(To record the contribution of capital from each of the two partners amount Rs. 2,00,000)
Jan 4
Computer and Printer a/c Dr. Rs. 50,000
Cash a/c Rs. 20,000
Account payable a/c Rs. 30,000
(To record the purchase of computer and printer with partial payment)
Jan 9
Cash a/c Dr. Rs. 10,000
Notes payable a/c Rs. 10,000
(To record the issuance of two years promissory note)
Jan 10
Wages expenses a/c Dr. Rs. 4,000
Cash a/c Rs. 4,000
(To record the payment of wages to employees)
Jan 15
Cash a/c Dr. Rs. 80,000
Series revenue a/c Rs. 80,000
(To record the cash received from series provided)
Jan 30
Account receivable a/c Dr. 4,000
Service revenue a/c Rs. 4,000
(To record the service revenue earned but not yet received)
b. T-accounts
c. Trial balance
| S.N. | Particulars | Dr. Rs. | Cr. Rs. |
| 1. 2. 3. 4. 5. 6. 7. 8. 9. | Cash a/c Share capital a/c Computer and Printer a/c Account payable a/c Notes payable a/c Wages expenses a/c Account receivable a/c Series revenue a/c Service revenue a/c | 4,66,000 50,000 4,000 4,000 | 4,00,000 30,000 10,000 80,000 4,000 |
| Total | Rs. 6,24,000 | Rs. 6,24,000 |