Financial Accounting I – III
BBA | BBA -BI | BBA-TT | BCIS 1st
PU 2016 Spring Q. No. 12 [10 marks]
Pokhara Architects incorporated as licensed architects on April 1, 2013. During the first month of its operation, the following transaction occurred.
April 1: Recruited a receptionist in term of Rs. 5,000 per month salary.
April 2: Owners contributed Rs. 2,50,000 cash in incorporate the business.
April 3: Purchased office supplies of Rs. 5,000 from Spring suppliers.
April 5: Signed promissory note at bank at the rate of 6% payable at the end of the three years from today Rs. 15,000.
April 7: Completed blueprint of a carport and billed client of Rs. 50,000.
April 15: Paid loan Rs. 6,000 and interest of Rs. 75.
April 16: Received Rs. 10,000 from customer.
April 21: Paid amount due Rs. 3,000 to Spring supplier.
April 30: Paid Rs. 5,000 to receptionist for the month’s salary.
Journalize the transaction and post to respective T accounts and then prepare the trial balance of Pokhara Architects dated on April 30, 2013.
In the book of Pokhara Architects
Cash a/c Dr. Rs. 2,50,000
(To record the contribution for cash to capital i.e. share capital)
Office supplies a/c Dr. Rs. 5,000
Account payable a/c Rs. 5,000
(To record the purchase of office supplies on account)
Bank a/c Dr. Rs. 15,000
Notes payable a/c Rs. 15,000
(To record the note agreement from bank)
Account receivable a/c Dr. Rs. 50,000
Service revenue a/c Rs. 50,000
(To record the service revenue earned but not yet received)
Loan a/c Dr. Rs. 6,000
Interest expenses a/c Dr. 75
Cash a/c 6,075
(To record the payment of loan with interest)
Cash a/c Dr. Rs. 10,000
Account receivable a/c Rs. 10,000
(To record the partial cash received from account receivable)
Account payable a/c Dr. Rs. 3,000
Cash a/c Rs. 3,000
(To record the payment to the Spring supplier)
Salary expenses a/c Dr. Rs. 5,000
Cash a/c Rs. 5,000
(To record the payment of salary for the month)
April 30, 2013
|S.N.||Particulars||Dr. Rs.||Cr. Rs.|
Share capital a/c
Office supplies a/c
Account payable a/c
Notes payable a/c
Account receivable a/c
Service revenue a/c
Interest expenses a/c
Salary expenses a/c
|Total||Rs. 3,17,000||Rs. 3,17,000|