Financial Accounting I – III
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2017 Spring Q. No. 14 [10 marks]
Blue Jay Deliveries is incorporated on January 2, 2017, and enters into the following transactions during its first month of operations.
January 2: Field articles of incorporation with the state and issued 100,000 shares of capital stock. Cash of Rs. 100,000 is received from the new owners for the shares.
January 3: Purchased a warehouse and land for Rs. 80,000 in cash. An appraiser values the land at Rs. 20,000 and the warehouse at Rs. 60,000.
January 4: Signed a three-year promissory note at Third State Bank in the amount of Rs. 50,000.
January 6: Purchased five new delivery trucks for a total of Rs. 45,000 in cash.
January 31: Performed services on account that amounted to Rs. 15,900 during the month. Cash amounting to Rs. 7,490 was received from customers on account during the month.
January 31: Established an open account at a local service station at the beginning of the month. Purchases of gas and oil during January amounted to Rs. 3,230. Blue Jay has until the 10th of the following month to pay its bill.
Required: Journal entries, posting in T-accounts, and Trial balance.
Cash a/c Dr. Rs. 1,00,000
Share capital a/c Rs. 1,00,000
(To record the issuance of cash and capital paid up)
Land a/c Dr. Rs. 20,000
Warehouse a/c Dr. 60,000
Cash a/c Rs. 80,000
(To record the purchase of warehouse and land)
Cash a/c Dr. Rs. 50,000
Notes payable a/c Rs. 50,000
(To record the agreement of promissory note with the bank)
Delivery trucks a/c Dr. Rs. 45,000
Cash a/c Rs. 45,000
(To record the purchase of delivery trucks on cash)
Account receivable a/c Dr. Rs. 8,410
Cash a/c Dr. 7,490
Service revenue a/c Rs. 15,900
(To record the cash received and receivable from service revenue)
Utility expenses a/c Dr. Rs. 3,230
Utility payable a/c Rs. 3,230
(To record the payment due of utility expenses)
|S.N.||Particulars||Dr. Rs.||Cr. Rs.|
Share capital a/c
Notes payable a/c
Delivery trucks a/c
Account receivable a/c
Service revenue a/c
Utility expenses a/c
Utility payable a/c
|Total||Rs. 1,69,130||Rs. 1,69,130|