Can You Solve This?
$6 \div 2(1+2) =$
5 Purchased office supplies for cash Tk. 30,000 and on account Tk. 20,000.
15 Received cash Tk. 1,00,000 for services rendered.
24 Insurance paid in advance Tk. 5,000.
31 Paid office rent Tk. 20,000 for the month.
Required : (i) Prepare journal entries. (ii) Open necessary ledger accounts.
Solution
Mr. Prime
General Journal
General Journal
Date | Account Titles and Explanation | Ref. | Debit Tk. | Credit Tk. |
---|---|---|---|---|
2021 Jan. 1 |
Cash Furniture Mr. Prime, capital [Cash and furniture introduced by owner as capital.] |
2,00,000 50,000 |
2,50,000 | |
” 5 |
Office supplies Cash Accounts payable [Purchase supplies for cash and on account.] |
50,000 |
30,000 20,000 |
|
” 15 |
Cash Service revenue [Cash received for service rendered.] |
1,00,000 | 1,00,000 | |
” 24 |
Prepaid insurance Cash [Cash paid for prepaid insurance.] |
5,000 | 5,000 | |
” 31 |
Office rent expense Cash [Cash paid for office rent.] |
20,000 | 20,000 |
Req. (ii)
In the book of Mr Prime
General Ledger
Cash
General Ledger
Cash
Date | Explanation | Ref. | Debit Tk. | Credit Tk. | Debit Balance Tk. |
Credit Balance Tk. |
---|---|---|---|---|---|---|
2021 Jan. 1 |
Mr. Prime, capital | 2,00,000 | 2,00,000 | |||
” 5 | Office supplies | 30,000 | 1,70,000 | |||
” 15 | Service revenue | 1,00,000 | 2,70,000 | |||
” 24 | Prepaid insurance | 5,000 | 2,65,000 | |||
” 31 | Rent expense | 20,000 | 2,45,000 |
Office supplies
Date | Account Titles | Ref. | Debit Tk. | Credit Tk. | Debit Balance Tk. | Credit Balance Tk. |
---|---|---|---|---|---|---|
2021 Jan. 5 |
Cash Accounts payable |
30,000 20,000 |
50,000 |