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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
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
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

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