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Accounts Case Study 78

Capital of $65,000 was introduced and a bank loan of $100,000 was obtained. Various business expenses were paid in cash and on credit, including rent of $1,485, merchandise of $137,500, furniture of $15,500, advertising of $1,320, wages of $935, supplies of $1,100 and utilities of $275. Goods worth $38,000 were sold for cash and $14,850 were sold on credit. Bills of $96,195 were paid to suppliers in cash and new merchandise of $49,940 was received on credit.

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33 views4 pages

Accounts Case Study 78

Capital of $65,000 was introduced and a bank loan of $100,000 was obtained. Various business expenses were paid in cash and on credit, including rent of $1,485, merchandise of $137,500, furniture of $15,500, advertising of $1,320, wages of $935, supplies of $1,100 and utilities of $275. Goods worth $38,000 were sold for cash and $14,850 were sold on credit. Bills of $96,195 were paid to suppliers in cash and new merchandise of $49,940 was received on credit.

Uploaded by

Vraj Adroja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Accounts Case Study

Answer-1).

1. Capital introduced $65,000 and loan of $1,00,000 is being taken.

2. Rent of $1,485 paid through cash.

3. Goods worth $1,37,500 purchased on credit.

4. Furniture purchased of $15,500 for cash.

5. Advertisement expenses of $1,320 paid in cash.

6. Wages of $935 paid in cash.

7. Office supplies expense of $1,100 paid in cash.

8. Utilities expense of $275 paid in cash.

Answer-2).
DATE/ ENTRY PARTICULARS DEBIT CREDIT
NUMBER ($) ($)
9 Cash A/C Dr. 38,000
To Sales A/C 38,000

10 Creditors A/C Dr. 14,850


To Sales A/C 14,850

11 Cash A/C Dr. 3,614


To Creditors A/C 3,614

12 Merchandise A/C. 96,915


Dr.
To Cash A/C 96,915

13 Merchandise A/C. 49,940


Dr.
To Supplier A/C 49,940

14 Cash A/C Dr. 38,140


To Sales A/C 38,140
15 Wages A/C Dr. 688
To Cash A/C 688

16 Wages A/C Dr. 440


To Unpaid Wages A/C 440

17 Advance Rent A/C Dr. 1,485


To Cash A/C 1,485

18 Insurance Bill A/C Dr. 2,310


To Cash A/C 2,310

19 Bills A/C 226


Dr.
To Unpaid Bills A/C 226

20 Sign A/C Dr. 1,760


To Cash A/C 600
To Creditors A/C 1,100

Answer-3).

1. Capital of $65,000 is introduced and Bank loan of $1,00,000 dollars is being


taken.

2. Rent expenses of 1485 dollars were paid in cash.

3. Merchandise inventory of $137,500 is purchased on credit.

4. Furniture oh $ 15,500 purchased for cash.

5. Advertising expenses of dollar 1320 paid in cash.


6. Wage expenses of $935 paid in cash.

7. Office supplies expense of $1100 paid in cash.

8. Utilities expenses worth $275 paid in cash.

9. Goods worth $38,000 sold on cash in the month of September.

10. Goods sold on credit for $14,850 in month of September.

11. Cash received from credit customers of $3,614.

12. Bills of $96,195 paid in cash to merchandise suppliers.

13. New merchandise worth $49,940 was received on credit from supplier.

14. Sold merchandise worth $38,140 to Ms.Thompson.

15. Wages of $688 per to assistant in cash.

16. Outstanding wages of $440 at the end of September.

17. Rent paid in advance of $1485 for month of october.

18. Insurance bill of $2310 was failed in September month for one year.

19. Bills received but unpaid from Electric company worth $226.
20. Purchase design paying six $60 in cash and agreeing to pay $1100 by
December month.

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