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POA-Problem 2.3

1. The document records transactions for Kochi Services including Rabul Shah investing cash in exchange for shares, prepaying rent for 2 years, purchasing furniture and equipment partly in cash and partly on credit, prepaying insurance with cash, purchasing supplies with cash and credit, earning revenue and receiving payment in cash and on account, paying accounts payable, receiving payment on accounts receivable, paying a utility bill, and paying salaries. 2. A trial balance is presented that lists account titles and balances to ensure debits equal credits.

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21 views1 page

POA-Problem 2.3

1. The document records transactions for Kochi Services including Rabul Shah investing cash in exchange for shares, prepaying rent for 2 years, purchasing furniture and equipment partly in cash and partly on credit, prepaying insurance with cash, purchasing supplies with cash and credit, earning revenue and receiving payment in cash and on account, paying accounts payable, receiving payment on accounts receivable, paying a utility bill, and paying salaries. 2. A trial balance is presented that lists account titles and balances to ensure debits equal credits.

Uploaded by

nnmnghi1409
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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a. Journalize a transaction b. Post to the ledger account (T-format) c.

Trial balance

GENERAL JOURNAL T1 Cash 101 Accounts payables 201 Share capital - Ordinary 311 Kochi Services

Date Account titles & explanation Ref. Debit Credit


1/5 40,000 1/5 24,000 13/5 400 1/5 20,000 1/5 40,000 Trial balance
1/5 Cash 101 40,000 10/5 8,000 1/5 10,000 5/5 1,500 31-May
Share capital - Ordinary 311 40,000 20/5 3,000 1/5 1,800 25/5 380 Bal. 40,000
(Rabul Shah invest cash exchange share) 2/5 420 Bal. 21,480 Debit Credit
13/5 400 Cash ₹ 8,280
1/5 Prepaid rent 729 24,000 28/5 6,100 Accounts receivable 9,000
Cash 101 24,000 Bal. 8,280 Service Revenue 400 Supplies 1,920
(Rent next 2 year, pay cash) 10/5 20,000 Furniture & Equipment 30,000
Prepaid insurance 1,800
1/5 Furniture & Equipment 157 30,000 Bal. 20,000 Accounts payable ₹ 21,480
Cash 101 10,000 Accounts receivable 112 Share capital ordinary 40,000
Accounts payable 201 20,000 10/5 12,000 20/5 3,000 Service revenue 20,000
(Purchase on account partly & by cash partly) Salaries & wages expense 6,100
Bal. 9,000 Salaries & wages expense 726 Prepaid rent 24,000
1/5 Prepaid insurance 130 1,800 28/5 6,100 Utilities expense 380
Cash 101 1,800 ₹ 81,480 ₹ 81,480
(purchased one-year insurance by cash) Supplies 126 Bal. 6,100
2/5 420
2/5 Supplies 126 420 5/5 1,500
Cash 101 420 Bal. 1,920 BALANCE
(purchased office supplies by cash) Prepaid rent 729
1/5 24,000
5/5 Supplies 126 1,500 Furniture & equipment 157
Accounts payable 201 1,500 1/5 30,000 Bal. 24,000
(Purchased office supplies on account/on credit)
Bal. 30,000
10/5 Cash 101 8,000
Accounts receivable 112 12,000 Utilities expense 732
Service revenue 400 20,000 25/5 380
(Earned revenue, receive cash partly & on account partly) Prepaid insurance 130
1/5 1,800 Bal. 380
13/5 Accounts payable 201 400
Cash 101 400 Bal. 1,800
(Paid creditors on account)

20/5 Cash 101 3,000


Accounts receivable 112 3,000
(Received cash from customers in payment on account)

25/5 Utilities expense 732 380


Accounts payable 201 380
(Received utility bills, pay next month)

28/5 Salaries & wages expense 726 6,100


Cash 101 6,100
(Paid salaries to date)
127,600 127,600
BALANCE

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