c - Go Smart Inc.

( Education and Selling Books)***

Instructions
S.No
1 Our company's Supplier - purchase price = $90 per book
2 Our company's Client - Sale price = $130 per book
Our Company Insurance Co.
4 Our Bank
5 For Office supplies
6 Our Company's Lender
Advertisement company
Furniture
Pearson & Co.
WCC
Insure Life Group
Scotia Bank
Staple Co.
TD Bank
Alfa Ads Agency
IKEA
CEO
T.No
CEO

8
Correction by RJ

9
Correction by RJ

10

11.1
 11.2

12

13

14

15
By RJ

16
by no. 30

17

18.1

18.2

19

20

21
 22

23

24

25
By no. 37

26

27
by no.26

28

29

30

31

32
33.1

33.2

34

35

36

37
Accounts name
Cash A/c
To Capital
Owner invested cash into the business

Scotia Bank
To Capital
Owner made invesment by Scotia bank balance into the business

Scotia Bank
TD Bank and transfer
Took Loan from TD Bank and transfer to Scotia bank

furniture
accounts payable - IKEA
Bought Furniture from Ikea on credit

Car
Account Payable Basant Motors
Bough car from Basant Motors on credit

Building
RBC - Mortage payable
Building is bought on credit by taking mortgage from RBC bank with interst only 5% per year.

Computer
Cash A/c
Bought Computer from Staple by cash

Inventory
Account payable - Pearson
bought books 100 @90 from Pearson on Credit

accounts payable - IKEA

Scotia Bank
Ref. T.No. 3 - Payment is given to Ikea by Cheque from Scotia Bank

Inventory A/c
cash A/c
bought books 200 @90 from Pearson on cash

gas expense
Scotia Bank
Gas expenses for car is paid by cheque from Scotia banks

cash
sales revenue
Sold 50 Books @130 to WCC and cash is received

COGS A/c
Inventory
Update Inventory COGS 50 @ 90

Account Payable Basant Motors

Cash
Ref to T.No 4 Payment is made by cash to Basant Motors

Internet Expenses
To Cash
Internet Expenses are paid by cash

Advertisement Expenses
Cash A/c
Advertisement Expenses are made by cash

Office Supply A/c

Accounts Payable- Staple
Office supplies bought from Staple on credit

salary expense
Scotia Bank
Salary is given to employees by cheque Scotia bank

Interest Expenses
Cash
Ref to T.No 2 - Interest is paid by cash @7% on the loan amount.

Account receivable A/C -WCC

Sales revenue
75 books were sold to WCC on credit @ 130

COGS
Inventory
Update Inventory COGS 75 @ 90

cash A/c
tuition fee
tuition fee is received by cash

Inventory
to Accounts Payable - Pearson
bought books 150 @90 from Pearson on credit

office supplies expenses

To Office Supply
Ref 15 - Found 2000 office supplies at the end of the year. So make adustment entry for office supply
expenses

Paint and Wash Expense

To Cash A/c
Paint and white wash is done by cash

scotia bank
Account receivable A/C -WCC
Ref. T.No 18 Payment is received from WCC by cheque and deposited cheque into scotia bank

Account payable A/C-Pearson

To Scotia Bank A/c
Ref. T.No 20 - Payment is made by scotia bank

prepaid insurance
cash
12 months Insurance is paid in advance in the month of Nov, 2024. ($200 per month)

utilities expenses A/C

cash A/c
Utilities expenses is paid by cash

Salary Expenses
Accured salary
Salary is due to employees but not paid ( Accrued Salary)

Repair expenses A/c

To Cash A/c
Repair of laptop is done by cash

Accounts Payable- Staple

To cash a/c
Ref 15 - Cash is given for office supplies

interest expense
Cash
Ref. T.No 5 Interest payment 5% is given by cash for one year

Donation Expense A/c

To Scotia Bank A/c
Donation is given to society by cheque

scotia bank
unearned revenue
Received tuition fee by scotia bank from student in advance but service is not provided yet

cash A/c
To Sales Revenue
Sold 175 Books @130 to WCC and cash is received

COGS A/c
To Inventory
Update Inventory COGS 175 @ 90

Depreciation A/c
To accumulated depreciation - building
Depreciation 10% on building is charged

Depreciation A/c
To accumulated depreciation -computer
Depreciation 20% on Computer is charged

Unearned Revenue
To Service Revenue
Ref. 32 - Some services are provided

insurance expense
prepaid insurance
Ref. T.No 25 , make adjustment entry for insurance
Singh, Manjot
Debit Credit Category Effect
100000 Current Assets Increased
100000 Equity Increased

250,000 Current Assets Incresed

250,000 Decresed

150,000 Current Assets Decreased

150,000 Long Term Liabiliti Increased

20,000 Assets increased

20,000 liability increased

17,500 Assets Incresed

17,500 Liability Increased

375,000 Assets Increased

375,000 liability Increased

$1,000 Current Assets Increased

$1,000 Decreased

9,000 assets Increased

9,000 liability increased

12,000 Liability Incresed

12,000 Assets Decreased

18,000 Assets Increased

18,000 Assets Decreased

5500 Expenses Increased

5500 current assets Decreased

6500 Current Assets Increased

 6500 Income increased

4500 Current Assets increased

4500 decreased

$15,500 Current Liability

$15,500 Current Assets

6000 Expenses Increased

6000 Decreased

$2,700 Current Assets inceased

$2,700 Decreased

6,000 current assets

6,000

13500 asstes increased

13500 decreased

10,500 Expense Increased

10,500 Current Assets Decreased

9750 Assets increased

9750 Assets increased

6750 Expence inceased

6750 Assets Decreased

16900 current Assets increased

16900 increased

13,500 asserts Increased

13,500 asserts inceased

$4,000 Increased
 $4,000 Decreased

2300 increased
2300 Current Asset decreased

5,500 C assests increased

5,500 C assests increased

12,500 Current Assets Increased

12,500 Current Assets Decreased

2,400 current assets Increased

2,400 Current Asset Decreased

2000 current Assets increased

2000 Decreased

1400 expenses increased

1400 current liabilities increased

600 Current increased

600 assests Decreased

3000 Fixed Asset Increased

3000 Current Asset Decreased

$18,750 current assets inceased

$18,750

5000 Current Assets Decreased

5000 increased

85000 current assets increased

85000
22750
22,750

15750
15750

37500 Fixed Asset Decreased

37500 Decreased

200 fixed Asset decreased

200 decreased

35000 assets increased

35000

400 expense increased

400 current assets Decreased
 Debit Credit
Assets, Expenses Increased Decresed
Liabilities, Equity, Income Decresed Increased
Always have debit balance
Always have Credit balance
 All Assets and All Expenses ( always have debit balance)
Cash A/c
Particular T.No Amount Particular
Capital CEO 100000 utilities expenses A/C
sales revenue 11 6,500 Advertisement expenses
tuition fee 19 16900 Prepaid Insurance
Interst Expenses
sales revenue 33.1 22750 computer
Interest on loan
By Paint and White wash
Repair expenses A/c
Internet Expense
Inventory
Account payable - basant
Acc Payable -staple

By Balance
Total 146150 Total

Scotia Bank
Particular T.No Amount Particular
To Capital 1 250,000 Accounts payable - IKEA
TD bank loan 2 150000 Account Payable-Pearson
unearned revenue 32 85000 Donation Expenses A/c
gas expense
Salary
Account Receivable - WCC 23 5500

By Balance
Total 490,500 Total

furniture
Particular T.No Amount Particular
Accounts Payable - Ikea 3 20,000
 By Balance
Total 20000 Total

Car
Particular T.No Amount Particular
Accounts Payable - Bastant M 4 17500

By Balance
Total 17500 Total

Building
Particular T.No Amount Particular
RBC Mortage Payable 5 375000

By Balance
Total 375000 Total

Computer
Particular T.No Amount Particular
cash 6 1000

By Balance
Total 1000 Total
 Inventory
Particular T.No Amount Particular
A/C payable - Pearson 7 9,000 COGS
A/C payable - Pearson 20 13500
COGS
Cash 9 18000 COGS

By Balance
Total 40500 Total

gas expense
Particular T.No Amount Particular
scotia bank 10 5500

By Balance
Total 5500 Total

COGS A/c
Particular T.No Amount Particular
Inventory 11.2 4500
Inventory 18.2 6750
Inventory 15750

By Balance
Total 27000 Total

Internet Expenses
Particular T.No Amount Particular
Cash 13 $6,000
 By Balance
Total 6000 Total

Advertisement Expenses
Particular T.No Amount Particular
Cash A/c 14 $2,700

By Balance
Total 2700 Total

Office Supply A/c

Particular T.No Amount Particular
Account Payable - Staple 15 6000 Office Supply Expeses

By Balance
Total 6000 Total

salary expense
Particular T.No Amount Particular
Accured salary 27 1400
Scotia Bank 16 13500
 By Balance
Total 14900 Total

Interest on loan Expenses

Particular T.No Amount Particular

To CAsh 17 $10,500
To Cash 30 18750

By Balance
Total 29250 Total

Account receivable A/C -WCC

Particular T.No Amount Particular
Sales revenue 18.1 9,750
By Scotia Bank

By Balance
Total 9750 Total

office supplies expenses

Particular T.No Amount Particular
To office supply 21 $4,000
 By Balance
Total 4000 Total

Paint and White wash Expense

Particular T.No Amount Particular
Cash 22 2300

By Balance
Total 2300 Total

prepaid insurance
Particular T.No Amount Particular
CAsh 25 2400 Insurance Exp

By Balance
Total 2400 Total

utilities expenses A/C

Particular T.No Amount Particular
to cash 26 2000
 By Balance
Total 2000 Total

Repair expenses A/c

Particular T.No Amount Particular
To Cash A/c 28 600

By Balance
Total 600 Total

Donation Expense A/c

Particular T.No Amount Particular
To Scotia Bank 31 5000

By Balance
Total 5000 Total

Depreciation
Particular T.No Amount Particular
Acc-Depreciation-Computer 35 200
Acc-Depreciation-building 34 37500

By Balance
Total 37700 Total
 insurance expense
Particular T.No Amount Particular
Prepaid Insurance 37 400

By Balance
Total 400 Total
balance) All Liabilites, Equity and Revenue
Capital A/c
T.No Amount Particular T.No Amount
26 2000
14 $2,700
25 2,400
30 18750
6 1000
17 10,500
22 2300
28 600
13 6,000
9 18000
12 15500 To Balance 350000
29 3000 Total 350000

TD Bank Loan A/c

63400 Particular T.No Amount
146150

T.No Amount
8 12,000
24 12500
31 5000
10 5500
16 13500

To Balance 150000
Total 150000

accounts payable - IKEA

442,000 Particular T.No Amount
490,500 Scotia Bank 8 12,000

T.No Amount

To Balance 8,000
Total 20000
+
Account Payable Basant Motors
 20000 Particular T.No Amount
20000 Cash 12 15,500

T.No Amount

To Balance 2000
Total 17500

RBC - Mortage payable

17500 Particular T.No Amount

T.No Amount

To Balance 375000
Total 375000

Account payable - Pearson

375000 Particular T.No Amount
375000 Scotia Bank 24 12,500

T.No Amount

To Balance 10000
Total 22500

sales revenue
1000 Particular T.No Amount
1000
T.No Amount
11.2 4500

18.2 6750
33.2 15,750

To Balance 39000
Total 39000

Accounts Payable- Staple

13500 Particular T.No Amount
40500 Cash 29 3000

T.No Amount

To Balance 3000
Total 6000

tuition fee
5500 Particular T.No Amount
5500

T.No Amount

To Balance 16900
Total 16900

Accured salary
27000 Particular T.No Amount
27000

T.No Amount
 To Balance 1400
Total 1400

unearned revenue
6000 Particular T.No Amount
6000 Service Revenue 36 35000

T.No Amount

To Balance 50000
Total 85000

accumulated depreciation - buildin

2700 Particular T.No Amount
2700

T.No Amount
21 4000

To Balance 37500
Total 37500

accumulated depreciation -comput

2000 Particular T.No Amount
6000

T.No Amount
 To Balance 200
Total 200

Service Revenue
14900 Particular T.No Amount
14900

T.No Amount

To Balance 35000
Total 35000

29250
29250

T.No Amount

23 5500

4250
9750

T.No Amount
 $4,000
4000

T.No Amount

2300
2300

T.No Amount
37 400

2000
2400

T.No Amount
 2000
2000

T.No Amount

600
600

T.No Amount

5000
5000

T.No Amount

37700
37700
T.No Amount

400
400
es, Equity and Revenue
Capital A/c
Particular T.No Amount
Cash CEO 100000
Scotia bank 1 250,000

Total 350000

D Bank Loan A/c

Particular T.No Amount
Scotia bank 2 150,000

Total 150000

unts payable - IKEA

Particular T.No Amount
Furniture 3 20,000

Total 20000

Payable Basant Motors

 Particular T.No Amount
Car 4 17500

Total 17500

- Mortage payable
Particular T.No Amount
Building 375000

Total 375000

nt payable - Pearson
Particular T.No Amount
inventory 7 9,000
inventory 20 13500

Total 22500

sales revenue
Particular T.No Amount
cash 11 6500
Acc Receivaable -WCC 18.1 9750
 cash 33.1 22750

Total 39000

nts Payable- Staple

Particular T.No Amount
Office Supply 15 6000

Total 6000

tuition fee
Particular T.No Amount
cash 19 16900

Total 16900

Accured salary
Particular T.No Amount
Salary Expenses 26 1400
 Total 1400

earned revenue
Particular T.No Amount
Scotia bank 32 85000

Total 85000

ed depreciation - building
Particular T.No Amount
Depreciation A/c 34 37500

Total 37500

d depreciation -computer
Particular T.No Amount
Depreciation A/c 35 200
 Total 200

ervice Revenue
Particular T.No Amount
By unearned Serivice Re 36 35000

Total 35000
w
 Trial Balance
Accounts name Debit
Cash A/c 63400
Scotia Bank 442,000
furniture 20,000
Car 17500
Building 375000
Computer 1,000
Inventory 13500
gas expense 5500
COGS A/c 27000
Internet Expenses 6000
Advertisement Expenses $2,700
Office Supply A/c 2000
salary expense 14900
Interest on loan Expenses 29250
Account receivable A/C -WCC 4250
office supplies expenses $4,000
Paint and White wash Expense 2300
prepaid insurance 2000
utilities expenses A/C 2000
Repair expenses A/c 600
Donation Expense A/c 5000
Depreciation 37700
Insurance Expenses 400
Capital A/c
TD Bank Loan A/c
accounts payable - IKEA
Account Payable Basant Motors
RBC - Mortage payable
Account payable - Pearson
sales revenue
Accounts Payable- Staple
tuition fee
Accured salary
unearned revenue
accumulated depreciation - building
accumulated depreciation -computer
Service Revenue

Total 1078000
Credit
Current Assets
Current Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Current Assets
Expenses
Expenses
Expenses
Expenses
Current Assets
Expenses
Expenses
Current Assets
Expenses
Expenses
Current Assets
Expenses
Expenses
Expenses
Expenses
Expenses
350000 Equity
150,000 Long Term Liability
8,000 Current Liability
2000 Current Liability
375000 Current Liability
10,000 Current Liability
39000 Sales Reveune
3000 Current Liability
16,900 Service Revenue
1400 Current Liability
50000 Current Liability
37500 Contra Assets
200 Contra Assets
35000 Service Revenue

1078000 0
y bbv
 Profit and Loss A/c
Expeneses Detail Amount
COGS 27000

To Gross Profit 12000

Total 39000

Gas eXpense 5500

Internet Expense 6000
advertisement expense 2700
salary expense 14900
interest on loan 29250
office supplies 4000
paint and whitewash 2300
utilities 2000
repair 600
depreciation 37700
Insurance 400
donation 5000

Total 110350
Balance Sheet
Assets Detail Amount
Current Assets
cash 63400
scotia bank 442,000
inventory 13500
office supply 2000
prepaid insaurance 2000
accounts recievable 4250

Fixed Assets
furniture 20,000
car 17500
building 375000
computer 1,000
Total Fixed Assets
Contra Assets
Accumulated Deoreciation building 10% 37500
Accumulated Depreciation computer 20% 200
Total 902,950
t and Loss A/c
Income Detail Amount
sales revenue 39000

39000

Gross profit 12000

Tuition Fee 16,900
service revenue 35000

By net loss 46450

Total 110350
lance Sheet
Liability Detail Amount
Equity
Capital 350000
Add : Net loss 46450 303550

Current Liabilities
Accounts payable- Ikea 8,000
Accounts payable basant motors 2000
Accounts payable person 10,000
Accounts payable- staples 3000
Accured salary 1400
unearned revenue 50000

Long term Liabilities

TD Bank Loan A/C 150,000
RBC Mortage A/c 375000
Total 902950