Bobby opened a consulting firm and completed these transactions during November, 2017:
(a) Invested Rs. 4,00,000 cash and office equipment with Rs. 1,50,000 in a business
called Bobbie Consulting.
(b) Purchased land and a small office building. The land was worth Rs. 1,50,000 and the
building worth Rs. 3, 50,000. The purchase price was price was paid with Rs. 2,00,000
cash and a long term note payable for Rs. 3,00,000.
(c) Purchased office supplies on credit for Rs. 12,000.
(d) Bobbie transferred title of motor car to the business. The motor car was worth Rs. 90,000.
(e) Purchased for Rs. 30,000 additional office equipment on credit.
(f) Paid Rs. 75,00 salary to the office manager.
(g) Provided services to a client and collected Rs. 30,000
(h) Paid Rs. 4,000 for the month’s utilities.
(i) Paid supplier created in transaction c.
(j) Purchase new office equipment by paying Rs. 93,000 cash and trading in old equipment
with a recorded cost of Rs. 7,000.
(k) Completed services of a client for Rs. 26,000. This amount is to be paid within 30 days.
(l) Received Rs. 19,000 payment from the client created in transaction k.
(m) Bobby withdrew Rs. 20,000 from the business.
Analyse the above stated transactions and open the following T-accounts:
Cash, client, office supplies, motor car, building, land, long term payables, capital,
withdrawals, salary, expense and utilities expense.
Answers
Answer:
Explanation:
(a) increase asses by Rs. 550000
CASH ACCOUNT
Dr. Cr
Rs 400000
OFFICE EQUIPMENT ACCOUNT
Dr. cr
150000
CAPITAL ACCOUNT
Dr. Cr.
400000
150000
(b) LAND ACCOUNT
Dr. cr
150000
Cash Account
Dr. Cr
400000 150000
800000 50000
Creditors for building account
Dr Cr
300000
Building Account
Dr Cr
350000
Long term Account
Dr. Cr
800000
(c) Office supplies account
Dr. Cr
120000
Supplier Account
Dr. Cr
12000
(d) Motor car Account
Dr. Cr
90000
Capital Account
Dr. Cr
400000
150000
90000
(e) office equipment account
Dr. Cr
150000
30000
Creditors for office euip. Account
Dr. Cr.
30000
(f)Salary Account
Dr. Cr
7500
Cash Account
Dr. Cr
400000 150000
800000 50000
7500
(g) Client service Account
Dr. Cr
30000
Cash Account
Dr. Cr
30000
(h)Utilities Account
Dr. Cr
4000
Cash Account
Dr. Cr
4000
(i) Suppliers account
Dr Cr
12000 12000
Cash Account
Dr. Cr
12000
(j) Office equipment Account
Dr Cr
100000 7000
Cash Account
Dr. Cr
93000
(k) Client Service Account
Dr Cr
26000
Client Account
Dr. Cr
26000
(l)
Client Account (db)
Dr Cr
26000 19000
Cash Account
Dr. Cr
19000
(m) Drawing Account
Dr. Cr
20000
Cash Account
Dr. Cr
20000
Answer:
client account 1219000