Accountancy, asked by Reetinder7886, 10 months ago

Prepare general journal entries for the following transactions of a business called Pose for Pics in 2016:
Aug. 1: Hashim Khan, the owner, invested Rs. 57,500 cash and Rs. 32,500 of photography equipment in the business.
04: Paid Rs. 3,000 cash for an insurance policy covering the next 24 months.
07: Services are performed and clients are billed for Rs. 10,000.
13: Purchased office supplies for Rs. 1,400. Cash paid Rs. 400 and remaining outstanding.
20: Received Rs. 2,000 cash in photography fees earned previously.
24: The client immediately pays Rs. 15,000 for services to be performed at a later date.
29: The business acquires photography equipment. The purchase price is Rs. 100,000, pays Rs. 25,000 cash and signs a note for the balance.

Answers

Answered by Sanav1106
6

JOURNAL ENTRIES
GIVEN:
Transactions of a business called Pose for Pics in 2016.
TO FIND:
Journal Entries
SOLUTION:
As we know,

The following transactions will be recorded in the books of journal as follows:

Cash A/c                     ----dr                  57,500

Equipment A/c           ----dr                  32,500

       To Capital A/c                                             90,000

( being business started by investing cash and buying equipment.)

Insurance A/c             -----dr                  3,000

    To Cash A/c                                                     3,000  

(being insurance amount paid through cash.)

Debtors A/c                 ----dr                     10,000

 To Sales A/c                                                       10,000

(being Service rendered.)

Office supplies A/c     ----dr                        1,400

   To Cash A/c                                                       400

   To Creditors A/c                                                1000

(being office supplies and partially paid through cash.)

Cash A/c                     -----dr                   2,000

    To Debtors A/c                                              2,000

(being cash received from the debtor to whom service was rendered before.)

Cash A/c                     -----dr                    15,000

   To Sales A/c                                                    15,000

(being Cash payment received for the service rendered.)

Equipment A/c             -----dr                   25,000

    To Cash A/c                                                      10,000

     To Bills Payable A/c                                         15,000

(being equipment purchased and payment made partially through cash and for rest signed a note.)

Journal Entries were passed based on the nature of account.

#SPJ1

Answered by vaishanavipatil
2

Explanation:

journal entries and ledger posting

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