Journal Entries/Ledger | Numerical Problems Part - 6

continuous balance ledger

Record each transaction shown below directly in continuous balance ledger. Each account involved needs a separate at account:
i. Received capital contribution of Rs. 19,500 from the owners in exchange for shares of stock.

ii. Purchased office supplies for cash of Rs. 130.

iii. Purchased a van for Rs. 15,000 on an open account. The company has 25 days to pay for the van.

iv. Provided delivery services to residential customers for cash Rs. 125.

v. Billed a local business Rs. 200 for delivery services. The customer is to pay the bill within 15 days.

vi. Paid the amount due on the van.

vii. Received the amount due from the local business billed in transaction (e) above.

Solution:

                                                                            Journal Entries

Date Account Titles and Explanation PR Debit (Rs.) Credit (Rs.)/
 i. Cash a/c     Dr.
      To Capital a/c
(For capital contribution received from the owners)
  19500 19500
 ii.Office supplies a/c Dr.
To cash a/c
(For purchase of office supplies)
  130 130
 iii.Van a/c             Dr.
To Accounts payable a/c
(For purchase of van on open account)
  15000 15000
 iv.Cash a/c.              Dr.
     To service revenue a/c
(For delivery services provided to residential customers for cash)
  125 125
 v. Accounts receivable a/c.      Dr.
      To service revenue a/c
(For delivery services provided for cash)
  200 200
 vi. Accounts payable a/c.        Dr.
    To cash a/c
(For paid the amount due on the van)
  15000 15000
 vii.Cash a/c.             Dr.
     To Accounts receivable a/c
(For the amount due received from local business billed in transaction (e) )
  200 200

Ledger Accounts: Continuous form ledgers
  Cash Account
 Date Particulars PR Debit Credit Dr./Cr. Balance
i.
ii.
iv.
vi.
vi
Capital a/c.
Office supplies a/c.
Service revenue a/c.
Accounts Payable a/c.
Accounts receivable a/c.
  19500

 125
 
200

130

15000

Dr.
Dr.
Dr.
Dr.
Dr.
19500
19370
19495
4495
4695
 
                                                            Capital Account
 Date Particulars  PR DebitCredit  Dr./Cr. Balance
 i. Cash a/c  19500  Cr. 19500

 Office Supplies Account
 Date Particulars  PR Debit Credit Dr./Cr. Balance
 ii. Cash a/c  130  Dr. 130

Van Account
 Date Particulars  PR DebitCredit  Dr./Cr. Balance
 iii. Accounts payable a/c  15000  Dr. 15000

Accounts Payable Account
 Date Particulars  PR Debit Credit Dr./Cr. Balance
iii.
vi. 
 Van a/c
 Cash a/c
  
15000
 15000

 Cr.
 Cr.
 15000
 0

Service Revenue Account
 Date Particulars  PR Debit Credit Dr./Cr.Balance 
 iv.
 v.
 Cash a/c
 Accounts receivable a/c
   125
 200
 Cr.
 Cr.
 125
 325

Accounts Receivable Account
 Date Particulars  PR Debit Credit Dr./Cr.Balance 
 v.
 vii.
 Service revenue a/c
 Cash a/c
  200

 
 200
 Dr.
 Dr.
 200
 0

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