## Journal Entries/Ledger | Numerical Problems Part - 6

Purchased a van for Rs. 15,000 on an open account. The company has 25 days to pay for the van; Billed a local business Rs. 200 for delivery services

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 13015000 Dr.Dr.Dr.Dr.Dr. 19500193701949544954695

Capital Account
 Date Particulars PR Debit Credit 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 Debit Credit 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