Question

presented below is information related to Swifty Corporation

Stock Question 9 View Policies Current Attempt in Progress Presented belowi dormation related to Say Creation co n toh Oct. 1 Diane Lexington begins business as a real estate agent with a cushimestment of 2 e ntravant 3 Purchases office furniture for $2.350, on account. 6 Sells a house and lot for Fernbills N. Fenne 1600 for reality services formed 27 Pays $1.050 on the balance related to the transaction of October 30 Pays the administrative assistant 52.150 in s y for October Prepare the debt-credit s for each transaction Debit Credit Analysis Od 1 Debits Credits - Credit Oct. 2 Debits Credits DELL

Answer 1

The following would be the effect of given transactions in the Journal books of Swifty Corporation for the month of October:

Date	Particulars	LF no.	Debit	Credit
October 1	Cash a/c Dr To Capital a/c (Being Capital bought into business)		$22700	$22700
October 3	Office Furniture a/c Dr To Creditor a/c (Being furniture purchased on credit/account)		$2350	$2350
October 6	Debtor(N.Fenning)a/c Dr To Realty Services Income a/c (Being income from realty services provided to N.Fenning recognized in the books)		$3600	$3600
October 27	Creditor a/c Dr To Bank a/c (Being part amount paid to the Office Furniture creditor for clearance of liability to that extent)		$1050	$1050
October 30	Salary a/c Dr To Bank a/c (Being Salary paid to Administrative Assistant for the month of October)		$2150	$2150

Here LF no., which means Ledger Folio Number represents the corresponding ledger number which the Account represents.

Dr. means Debit, a/c means Account

The transaction on October 2 will have no impact on the books of Swifty Corporation as we need to remember that Accountancy works on the Principles of Money Measurement Concept as per which only the transactions or events that could be measured only finds place in the books of accounts of the enity.