Question

The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on Cash Equipment Accounts Receivable (a) 187,009 (d) 27,000 (g) 2,700 (b) 43,000 670 (h) 10,700 (i) 4,700 (c) 77,000 (f) 9,400 (9) 2,700 Accounts Payable Supplies Wade Wilson, Capital (c) 77,000 (b) 43, 000 (a) 187,000 Telephone Expense Wade Wilson, Drawin (1) 4,700 Fees Income (d) 27,000 (f) 9,400 670 Salaries Expense (h) 10, 700

Answer 1

Cash Account
Particulars	Dr. $	Particulars	Cr. $
To Capital A/c	187,000	By Supplies A/c	43,000
To Fees A/c	27,000	By Telephone Expense A/c	670
To Accounts Recievable	2,700	By Salaries Expense A/c	10,700
		By Drawings A/c	4,700
		By Balance c/d	157,630
	216,700		216,700

Firstly, let us learn the steps to calculate the Closing Balances of Ledger:
Step 1 - Post all the Journal Entries in the Ledger
Step 2 - Calculate the totals of both Debit side and Credit Side.
Step 3 - The total the side higher of debit and credit is to be written in the total column for both Debit side and credit side. In the above case Total of Debit side is 216,700 and that of Credit side is 59,070. As the Debit side total of 216,700 is higher, it will appear in both Debit side and credit side Column.
Step 4 - The side with the lesser total will get the Balancing figure. In the above case, total of Credit side is 59070 and hence, the balancing figure to be appearing on credit side will be calculated as (216,700 - 59,070) which is 157,630.

Accounts Payable Account
Particulars	Dr. $	Particulars	Cr. $
To Balance c/d	77,000	By Equipment A/c	77,000
	77,000		77,000

Fees Income Account
Particulars	Dr. $	Particulars	Cr. $
To Balance c/d	36,400	By Cash A/c	27,000
		By Accounts Recievable	9,400
	36,400		36,400

Salaries Expenses Account
Particulars	Dr. $	Particulars	Cr. $
To Cash A/c	10,700	By Balance c/d	10,700
	10,700		10,700

Equipment Account
Particulars	Dr. $	Particulars	Cr. $
To Accounts Payable A/c	77,000	By Balance c/d	77,000
	77,000		77,000

Supplies Account
Particulars	Dr. $	Particulars	Cr. $
To Cash A/c	43,000	By Balance c/d	43,000
	43,000		43,000

Telephone Expense Account
Particulars	Dr. $	Particulars	Cr. $
To Cash A/c	670	By Balance c/d	670
	670		670

Accounts Recievable Account
Particulars	Dr. $	Particulars	Cr. $
To Fees Income A/c	9,400	By Cash	2,700
		By Balance c/d	6,700
	9,400		9,400

Wade Wilson Capital Account
Particulars	Dr. $	Particulars	Cr. $
By Balance c/d	187,000	By Cash A/c	187,000
	187,000		187,000

Wade Wilson Drawings Account
Particulars	Dr. $	Particulars	Cr. $
To Cash A/c	4,700	By Balance c/d	4,700
	4,700		4,700

Balance of Each Account	$
Cash	157,630 Debit
Accounts Recivable	6,700 Debit
Supplies	43,000 Debit
Equipment	77,000 Debit
Accounts Payable	77,000 Credit
Wade, Wilson Capital	187,000 Credit
Wade, Wilson Drawing	4,700 Debit
Fees Income	36,400 Credit
Telephone Expenses	670 Debit
Salaries Expenses	10,700 Debit