Question

Q.3. Siddharth started Vogue Garments. The following transactions took place in the first month i.e. April 2019. [6] April 01: Siddharth invested cash in the company's share capital Rs.25000 April 02: Paid rent deposit for premises, Rs.5000 April 03: Bought supplies on credit Rs.4000 April 05: Bought equipment for cash Rs.18000 April 14: Paid electricity expenses Rs.1050 April 20: Billed customers for serviced provided, Rs.8000 a) You are required to analyze each transaction Make journal entries, post them to respective ledger accounts and prepare a trial balance at the month end. b) You are required to prepare the final accounts (i.e. Balance Sheet and Income Statement) from the Trial Balance prepared in Question No. 3. Assume accumulated depreciation on Equipment is Rs. 2000

Please answer fully so I can understand clearly

Answer 1

Journal Entries
1-Apr	Cash      Dr	$      25,000
	To Share Capital		$      25,000
	(Being capital infused)
2-Apr	Rent deposit         Dr	$         5,000
	To Cash		$         5,000
	(Being Rent deposit paid)
3-Apr	Office supplies     Dr	$         4,000
	To Accounts payable		$         4,000
	(Being office supplies purchased)
5-Apr	Office Equipment     Dr	$      18,000
	To Cash		$      18,000
	(Being office equipment purchased)
14-Apr	Electricity expense    Dr	$         1,050
	To Cash		$         1,050
	(Being electricity bill paid)
20-Apr	Account receivable        Dr	$         8,000
	To Revenue		$         8,000
	(Being services rendered)

Ledgers

Cash Account
Description	Amount Dr	Description	Amount Cr
To Capital	$        25,000	By Rent deposit	$          5,000
		By Office Equipment	$        18,000
		By dividend	$          1,050
		By balance c/d	$              950
Total	$        25,000	Total	$        25,000
Payable
Description	Amount Dr	Description	Amount Cr
To Balance c/d	$           4,000	By Office supplies	$          4,000
Total	$           4,000	Total	$          4,000
Office supplies
Description	Amount Dr	Description	Amount Cr
To Accounts payable	$           4,000	By balance c/d	$          4,000
Total	$           4,000	Total	$          4,000

Accounts receivable
Description	Amount Dr	Description	Amount Cr
To Fees	$           8,000
		By balance c/d	$          8,000
Total	$           8,000	Total	$          8,000
Rent Deposit
Description	Amount Dr	Description	Amount Cr
To Cash	$           5,000	By balance c/d	$          5,000
Total	$           5,000	Total	$          5,000
Revenue
Description	Amount Dr	Description	Amount Cr
To Balance c/d	$           8,000	By Cash	$                 -
		By Account receivable	$          8,000
Total	$           8,000	Total	$          8,000

Electricity expense
Description	Amount Dr	Description	Amount Cr
To Cash	$           1,050	By balance c/d	$          1,050
Total	$           1,050	Total	$          1,050
Share Capital
Description	Amount Dr	Description	Amount Cr
To Balance c/d	$        25,000	By Cash	$        25,000
Total	$        25,000	Total	$        25,000
Office Equipment
Description	Amount Dr	Description	Amount Cr
To Cash	$        18,000	By balance c/d	$        18,000
Total	$        18,000	Total	$        18,000

Trial balance

	Trial Balance
Description	Amount Dr	Amount Cr
Cash Account	$              950
Accounts receivable	$           8,000
Electricity expense	$           1,050
Payable		$                            4,000
Rent Deposit	$           5,000
Share Capital		$                         25,000
Office supplies	$           4,000
Office Equipment	$        18,000
Revenue		$                            8,000
Total	$        37,000	$                         37,000

Income statement

	Income Statement
Description	Amount Dr	Description	Amount Cr
Electricity	$           1,050	Revenue	$          8,000
Office supplies	$           4,000
Income	$           2,950
Total	$           8,000		$          8,000

Balance Sheet

	Balance Sheet
Liability	Amount Dr	Assets	Amount Cr
Payable	$           4,000	Cash Account	$              950
Share Capital	$        25,000	Accounts receivable	$          8,000
Profit	$           2,950	Rent deposit	$          5,000
		Office equipment	$        18,000
Total	$        31,950		$        31,950