Question

On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:

June	1	Kris transferred cash from a personal bank account to an account to be used for the business, $27,250.
	1	Paid rent for period of June 1 to end of month, $3,100.
	6	Purchased office equipment on account, $12,700.
	8	Purchased a van for $31,450 paying $6,300 cash and giving a note payable for the remainder.
	10	Purchased supplies for cash, $1,660.
	12	Received cash for job completed, $9,000.
	15	Paid annual premiums on property and casualty insurance, $2,500.
	23	Recorded jobs completed on account and sent invoices to customers, $12,440.
	24	Received an invoice for van expenses, to be paid in June, $1,390.

Enter the following transactions on Page 2 of the two-column journal:

June	29	Paid utilities expense, $3,660.
	29	Paid miscellaneous expenses, $1,580.
	30	Received cash from customers on account, $8,200.
	30	Paid wages of employees, $4,600.
	30	Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,160.
	30	Withdrew cash for personal use, $2,100. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted along with the date.

Answer 1

General Journal
Sr.no	Date	Partuculars	Debit	Credit
1	01.06.2019	Bank A/c Dr	27250
		To Capital A/c		27250
		(Being Amount trf from personal to business)
2	01.06.2019	Rent Expenses A/c Dr	3100
		To Bank A/c		3100
		(Being Rent Paid)
3	06.06.2019	Office Enquipment A/c Dr	12700
		To Vender A/c		12700
		(Being Office Enquipment purchased on Account)
4	08.06.2019	Van A/c Dr	31450
		To Bank A/c		6300
		To Note Payable		25150
		(Being Van Purchased partial on cash)
5	10.06.2019	Supplies A/c Dr	1660
		To Bank A/c		1660
		(Being Supplies Purchased on Cash)
6	12.06.2019	Bank A/c Dr	9000
		To Income A/c		9000
		(Being Cash received on job completed)
7	15.06.2019	Casuality insurance A/c DR	2500
		To Bank A/c		2500
		(Being Insurance Premium paid)
8	23.06.2019	Customer A/c Dr	12440
		To Income A/c		12440
		(Being Jobs completed and invoice send)
9	24.06.2019	Van Expenses A/c Dr	1390
		To Van Expense payable		1390
		(Being invoice received, not yet paid)
10	29.06.2019	Utility Expenses A/c Dr	3660
		To Bank A/c		3660
		(Being Utility Expenses Paid)
11	29.06.2019	Miscellaneous Expenses A/c Dr	1580
		To Bank A/c		1580
		(Being Miscellaneous Expenses Paid)
12	30.06.2019	Bank A/c Dr	8200
		Discount A/c Dr	4240
		To Customer A/c		12440
		(Being Cash received on account)
13	30.06.2019	Wages Expenses A/c Dr	4600
		To Bank A/c		4600
		(Being Wages paid to Employees)
14	30.06.2019	Vendor A/c Dr	6160
		To Bank A/c		6160
		(Being Portion Amount paid)
15	30.06.2019	Drawing A/c Dr	2100
		To Bank A/c		2100
		(Being Amount withdrawan for personal use)

Ledger
Bank A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
1	01.06.2019	To Capital A/c	27250	2	01.06.2019	Rent Expenses A/c Dr	3100
6	12.06.2019	To Income A/c	9000	4	08.06.2019	Van A/c Dr	6300
12	30.06.2019	To Customer A/c	8200	5	10.06.2019	Supplies A/c Dr	1660
				7	15.06.2019	Casuality Insurance A/c	2500
				10	29.06.2019	Utility Expenses A/c Dr	3660
				11	29.06.2019	Miscellaneous Expenses A/c	1580
				13	30.06.2019	Wages Expenses A/c Dr	4600
				14	30.06.2019	Vendor A/c Dr	6160
				15	30.06.2019	Drawing A/c Dr	2100
					30.06.2019	Balance carry forward	12790
			44450				44450
Capital A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
				1	01.06.2019	Bank A/c Dr	27250
	30.06.2019	Balance carry forward	27250
			27250				27250
Rent Expense A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
2	01.06.2019	To Bank A/c	3100
					30.06.2019	Profit and Loss	3100
			3100				3100
Office Enquipment A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
3	06.06.2019	To Vender A/c	12700
					30.06.2019	Balance Carry forward	12700
			12700				12700
Vendor A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
14	30.06.2019	To Bank A/c	6160	3	06.06.2019	Office Enquipment A/c Dr	12700
	30.06.2019	Balance Carry Forward	6540
			12700				12700
Van A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
4	08.06.2019	To Bank A/c	6300
4	08.06.2019	To Note Payable	25150
					30.06.2019	Balance Carry Forward	31450
			31450				31450
Note Payable A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
				4	08.06.2019	Van A/c	25150
	30.06.2019	Balance Carry Forward	25150
			25150				25150
Supplies A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
5	10.06.2019	To Bank A/c	1660
					30.09.2019	Profit and Loss	1660
			1660				1660

Income A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
				6	12.06.2019	Bank A/c	9000
				8	23.06.2019	CustomerA/c	12440
	30.06.2019	To Profit and Loss	21440
			21440				21440
Casuality Insurance A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
7	15.06.2019	To Bank A/c	2500
					30.06.2019	Profit and Loss	2500
			2500				2500
CustomerA/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
8	23.06.2019	To Income A/c	12440	12	30.06.2019	Bank A/c Dr	8200
				12	30.06.2019	Discount A/c Dr	4240
			12440				12440
Van Expenses A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
9	24.06.2019	To Van Expense payable	1390
					30.06.2019	Profit and Loss	1390
			1390				1390
Van Expenses Payable A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
				9	24.06.2019	Van Expenses A/c	1390
	30.06.2019	Balance Carry Forward	1390
			1390				1390
Utility Expenses A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
10	29.06.2019	To Bank A/c	3660		30.09.2019	Profit and Loss	3660
			3660				3660
Miscellaneous Expenses A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
11	29.06.2019	To Bank A/c	1580
					30.09.2019	Profit and Loss	1580
			1580				1580
Miscellaneous Expenses A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
12	30.06.2019	To Customer A/c	4240
					30.09.2019	Profit and Loss	4240
			4240				4240
Wages Expenses A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
13	30.06.2019	To Bank A/c	4600
					30.09.2019	Profit and Loss	4600
			4600				4600
Drawing A/c
Dr				Cr
Ref	Date	Particular	Amount	Ref	Date	Particular	Amount
15	30.06.2019	To Bank A/c	2100
					30.09.2016	Balance Carry Forward	2100
			2100				2100