Journal Entry Problems and Solutions
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Journal entry is first step in accounting cycle. In order to understand accounting, you need to practice journal entry problems and solutions. Following are important journal entry problems and solutions.
Problem 1:
On April 01, 2016 Anees started business with Rs. 100,000 and other transactions for the month are:
2. Purchase Furniture for Cash Rs. 7,000.
8. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store.
14. Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000.
18. Owner withdrew of worth Rs. 2,000 for personal use.
22. Paid Khalid Retail Store Rs. 500.
26. Received Rs. 10,000 from Khan Brothers.
30. Paid Salaries Expense Rs. 2,000
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Solution:
>> Read explanation and examples of Journal Entry…
Problems 2:
Prepare general journal entries for the following transactions of a business called Pose for Pics in 2016:
Aug. 1: Hashim Khan, the owner, invested Rs. 57,500 cash and Rs. 32,500 of photography equipment in the business.
04: Paid Rs. 3,000 cash for an insurance policy covering the next 24 months.
07: Services are performed and clients are billed for Rs. 10,000.
13: Purchased office supplies for Rs. 1,400. Cash paid Rs. 400 and remaining outstanding.
20: Received Rs. 2,000 cash in photography fees earned previously.
24: The client immediately pays Rs. 15,000 for services to be performed at a later date.
29: In addition, the business acquires photography equipment. The purchase price is Rs. 100,000, pays Rs. 25,000 cash and signs a note for the balance.
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Solution:
>> Understanding Chart of Accounts is required…
Problem 3:
On March 2017, Farhan Rahim, starts wholesaling business. Following transactions as follows:
1. He started business with capital of Rs. 15,000 and Land worth Rs. 10,000.
8. Bought goods from Bilal and Friends Rs. 1,000 and by cash from XYZ Co. Rs 2,000.
13. However, sold goods to Rehman & sons Rs. 1,500 and sale by cash Rs. 5,000.
17. Gave away charity of cash Rs. 50 and merchandising worth Rs. 30.
21. Paid Bilal and Friends cash Rs. 975; discount received Rs. 25.
28. Received cash from Rehman & Sons Rs. 1,450; allowed him discount of Rs. 50.
Solution:
>> More reading Normal Balance…
Problem 4:
Shah Sauood Marine is a boat repair yard. During August 2016, its transactions included the following:
03. Loan taken from Habib Bank Ltd. of Rs. 25,000. Rs. 20,000 withdrawn for business and remaining in the bank a/c.
06. Paid rent for the month of August Rs. 4,400 and accrued rent expenses was Rs. 600.
12. At request of Kiwi Insurance, Inc, made repairs on boat of Jon Seaways. Sent bill for Rs. 5,620 for services rendered to Kiwi Insurance Inc. (credit Repair Service Revenue).
18. Made repairs to boat of Dennis Copper and collected in full the charge of Rs. 2,830.
20. After that, placed Advertisement in The Dawn of Rs. 165, payment to be made within 30 days.
25. Received a check for 5,620 from Kiwi Insurance Inc representing collection of the receivable of August 12.
30. Sent check to The Dawn in payment of the liability incurred on August 20.
Solution:
Problems 5:
1st January, 2017, Saeed Ahmad started business other transactions for the month of June as follows:
02. Purchased from Kareem goods of list price of Rs. 6,000 subject to 10% trade discount by cash.
04. Sold goods to Din Muhammad Rs. 800 and cash sales of Rs. 200.
10. Distributed goods worth Rs. 200 as free samples and goods taken away by the proprietor for personal use Rs. 100.
12. Received discount Rs 20 and Commission Rs 500.
17. Goods returned by Din Muhammad Rs. 200 and payment other outstanding amount.
24. Furniture lost by fire of worth Rs. 500.
30. Bad Debts during the period was Rs.100.
Solution:
>> See more Journal Entry Examples…
Related Questions
Journal Entry Questions
Related Problems
Journal Entry Exam Questions
Journal Entry Proforma Exercises
References
Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.
Sehgal, A., & Sehgal, D. (n.d.). Advanced Accountancy (Vol. I & II). New Delhi: Taxmann Publication Pvt. Ltd.
Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Accounting Principles (10th ed.). Hoboken: John Wiley & Sons, Inc.
Williams, M., & Bettner, H. (1999). Accounting (The basic for business decisions). (11th, Ed.) USA: Irwin McGraw- Hill.
This side help me to understand journal entry specially PDF unsolved problems.
1. Pure Gold 500 gms issued to Goldsmith for converting into Gold Jewellery, and
received 550 gms of Gold Jewellery
Please help with this entry
Good
Can someone help me on this ?
Prepare Journal entry:
1. Paid €3,000 cash on accounts payable.
2. Collected €1,000 of accounts receivable.
3. Purchased additional office equipment for €2,000, paying €500 in cash and the balance on account.
4. Earned revenue of €10,000, of which €3,500 is received in cash and the others on account.
5. Paid salaries €1,500, rent for July €900, and advertising expense €400.
6. Incurred utilities expense for month on account €150.
7. Received €5,000 from Capital Bank (money borrowed as a note payable).
1. Account Payable 3,000
Cash. 3,000
2. Cash. 1,000
Acc. Receiv. 1,000
3. Equipment. 2,000
Cash 500
Acc. Pay. 1,500
4. Cash. 3,500
Bank. 6,500
Revenue. 10,000
5. Salaries Ex 1,500
Rent Ex. 900
Ad. Ex. 400
Cash. 2,800
6. Utilities 150
Utilities Payable. 150
7. Cash. 5,000
Notes Payable. 5,000
Prepare the journal by recording the folllowing transactions
3-Dec Mrs.Veena started business by introducing cash Rs5000 and Rs500000 as transfer from her saving bank account in the business.
5-Dec She Purchased furniture worth Rs60000,50% payment made through the bank account of the business and the rest amount is payble.
7-Dec She purchased goods for sale,costing her Rs 315000 and made the payment through the business account.
8-Dec She sold off the entire goods at Rs 500000
10-Dec She paid rent , electricity , salary to employees Rs 10000 of each type of expense through the bank account
Credit balance Journal entries for accounts payable Bank charges journal entries?
Loan taken RS. 200000 from union bank and paid for following
company registration expenses RS. 80000
computer purchased for office use RS.45000
furniture RS.20000
(Remaining balance deposited into Punjab bank)
what is the journal entry of this question?
Cash 200,000
Bank Loan 200,000
Reg. Exp. 80,000
Cash 80,000
Computer 45,000
Furniture 20,000
Cash 65,000
Bank 55,000
Cash 55,000
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Q No.12 Use following title of accounts to complete journal entries of given transactions.
CASH A/C RECEIVABLE A/C PAYABLE RENT EXPENSE
DRAWING CAPITAL SALARIES EXPENSE EQUIPMENT
FURNITURE SERVICE INCOME SUPPLIES
1. Mr. A deposited into bank Rs.50,000 to start a business
2. Paid rent for three months at Rs.2500 per month
3. Bought office equipment from B&Co. for Rs. 10000, paid to them Rs.3000 and promised to pay
the balance after two months.
4. Rendered services to clients and received cash Rs. 5000
5. Purchase supplies for cash Rs. 400
6. Paid salaries to staff Rs. 5400
7. Bought furniture for Rs. 3200,paid to K&Co. Rs.1200 and promised to pay balance after one
month
8. Withdrew cash for personal use Rs. 3000
9. Billed to Nasir for services rendered Rs. 12500
10. Received from Nasir Rs.5000
INSTRUCTION
a. Prepare journal entries
b. Post to ledger accounts
c. Prepare a trial balance at July 31,2005
Journal Entry
1. Cash. 50,000
Mr. A, Capital. 50,000
2. Rent exp. 2,500
Cash. 2,500
3. Office equip. 10,000
Cash. 3,000
Account payable. 7,000
4. Cash. 5,000
Service Revenue. 5,000
5. Supplies. 400
Cash. 400
6. Salaries Exp. 5,400
Cash. 5,400
7. Furniture. 3,200
Cash. 1,200
Account payable. 2,000
8. Drawing. 3,000
Cash. 3,000
9. Account receivable. 12,500
Service revenue. 12,500
10. Cash. 5,000
Account receivable. 5,000
Trial Balance
Cash. 44,500
A/R. 7,500
Supplies. 400
Furniture. 3,200
Equipment. 10,000
A/P. 9,000
Capital. 50,000
Drawing. 3,000
Service revenue. 17,500
Rent Exp. 2,500
Salaries Exp. 5,400
TOTAL. 76,500. 76,500
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a. Incorporators infused P12.5 million cash in a newly organized corporation, ASC Company, a trading company. The par value of the shares is ₱1.00.
b. ASC Company bought land and building for P6 million cash. The value of the building which has a remaining useful life of 20 years is P4 million. A full-year depreciation for the building can be recognized in 2014.
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1. On January 3, 2019, Lynn Sanders’ printing service company owner started his business $200,000 for cash.
2. On January 5, 2019, purchases equipment on account for $3,500, payment due within the month.
3. On January 9, 2019, receives $4,000 cash in advance from a customer for services not yet rendered/Delivered/performed.
4. On January 10, 2019, provides $5,500 in services to a customer who asks to be billed for the services.
5. On January 12, 2019, Paid cash for electric bill, $75.00.
6. On January 15, 2019, pays a $300 utility bill with cash.
7. On January 17, 2019, receives $2,800 cash from a customer for services rendered.
8. On January 18, 2019, Paid cash to owner for personal use, $1,000
9. On January 19, 2019, paid in full, with cash, for the equipment purchase on January 5.
10. On January 20, 2019, paid $3,600 cash in salaries expense to employees.
11. On January 23, 2019, received cash payment in full from the customer on the January 10 transaction.
12. On January 25, 2019, Sold services on account to Connie Vaughn, $20,000
13. On January 27, 2019, provides $1,200 in services to a customer who asks to be billed for the services.
14. On January 28, 2019, Paid cash for insurance, $3,000.00.
15. On January 30, 2019, purchases supplies on account for $500, payment due within three months.
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1 recieved cheque for rs.9800 from star company in final settlement of their account.
2 deposite cheque os star company in bank
3 purchased merchandise on account from moon bros rs.7500
4 merchandise returned by moon bros rs. 1800
5 account of moon bros settled by isuing a cheque for balance amount
Where we will write a debit
Enter the transactions in the Journal of Rahman.
$
Aug. 01 Commenced business with cash 10,000
Aug. 03 Bought goods for cash 300
Aug. 05 Bought furniture for cash 2,000
Aug. 07 Sold goods to Nasir 1,000
Aug. 10 Purchase goods from Salman & Co. 300
Aug. 17 Sold goods for cash 150
Aug. 20 Received cash from Nasir $900 and allowed him discount $100
Aug. 24 Paid salary to clerk 50
Aug. 26 Paid cash to Salman & Co. $290 and received discount $10
Aug. 27 Bought weighting scale & iron safe for cash 185
Aug. 30 Paid general expenses for the current month 50
Aug. 30 Paid rent 100
Aug. 30 Paid salary 500
Aug. 31 Paid trade expenses 30
please solve
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journal ledger trial balance and final accounts of a company 2019
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*Started business bringing tk 100000 cash, inventory tk 200000, furniture tk 100000 and equipment tk 100000
*Three months rent tk 15000were paid in advance
*Purchased of goods on account tk 200000
mohan and sons started a computer company . by investing rs 100000 in cash and furniture worth 100,000 investment worth rs 50,000 machines rs rs 100,000 shares at rs 40,000 and bulding 100000 .(2) company has taken a loan on the 1 april from punjab national bank worth rs.200000 at 10% interest rer annum. ees question ka answer journal entry kar ka bhtao
Cash A/c Dr 100000
Furniture a/c Dr 100000
Machinery a/c Dr 100000
Investment a/c Dr 50000
Stocks a/c Dr 40000
Building a/c Dr 100000
To Capital a/c Cr 490000
Bank a/c Dr 200000
To Loan a/c Cr 200000
june 1 Anil commenced a business with cash 10000
Thanks you my bro
Jan1 started business with cash RS 500000
Jan 1 started business with cash RS 400000 and building RS 600000
Jan 7 cash deposited into bank RS 5000
Jan 20 salary paid for the month of RS 20000
Jan 30 Rent paid cheque RS 30000
March 1 furniture purchase by cash RS 80000
March 3 building sold by cash RS 20000
March 7 rent paid RS 30000
March 11 salary paid RS 40000
Required:(1) journal entries.
(2) ledger of cash A/C .