1. Mr. Musfiq is a Chartered Accountant (CA). He started a new consultancy firm on July 1,2021. During the first month of operations the following transactions occurred: July. 1; He invested $ 5,50,000 cash in the firm to start the firm. „ 10; Paid $ 15,000 cash for 3 years insurance policy starting from the current month. , 15; Purchased furniture for $ 50,000 paying $ 35,000 in cash and for remaining he signed on a l1- month, 12% Notes Payable. 17; Paid $ 7,000 for office rent. „ 21; Performed service for a client and received cash of $ 45,000. “ 26; Performed service for a client but yet to receive $ 15,000. 30; Withdrew $ 2,500 cash for personal use. 31; Received telephone bill from BTCL amounted to $ 2,000. Required: a) Journalize the transactions for the month of July 2021.|| b) Prepare necessary T accounts c) Prepare a trail balance on July 30, 2021 and prove the arithmetical accuracy of the accounts.
1. Mr. Musfiq is a Chartered Accountant (CA). He started a new consultancy firm on July 1,2021. During the first month of operations the following transactions occurred: July. 1; He invested $ 5,50,000 cash in the firm to start the firm. „ 10; Paid $ 15,000 cash for 3 years insurance policy starting from the current month. , 15; Purchased furniture for $ 50,000 paying $ 35,000 in cash and for remaining he signed on a l1- month, 12% Notes Payable. 17; Paid $ 7,000 for office rent. „ 21; Performed service for a client and received cash of $ 45,000. “ 26; Performed service for a client but yet to receive $ 15,000. 30; Withdrew $ 2,500 cash for personal use. 31; Received telephone bill from BTCL amounted to $ 2,000. Required: a) Journalize the transactions for the month of July 2021.|| b) Prepare necessary T accounts c) Prepare a trail balance on July 30, 2021 and prove the arithmetical accuracy of the accounts.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 55P
Related questions
Topic Video
Question
![1. Mr. Musfig is a Chartered Accountant (CA). He started a new consultancy firm on July 1,2021.
During the first month of operations the following transactions occurred:
July. 1;
He invested $ 5,50,000 cash in the firm to start the firm.
10; Paid $ 15,000 cash for 3 years insurance policy starting from the current month. ,
쏘
15; Purchased furniture for $ 50,000 paying $ 35,000 in cash and for remaining he signed on a 1-
month, 12% Notes Payable.
17; Paid $ 7,000 for office rent.
„ 21; Performed service for a client and received cash of $ 45,000.
“ 26; Performed service for a client but yet to receive $ 15,000.
„ 30; Withdrew $ 2,500 cash for personal use.
„ 31; Received telephone bill from BTCL amounted to $ 2,000.
Required:
a) Journalize the transactions for the month of July 2021.|
b) Prepare necessary T accounts
c) Prepare a trail balance on July 30, 2021 and prove the arithmetical accuracy of the
accounts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff42bf3d4-b6b9-477c-af97-ecbb81166db3%2F83b35870-b1f0-4d14-a44c-65dad0edffb4%2F88xi86r_processed.png&w=3840&q=75)
Transcribed Image Text:1. Mr. Musfig is a Chartered Accountant (CA). He started a new consultancy firm on July 1,2021.
During the first month of operations the following transactions occurred:
July. 1;
He invested $ 5,50,000 cash in the firm to start the firm.
10; Paid $ 15,000 cash for 3 years insurance policy starting from the current month. ,
쏘
15; Purchased furniture for $ 50,000 paying $ 35,000 in cash and for remaining he signed on a 1-
month, 12% Notes Payable.
17; Paid $ 7,000 for office rent.
„ 21; Performed service for a client and received cash of $ 45,000.
“ 26; Performed service for a client but yet to receive $ 15,000.
„ 30; Withdrew $ 2,500 cash for personal use.
„ 31; Received telephone bill from BTCL amounted to $ 2,000.
Required:
a) Journalize the transactions for the month of July 2021.|
b) Prepare necessary T accounts
c) Prepare a trail balance on July 30, 2021 and prove the arithmetical accuracy of the
accounts.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT