Journal Entry (Purchased of merchandise for cash) Date Particulars Debit Credit Feb -01 Cash in Bank 1,000,000 Feb -06 Cash in Bank 6,500 Merchandise Inventory 45,000 Purchase Returns & Allowances 6,500 (Refund for merchandise returned) E Detava, Capital 1,045,000 (Initial Investment) Feb -06 Cash in Bank 140,000 Sales 140,000 Feb - 01 Transportation Equipment 700,000 (Merchandise sold for cash) Cash in Bank 700,000 (Service Vehicle for Cash) Feb- 06 Freight Out 3,920 Cash in Bank 3,920 Feb -01 Cash in Bank 420,000 (Freight out of merchandise sold) Prepaid Interest 80,000 Notes Payable- PNB 500,000 Feb - 10 Sales Returns & Allowances 8,000 (Bank loan from PNB) Cash in Bank 8,000 (Ta record sales returns) 10,000 Store Supplies Imventory Account Payable- Gaisang Metro Feb- 02 10,000 Feb -11 Account Payable- Manila Car Corporation 180,000 (Store Supplies an account) Purchase Discounts 3,600 Cash in Bank 176,400 Feb- 03 Purchases 180,000 (Payment of account within the discount period) Account Payable-Manila Car Corporation (Merchandise purchased on credit) 180,000 Feb - 12 Taxes and Licenses 15,000 Cash in Bank 15,000 Feb- 04 Cash in Bank 15,000 (Payment of Taxes and Licenses) Installation Income 15,000 Feb-14 Accounts Receivable- Mega Plus Co. 250,000 (Installation service for cash Sales 250,000 Feb- 04 Freight in 5,000 |(Merchandise sold on Account) Cash in Bank 5,000 (Freight for merchandise purchased) Feb- 18 Accounts Receivable- Ultra Co. 210,000 Sales 210,000 (Merchandise sold on account) Feb - 05 Purchases 200,000 Cash in Bank 200,000

Q: Describe an account and its use in recording transactions.

A: Accounting reports are papers and books used to manage records.

Q: How do the opening balances and ending balances look like in a general ledger? Please provide an…

A: Basically 'General Ledger' is a summary of various number of business transactions. All transactions…

Q: here are three types of ledgers; general ledger, payables ledger, and receivables ledger. Discuss…

A: Ledgers are important components of an organization's accounting system, used to record and…

Q: What are the accounts written off? Explain with example?

A: Accounts written off means those debtors or accounts receivables from which money can no longer be…

Q: Using two revenue and capital ledgers, explain how you will treat them in the trial balance

A: A trial balance is one of the intermediate steps in an accounting cycle. The first few steps in the…

Q: et Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct…

A: Allocation of overheads of an entity to its various departments has to be done in manner giving fair…

Q: What information is provided by the Vendor Balance Detail Report?

A: The Vendor Balance Detail Report provides a detailed summary of a vendor's balance, including…

Q: Why is it important to verify if the activity on the trial balance equals the activity per the…

A: The activity in the trial balance means the accounts listed on the both side of trial…

Q: Where are transactions initially recorded?

A: The primary point where the financial transaction, which is initiated or effected by entity during a…

Q: Explain the difference between the general ledger and a subsidiary ledger.

A: Ledger is a book where the journal entries recoded are posted. All the transactions in a ledger are…

Q: What columns are included in a typical ledger format?

A: Ledger indicates the posting of entries from the journals in their respective categorized accounts…

Q: What is the chart of the account? Explain?

A: A chart of accounts is a listing of the names of the accounts that a company has identified and made…

Q: The Sum of all the accounts in the accounts receivable subsidiary ledger should?

A: Accounts Receivable means amount due from customers on account of credit sales.  General ledger…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.