Record these transactions into journal
Business transactions:
On March. 1. Mr. A introduced $50,000 capital in cash into the business.
2. A sum of $30,000 loan borrowed from the Bank at 6% for 5 years.
3. Rent paid of $6,000.
4. Insurance paid $2,400 in advance for two years.
5. Equipment purchased of $10,000 in cash (useful for 5 years).
6. Furniture purchased worth $3,500 in cash (useful for 5 years).
7. Vehicle purchased for business on credit for $5,000 (useful for 5 years).
8. Supplies purchased on account for $1,500.
9. Goods purchased on account for $15,000.
10. Salaries and wages paid for $7,000.
11. Electricity bill paid for $750.
12. Telephone bill paid for $150.
13. Goods to supplier of $100 due to defects.
14.
15. Depreciation expense on vehicle for $1000.
16. Depreciation expense on furniture for $700
17. Interest expense paid on bank loan for $1,800.
18. Goods sold for $40,250.
19. Mr. A used goods for personal use worth $200.
20. Payment of $14,900 made to supplier for materials purchased on credit.
21. Loan repaid for $6,000.
22. Mr. A withdraws cash of $2,000 for personal use.
23. $5,000 cash deposited into bank.
24. Paid advertising expense of $1,600.
25. Paid water bill for $100.
26. Insurance expense of one year $1,200.
27. Rent expense for this year $6,000.
28.
29. Cash
30. Materials worth $500 found stole.
Required:
Record these transactions into journal and then post them into ledger using proper format.
(Answer should be in MS word)
Step by step
Solved in 5 steps with 5 images
