The following transactions are related to Cargo Wings private limited for the year 2020. Aug. 01 Aug. 01 Aug. 02 Aug. 03 Aug. 04 Aug. 04 Aug. 05 Aug. 05 Aug. 07 Owner started business with cash $12 000, building $10 000 and Bank $8 000 Bought Machinery on credit from XY & Co. $10 000 Borrowed $12 000 from bank. Repaid part of the loan taken from bank $5 000 by cheque. Owner paid pårt of bank loan of $2 000 from his personal bank account Purchased two vehicles for $10 000, "/s was settled by cheque and remainder paid in cash Cash amounting to $2 000 deposited into bank Sold one vehicle for $5 000 on cash Cash withdrawn by the owner for his personal use $800 Sep. 02 Purchased equipment for $5 000 and paid by cheque Sep. 03 Purchased Building for $20 000 from ABC & Co. one fourth was paid immediately by cheque. Sep. 04 Cash withdrawn from the bank for office use $2 000 Sep. 05 Sep. 06 Lent $2 000 cash to Mr. C. Purchased a vehicle costing $2 000 and paid by the owner from his personal resources. Sep. 06 Sep. 06 Sep. 07 Sold some equipment for cash $500 Owner withdrew cash for his personal use $400 Received a cheque of $500 from Mr. C as part payment of the loan Required: Pass the journal entries (double entries) of above transactions (according to the proper format as shown in lecture)
The following transactions are related to Cargo Wings private limited for the year 2020. Aug. 01 Aug. 01 Aug. 02 Aug. 03 Aug. 04 Aug. 04 Aug. 05 Aug. 05 Aug. 07 Owner started business with cash $12 000, building $10 000 and Bank $8 000 Bought Machinery on credit from XY & Co. $10 000 Borrowed $12 000 from bank. Repaid part of the loan taken from bank $5 000 by cheque. Owner paid pårt of bank loan of $2 000 from his personal bank account Purchased two vehicles for $10 000, "/s was settled by cheque and remainder paid in cash Cash amounting to $2 000 deposited into bank Sold one vehicle for $5 000 on cash Cash withdrawn by the owner for his personal use $800 Sep. 02 Purchased equipment for $5 000 and paid by cheque Sep. 03 Purchased Building for $20 000 from ABC & Co. one fourth was paid immediately by cheque. Sep. 04 Cash withdrawn from the bank for office use $2 000 Sep. 05 Sep. 06 Lent $2 000 cash to Mr. C. Purchased a vehicle costing $2 000 and paid by the owner from his personal resources. Sep. 06 Sep. 06 Sep. 07 Sold some equipment for cash $500 Owner withdrew cash for his personal use $400 Received a cheque of $500 from Mr. C as part payment of the loan Required: Pass the journal entries (double entries) of above transactions (according to the proper format as shown in lecture)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1:
The following transactions are related to Cargo Wings private limited for the year 2020.
Aug. 01
Aug. 01
Aug. 02
Aug. 03
Aug. 04
Aug. 04
Owner started business with cash $12 000, building $10 000 and Bank $8 000
Bought Machinery on credit from XY & Co. $10 000
Borrowed $12 000 from bank.
Repaid part of the loan taken from bank $5 000 by cheque.
Owner paid párt of bank loan of $2 000 from his personal bank account
Purchased two vehicles for $10 000, "/s was settled by cheque and remainder paid in coat
Cash amounting to $2 000 deposited into bank
Sold one vehicle for $5 000 on cash
Cash withdrawn by the owner for his personal use $800
Aug. 05
Aug. 05
Aug. 07
Sep. 02 Purchased equipment for $5 000 and paid by cheque
Sep. 03 Purchased Building for $20 000 from ABC & Co. one fourth was paid immediately by cheque.
Sep. 04
Sep. 05
Sep. 06
Sep. 06 Sold some equipment for cash $500'
Sep. 06
Sep. 07
Cash withdrawn from the bank for office use $2 000
Purchased a vehicle costing $2 000 and paid by the owner from his personal resources.
Lent $2 000 cash to Mr. C.
Owner withdrew cash for his personal use $400
Received a cheque of $500 from Mr. C as part payment of the loan
Required: Pass the journal entries (double entries) of above transactions (according to the proper
format as shown in lecture)
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