In this article, we will learn in-depth about the accounting ledger problem and solution and much more.
Accounting Ledger: Problem 01
Tina started her consulting business in September 2019. The following transactions occurred in the business during her first month of operation.
Sep 01: Tina invested cash $ 30,000 in the business.
Sep 2: Purchased office equipment for $ 4,000 on account
Sep 5: Provided Service to Nikita & co for $ 3,000 on account
Sep 10: Paid $ 4,000 cash for two-year insurance policy
Sep 12: Tina withdrew $ 600 cash for personal use
Sep 15: Received $ 2,000 cash for service provided
Sep 20: Paid $ 1,000 cash for office Rent for August
Sep 22: Received cash from Nikita & Co for service provided on Sep 5
Sep 28: Paid Bank charges $ 500
Sep 30: Paid $ 4,000 cash for Salary of August
First, we prepare Journal entries for September transactions after that, we will prepare Ledger accounts.
Now we prepare Ledger accounts based on the above mentioned journal entries.
Owner’s Capital A/C
Office equipment A/C
Nikita & Co
Service Revenue A/C
Prepaid Insurance A/C
Owner’s Drawings A/C
Office Rent A/C
Bank Charges A/C
Salary Expense A/C
Improve your accounting skills by practicing our accounting quizzes