Accounting Ledger- Problem and Solution-01


 

Accounting Ledger- Problem and Solution-01


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


Instructions:Journalize the September transaction and Prepare Ledger accounts





Solution


First, we prepare Journal entries for September transactions after that, we will prepare Ledger accounts.

Let’s Start


General Journal

Accounting Ledger- Problem and Solution-01



Now we prepare Ledger accounts based on the above mentioned journal entries.


General Ledger


Cash A/C

Accounting Ledger- Problem and Solution-01










Owner’s Capital A/C

Accounting Ledger- Problem and Solution-01







Office equipment A/C

Accounting Ledger- Problem and Solution-01






Nikita & Co

Accounting Ledger- Problem and Solution-01







Service Revenue A/C

Accounting Ledger- Problem and Solution-01







Prepaid Insurance A/C

Accounting Ledger- Problem and Solution-01







Owner’s Drawings A/C

Accounting Ledger- Problem and Solution-01






Office Rent A/C

Accounting Ledger- Problem and Solution-01






Bank Charges A/C

Accounting Ledger- Problem and Solution-01






Salary Expense A/C

Accounting Ledger- Problem and Solution-01







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