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Journal Entries and Ledger
Question and Answer
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exercises correctly but also complete them at the right speed.
Use a watch or clock to time yourself while attempting this
exercise.
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Question:
Q: Mr Robert commenced business on 1st January,
2011 with a capital of $100,000 in cash. On the same
date he opened the bank account in ADCB and
deposited $20,000. During the month of January 2011
the following transactions took place:
Jan 1 Bought goods for cash 70,000
2 Sold goods to Steve Co. (Credit) 38,000
15 Sold goods for cash 9,000
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21 Steve Co. paid by cheque 35,000
22 Stationery bill paid by cheque 2,000
22 Telephone bill by cash 500
31 Paid rent by cash 2,000
Paid salaries by cash 3,000
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Withdrew cash personal use 5,000
Required:
Record journal entries for the transactions and post
them to ledgers.
All the lessons
on this site
and much,
much more...
Solution:
Journals:
Jan 1 Dr Cash on hand 80,000
Dr Bank 20,000
Cr Capital 100,000
Note that in most accounting questions you won't have to
Available Now
On
account for "Cash on hand" and "Bank" in separate accounts.
In most questions I just combine these into "Bank." But in this
question they speci몭cally talk about opening the bank
account with $20,000 of the $100,000, which indicates they
kept cash on hand in addition to the bank account, which
needs to be accounted for.
1 Dr Purchases/Inventory 70,000
Cr Cash on hand 70,000
Note that it's "Purchases" for a periodic system of inventory
and "Inventory" if it's the perpetual system. See the tutorial
on perpetual and periodic inventory for more information.
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2. Dr Debtors 38,000
Cr Sales 38,000
15. Dr Cash on hand 9,000
Cr Sales 9,000
21. Dr Bank 35,000
Cr Debtors 35,000
22. Dr Stationery expense 2,000
Cr Bank 2,000
22. Dr Telephone expense 500
Cr Cash on hand 500
31. Dr Rent expense 2,000
Cr Cash on hand 2,000
31. Dr Salaries 3,000
Cr Cash on hand 3,000
31. Dr Drawings 5,000
Cr Cash on hand 5,000
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Ledger:
There you go. Hope you enjoyed this detailed journal
entries and ledger question and answer.
Thanks to Kay Khine, Kong Chenda and others for
contributions in the Comments section below that helped
solve this question!
Good luck with your studies!
- Michael Celender
Founder of Accounting Basics for Students
Tutorials relating to this Journal Entries and Ledger
Question and Answer:
Journal Entry - Equity Example
What is Inventory?
Perpetual and Periodic Inventory
Journal Entry - Cash Income Example
Journal Entry - Income on Credit Example
Journal Entry - Debtor Pays Example
Journal Entry - Expenses Example
Journal Entry - Drawings Example
T-accounts
How to Balance a T-account
Find more free exercises like this on the Full Accounting
Questions and Answers page.
Comments for Journal Entries and
Ledger
Question and Answer
Click here to add your own comments
Journal Entries - Furniture Installment
by: Anonymous
Purchased Furniture For Rs.45000 on
installment basis, initial payment
Rs.15000 by cheque.
Answer for the journal entries?
Purchases/Inventory Account
by: Oberyn
How come the purchases/inventory does
not decrease when we have sold goods to
the value of 47,000? should we not have a
Cost of Sales ledger?
Hi Oberyn,
Decreasing that account immediately when
a sale occurs depends entirely on the type of
inventory system used. There are two
inventory accounting systems: perpetual and
periodic. The accounting entries are di몭erent
for each one.
Please see this lesson on the perpetual and
periodic inventory system.
- MC (founder/editor)
Ledger Account
by: Anonymous
Question: Provided the following, xyz
commenced business with:
Cash in hand valued $3000
Cash at bank valued $4000
Garage valued $9000
Please I need a solution to this question..
Journal Entries and Ledger Question ahujasandeep452@gmail.com
by: S K Ahuja
Mr.John started business with cash: Rs.
100,000
On 5th Feb 2020, he purchased goods
from Khadim limited Rs. 20,500
On 15th Feb, he opened a bank account
by depositing Rs. 40,000
On 17th Feb, he sold goods for cash Rs.
10,000
On 20th Feb, he paid Khadim by cheque
Rs. 20,000
On 25th Feb 2020, full settlement was
made.
On 28th Feb 2020, he paid salaries and
rent: Rs. 15,000 and 10,500 respectively.
He also withdrew goods and cash on the
same day: Rs. 5,000 and 7,000
respectively.
Required:
Pass the journal entries and show them in
the ledger.
(Marks-07)
Journal entries
by: Anonymous
1. The following accounts appear in the
general ledger of ABC Company on 31st
December 2018:
Sales sh. 50,000,000 Accounts receivable
1,500,000
Allowance for doubtful accounts 10,000Dr
Required:
Prepare journal entries to recognize
doubtful accounts expense for each of the
independent assumptions below:
i) The allowance for doubtful accounts is
increased to a balance of sh. 25,000.
To be honest this is a really weird question
because the allowance for doubtful debts
always has a credit balance (not a debit
balance). But let's just assume that's
possible and all good for purposes of this
question.
The journal entry I would do to increase the
allowance for doubtful debts from 10,000
debit balance to 25,000 credit balance
would be:
DEBIT Bad Debts (expense) 35,000
CREDIT Allowance for doubtful accounts
35,000
Hope that helps!
Best,
Michael Celender
Founder of Accounting Basics for Students
Clear my confusion please - Journal for
Capital
by: Farrukh Shah
The question is: A man started business
with Rs.50,000.
Now the problem is what are the double
entries.. If there is nothing written Cash or
bank so we will make the entry of bank
thats what IAS says?
A: You will 몭nd the answer to your question
in this tutorial on the journal entry for equity
/ capital investment.
Good luck!
Michael C.
Founder of Accounting Basics for Students
Positive
by: Reza
Helped me a lot. Thank you very much.
You are welcome Reza.
Best,
Michael
Founder of accounting-basics-forstudents.com
Journal Entry - Services Rendered on
Account
by: Anonymous
Services were performed for customers
on account, rs. 4,200.
See this tutorial on income on account,
which includes the basic journal entry and
explanations.
Best,
Michael C.
Founder of Accounting Basics for Students
Appreciation
by: Caren Blessings
Thank you so much for your great help. I
have received greater knowledge on
ledgers, may God bless you so much as
you continue to help many by sharing and
not keeping it to yourself. THANK YOU!
Ledger
by: Ram
Thanks for your useful sum and keep on
posting like this small sums sir it will be
useful for basic learners
Journal Entries - Payroll
by: Brenda
Thank you for your help, but I wonder if
you can help me with this question.
The payroll report of sta몭 salaries for xy
company for October 2008 shows the
following details:
Basic salary: 180,000
Other allowances: 36000
Gross pay: 216000
Employer social security contribution:
10800
Employee social security contribution:
6450.
Prepare the necessary journal entries for
the above payroll.
Thank u so much u have saved me
from failing God bless u keep on
helping us
by: Yvonne
Thank you very much Very appreciate to
Ur hard work God bless u
cheque
by: Anonymous
cheque received and cheque paid to bank
Post to Ledger Account
by: Kay Khine
Ans:
1-1-2011 Cash On Hand $100,000 Dr
Capital $100,000 Cr
1-1-2011 ADCB Bank $20,000 Dr
Cash On Hand $20,000 Cr
1-1-2011 Inventories $70,000 Dr
Cash On Hand $70,000 Cr
2-1-2011 A/R (Steve Co.) $38,000 Dr
Sales $38,000 Cr
15-1-2011 Cash On Hand $9,000 Dr
Sales $9,000 Cr
21-1-2011 ADCB Bank $35,000 Dr
A/R (Steve Co.) $35,000 Cr
22-1-2011 Stationery $2,000 Dr
ADCB Bank $2,000 Cr
22-1-2011 Telephone $500 Dr
Cash On Hand $500 Cr
31-1-2011 Rent $2,000 Dr
Cash On Hand $2,000 Cr
31-1-2011 Salaries $3,000 Dr
Cash On Hand $3,000 Cr
31-1-2011 Withdraw $5,000 Dr
Cash On Hand $5,000 Cr
All of ledger posting 몭nished.
journal entries
by: Veronika
this is a big huge help. i have needed to
run through things and revise. it has
simpli몭ed my practice big time. i'm so
appreciative
You're welcome Veronika!
- Michael
How to Post These Entries?
by: Friend
whatever you did is great but my question
is HOW DO U POST THESE ENTRIES?
I just added all the T-accounts above so
there is the full solution now.
- Michael
General Journal (incomplete)
by: .....
Date: Particulars Debit Credit
2011
Jan.1 Cash 100000
Capital 100000
Goods 70000
Cash 70000
To record the initial
transaction of mr. Robert
#
2 Accounts Recievable 38000
Revenue 38000
15 Cash 9000
Revenue 9000
21 Check 35000
Accounts Recievable 35000
22 Expenses 2000
Check 2000
Utilities Expense 500
Cash 500
31 Rent Expense 2000
Cash 2000
Salaries Expense 3000
Cash 3000
Drawing 5000
Cash 5000
Business
by: Muny
Jan 1 Goods 70,000
Cash 70,000
Jan 2 Cash 38,000
A/P 38,000
Jan 15 Cash 9,000
Goods 9,000
Jan 21 A/R 35,000
Check 35,000
Jan 22 Stationery 2,000
Check 2,000
Jan 22 Telephone 500
Cash 500
Jan 31 Rent 2,000
Cash 2,000
Salary 3,000
Cash 3,000
Cash 5,000
Withdrew 5,000
student. In India
by: John woja
Thank you so much. I found it helpful to
me. God bless you.
Glad to hear and you're most welcome!
- Michael
Good!
by: Anonymous
Good!
journal entries and post to ledger
account
by: Kong chenda
I. Make journal entries :
Jan 01. Cash on hand.....80,000.00
Cash in bank.....20,000.00
Capital.................100,000.00
To record investment by owner.
01. Inventory.........70,000.00
Cash on hand...............70,000.00
To record purchase inventory for cash.
02. A/R................38,000.00
Sales revenue..............38,000.00
To record sold merchandise on credit.
15. Cash on hand............9,000.00
Sales revenue..................9,000.00
To record sold merchandise for cash.
21. Cash..............35,000.00
A/R.......................35,000.00
To record received payment from
customer.
22. Stationery...............2,000.00
Cash in bank...................2,000.00
To record purchase stationery for cash.
22. Telephone expense..........500.00
Cash on hand .................500.00
To record paid for telephone.
31. Rent expense...........2,000.00
Cash on hand ................2,000.00
To record paid rent.
31. Salaries expense......3,000.00
Cash on hand................3,000.00
To record paid for salaries.
31. Withdraw.............5,000.00
Cash on hand................5,000.00
To record withdraw by owner.
II. Post to Ledger account.
For ledger I did already but I can't put the
table so small here...
good
by: Anonymous
good
Posting?
by: Anonymous
how do I do the posting?
Posting to T-accounts now shown above.
Enjoy!
- Michael
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