The following transactions occurred during the year 1999: 1- March 1, lawyer Abd
ID: 2511644 • Letter: T
Question
The following transactions occurred during the year 1999:
1- March 1, lawyer Abdalaziz begins his own business as a real estate with a cash investment of 100,000$.
2- On March 2, $ 6000 was paid as a rent for the office. 3- On March 3, he purchased office equipment for3000$ cash.
4- On March 3, he purchased supplies for 500$ cash. 5- On march 10,$1500 was paid for advertising expenses
6- On March 20, he paid workers salaries s of $ 3,000 cash.
7- On March 1, Abdalaziz borrowed 10,000$ by signing 5%, one-year note on April1, 2000.
8- march 23, Purchased a one-year fire insurance policy for 30,000$.
9- On march 10, he withdrew $ 1000 in cash for personal use.
10- Onmarch 7, he performed a legal services for clients for $4000 cash
11- On march 20, received 1000$ cash advance from client.
12- On march 30, used office supply during the month $150
13- On marchr11, billed customers 1000$ for services performed.
14- On march 26, pay creditors $ 400 cash.
15- Utilities expense incurred but not paid on March 31, 1999.250$ .
16- 300$ of the balance in the unearned service revenue account remains unearned at the end of the year.
Prepare t-account and financial statmant and trial balance sheet
Explanation / Answer
Ans. Profit and Loss for the month of March 1999 (value in $)
Particular $ Particular $
To Purchase of supplies 500 To Revenue
To Rent (march month) 500 (4000+1000+700*) 5700
To Advertisement Exp. 1500 To Net Loss 2592
To Salary paid 3000
To Intt on loan (1month) 42
To Insurance (1month) 2500
To Accured Utility Exp. 250
*Out of $1000 Advance received from customer only 300$ remained unearned service account, means $700 we can recognized revenue.
Cash/Bank A/c
Pariticulars Amt. Particulars Amt
To Capital 100000 By Rent paid 6000
To Received from customer(4000+1000) 5000 By Equipment Purchase 3000
To 5% Loan 10000 By Supplies purchase 500
By Advt exp. 1500
By Salary paid 3000
By Paid to creditor 400
By Insurance 30000
By Drawing 1000
By Bal.C/d 69600
Trial Balance Sheet at the end of 31 march 1999
Liabilities Assets
Capital A/c (100000-1000-2592) 96408 Equipment 3000
5% loan (10000+42-400) 9642 Prepaid insurance 27500
Unearned revenue 300 Prepaid Rent 5500
Accured Utilities exp. 250 Debtor 1000
Cash 69600
106600 106600
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