ACC111
Comprehensive Problems
Accounting Cycle:
Journal, Ledger, Trial Balance and
Financial Statements
CHAPTER 3
PROBLEM 1
Required: Prepare the followings:
1. Journal Entries,
2. Ledger Accounts,
3. Trial Balance and,
4. Financial Statements (Balance Sheet and Income
Statement)
STEP 1: JOURNAL
STEP3- Trial Balance, 31/12/year
Accounts Debit Credit
STEP4- PREPARATION OF FINANCIAL STATEMENTS
Income Statement, 32/12/year
Elements Amount
REVENUES:
TOTAL REVENUES: ------------------------------
--
EXPENSES:
TOTAL EXPENSES: ------------------------------
--
------------------------------
= NET PROFIT/LOSS FOR THE YEAR --
STEP4- PREPARATION OF FINANCIAL STATEMENTS
Balance Sheet, 31/12/year
Assets Amount Equity & Liabilities Amount
Non- Current Equity
Assets
TOTAL EQUITY -----------------
--
Liabilities
Non- Current Liabilities
Current Assets
Current Liabilities
TOTAL LIABILITIES -----------------
--
TOTAL ASSETS TOTAL EQUITY & -----------------
------------------
LIABILITIES --
PROBLEM 2
RainHillCo. started business in September 2025. During
the 1stmonth of operation, the following transactions
occurred:
1) 1st of Sept., RainHillCo.’s shareholders subscribed to
$5000,000 of share capital in the company, deposited in the
bank.
2) 3rd of Sept., RainHillCo. bought an equipment worth
$50,000 paid by a cheque.
3) 8th of Sept., RainHillCo. boughta delivery truck for $100,000
on credit.
4) 10th of Sept., RainHillCo. purchased goods for $60,000 paid
by a cheque.
5) 15th of Sept., RainHillCo. purchased goods from Ahmed for
$70,000 on credit.
6) 18th of Sept., RainHillCo. sold goods for $100,000 paid by a
cheque.
7) 21st of Sept., RainHillCo. sold the remaining goods to Ali for
$140,000 on credit.
8) 24th of Sept., RainHillCo. paid $50,000 to supplier Ahmed
by a cheque.
9) 28th of Sept., RainHillCo. paid rent of $40,000 by a cheque.
10) 30th of Sept., RainHillCo. received a cheque of $90,000
from customer Ali.
Required: Prepare the followings:
1. Journal Entries,
2. Ledger Accounts,
3. Trial Balance and,
4. Financial Statements (Balance Sheet and Income
Statement)
STEP 1: JOURNAL
STEP3- Trial Balance, 31/12/year
Accounts Debit Credit
STEP4- PREPARATION OF FINANCIAL STATEMENTS
Income Statement, 32/12/year
Amount
Elements
REVENUES:
TOTAL REVENUES: ------------------------------
--
EXPENSES:
TOTAL EXPENSES: ------------------------------
--
------------------------------
= NET PROFIT/LOSS FOR THE YEAR --
STEP4- PREPARATION OF FINANCIAL STATEMENTS
Balance Sheet, 31/12/year
Assets Amount Equity & Liabilities Amount
Non- Current Equity
Assets
TOTAL EQUITY -----------------
--
Liabilities
Non- Current Liabilities
Current Assets
Current Liabilities
TOTAL LIABILITIES -----------------
--
TOTAL ASSETS TOTAL EQUITY & -----------------
------------------
LIABILITIES --
PROBLEM 3
Fatimah started a business and following transactions
took place for the month of March 2020.
1. March 01 Fatimah invested 200,000 cash in the business.
2. March 05 Purchased goods on credit from Aishah for 20,000.
3. March 07 Paid salaries in cash for 6,000.
4. March 16 Sold goods for cash 60,000
5. March 18 Paid rent expenses 10,000 using cash.
6. March 20 Purchased furniture and fittings worth 70,000 cash.
7. March 24 Purchased goods for cash 30,000.
8. March 26 Fatimah withdrew funds worth 10,000 for personal
use.
9. March 28 Paid transportation expenses 5,000.
10. March 30 Sold goods on credit to Reem for 50,000.
11. March 30 Paid Aishah 20,000 for the purchases made on
March 05.
12. March 30 Receive 50 000 from Reem for the credit sales.
Required: Prepare the followings:
1. Journal Entries,
2. Ledger Accounts,
3. Trial Balance and,
4. Financial Statements (Balance Sheet and Income
Statement)
STEP 1: JOURNAL
STEP3- Trial Balance, 31/12/year
Accounts Debit Credit
STEP4- PREPARATION OF FINANCIAL STATEMENTS
Income Statement, 32/12/year
Amount
Elements
REVENUES:
TOTAL REVENUES: ------------------------------
--
EXPENSES:
TOTAL EXPENSES: ------------------------------
--
------------------------------
= NET PROFIT/LOSS FOR THE YEAR --
STEP4- PREPARATION OF FINANCIAL STATEMENTS
Balance Sheet, 31/12/year
Assets Amount Equity & Liabilities Amount
Non- Current Equity
Assets
TOTAL EQUITY -----------------
--
Liabilities
Non- Current Liabilities
Current Assets
Current Liabilities
TOTAL LIABILITIES -----------------
--
TOTAL ASSETS TOTAL EQUITY & -----------------
------------------
LIABILITIES --
STEP 2: LEDGER ACCOUNTS
problem 1
STEP 2: LEDGER ACCOUNTS problem 2
STEP 2: LEDGER
ACCOUNTS problem 3