Journal
No -1
Mr. Rahman is a licensed Chartered Accountant. On May 1, 2022, Mr. Rahman
established a consultancy firm. During the first month of operations of his business, the
following events and transactions occurred.
May-01: Invested TK. 40000 cash
May-02: Hired a Secretary -Receptionist at a salary of Tk. 2000 per month
May-03: Purchased Tk.1200 of office supplies on account from Greer Supply
Company.
May-07: Paid office rent of Tk. 900 cash for the month.
May-11: Completed a tax assignment and billed to client Tk.1500 for service
rendered.
May-12: Received Tk. 4000 advanced on a management consulting engagement.
May-17: Received cash Tk. 1600 for service completed for Hossain Ali.
May-30: Paid secretary-receptionist Tk. 2000 salary for the month.
May-31: Paid 40% of balance due to Green Supply Company.
Mr. Rahman uses the following chart of accounts: No-101 Cash, No-112 Accounts
Receivable, No-126 Supplies, No-201 Accounts Payable, No-205 Unearned Service
Revenue, No-301 Rahman’s Capital, No-400 Service Revenue, No-507 Salaries
Expenses, No-508 Rent Expense.
Instructions:
A) Journalize the transaction
B) Post to the ledger accounts
C) Prepare a trial balance on May 31, 2018
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No-2
On January 1, 2007, Nandini established Bengal travel agency, the following
transaction were completed during the month
January 1: Invested cash to start the agency Tk.300000.
2: Paid cash for January office rent Tk 10000.
5: Purchased office equipment for cash Tk 25000.
10: Incurred advertising costs in the Daily Times, on account Tk 10000.
14: Purchased office supplies for cash Tk.5000
18: Earned for services rendered tk.30000 (Tk.20000 cash received from
customer and the Balance Tk. 10000 is billed to customers on account)
20: Withdrew cash for personal use Tk. 6000
23: Paid the daily times amount due on January 10
25: Purchased additional office supplies on account Tk 4000.
31: Paid employees’ salaries Tk.5000.
31: Received in cash from customers who have previously been billed on
January 18.
31: Received cash from a new customer for services rendered taka 10000.
31: Paid telephone, gas, electricity bills Tk. 3000.
Instructions:
A) Journalize the transaction
B) Post to the ledger accounts
C) Prepare a trial balance on May 31, 2018
2
No-3
Helen, after receiving her certification as a physician, began her own practice on June
1, 2010. During the first month of operations the following transaction occurred.
June 1: Invested Tk 20000 in cash in the medicine practice.
4: Paid Tk 1500 for June rent on office Space.
7: Purchased medicine equipment for Tk7000 cash.
8: Purchased Tk 600 of medical supplies on credit.
10: Rendered services to patients for cash Tk 4000.
12: Borrowed Tk 1000 cash from a bank on a note payable.
15: Billed patient Tk 2000 upon completion of her medical treatment.
17: Paid expenses: salaries Tk 500, telephone Tk 100.
19: Received bill for electricity used Tk 200.
21: Received Tk 1500 from patient billed previously.
25: Cost of supplies used during the month Tk. 400.
Instructions:
A) Journalize the transaction
B) Post to the ledger accounts
C) Prepare a trial balance on May 31, 2018
4. Mr. Billal Hossain decided to start merchandise business on 1st July, 2018. A
summary of May transactions is presented below:
July, 2018
1. Invested Tk. 5, 00,000 cash and Tk. 2, 50,000 in building to start the
business.
3. Purchased furniture for Tk. 50,000.
8. Purchased goods on credit Tk. 2, 00,000.
10. Took 10%, 6 month loan from IFIC bank for Tk. 1, 00,000.
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12. Received Tk. 2,00,000 from sale of goods.
15. Purchased goods form Arif and co. for Tk. 2, 50,000. For this he was paid
2,00,000 and rest was on credit.
18. Signed a bill for the amount due to Arif and co.
19. Paid for advertising expenses of Tk. 20,000 to a daily news.
20. Sold goods to BGC trust for Tk. 2, 50,000 on credit.
22. Hired a secretary for MD for Tk. 20,000.
30. Paid salaries of Tk. 20,000.
30. Charged depreciation on building 10% and furniture 5%.
Instructions:
a) Record the following transaction in the books of original entry.
b) Post to the ledger Account.
c) Prepare a Trial Balance.
5. Frontier Park was started on April 1, 2020 by C.K Aminul. The following selected
events and transactions occurred during April.
April 01 Aminul Invested Tk. 40,000 cash in the business.
04 Purchased land costing tk. 30,000 cash.
07 Incurred advertising expenses of Tk. 1,800 on account.
11 Paid salaries to employees Tk. 1, 500.
12 Hired park manager at a salary of 4,000 per month, effective May 1.
13 Paid Tk. 1,500 cash for one year insurance policy
14 Withdrew Tk. 1,000 cash for personal use.
20 Received Tk. 5,000 in cash for admission fees.
21 Sold 100 coupon books for Tk. 25 each. Each book contains 10 coupons
that entitle the holder to one admission to the park.
30 Received 8,000 in cash admission fees.
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30 Paid Tk. 900 on the balance owed for advertising incurred on April 7.
Aminul uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable,
Unearned Admission Revenue, C.K Aminul Capital, C.K Aminul Drawing, Admission
Revenue, Advertising Expenses, and Salaries Expenses.
Required:
a) Journalize the Transactions.
b) Post to the ledger Account.
c) Prepare a Trial Balance.
6. Md. Kutub Uddin is an FCA and FCMA. On 1st November 2019, he started a
management and tax consultancy firm in Bangladesh. During the first month of
operations of her business, the following events and transactions occurred.
Nov. 01 Kutub Uddin invested Tk. 25,000 cash.
03 Purchased Tk. 2,500 of supplies on account form read supply company
06 Paid office rent of Tk. 900 cash for the month.
08 Completed a tax assignment and billed client Tk 2,100 for service
provided
20 Received Tk 3,500 advance on a management consulting engagement.
21 Received cash of Tk. 1,200 for service completed for Haron Co.
30 Paid secretary- receptionist Tk. 2000 salary for the month.
30 Paid 40% of balance due to read supply company.
Required:
a) Journalize the Transactions.
b) Post to the ledger Account.
c) Prepare a Trial Balance.
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7. Ray Neal decided to open computer programming service business named Softbyte
on September 01, 2011. A summary of September transactions is presented below:
September 01 Ray Neal invested Tk. 15,000 cash to start the business.
05 Softbyte purchases computer equipment for Tk. 7,000 cash.
08 Purchased supplies for Tk 1,600 on credit
15 Received cash for service provided Tk 1,200.
18 Softbyte received a bill for Tk. 250 from the Daily News for
advertising.
22 Softbyte provided Tk. 3,500 of programming services for customers.
The company received cash of Tk. 1,500 from customers and it bills
the balance of Tk. 2,000 on account.
24 Softbyte pays TK. 250 Daily News bill in cash.
25 Received Tk. 600 in cash from customers who had been billed for
services on 22nd September 2011.
30 Ray Neal withdraws Tk. 1,300 in cash from the business for personal
use.
Required:
a) Journalize the Transactions.
b) Post to the ledger Account.
c) Prepare a Trial Balance.
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8. Barone’s repair shop was started on May 1, 2015 by Nancy Barone. A summary of
May transactions is presented below.
May 01 Invested Tk. 10,000 cash to start the repair shop.
02 Purchased equipment for Tk. 5,000 cash.
04 Paid Tk. 400 cash for May office rent.
06 Paid Tk. 500 cash for supplies.
07 Incurred Tk. 250 of advertising costs in the Beacon News on account.
08 Received Tk. 5,100 in cash from customers for repair service.
09 Withdrew Tk. 1,000 cash for personal use.
10 Paid part-time employee salaries Tk 2,000.
11 Paid utility bills Tk. 140
12 Provided repair service on account to customers Tk. 750.
13 Collected cash of Tk. 120 for service billed in transaction (10).
Required:
1. Journalize the Transactions.
2. Post to the ledger Account.
3. Prepare a Trial Balance
9. Mark Miller started his own deliveries service, Miller Deliveries, on June 1, 2010.
The following transactions occurred during the month of June.
June 1 Mark invested Tk. 10,000 cash in the business.
2 Purchased a used Van for deliveries for Tk 12,000. Mark Paid Tk. 2,000
cash and signed a note payable for the remaining balance.
3 Paid Tk. 500 for office rent for the month.
5 Performed Tk. 4,400 of services on account.
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9 Withdrew Tk. 200 cash for personal use.
12 Purchased supplies for Tk. 150 on account.
15 Received a cash payment of Tk. 1,250 for service provided on June 5, 2010.
17 Purchased gasoline for Tk. 100 on account.
20 Received a cash payment of Tk. 1,500 for services provided.
23 Made cash payment of Tk. 1500 on the notes payable.
26 Paid Tk 250 for utilities
29 Paid for the gasoline purchased on account on June 17.
30 Paid Tk. 1000 for employee salaries.
Required:
1. Journalize the Transactions.
2. Post to the ledger Account.
3. Prepare a Trial Balance