17. Following are the transaction of a Computer Service Agency during the month of January. Jan 2 Received cash Rs.300,000 to start business from the owners of the company
Jan 8 Deposited into bank Rs. 100,000
Jan 10 Signed a two year promissory note at the bank and received cash of Rs.50.000.
Interest 10% along with Rs.50,000 will be repaid at the end of two years.
Jan 11 Purchase of supplies for Rs.30,000 on account. The company has 45 days to pay for
the supplies
Jan 19 Billed a client Rs. 100,000 for service rendered by expert in helping to install a new
computer system. The client is to pay 25% of the bill upon its receipt and the remaining
balance within 60 days.
Jan 21 Paid Rs. 10,000 to the advertising company.
Jan 22 Received Rs 45,000 after deduction of 10% discount from the client billed on Jan 19
Jan 26 Received cash of Rs. 30,000 for service provided in selecting software for its computer.
Jan 28 Purchased a computer system for Rs.50,000 in cash.
Jan 30 Paid Rs.50,000 salaries for January and Rs.30,000 rent for February
Required:
a. Journal entries
(5)
b. T accounts (ledger) for income, account receivable and account payable
(3)
C. Triple column cash book
(4)
d. Trial balance
(3)
Ans: (c) Cash Rs. 180,000; bank Rs. 100,000 (d) T/B Rs. 480,000
18 The balance sheet of a company for two years are given below:​