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Standard XI

Accountancy

Adjustment for Outstanding Expenses

nbsp;Purchase...

Question

Purchase new office equipment worth Rs.1,00,000 by paying Rs. 93,000 cash and balance in exchange of old equipment (book value Rs.15,000) with a recorded value of Rs. 7,000.
jornal entries

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Solution

Dear Student

Journal

Date Particulars L.F. Debit
Amount
(Rs) Credit
Amount
(Rs)

Office Equipment A/c Dr. 1,00,000

Profit & Loss A/c Dr. 8,000

To Cash A/c 93,000

To Old Equipment A/c 15,000

(Being office equipment purchased worth Rs.1,00,000. Rs.93,000 is paid in cash and balance by giving old equipment)

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Similar questions

Bobbie opened a consulting firm and copleted these trannsactions during November, 2005

(a) Invested Rs 4,00,000 cash and office equipment with Rs 1, 50,000 in a business called Bobbie Consulting.

(b) Purchased land and a small building . The land was worth Rs. 1, 50,000 and the building worth Rs 3,50,000. The purchase price was price was paid with Rs 2,00,000 cash and a long term note payable for Rs 8,00,000.

(d) Bobbie transferred title of motor car to the business. The motor car was worth Rs 90,000.

(e) Purchased for Rs 30,000 additional office equipment on credit.

(f) Paid Rs 7,500 salary to the office manager.

(g) Provide services to a client and collected Rs 30,000.

(h) Paid Rs 4,000 for the month's utilities.

(i) Paid supplier created in transaction (c).

(j) Purchase new office equipment by paying Rs 93,000 cash and trading in old equipment with a recorded cost of Rs 7,000.

(k) Completed services of a client for Rs 26,000. This amount is to be paid within 30 days.

(l) Received Rs 19,000 payment from the client created in transaction (k).

(m) Bobbie withdrew Rs 20,000 from the business.

Analyse the above stated transactions and open the following T- accounts

Cash, client, office supplies, motor car, building, land , long term payables, capital , withdrawals, salary, expense and utilies expense.

Bobby opened a consulting firm and completed these transactions during November, 2005:

(a)	Invested Rs 4,00,000 cash and office equipment with Rs 1,50,000 in a business called Bobbie Consulting.
(b)	Purchased land and a small office building. The land was worth Rs 1,50,000 and the building worth Rs 3,50,000. The purchase price was paid with Rs 2,00,000 cash and a long term note payable for Rs 8,00,000.
(c)	Purchased office supplies on credit for Rs 12,000.
(d)	Bobbie transferred title of motor car to the business. The motor car was worth Rs 90,000.
(e)	Purchased for Rs 30,000 additional office equipment on credit.
(f)	Paid Rs 75,00 salary to the office manager.
(g)	Provided services to a client and collected Rs 30,000
(h)	Paid Rs 4,000 for the month’s utilities.
(i)	Paid supplier created in transaction (c).
(j)	Purchase new office equipment by paying Rs 93,000 cash and trading in old equipment with a recorded cost of Rs 7,000.
(k)	Completed services of a client for Rs 26,000. This amount is to be paid within 30 days.
(l)	Received Rs 19,000 payment from the client created in transaction (k).
(m)	Bobby withdrew Rs 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts:

Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.

Q. A creditor to whom Rs. 10,000 was due accepts office equipment worth Rs. 8,000 and is paid Rs. 2,000 in cash, the entry shall be made for the payment of _________ only.

Q. While checking the accounts of ABC the following discrepancies were noticed, even though the trial balance was made to balance by putting the difference to Suspense A/c.
(i) Sales day book for the month of June was found overcast by Rs

7, 000

.
(ii) A credit purchase of Rs

3, 000

was omitted to be recorded in the purchase day book.
(iii) Rs

4, 300

received from A credited to A A/c Rs

3, 400

.
(iv) Purchase of Office Equipment worth Rs

5, 000

included in trading purchases.
From the above details what would have been the difference in Trial Balance which was made to balance by opening Suspense A/c.

Q. While checking the accounts of ABC the following discrepancies were noticed, even though the trial balance was made to balance by putting the difference to suspense A/c.
(a) Sales day book for the month of June 2013 was found overcast by Rs. 7000
(b) A credit purchase of Rs.3,000 was omitted to be recorded in the day book.
(c) Rs.4,300 received from A credited to A's Rs.3,400
(d) Purchase of office equipment worth Rs.5,000 included in trading purchases.
From the above details while rectifying the mistake suspense a/c will be.

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Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Office Equipment A/c	Dr.		1,00,000
	Profit & Loss A/c	Dr.		8,000
	To Cash A/c				93,000
	To Old Equipment A/c				15,000
	(Being office equipment purchased worth Rs.1,00,000. Rs.93,000 is paid in cash and balance by giving old equipment)

Purchase new office equipment worth Rs.1,00,000 by paying Rs. 93,000 cash and balance in exchange of old equipment (book value Rs.15,000) with a recorded value of Rs. 7,000. jornal entries

Purchase new office equipment worth Rs.1,00,000 by paying Rs. 93,000 cash and balance in exchange of old equipment (book value Rs.15,000) with a recorded value of Rs. 7,000.
jornal entries