Financial Accounting

An example of Journal- Ledger-Trial Balance

Presented below is information related to Rahman Real Estate Agency for the month ended October, 2008:

Oct. 1-       Mr. Rahman begins business as a real estate agent with a cash investment of Tk 15,000 

Oct. 3-       Purchases office furniture for Tk 1,900, on account.

Oct. 6-       He provide services to Mr. Karim Tk 3,200 on credit 

Oct. 27-     Pays Tk 700 on balance related to transaction of Oct. 3. 

Oct. 30-     Pays the administrative assistant Tk 2,500 salary for Oct. 

Solution:

 

                                             General Journal                                         

Date		Account Title	Ref.	Debit	Credit
Oct.	1	Cash		15,000
		Mr. Rahman, Capital			15,000
		(Owners investment)

		Oct. 3 Office Furniture     1,900 Accounts Payable     1,900 (Purchase furniture)

Oct.	6	Accounts Receivable		3,200
		Service Revenue			3,200
		(Realty services provided)

 

Oct.	27	Accounts Payable		700
		Cash			700
		(Payment on account)

Oct.	30	Salary Expense		2,500
		Cash			2,500
		(Payment for salaries)

                                             

                                               General Ledger

Date		Explanation	Ref.	Debit	Credit	Balance

Trial Balance of Mr. Rahman Real Estate

October 31, 2008

 1. Capital Account Tk 15000

2. Cash Account Tk 11,800

3. Account Receivable Tk 3200

4. Office Furniture Tk 1900

5. Account Payable Tk 1200

6. Service Revenue Tk 3200

7. Salary Account Tk 25