Exercise (3-2) page 129

Date Account title & Account Debit Credit

explanation number
1/10 Cash 1 80,000
Mark Fraser , capital 31 80,000
5/10 Land 11 102,000
Cash 1 30,600
Notes payable 22 71,400
15/10 Accounts payable 21 976
Cash 1 976
18/10 Cash 1 30,000
Notes payable 22 30,000
23/10 Cash 1 2,900
Accounts receivable 2 2,900
30/10 Office equipment 13 6,200
Cash 1 1,500
Accounts payable 21 4,700

Notes
Issued a check = paid in cash
Cash down payment → ‫دفع منها نقدا‬
Acquired = purchased
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Problem (3.3) page 134
Date Account Title & Explanation Acc Debit Credit
No
3/1 Rent Expense 43 3,520
Cash 1 3,520
4/1 Advertising Expense 41 860
Accounts Payable 21 860
15/1 Cash 1 23,160
Passenger Fare Revenue 33 23,160
15/1 O.Wright, Drawing 32 7,500
Cash 1 7,500
16/1 Salaries Expense 45 13,200
Cash 1 13,200
25/1 Accounts Receivable 2 470
Passenger Fare Revenue 33 470
29/1 Fuel Expense 42 4,340
Accounts Payable 21 4,340
31/1 Repair & Maintenance Expense 44 3,372
Cash 1 3,372
b)
 Assets  No effect
 Liabilities  Increase
 Owner’s Equity  decrease
 Net Income  decrease
Notes
Sent a bill  accounts receivable ‫انا اللى ارسلت الفاتوره ولسه محصلتهاش‬
received a bill  accounts payable ‫استلمت فاتوره يبقى عليا التزام بدفعها‬
passenger fare revenue  ‫ايرادات نقل المسافرين‬

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Problem (3-4) page 134
Date Account title & explanation Account Debit Credit
number
1/8 Rent expense 41 4,400
Cash 1 4,400
3/8 Accounts receivable 2 5,620
Repair service revenue 33 5,620
9/8 Cash 1 2,830
Repair service revenue 33 2,830

14/8 Advertising expense 42 165

Accounts payable 21 165
25/8 Cash 1 5,620
Accounts receivable 2 5,620

26/8 Cash 1 400

Accounts receivable 2 1,490
Repair service revenue 33 1,890
30/8 Accounts payable 21 165
Cash 1 165
31/8 Barbara Garwood, Drawing 32 7,600
Cash 1 7,600

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Exam (2015) first question
Ahmed organized a sole proprietorship to provide car repair services. The
business transactions during the month of June are described below:
June 1 Ahmed started his business by depositing 50,000 cash in a bank
account.
June 3 purchased some furniture from Silver Star Company for 5,000 Made
a 2,000 cash down payment & the remaining is due within 12 days.
June 5 purchased equipments from golden sun company for 9,000, paid in
Cash 4,000 and issued a note payable for the remaining balance.
June 8 made repairs services to some customers for 3,000 collected 1,000
in cash and the balance is due within 10 days
June 12 Ahmed withdrew 500 in cash for personal use.
June 15 paid the remaining amount owned to Silver Star Company.
June 18 collected the remaining amount for services rendered on June 8.
June 22 Ahmed made an additional investment in the business by
depositing 10,000 in cash in the company bank account.
June 25 made repairs services to some customers for 5,000, collected
1,500 in cash and the balance for note due after two months.
June 27 paid rent for the month of June amounted to 500
June 30 paid 1,500 salaries to employees for services rendered during June.
Instructions
Based on the above transactions:
a) Prepare the journal entries in general journal.
b) Post the journal entries to ledger accounts.
c) Prepare the trial balance at 30 of June.

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 Solution
A) Journal Entries
Date Account Title Acc Debit Credit
No
1/6 Cash 1 50,000
Ahmed, Capital 31 50,000
3/6 Furniture 14 5,000
Cash 1 2,000
Accounts Payable 21 3,000
5/6 Equipment 13 9,000
Cash 1 4,000
Notes Payable 22 5,000
8/6 Cash 1 1.000
Accounts Receivable 2 2,000
Repair Service Revenue 33 3,000
12/6 Ahmed, Drawing 32 500
Cash 1 500
15/6 Accounts Payable 21 3,000
Cash 1 3,000
18/6 Cash 1 2,000
Accounts Receivable 2 2,000
22/6 Cash 1 10,000
Ahmed, Capital 31 10,000
25/6 Cash 1 1,500
Notes Receivable 3 3,500
Repair Service Revenue 33 5,000
27/6 Rent Expense 41 500
Cash 1 500
30/6 Salaries Expense 42 1,500
Cash 1 1,500

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 B) Post to Ledger Accounts
Cash (1)
Date Explanation Debit Credit Balance
1/6 50,000 50,000
3/6 2,000 48,000
5/6 4,000 44,000
8/6 1,000 45,000
12/6 500 44,500
15/6 3,000 41,500
18/6 2,000 43,500
22/6 10,000 53,500
25/6 1,500 55,000
27/6 500 54,500
30/6 1,500 53,000

Accounts Receivable (2)

Date Explanation Debit Credit Balance
8/6 2,000 2,000
18/6 2,000 -0-

Notes Receivable (3)

Date Explanation Debit Credit Balance
25/6 3,500 3,500

Equipment (13)
Date Explanation Debit Credit Balance
5/6 9,000 9,000

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 Furniture (14)
Date Explanation Debit Credit Balance
3/6 5,000 5,000

Accounts Payable (21)

Date Explanation Debit Credit Balance
3/6 3,000 3,000
15/6 3,000 -0-

Notes Payable (22)

Date Explanation Debit Credit Balance
5/6 5,000 5,000

Ahmed, Capital (31)

Date Explanation Debit Credit Balance
1/6 50,000 50,000
22/6 10,000 60,000

Ahmed, Drawing (32)

Date Explanation Debit Credit Balance
12/6 500 500

Repair Service Revenue (33)

Date Explanation Debit Credit Balance
8/6 3,000 3,000
25/6 5,000 8,000

Rent Expense (41)

Date Explanation Debit Credit Balance
27/6 500 500

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 Salaries Expense (42)
Date Explanation Debit Credit Balance
30/6 1,500 1,500

C) Trial Balance
Account Title Debit Credit
Cash 53,000
Accounts Receivable -0-
Notes Receivable 3,500
Equipment 9,000
Furniture 5,000
Accounts Payable -0-
Notes Payable 5,000
Ahmed, Capital 60,000
Ahmed, Drawing 500
Repair Service Revenue 8,000
Rent Expense 500
Salaries Expense 1,500
Total 73,000 73,000

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