9/27/2020 T-Accounts, Journal Entry and Trial Balance Question

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T-Accounts, Journal Entry and Trial Balance

Question

by Jane
(Philippines)

Before you begin: For tests and exams it's really important to not only answer questions correctly
but do so at the right speed. Grab a pen and piece of paper and make sure you time yourself while
attempting this exercise.

Difficulty Rating:
Intermediate

Time limit:
40 minutes

Question

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question
Juan de la Cruz began professional practice as a system analyst on July 1. He plans to
prepare a monthly financial statement. During July, the owner completed these transactions
(PHP = Philippine Peso, currency of Philippines):

July 1. Owner invested PHp 500,000 cash along with computer equipment that had a market
value of php. 120,000 two years ago but was now worth Php. 100,000 only.
July 2. Paid php. 15,000 cash for the rent of office space for the month.
July 4. Purchased php. 12,000 of additional equipment on credit (due within 30 days).
July 8. Completed awork for a client and immediately collected the php. 32,000 cash.
July 10. Completed work for a client and sent a bill for php. 27,000 to be paid within 30 days.
July 12. Purchased additional equipment for php. 8,000 in cash.
July 15. Paid an assistant php. 6,200 cash as wages for 15 days.
July 18. Collected php. 15,000 on the amount owed by the client.
July 25. Paid php. 12,000 cash to settle the liability on the equipment purchased.
July 28. Owner withdrew php. 500 cash for personal use.
July 30. Completed work for another client who paid only php. 40,000 for 50% of the system
design.
July 31. Paid salary of assistant php. 700.
July 31. Received PLDT bill, php. 1,800 and Meralco bill php. 3,800.

Required:
Prepare the journal entries, T accounts and trial balance for this business.

x
Solution

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question

Journal Entries:

July 1 Dr Cash 500,000

Dr Computer Eqpt 100,000
Cr Capital 600,000
Owner started business with cash and computer Eqpt.

2 Dr Rent Exp 15,000

Cr Cash 15,000
Paid rent of office for the month of July.

4 Dr Equipment 12,000
Cr Creditors 12,000
Equipment purchased for business use.

8 Dr Cash 32,000
Cr Services rendered (income) 32,000
Services rendered for a client.

10 Dr Debtors 27,000
Cr Services rendered (income) 27,000
Services rendered for a client.

12 Dr Equipment 8,000
Cr Cash 8,000
Additional equipment purchased.

15 Dr Salaries & Wages 6,200

Cr Cash 6,200
Paid wages to assistant for 15 days.

18 Dr Cash 15,000
Cr Debtors 15,000
Received cash from debtor.

25 Dr Creditors 12,000
Cr Cash 12,000
Creditors of Eqpt purchased, settled.

28 Dr Drawings 500
Cr Cash 500
Owner withdrew cash for personal use.

30 Dr Cash 40,000
Dr. Debtors 40,000
Cr Services rendered (income) 80,000
50% amount received by a client on a/o work completed.

31 Dr Salaries & Wages 700

Cr Cash 700
Paid salary to the assistant.

31 Dr Utilities Exp (PLDT) 1,800

Dr Utilities Exp (Meralco) 3,800
Cr Creditors 5,600
PLDT and Meralco have been assumed to be the utility companies.

Note: In this example we have combined salaries and wages into one account, but sometimes in
x
real life these are kept separate - one account for wages and another account for salaries.

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question

T-Accounts:

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question

x
Trial Balance:

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question

Tutorials relating to this T-Accounts, Journal Entry and Trial

Balance Question:
x
Journal Entry - Equity Example
Journal Entry - Expenses Example
Journal Entry - Cash Income Example

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question
Journal Entry - Income on Credit Example
Journal Entry - Debtor Pays Example
Journal Entry - Example of Buying an Asset
Journal Entry - Drawings Example
Journal Entry - Incurring a Liability or Debt
Journal Entry - Drawings Example
T-accounts
How to Balance a T-account
The Trial Balance

That's it! Hope you enjoyed this detailed exercise on

journals, T-accounts and the trial balance.

Best of luck with your studies!

- Michael Celender
Founder of Accounting Basics for Students

For more free exercises return to the Full Accounting Questions and Answers page.

Comments for T-Accounts, Journal

Entry and Trial Balance Question
Click here to add your own comments

NEED HELP WITH TRIAL BALANCE

by: Anonymous

w related to ABC TRADERS as at 31

January 2020.

PLEASE HELP. HOW DO I PREPARE A

TRIAL BALANCE FOR THIS?
DR CR
Sales and Purchases 300800 498 200
Debtors and Creditor 120 000 75 000
Returns 880 770
Bank 24 000
Discount 6 400 8 000
Interest 2 000 500
Cash on hand 1 200
Prepaid and Accrued Stationery 5 000 3 000
Donation 5 800 2 100
Motor Vehicle - Cost 280 000
Short-term Investment and Loan 12 000 112
500
Provision for bad debts and Electricity 3 300
2 800
Water Consumption and Accrued Rent 1 300
8 400
Transport Expense and Telephone in arrears
1 400 1 000
Provision for refund to creditor customer
3,810 x

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question
Please can you make P/L accounts and
Balance Sheet for this Question
by: Anonymous

Please can you provide P/L accounts and

Balance
sheet for this question.

Please provide
by: Anonymous

Sir thank your for this example... Can you

please provide the trading, p and l and
balance sheet of this example?

Answer this pls - Journals, Ledger

Accounts, Trial Balance, Profit & Loss,
Balance Sheet
by: Anonymous

2017
October 1 Started business with $50,000
deposited in bank
October 4 Purchased delivery van for
$18,000 paying by cheque
October 5 Bought office equipment on credit
from Elvis Ltd., for $8,000
October 8 Paid for advertising $540 cheque
October 11 Withdrew $3,000 cash from bank
for business use
October 14 Bought goods on credit from:
Gunner $560 and Philo $760
October 16 Returned goods to Gunner worth
$100
October 19 Sold goods on credit to: Samuel
$1,130 and C Dimmock $890
October 21 Paid for stationery $230 cash
October 22 Withdrew $2,750 from bank for
personal use
October 25 Paid rent $2,700 paying by
cheque
October 26 Goods returned by Samuel worth
$270
October 29 Sales made on credit to J
Rudling for $960
October 30 Commission received by firm:
$290 cash

1. Inventory at 31st October 2017 is $520.

2. Prepare Journal accounts and Ledger
accounts, balance off the accounts.
3. Trial balance for 31 October 2017.
4. Statement of comprehensive income for
31 October 2017.
5. Statement of Financial Position for 31
October 2017.
x

What is Balance C/F and Where Did It

Come From?

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9/27/2020 T-Accounts, Journal Entry and Trial Balance Question
by: boybato

What is balance C/F?

And where did it come from?

Thanks...

"C/F" stands for Carried Forward. It is just a

term used in accounting to mean that you
will take a balance from one period and
"carry it forward" (copy it) to the next period.
For example, we will carry forward the
balance of $600 cash on January 31 to
February 1 (the next period).

See the detailed lesson on how to balance a

T-account for more information.

Hope that makes sense!

- Michael
Founder of Accounting-Basics-for-
Students.com

hello
by: Anonymous

Instead of using Debtors Account Use

Accounts Receivable.

Instead of Creditors Account use Accounts

Payable. In that way its more clear that you
have receivables and payables.

ENTRIES
by: ALJHUN

I really don't know if this journal entries as

what you presented as example is applicable
to the Philippines. Specifically the entries like
debit debtors credit cash? or credit creditors
debit cash? You know what I mean? This
samples that you have is not that typical
source that we can rely on for our studies.
Especially we are accounting major.

18 Cash 15,000
Debtors (Mr. X) 15,000
Received cash from debtor (Mr. X).

25 Creditors (Mr. Y) 12,000

Cash 12,000
Creditors of Equipment purchased, settled.

*Editor
x

Click here to add your own comments

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