JOURNAL ENTRY FOR PRACTICE

LIST OF TRANSACTIONS
APRIL
S.NO. DATE TRANSACTIONS
1 1-4-2004 Ms. Nandini Kapur started Universal Business Solutions by bringing in cash of Rs. 3,00,000.
Ms. Kapur paid Rs. 22,500 in cash to purchase a computer with preloaded Tally.ERP9. The
2 2-4-2004 computer does not have any disposal value at the end of its useful life of four years. All
assets are to be depreciated using the straight-line method.
Ms. Kapur opened a bank account with HDFC Bank, Bangalore for the firm by depositing
3 3-4-2004 cash of Rs. 1,00,000.
Ms. Kapur had rented an office space for Rs. 2,500 per month on April 1, 2004 and has
4 4-4-2004
now paid security deposit of Rs. 25,000 by cheque.
Ms. Kapur hired Maya Nair as Manager – operations on a monthly salary of Rs. 7,500.
5 5-4-2004 She also hired Vijay Narayan as Manager – marketing on a monthly salary of Rs.
4,500.
Ms. Kapur made arrangement with Raj Travels so that at regular intervals she will
6 10-4-2004 receive bills for cab hire charges and tour expenses.
Ms. Kapur issued cheques and purchased the following fixed assets.
1. A cell phone for office usage for Rs. 6,000 (useful life 5 years)
2. Furniture for Rs. 20,000 (useful life 8 years)
7 15-4-2004
3. An Air conditioner for Rs. 20,000 (useful life 6 years)
4. Electrical Fittings for Rs. 15,000 (useful life 10 years)
- The assets do not have any disposal value at the end of their useful life.
Ms. Kapur obtained a mobile phone subscription with Planet Telecommunication ltd.
8 16-4-2004
by paying a deposit of Rs. 3,000 in cash.
Ms. Kapur purchased stationery consumables worth Rs. 12,500 from Global House on
9 20-4-2004
credit.
Ms. Kapur entered into a Contract with Silver Services for providing consultancy
10 21-4-2004 services at an agreed price of Rs. 75,000. She received an advance of Rs. 25,000 by
cheque.
11 23-4-2004 Ms. Kapur deposited Rs. 50,000 cash in HDFC Bank.
Ms. Kapur received an invoice for Rs. 6000, raised by Ink and Paper Publishers for
12 25-4-2004 printing of office stationery.
13 27-4-2004 Ms. Kapur withdrew Rs. 7,500 cash for personal use.
14 30-4-2004 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for April 2004
MAY
15 1-5-2004 Ms. Kapur paid Rs. 6,000 in cash to Ink and Paper Publishers.
16 5-5-2004 Ms. Kapur paid Rs. 2,500 by cheque towards office rent for April 2004.
Ms. Kapur paid salaries through cheque for April 2004 (25 days) to
17 6-5-2004 1. Maya Nair – Rs. 6,500
2. Vijay Narayan – 3,900
Ms. Kapur received and paid mobile phone bill amounting to Rs. 1,250 in cash for
18 7-5-2004
April 2004.
19 10-5-2004 Ms. Kapur issued cheque of Rs. 12,500 to Global House.
20 12-5-2004 Ms. Kapur paid Rs. 1,100 in cash towards electricity charges for April 2004.
21 14-5-2004 Ms. Kapur received further advance of Rs. 25,000 for Silver Services by cheque.

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 Ms. Kapur reimbursed conveyance bills amounting to Rs. 650 in cash to Vijay
22 15-5-2004 Narayan.
23 18-5-2004 Ms. Kapur paid Rs. 150 in cash towards miscellaneous office expenses.
24 20-5-2004 Ms. Kapur received Rs. 15,000 of consulting revenue in cash from Omega InfoTech.
Ms. Kapur raised an invoice for Rs. 75,000 on Silver Services after completion of the
25 25-5-2004 service. Silver Services paid the balance amount of Rs. 25,000 in cash after deducting
26 28-5-2004 the
Ms.advance paid.
Kapur withdrew Rs. 6,000 cash for personal use.
JUNE
27 3-6-2004 Ms. Kapur paid Rs. 2,500 in cash towards office rent for May 2004.
28 4-6-2004 Ms. Kapur paid salaries by cheque for May 2004.
Ms. Kapur received an invoice for Rs. 5,500 from Raj Travels. This includes Rs. 2,300
29 5-6-2004
towards cab hiring charges and Rs. 3,200 towards outstation tours undertaken by her.
Ms. Kapur received Rs. 35,000 in Cheque as consulting revenue from Eateries Food
30 9-6-2004
Chain.
31 10-6-2004 Ms. Kapur deposited Rs. 30,000 in cash in HDFC Bank.
32 15-6-2004 Ms. Kapur paid mobile phone bill amounting to Rs. 1,350 by cheque for May 2004
Ms. Kapur reimbursed conveyance bills amounting to Rs. 750 in cash to Vijay
33 16-6-2004 Narayan.
34 20-6-2004 Ms. Kapur paid Rs. 1,250 in cash towards electricity bill charges for May 2004.
35 21-6-2004 Ms. Kapur paid Rs. 750 towards office maintenance charges for May 2004.
36 23-6-2004 Ms. Kapur paid Rs. 3,000 in cash as salary advance to Maya Nair.
37 27-6-2004 Ms. Kapur withdrew Rs. 6,000 cash for personal use.
JULY
Ms. Kapur raised an invoice for Rs. 65,000 on Alfatech Solutions for services
38 3-7-2004
provided.
Ms. Kapur subscribed for the ‘Management Consultant’ Journal by paying Rs. 2,400
39 6-7-2004
by cheque. The subscription period is from July 2004 to June 2006.
Ms. Kapur paid salaries for June 2004 by cheque. Salary advance paid to Maya Nair is
40 7-7-2004
adjusted against the salary paid.
41 10-7-2004 Ms. Kapur paid office rent by cheque for June 2004.
42 15-7-2004 Ms. Kapur received Rs. 35,000 by cheque from Alfatech Solutions.
43 18-7-2004 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for June 2004.
44 19-7-2004 Ms. Kapur paid Rs. 850 in cash towards electricity charges for June 2004.
45 20-7-2004 Ms. Kapur paid Rs. 1,650 by cheque as mobile phone bill charges for June 2004.
46 25-7-2004 Ms. Kapur reimbursed conveyance bills for Rs. 550 in cash to Vijay Narayan.
47 28-7-2004 Ms. Kapur withdrew Rs. 6,500 cash for personal use.
AUGUST
Ms. Kapur paid by cheque Rs. 6,000 for insurance of fixed assets. The period of
48 1-8-2004
insurance is from August 1, 2004 to July 31, 2005.
Ms. Kapur received Rs. 30,000 in cash as consulting revenue from World-X
49 2-8-2004
Multimedia.
50 5-8-2004 Ms. Kapur paid salaries for July 2004 by cheque.
51 10-8-2004 Ms. Kapur paid office rent for July 2004 by cheque.
52 12-8-2004 Ms. Kapur withdrew Rs. 25,000 cash from HDFC Bank.
53 14-8-2004 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for July 2004.

ACTC COMPUTER EDUCATION Page 11

 Ms. Kapur raised an invoice for Rs. 50,000 on MediaLive Productions for service
54 16-8-2004
provided. The terms of credit are 30 days.
55 18-8-2004 Ms. Kapur paid Rs. 950 in cash towards electricity charges for July 2004.
56 20-8-2004 Ms. Kapur paid Rs. 2,100 by cheque towards mobile phone bill charges for July 2004.
MediaLive Productions settled the bill for a final amount of Rs. 48,000 by paying Rs.
57 21-8-2004
20,000 in cash and Rs. 28,000 by cheque.
58 27-8-2004 Ms. Kapur withdrew Rs. 7,000 cash for personal use.
59 28-8-2004 Ms. Kapur received Rs. 30,000 by cheque from Alfatech Solutions.
Ms. Kapur reimbursed conveyance bills amounting to Rs. 1,200 in cash to Vijay
60 29-8-2004
Narayan.
SEPTEMBER
61 2-9-2004 Ms. Kapur paid Rs. 3,800 in cash for repairs and maintenance of office premises.
Ms. Kapur paid salaries for August 2004 by cheque. Since Maya Nair was on leave for
62 5-9-2004 15 days, she was paid one half-month’s salary.
63 8-9-2004 Ms. Kapur paid office rent for August 2004 by cheque.
Ms. Kapur received invoice for Rs. 7,600 from Raj Travels. This includes Rs. 3,150
64 9-9-2004
towards cab hiring and Rs. 4,450 towards outstation tours undertaken by her.
65 12-9-2004 Ms. Kapur paid Rs. 750 in c0ash towards office maintenance charges for August 2004.
Ms. Kapur received Rs. 25,000 in cash as consulting revenue from Cam and Cut
66 15-9-2004
Productions.
67 17-9-2004 Ms. Kapur paid Rs. 1,300 in cash towards electricity charges for August 2004.
68 20-9-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs. 500 in cash to Vijay
69 23-9-2004 Narayan.
Ms. Kapur paid Rs. 10,000 by cheque to Raj Travels.
70 24-9-2004 Ms. Kapur paid Rs. 1,750 by cheque towards mobile phone bill charges for August
71 28-9-2004 2004.Kapur withdrew Rs. 5,500 cash for personal use.
Ms.
OCTOBER
Ms. Kapur received Rs. 50,000 by cheque as consulting revenue from Xceed
72 3-10-2004
International
73 5-10-2004 Ms. Kapur paid office rent for September 2004 by cheque.
Couriers.
74 7-10-2004 Ms. Kapur withdrew Rs. 30,000 cash from HDFC Bank.
75 8-10-2003 Ms. Kapur paid salaries for September 2004 by cheque.
76 10-10-2004 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for September
77 12-10-2004 2004.Kapur purchased stationery items worth Rs. 1,600 in cash.
Ms.
78 15-10-2004 Ms. Kapur received Rs. 15,000 in cash as consulting revenue from Samaritan Products.
79 18-10-2004 Ms. Kapur paid Rs. 1,700 in cash towards electricity charges for September 2004.
Ms. Kapur paid Rs. 2,300 by cheque towards mobile phone bill charges for September
80 20-10-2004
2004.
81 23-10-2004 Ms. Kapur introduced further capital into the firm by bringing in cash of Rs. 1,00,000.
82 24-10-2004 Ms. Kapur deposited cash amounting to Rs. 75,000 in HDFC Bank.
83 26-10-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs. 1,600 in cash to Vijay
Narayan.
Ms. Kapur entered into a Contract with Planet Consultancy for providing services at an
84 28-10-2004
agreed price of Rs. 35,000. An advance of Rs. 10,000 was received by cheque.
NOVEMBER
85 1-11-2004 Ms. Kapur withdrew Rs. 8,000 cash for personal use.
Ms. Kapur received an invoice for Rs. 7,200 from Raj Travels. This includes Rs. 2,800
86 2-11-2004
towards cab hiring charges and Rs. 4,400 towards outstation tours undertaken by her.

ACTC COMPUTER EDUCATION Page 12

87 5-11-2004 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for October 2004.
88 8-11-2004 Ms. Kapur paid salaries for October 2004 by cheque.
Ms. Kapur received Rs. 27,500 by cheque as consulting revenue from Trishul Software
89 10-11-2004
Solutions.
90 12-11-2004 Ms. Kapur paid office rent for October 2004 by cheque.
Planet Consultancy terminated the Contract and advance of Rs. 10,000 was refunded to
91 15-11-2004
them by cheque.
HDFC Bank intimated to Ms. Kapur that the cheque of Trishul Software Solutions for
92 20-11-2004 Rs.27,500 has bounced. Intimation to this effect was sent to Trishul Software Solutions
and they promised to pay the amount in few days.
93 21-11-2004 Ms. Kapur paid Rs. 950 in cash towards electricity bill charges for October 2004.
94 23-11-2004 Ms. Kapur received Rs. 12,500 in cash from Trishul Software Solutions.
95 25-11-2004 Ms. Kapur paid Rs. 1,470 by cheque towards mobile phone bill charges for October
96 2004.Kapur reimbursed conveyance bills amounting to Rs. 900 in cash to Vijay
27-11-2004 Ms.
97 30-11-2004 Ms.
Narayan.
Kapur withdrew Rs. 6,500 cash for personal use.
DECEMBER
The statement received from HDFC Bank shows that the bank has charged Rs. 550 as
98 3-12-2004 cheque bouncing charges and Rs. 330 as cheque book charges. Cheque bouncing
charges are to be recovered from Trishul Software Solutions.
99 5-12-2004 Ms. Kapur paid office rent for November 2004 by cheque.
100 6-12-2004 Ms. Kapur paid salaries for November 2004 by cheque.
Ms. Kapur received invoice from Raj Travels for Rs. 6,200. This includes Rs. 3,000
101 8-12-2004
towards cab hiring charges and Rs. 3,200 towards outstation tours undertaken by her.
Ms. Kapur received Rs. 50,000 by cheque as Consulting Revenue from Unigrand
102 9-12-2004 Technologies.
103 10-12-2004 Ms. Kapur withdrew Rs. 30,000 cash from HDFC Bank.
104 11-12-2004 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for November
2004.Kapur purchased Rs. 12,000 worth office equipments on credit from Transform
Ms.
105 15-12-2004
Tech Pvt.Ltd. The asset does not have any disposal value after its useful life of 6 years.
106 16-12-2004 Ms. Kapur paid Rs. 1,450 by cheque towards mobile phone bill charges for November
107 2004.Kapur paid Rs. 850 in cash towards electricity bill charges for November 2004.
18-12-2004 Ms.
108 20-12-2004 Ms. Kapur reimbursed conveyance bills amounting to Rs. 1,100 in cash to Vijay
109 Narayan.
23-12-2004 Ms. Kapur paid Rs. 12,000 by cheque to Transform Tech Pvt. Ltd.
Ms. Kapur raised invoice for Rs. 42,500 on InGroove Designers for consultancy
110 24-12-2004 services.
111 25-12-2004 Ms. Kapur received Rs. 15,550 in cash from Trishul Software Solutions.
112 28-12-2004 Ms. Kapur withdrew Rs. 6,000 cash for personal use.
Ms. Kapur paid Rs. 7,500 by cheque towards professional charges for internal audit of
113 30-12-2004
accounts.
JANUARY
114 3-1-2005 Ms. Kapur paid office rent for December 2004 by cheque.
115 5-1-2005 Ms. Kapur received Rs. 30,000 in cash from InGroove Designers.
116 6-1-2005 Ms. Kapur paid salaries for December 2004 by cheque.
Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for December
117 10-1-2005
2004.

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 Ms. Kapur received Rs. 35,000 by cheque as consulting revenue from Ala Carte
118 12-1-2005
Investments.
119 15-1-2005 Ms. Kapur withdrew Rs. 50,000 capital from the firm by cheque.
120 18-1-2005 Ms. Kapur paid Rs. 2,300 by cheque as mobile phone bill charges for December 2004.
121 20-1-2005 Ms. Kapur paid Rs. 1,050 in cash towards electricity charges for December 2004.
Ms. Kapur reimbursed conveyance bills amounting to Rs. 1,800 in cash to Vijay
122 23-1-2005 Narayan.
123 30-1-2005 Ms. Kapur withdrew Rs. 8,000 cash for personal use.
FEBRUARY
124 5-2-2005 Ms. Kapur paid office rent for January 2005 by cheque.
125 6-2-2005 Ms. Kapur paid salaries for January 2005 by cheque.
Ms. Kapur received invoice from Raj Travels for Rs. 9,400. This includes Rs. 3,800
126 10-2-2005
towards cab hiring charges and Rs. 5,600 towards outstation tours undertaken by her.
127 11-2-2005 Ms. Kapur paid Rs. 20,000 by cheque to Raj Travels.
128 12-2-2005 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for January 2005.
129 15-2-2005 Ms. Kapur paid Rs. 1,600 by cheque towards mobile phone bill charges for January
130 18-2-2005 2005.Kapur paid Rs. 1,200 in cash towards electricity bill for January 2005.
Ms.
131 20-2-2005 Ms. Kapur reimbursed conveyance bills amounting to Rs. 1,150 in cash to Vijay
Narayan.
Ms. Kapur purchased stationery consumables worth Rs. 7,400 on Credit From Global
132 24-2-2005
House.
133 28-2-2005 Ms. Kapur withdrew Rs. 7,000 cash for personal use.
MARCH
134 3-3-2005 Ms. Kapur salaries by cheque for February 2005.
135 5-3-2005 Ms. Kapur paid office rent for February 2005 by cheque.
136 8-3-2005 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for February 2005.
Ms. Kapur received Rs. 30,000 in cash as consulting revenue from Eye Television
137 10-3-2005
Network.
138 12-3-2005 Ms. Kapur paid Rs. 1,450 in cash towards electricity bill for February 2005.
Ms. Kapur paid Rs. 1,900 by cheque towards mobile phone bill charges for
139 15-3-2005
February 2005.
Ms. Kapur reimbursed conveyance bills amounting to Rs. 950 in cash to Vijay
140 18-3-2005
Narayan.
Invoice received from Global House on 24th of February 2005 had a totaling error and
141 20-3-2005
was overvalued by Rs. 600.
142 21-3-2005 Ms. Kapur paid Rs. 6,800 by cheque to Global House.
143 25-3-2005 Ms. Kapur withdrew Rs. 6,500 cash for personal use.

APRIL (NEXT YEAR)

Ms. Kapur received Rs. 20,000 cash as consulting revenue from Fore C Marketing
144 1-4-2005 Solutions. The services had already been provided in March 2005.
145 2-4-2005 Ms. Kapur paid office rent for March 2005 by cheque.
146 5-4-2005 Ms. Kapur paid salaries by cheque for March 2005.
147 7-4-2005 Ms. Kapur paid Rs. 750 in cash towards office maintenance charges for March 2005.
148 12-4-2005 Ms. Kapur paid Rs. 1,690 by cheque towards mobile phone bill charges for March
2005.
Ms. Kapur reimbursed conveyance bills amounting to Rs. 950 in cash to Vijay
149 15-4-2005
Narayan. The bills pertain to March 2005.

ACTC COMPUTER EDUCATION Page 14

 Ms. Kapur received invoice from Raj Travels for Rs. 6,600. This includes Rs. 2,900
150 18-4-2005 towards cab hiring charges and Rs. 3,700 towards outstation tours undertaken by her.
The bill pertains for February 2005 and March 2005.
151 20-4-2005 Ms. Kapur paid Rs. 870 in cash towards electricity bill for March 2005.

DEPRECIATION ENTRIES
(C) (D)
(A) (B) Depreciation for
Sl. Date of Annual No. of days
Asset Name Value to be Useful life 2004-05
No. purchase depreciation used in the
depreciated (in years) C*D/365=E
A/B=C year
1 Computer 2-4-2004 22,500 4 5,625 364 5,610
2 Cellular Phone 15-4-2004 6,000 5 1,200 351 1,154
3 Furniture 15-4-2004 20,000 8 2,500 351 2,404
4 Air Conditioner 15-4-2004 20,000 6 3,333 351 3,205
5 Electrical Fittings 15-4-2004 15,000 10 1,500 351 1,442
6 Office Equipments 15-12-2004 12,000 6 2,000 107 586

ADJUSTMENT ENTRIES FOR PREPAID EXPENSES

Period of Prepaid Amount for
Prepaid
Nature Payment Date Subscription/ Amount (b) Amount Current
Period (c)
Insurance (a) (b)/(a)*(c)=(d) Year (b)-
Magazine 6-7-2004 1-7-2004 2,400 1-4-2005 to 1,500 (d)=(e)
900
Subscription 30-6-2006 (15
months)
Insurance 1-8-2004 1-8-2004 to 6,000 1-4-2005 to 2,000 4,000
31-7-2005 (12 31-5-2005 (4
months) months)

ACTC COMPUTER EDUCATION Page 15