Answer keys – Accounting Information system

Journal entries

Date Particular Dr. Cr.

Jan 1. Cash 80,000
Capital 80,000

2 Furniture 4,000
Cash 4,000

3 Furniture 1,000
Accounts payable – ABC company 1,000

4 Accounts payable -Aliff 700

Cash 700

5 Cash 2,000
Furniture 2,000

6 Purchase of goods 20,000

Cash 20,000

7 Purchase of goods 30,000

Accounts payable – XYZ company 30,000

8 Accounts payable -ABC company 5,000

Cash 5,000

9 Cash 40,000
Sales 40,000

10 Accounts receivable – XYZ company 50,000

Cash 50,000

11 Cash 15,000
Accounts receivable 15,000

12 Rent expense 2,500

Cash 2,500

13 Prepaid insurance 6,000

Cash 6,000

14 Drawings 3,000
Cash 3,000

259,200 259,200
True-False

1. False
2. True
3. True
4. False
5. True
6. True
7. True
8. True

MCQs

9. b

10. d

11. a

12. a