Sheet (3)

Tegara English
First year

Financial
Accounting

Groub: Faculty of Commerce English Section

& BIS Department

Edited by Dr/ Magdy Kamel

Tel/ 01273949660

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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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Exam (2009)
Hisham organized a sole proprietorship to provide car repair services. The
business transactions during the month of june are described below:

June 1 : hisham started his business by depositing 15,000 cash in a bank

account.

June 2: purchased equipments from golden sun company for 5,000, paid in
cash 2,000 and issued a note payable for the rest of amount.

June 5: made repairs to some customers for 1,500, collected 1,000 in cash and
the balance is due within 15 days.

June 8: Hisham withdrew 700 in cash for personal use.

June 12: purchased some tools from silver star company for 1,200. Made a
800 cash down payment and the remaining is due within 10 days.

June 15: hisham made an additional investment in the business by depositing

5,000 in cash in the company bank account

June 19: collected the remaining amount for services rendered on june 5.

June 22: paid the remaining amount owned to silver star company

June 25: made repairs to some customers for 1,400, collected 900 in cash and
the balance on account within 7 days.

June 27: paid rent for the month of june amounted to 500.

June 30: paid 600 salaries to employees for services rendered during june.

Instructions:

a) prepare journal entries

b) post to ledger accounts (using T account)
c) prepare a trial balance at 30 of june.

Solution

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 Date Account title Acc- Debit Credit
No-
1/6 Cash 1 15,000
Hisham, capital 31 15,000
2/6 Equipment 13 5,000
Cash 1 2,000
Notes payable 22 3,000
5/6 Cash 1 1,000
Accounts receivable 2 500
Repair service revenue 33 1,500
8/6 Hisham, drawing 32 700
Cash 1 700
12/6 Furniture 14 1,200
Cash 1 800
Accounts payable 21 400
15/6 Cash 1 5,000
Hisham, capital 31 5,000
19/6 Cash 1 500
Accounts receivable 2 500
22/6 Accounts payable 21 400
Cash 1 400
25/6 Cash 1 900
Accounts receivable 2 500
Repairs service revenue 33 1,400
27/6 Rent expense 41 500
Cash 1 500
30/6 Salaries expense 42 600
Cash 1 600

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Second : post to ledger accounts by using T – account
Cash (1)
1/6 15,000 2/6 2,000
5/6 1,000 8/6 700
15/6 5,000 12/6 800
19/6 500 22/6 400
25/6 900 27/6 500
30/6 600
Balance 30/6 17,400

22,400 22,400

Balance 1/7 17,600

Accounts Receivable (2)

5/6 500 19/6 500
25/6 500 balance 30/6 500

1,000 1,000

Balance 1/7 500

Equipment (13)
2/6 5,000 bal 30/6 5,000

5,000 5,000

Balance 1/7 5,000

Tools (14)
12/6 1,200 bal 30/6 1,200

1,200 1,200

Balance 1/7 1,200

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 Accounts Payable (21)
22/6 400 12/6 400

400 400

Balance 1/7 -0-

Notes Payable (22)

Balance 30/6 3,000 2/6 3,000

3,000 3,000

Balance 1/7 3,000

Hisham, Capital (31)

Bal 30/6 20,000 1/6 15,000
15/6 5,000

20,000 20,000

Balance 30/6 20,000

Hisham, Drawing (32)

8/6 700 bal 30/6 700

700 700

Balance 1/7 700

Repair service Revenue (33)

Balance 30/6 2,900 5/6 1,500
25/6 1,400

2,900 2,900

Balance 1/7 2,900

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 Rent Expense (41)
27/6 500 bal 30/6 500

500 500

Balance 1/7 500

Salaries Expense (42)

30/6 600 balance 30/6 600

600 600

Balance 1/7 600

C) Trial balance
Account title Debit Credit
Cash 17,400
Accounts Receivable 500
Equipment 5,000
Tools 1,200
Accounts Payable -0-
Notes Payable 3,000
Hisham, Capital 20,000
Hisham, Drawing 700
Repairs service Revenue 2,900
Rent Expense 500
Salaries Expense 600

25,900 25,900

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