Question

Sun Consultancy provides special consultancy services to its clients. It started its operation on January 1, 2018. An un-adjusted trial balance as on May 31, 2018 for this firm is given below.  
Sun Consultancy
Trial Balance
As on May 31, 2018
Serial #   List of Accounts   Debit (Rs)   Credit (Rs)
1   Cash 97,300     
2   Accounts receivable 10,400     
3   Office supplies 15,000     
4   Prepaid insuran ce 12,000     
5   Furniture 40,000     
6   Car 50,000     
7   Accumulated depreciation-car 7,600
8   Unearned revenue 1,760
9   Drawings 2,000     
10   Capital 150,000
11   Service revenue 37,300
12   Accounts payable 7,600
13   Loan payable 50,000
14   Salaries expense 9,000     
15   Depreciation expense   1,560     
16   Rent expense 17,000     
    Total 254,260 254,260
          
Following additional information is revealed for adjustments at May 31, 2018;
Office supplies of Rs 7,600 were consumed during month.
Salaries earned by employees for second half of May Rs 9,000 were neither paid not recorded.
Rs 2,500 of prepaid insurance was expired during the month but was not recorded.
Accounts payable were paid 1/2 during May but no entry was made in the books.
Remaining balance of unearned revenue was Rs 1,200 at the end of the month.
Cash received Rs 4,400 from account receivable but not recorded.
The interest rate on Loan payable is 15% (The Loan was taken out on April 1.)
Invoices representing Rs 4,600 of services performed during the month have not been recorded.

REQUIRED
Prepare adjusting entries at May 31, 2018.

Answer 1