Question

Q1- Provide an example of each title here and then record the journal entries .

Following is the first given answer.

1-Providing consulting services receiving cash.

Given answer:

Ali company provides consulting service and receives 1,000 cash.

Cash. 1,000

Consulting Revenue. 1,000

2-Issuing common stocks receiving cash.

3-Purchasing land for cash.

4-Purchasing supplies on credit.

5-Borrowing money from a bank.

6-Paying employees their salaries.

Answer 1

1. ABC Company provided consultancy services to XYZ ltd for cash $2000.

Cash A/C. Dr. $2000

To Consulting Revenue A/C. $2000

2. Royal Ltd issued 10,000 number of common stocks for $10 per share for cash.

Cash A/C. Dr. $100,000

To Share capital A/C $100,000

3. PQR COMPANY PURCHASES FREEHOLD LAND FOR $250,000 IN CASH.

FREEHOLD LAND A/C. DR. $250,000

TO CASH A/C. $250,000

4. PQR PURCHASES SUPPLIES WORTH $50000 ON CREDIT BASIS FROM ITS SUPPLIER FREEDOM LTD

PURCHASES A/C. DR. $50,000

TO FREEDOM LTD $50,000

5. PQR BORROWED $200,000 FROM ZED BANK IN SECURITY OF LAND, INTEREST PAYABLE @5%.

BANK A/C. DR. $200,000

TO LOAN A/C. $200,000

6. PQR PAID SALARY TO ITS EMPLOYEES FOR THE MONTH OF SEPTEMBER 2019 AMOUNTING TO $60,000

SALARY AND WAGES A/C DR. $60,000

TO BANK A/C. $60,000