Question

Course WUIK Prepare Journal, Ledger & Trial Balance with the help of following transactions in the books of Mr. Jacob the year 2020 Feb-3rd Business started with cash- AED 600,000 2. Feb -5th Machinery purchased- AED 175,000 3 Feb-8th - Cash sales- AED 55,000 4. Feb - 10th - Rent paid- AED 20,000 5. Feb - 12th - Credit Purchases from Thomas - AED 70,000 6. Feb 26th-Cash paid to Mr. Thomas- AED 30,000 7. Feb 27th - Vehicle purchased for cash -AED 50,000

Answer 1

Journal Entry
Date	Accounts & Explanations	Debit	Credit
2020	Cash	600000
Feb,3	Jacob,Capital		600000
	(To invest cash in Business)
Feb,5	Machinery	175000
	Cash		175000
	(To purchase machinery on cash)
Feb,8	Cash	55000
	Sales		55000
	(To sale inventory on cash)
Feb,10	Rent Expenses	20000
	Cash		20000
	(To pay rent expenses)
Feb,12	Merchandise Inventory	70000
	Accounts payable-Thomas		70000
	(To purchase inventory on account)
Feb,26	Accounts Payable-Thomas	30000
	Cash		30000
	(To pay on account)
Feb,27	vehicle	50000
	Cash		50000
	(To purchase vehicle on cash)

ACCOUNT Cash
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,3	Capital		600000		600000
Feb,5	Machinery			175000	425000
Feb,8	Sales		55000		480000
Feb,10	Rent			20000	460000
Feb,26	Accounts Payable			30000	430000
Feb,27	Vehicle			50000	380000
ACCOUNT Capital
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,3	Cash			600000		600000
ACCOUNT Machinery
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,5	Cash		175000		175000
ACCOUNT Vehicle
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,27	Cash		50000		50000
ACCOUNT Merchandise Inventory
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,12	Accounts payable		70000		70000
ACCOUNT Sales Revenue
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,8	Cash			55000		55000
ACCOUNT Rent Expenses
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,10	Cash		20000		20000
ACCOUNT Accounts Payable-Thomas
					Balance
Date	Item	Post Ref.	Debit	Credit	Debit	Credit
Feb,12	Merchandise inventory			70000		70000
Feb,26	Cash		30000			40000

Mr. Jacob
Trial Balance
As on Feb 29,2020
Particulars	Debit	Credit
Cash	380000
Capital		600000
Machinery	175000
Vehicles	50000
Merchandise Inventory	70000
Accounts Payable		40000
Sales Revenue		55000
Rent Expenses	20000
Grand total	695000	695000