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QUESTION 9 Amelias Maid Company offers home-deaning service. Two recurring transactions for the company are billing customer
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Dear Mr. XYZ

Amellia Maid Company is involved in home cleaning service where there are number of freelance maids been hired by the company and seconded to the customers in lieu of the service fees. Company has two main transactions of paying the salary to maids as per contract and issuing invoice to the customers. These will be recorded continually and their journal entries would be as follows:

For salary:

Date Particulars Debit   Credit
**** Salary Expense ***
Cash ****
(being salary paid recorded)

For service revenue:

Date Particulars Debit   Credit
**** Accounts receivable ***
Service revenue ****
(being invoice issued for the service charges)

Hope this helps.

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