Accounting Test Question No 1. On The Recording Process
Posted by: slang in Recording ProcessThe below question is testing the candidate on the understanding on the recording process. You are required to understand the debit and credit rules, how to journalize and post to 3 column ledger as well as on the preparation of a trial balance .
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Mr X opened X Company which engaged in consultancy business. Append below the transactions during March 2007: Mar 1. Commence business by investing $25,000 cash and office equipment which is valued at $5,000 Mar 3. Bought $2,300 for office supplies on credit. Mar 10 Have invoiced Company ABC for completed consultancy work of $3,100 of which $2,100 cash was received and the remaining still outstanding. Mar 11. Paid $1,500 for the supplies purchased on Jan 3. Mar 15. Paid for the annual premium on insurance policy for $850 Mar 20. Received cash on the outstanding sum of $1,100 from Company ABC for the work completed on Mar 10 Mar 25. Mr X withdrew $500 cash from the business for his personal use. Mar 29. Paid $200 cash for utility bills. Mar 29. Received $1,500 cash in advance being consulting services to be rendered in April. Mar 31. Have ascertained that the cost of supplies on hand was $550 Required:
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