Accounting Project 2: Journal Entries, Ledger, and Trial Balance

This document presents a comprehensive solution to an accounting project based on the transactions of Nancy Williams' Bookkeeping Service during its first month of operation. The solution meticulously records each transaction in the general journal, including the initial capital investment, equipment purchase, supplies acquisition (with both cash and credit components), service revenue, and various expense payments (rent, salaries, and creditor payments). Following the journal entries, the solution accurately posts all transactions to the general ledger, creating individual accounts for bank, capital, equipment, purchases, cash, creditors, services, rent, and salaries & wages. Finally, a trial balance is prepared to ensure the equality of debits and credits, summarizing the financial position of the business at the end of April. The project demonstrates the fundamental accounting cycle, from recording transactions to preparing financial statements.

ACCOUNTING

TABLE OF CONTENTS
PROJECT 2......................................................................................................................................1
Requirements :.............................................................................................................................1
a) Journal Entries.........................................................................................................................1
b) Ledger Postings.......................................................................................................................1
c) Trial Balance............................................................................................................................3

PROJECT 2
Requirements ;
a) Journal Entries
JOURNALS
Date Particulars Debit Credit
01/04/19 Bank 22000
To Capital 22000
06/04/19 Equipment 5000
To Bank 5000
11/04/19 Purchases 960
To Cash 170
To Creditors 790
19/04/19 Cash 6150
To Services 6150
30/04/19 Rent 1000
Salaries & Wages 900
To Bank 1900
30/04/19 Creditors 190
To Bank 190
36200 36200
Interpretations :
April 1 – Depositing the capital amount in bank will increase the capital account and bank
balance.
April 6 – Payment for equipment will decrease the bank balance and increase the equipment
account.
April 11 – Purchases will increase the stock and cash payment will decrease the cash balance and
credit purchase will increase the suppliers account.
April 19 – Sale of services will increase the cash balance.
April 30 – Rent and salaries payment will decrease the bank balance.
April 30 – Payment of suppliers will decrease the cash balance and creditors.
b) Ledger Postings
LEDGER ACCOUNTS
1

Bank
Date Particulars Amount Date Particulars Amount
01/04/19 To Capital 22000 06/04/19 Equipment 5000
Rent 1000
Salaries &
Wages 900
Creditors 190
Bal c/d 14910
22000 22000
Capital A/c
Date Particulars Amount Date Particulars Amount
01/04/19 Bank 22000
30/04/19 Bal c/d 22000
22000 22000
Equipment
Date Particulars Amount Date Particulars Amount
06/04/19 To Bank 5000
30/04/19 Bal c/d 5000
5000 5000
Purchases
Date Particulars Amount Date Particulars Amount
11/04/19 To Cash 170
To Creditors 790
30/04/19 Bal c/d 960
960 960
Creditors
Date Particulars Amount Date Particulars Amount
30/04/19 To Bank 190 11/04/19 Purchases 790
30/04/19 Bal c/d 600
790 790
2

Services
Date Particulars Amount Date Particulars Amount
19/04/19 Cash 6150
30/04/19 Bal c/d 6150
6150 6150
Rent
Date Particulars Amount Date Particulars Amount
30/04/19 To Bank 1000
30/04/19 Bal c/d 1000
1000 1000
Salaries & Wages
Date Particulars Amount Date Particulars Amount
30/04/19 To Bank 900
30/04/19 Bal c/d 900
900 900
Cash
Date Particulars Amount Date Particulars Amount
19/04/19 To Services 6150 11/04/19 Purchases 170
30/04/19 Bal c/d 5980
6150 6150
c) Trial Balance
TRIAL BALANCE
Sr.No Particulars Debit Credit
1 Bank 14910
2 Cash 5980
3 Services 6150
4 Purchases 960
5 Creditors 600
6 Equipment 5000
7 Rent 1000
8
Salaries &
Wages 900
3

9 Capital A/c 22000
Total 28750 28750
4

5