Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(b) Discuss in brief about cash basis accounting and accrual basis accounting. 102] (e) Mr. Arif started his own business, Arif Consultancy on March 01,

image text in transcribed

(b) Discuss in brief about cash basis accounting and accrual basis accounting. 102] (e) Mr. Arif started his own business, Arif Consultancy on March 01, 2020. The trial balance for Arif Consultancy" on March 31, 2020 is shown below. Arif Consultancy Trial Balance March 31, 2020 Account titles Debit (Tk.) Credit (Tk.) Cash 65,000 Supplies 8,500 Prepaid Insurance 12,000 Machinery 80,000 Office Furniture 30,000 Accounts Payable 25,000 Unearned Service Revenue 15,000 Mortgage Payable 50,000 Arif's Capital 1,10,000 Arif's Drawing 10,000 Service Revenue 20,500 Advertising Expense 6,000 Rent Expense 9,000 Total 2.20.500 2.20.500 Other data: a) Supplies on hand during the month Tk 3,500 b) Annual depreciation is Tk. 8,000 on machinery and Tk. 3,000 on office furniture. c) One-third of the unearned service revenue has been earned during the month. d) Prepaid Insurance is a 1-year policy starting March 1, 2020. e) The mortgage interest rate is 9% (The mortgage has been taken out on March 31). 1) Services have been provided but not recorded at March 31 are Tk. 4,500. Instruction: Prepare the adjusting entries for the above data on March 31, 2020. [06]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting Uk Gaap Volume 1

Authors: Frank Wood, Alan Sangster

1st Edition

0273718762, 9780273718765

More Books

Students also viewed these Accounting questions

Question

What is a polytomous variable?

Answered: 1 week ago

Question

Explain what makes the structure of the human language so unique

Answered: 1 week ago

Question

Compare and contrast large and small power distance cultures

Answered: 1 week ago