DRAFTING OF QUESTION FOR THE MONTH OF AUGUST 2020

MR.A STARTED A BUSINESS OF BIKES ,BUSINESS IS NAMED BIKER STORE HAD THE FOLLOWING TRANSACTION FOR MONTH OF AUGUST

AUGUST 1:- STARTED BUSINESS WITH CASH OF $100000.

AUGUST 5:- PURCHASED BIKES(SUPPLIES) WORTH $50000 ON ACCOUNT FROM XYZ COMPANY.

AUGUST 7:- SOLD BIKE(SALES) FOR $10000 for CASH.

AUGUST 12:- PURCHASED FURNITURE FOR STORE WORTH $5000 ON CASH.

AUGUST 15:-TOOK A LOAN FROM an opposite business company FOR $20000.

AUGUST 20:-SOLD BIKE(SALE) FOR $15000 ON ACCOUNT.

AUGUST 25:-SOLD BIKE(SALE) FOR $10000 FOR CASH

AUGUST 26:-PAID $20000 TO XYZ COMPANY.

AUGUST 28:-RECEIVED A CASH OF $10000 FROM ACCOUNT RECEIAVBLE .

AUGUST 30:-PAID SALARIES TO WORKER $1500.

AUGUST 31:- Paid 2000$ for dividends

Date	Accounts/Explanations	Debit ($)	Credit ($)
Aug-01	Cash	1,00,000
	Mr. A Capital		1,00,000
Aug-05	Supplies - Bikes	50,000
	Accounts Payable - Xyz Co.		50,000
Aug-07	Cash	10,000
	Sales Revenue		10,000
Aug-12	Furniture	5,000
	Cash		5,000
Aug-15	Cash	20,000
	Laon		20,000
Aug-20	Accounts Receivables	15,000
	Sales Revenue		15,000
Aug-25	Cash	10,000
	Sales Revenue		10,000
Aug-26	Accounts Payable - Xyz Co.	20,000
	Cash		20,000
Aug-28	Cash	10,000
	Accounts Receivables		10,000
Aug-30	Salaries Expenses	1,500
	Cash		1,500
Aug-31	Dividend	2,000
	Cash		2,000

Based on the work in step 6 of the accounting cycle , You are requested to journalize and post closing entries (step 8) for your chosen business during the month of August 2020!