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

** You are requested to prepare a post-closing trial (step 9] for your chosen business during the month of August 2020!

Trial Balance Cash Accounts Receivable Supplies-Bikes Furniture Accounts Payable - Xyz Co. Loan Mr. A Capital Dividend Sales Revenue Salaries Expenses Debit Credit $ 1,21,500 $ 5,000 $ 50,000 $ 5,000 $ 30,000 $ 20,000 $ 1,00,000 $ 2,000 $ 35,000 $ 1,500 $ 1,85,000 $ 1,85,000 $ Sales Revenue Date Particulars Amount Date Particulars Aug-07 Cash Aug-20 Cash Aug-31 Income Summary $ 35,000 Aug-25 Cash $ 35,000 Amount $ 10,000 $ 15,000 $ 10,000 $ 35,000 Date Particulars Aug-30 Cash Salaries Expenses Amount Date Particulars Amount $ 1,500 Aug-31 Income Summary $ 1,500 $ 1,500 $ 1,500 Date Particulars Aug-31 Dividend Aug-31 Balance c/d Mr. A Capital Amount Date Particulars Amount $ 2,000 Aug-01 Cash $ 1,00,000 $1,31,500 Aug-31 Income Summary $ 33,500 $1,33,500 $ 1,33,500 Date Particulars Aug-31 Cash Dividend Amount Date Particulars $ 2,000 Aug-31 Mr. A Capital Amount $ 2,000 $ 2,000 $ 2,000 Credit Closing Entries Date Particulars Aug-31 Sales Revenue Income Summary (to close revenue accounts) Debit $ 35,000 $ 35,000 $ 1,500 Aug-31 Income Summary Salaries Expenses (To close Expense account) $ 1,500 $ 33,500 Aug-31 Income Summary Mr. A Capital (To close income summary account) $ 33,500 $ 2,000 Aug-31 Mr. A Capital Dividend (To close drawings account) $ 2,000