Question
Lakshman Singh set up Wide Awake Security Company in January 2019 to provide security services. The following transactions took place in the first month: (10
Lakshman Singh set up Wide Awake Security Company in January 2019 to provide security services. The following transactions took place in the first month: (10 marks) a. Singh invested cash in the company's share capital, RS. 50,000. b. Appointed 5 security guards on a monthly salary of RS. 500 each. c. Rented office space and paid a deposit of RS. 10,000. d. Paid advertisement charges, RS. 1,800. e. Received cash from customers for the services to be provided, RS. 11,000. f. Purchased supplies for cash, RS. 5,000. g. Purchased equipment on credit, RS. 25,000. h. Paid rent for the first three months, RS. 3,000. i. Billed customers for the services provided, RS. 7,300. j. Paid telephone expense, RS. 775. k. Provided services for cash, RS. 5,450. l. Paid security guards' salaries. m. Paid for equipment in (g), RS. 6,000. n. Returned defective supplies and received refund, RS. 1,000.
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