SECTION A: Case Study A (Total: 30 Marks)

Background and Content:

On 1 March 2021, Ashish starts an accounting practice business under the title Ashish and Associates.

During March 2021, the business completed the following transactions:

March	1	$10 000 cash was deposited in the business bank account. The cash came from Ashish.
	3	$600 000 bank loan was taken out to purchase a property for the office site.
	4	$500 was paid by cash for monthly rent on office equipment.
	15	$1 000 worth of office supplies was purchased; $500 by cash and on $500 on credit.
	20	$100 of accounts payable was paid by cash.
	27	$8,000 of service revenue was earned. This included $1 000 by cash and $ 7 000 on credit.
	30	(i) $4 500 of employees salaries, (ii) $1 200 of insurance, and (iii) $600 of electricity and gas were paid by cash. (Make a single compound entry.)
	30	$3,000 cash was withdrawn by Ashish.

The business uses the following accounts: Cash; Accounts receivable; Supplies; Property; Accounts payable; Loan payable; Ashish, Owners equity (or Capital); Ashish, Drawings; Service revenue; Salary expense; Insurance expense; Electricity and gas expense; Internet expense.

Assessment Tasks:

This case study has five assessment tasks for a total of 30 marks. Answer all five assessment tasks. Start each task on a new page.

1. Journalise each of the above March 2021 transactions, as shown below for the 1 March 2021 transaction. Narrations (Explanations) are not required. (10 Marks)

Use the following table for your journal entries.

Date	Accounts	Debit	Credit
March 1	Cash	10 000
	Ashish, Capital		10 000

2. Post the transactions to the ledgers using T-accounts (or running balance), and the transaction dates as posting references. Label the balance of each account as Bal, and make sure all details are shown in each T-account. (13 Marks)

Here is a T-account you can copy and paste for each account balance

Account balance name
	Ref	Amount	Ref	Amount
	Bal			Bal

3. Prepare the Trial Balance of Ashish and Associates, as at 31 March 2021. (2 Marks)

Insert (i.e. create) a table in the form of a Trial Balance

4. Prepare the Income Statement for Ashish and Associates, for the month ending 31 March 2021. (3 Marks)

5. Prepare the Classified Balance Sheet for Ashish and Associates, as at 31 March 2021.

(2 Marks)