Q. Mr.

Rishi is a Delhi based advocate who independent practices in different courts of Delhi
including Delhi HC, Tees Hazari court, NCLT. He’s having his office at Defence colony, New
Delhi. Please pass the journal entry in the books of accounts of Advocate Rishi for the financial
year ending 31st march 2021

1. Mr. Rishi deposited Rs. 30,00,000/- in his bank account in the form of capital.

2. Mr. Rishi purchased office equipment including furniture, chairs etc. in case of Rs. 1,50,000/-.

3. Advocate Rishi brought books for his law library worth Rs. 2,00,000/- and issue a cheque for
the same

4. Mr. Bajpayee client of Mr. Rishi paid an advance amount for the legal expenses incurred by
advocate in his case for worth Rs. 50,000/-

5. Advocate Rishi paid salary to his office staff including cleaner, assistant and junior associates
for Rs. 5,00,000/-

6. Adv. Rishi withdraws Rs. 50,000/- for his personal use

7. Adv. Rishi fought and won a case for the client Mr. Jatwa and legal fees for the same is due
worth Rs. 8,00,000/-

8. The stationery & files purchased for the office use worth Rs. 40,000/-

9. Adv. Rishi paid prepaid rent for the year for his house worth Rs. 2,40,000/-

10. Legal fees paid by the client Mr. Vibhor for filing of the property suit in court worth Rs.
1,25,000/-.

11. Adv. Rishi took bank loan for the purpose of purchasing and starting new law office in
Greater Noida worth Rs. 80,00,000/-.

12. Miscellaneous expenses totaled for Rs. 20,000/-

13. Received Rs. 8,00,000/- as legal fees which was due from Mr. Jatwa

14. Paid the premium for a one-year fire insurance policy on the equipment and library 2,000/-

15. Printing expenses were paid worth Rs. 30,000/-

16. Electricity Bill paid for the office Worth Rs. 15,000/-

17. Mr. Raina incurred legal fee for his Divorce case worth Rs. 10,00,000/- out of which he paid
50% of the legal fee ad rest half of the amount is due.
18. Mr. Raina paid remaining legal fees worth Rs. 5,00,000/-

19. Payment of 1st installment to the bank was started through paying Rs. 10,00,000/-

20. Purchased furniture for new office of Greater Noida worth Rs. 3,00,000/-

In the books of Adv. Rishi

As of year ending 31st March 2021

S No. Particulars Account (Dr.) Account (Cr.)

1. Bank A/c. 30,00,000/-
To Capital Account 30,00,000/-
(Advocate Rishi deposited Rs. 30,00,000 in bank
account as a form of capital)
2. Office Equipment A/c. 1,50,000/-
To cash account 1,50,000/-
(The office equipment purchased in a cash by
Mr. Rishi)
3. Library books A/c. 2,00,000/-
To Bank a/c. 2,00,000/-
(Rishi purchase a books for his law library worth
Rs. 2,00,000/- and issued a cheque towards the
payment of the books)
4. Cash A/c. 50,000/-
To Mr. Bajpayee 50,000/-
( Mr. Bajpayee being client of Advocate Rishi
paid Rs. 50,000 for expenses incurred in his
case)
5. Salaries A/c 5,00,000/-
To Cash A/c. 5,00,000/-
(Advocate Rishi paid salary to his office staff
and junior associates )
6. Drawings A/c. 50,000/-
To Bank A/c. 50,000/-
(Adv. Rishi withdraws money for his personal
use)
7. Mr. Jatwa (Client) 6,00,000/-
To Legal fee A/c. 6,00,000
(Legal fee form Mr, jatwa is pending for the case
advocate fought in)
8. Stationary A/c. 40,000/-
To Cash A/c. 40,000/-
(Stationaries purchased for office use)
9. Prepaid Rent A/c. 2,40,000/-
 To Cash A/c. 2,40,000/-
(Prepaid rent paid for the year)
10. Bank A/c. 1,25,000/-
Mr. Vibhor A/c. 1,25,000/-
(Legal fee was received from Mr. Vibhor for
filing of the Property suit)
11. Bank A/c 80,00,000/- 80,00,000/-
Loan A/c.
(Being bank loan took by Adv. Rishi for the
purpose of purchasing new office in Greater
Noida)
12. Miscellaneous Expenses 20,000/-
To Cash A/c. 20,000/-
(Being miscellaneous expenses paid in cash)
13. Bank A/c. 6,00,000/-
To Mr. Jatwa A/c. 6,00,000/-
(Legal fees received from Mr. Jatwa which was
pending before)
14. Fire Insurance policy A/c. 2,000/-
To Prepaid insurance A/c. 2,000/-
(amount paid for fire insurance policy for 1 year)
15. Printing A/c. Dr. 30,000/-
To Cash A/c. 30,000/-
(Expenses for printing of documents were paid)
16. Electricity Bill A/c. 15,000/-
To Bank A/c. 15,000/-
(Being electricity bill paid for the office)
17. Bank A/c. 5,00,000/-
Mr. Raina A/c. (Client) 5,00,000/-
To Legal Fee A/c. 5,00,000/-
To Mr. Raina A/c. (Client) 5,00,000/-
(Being 50% amount for the case as a legal fee
paid by Mr. Raina and 50% is due)
18. Bank A/c. 5,00,000/-
To Mr. Raina A/c. (Client) 5,00,000/-
(Remaining legal fee paid by Mr. Raina )
19. Loan A/c. 8,00,000/-
To Bank A/c. 8,00,000/-
st
(1 installment for the loan is paid by Adv.
Rishi)
20. Furniture A/c. 3,00,000/-
To Cash A/c. 3,00,000/-
(Being amount paid for buying furniture for new
office of Greater Noida)
 Ledger Accounts

Cash A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Mr. Bajpayee 50,000/- By Salaries 5,00,000/-
By Stationary 40,000/-
By Prepaid Rent 2,40,000/-
By Office Equipment 1,50,000/-
By Miscellaneous Expense 20,000/-
By Printing 30,000/-
By Furniture 3,00,000/-
Balance c/d 12,30,000/
-
12,80,000/ 12,80,000/-
-

Bajpayee A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
By Cash 50,000/-
Balance c/d. 50,000/-
50,000/- 50,000/-

Salaries A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Cash A/c. 5,00,000/-
Balance c/d. 5,00,000/-
5,00,000/- 5,00,000/-

Stationary A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Cash A/c. 40,000/-
Balance c/d 40,000/-
40,000/- 40,000/-
 Prepaid Rent

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Cash A/c. 2,40,000/-
Balance c/d 2,40,000/-
2,40,000/- 2,40,000/-

Bank A/c.

Particulars Amount (Rs.) Particulars Amount (Rs.)

To Capital A/c. 30,00,000/- By Library Books 2,00,000/-
To Mr. Vibhor 1,25,000/- By Drawings 50,000/-
To Loan 80,00,000/- By Bank 15,000/-
To Mr. Jatwa 6,00,000/- By Loan A/c. 8,00,000/-
To Mr. Raina (Client) 5,00,000/-
To Mr. Raina (Client) 5,00,000/-
To electricity bill 15,000/- Balance c/d 1,06,45,000/-
1,27,40000/ 1,27,40000/-
-

Adv. Rishi Capital A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
By Bank 30,00,000/-
Balance c/d 30,00,000/-
30,00,000/- 30,00,000/-

Office Equipment A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Cash A/c. 1,50,000/-
By Balance c/d 1,50,000/-
1,50,000/- 1,50,000/-
 Library Books A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Bank 2,00,000/-
Balance c/d. 2,00,000/-
2,00,000/- 2,00,000/-

Drawings A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Bank A/c. 50,000/-
By balance c/d. 50,000/-
50,000/- 50,000/-

Mr. Jatwa A/c. (Client)

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Legal Fee A/c. 6,00,000/- By Bank 6,00,000/-

6,00,000/- 6,00,000/-

Legal Fee Ac/.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
By Mr. Jatwa 6,00,000/-
By Mr. Raina 5,00,000/-
Balance c/d. 11,00,000/-
11,00,000/- 11,00,000/-

Mr. Vibhor A/c. (Client)

Particulars Amount Particulars Amount

(Rs.) (Rs.)
 By Bank 1,25,000/-
Balance c/d/ 1,25,000/-
1,25,000/- 1,25,000/-

Loan A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Bank 8,00,000/- By Bank 80,00,000/-

Balance c/d 72,00,000/-

80,00,000/- 80,00,000/-

Miscellaneous Expense A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Cash A/c. 20,000/-
Balance c/d. 20,000/-
20,000/- 20,000/-

Fire Insurance policy A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Prepaid Insurance 2,000/-
Balance c/d. 2,000/-
2,000/- 2,000/-

Prepaid Insurance A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
By Fire Insurance policy A/c. 2,000/-
Balance c/d. 2,000/-
2,000/- 2,000/-

Printing A/c.

Particulars Amount Particulars Amount

 (Rs.) (Rs.)
To Cash A/c. 30,000/-
Balance c/d. 30,000/-
30,000/- 30,000/-

Electricity Bill A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
By Bank A/c. 15,000/-
Balance c/d. 15,000/-
15,000/- 15,000/-

Mr. Raina A/c.

Particulars Amount Particulars Amount

(Rs.) (Rs.)
To Legal fee 5,00,000/- By Bank 5,00,000/-
Balance c/d. 5,00,000/- By Bank 5,00,000/-
10,00,000/- 10,00,000/-

Furniture A/c.

Part.iculars Amount Particulars Amount

(Rs.) (Rs.)
To Cash A/c. 3,00,000/-
Balance c/d. 3,00,000/-
3,00,000/- 3,00,000/-