2.

LEDGER POSTING

2.2 Mr.Z established Computer Care Ltd. During August she completed the following transactions.
You are required to prepare journal, post entries in ledger and prepare a trial balance on
31-10-2020.
1-10-20 Deposited Rs.40,000 in the company’s bank account in exchange for 4000 shares.
2-10-20 Paid two months office rent in advance Rs.2,200
3-10-20 Bought testing equipment on credit Rs.6,500.
4-10-20 Bought office supplies for cash Rs.480.
7-10-20 Received fees for services provided Rs.6,900.
13-10-20 Ordered testing equipment Rs.3,200.
16-10-20 Paid assistants salaries for first fortnight Rs.2,300.
19-10-20 Billed customers for services provided Rs.9,700.
20-10-20 Received testing equipment ordered on 13-8-20 and agree to pay for it on 5-11-20.
28-10-20 Paid telephone bill for the month Rs.390.
29-10-20 Received cash for services to be provided later Rs.2,700.
30-10-20 Paid assistants salaries for second fortnight Rs.2,300.

Journal entries in the books of Computer Care Ltd.

Date Particulars L. F. No Dr. [Rs.] Cr. [Rs.]
1-10-20 Bank A/c Dr. 40,000 ------
To Share capital A/c ------ 40,000
[Being amount deposited in bank for exchange
of shares]
2-10-20 Office rent A/c Dr. 2,200 -----
To Cash A/c ------ 2,200
[Being office rent paid in advance]
3-10-20 Testing equipment A/c Dr. 6,500 -----
To Creditors A/c ----- 6,500
[Being equipment bought on credit]
4-10-20 Office supplies A/c Dr. 480 -----
To Cash A/c ------ 480
[Being office supplies purchased]
7-10-20 Cash A/c Dr. 6,900 -----
To Customers A/c ----- 6,900
[Being fees received for services provided]
16-10-20 Assistant’s salaries A/c Dr. 2,300 -----
To Cash A/c. ------ 2,300
[Being salaries for first fortnight ]
19-10-20 Cash A/c Dr. 9,700 ------
To Customers A/c ------ 9,700
[Being Cash received for services]
20-10-20 Testing equipment A/c Dr. 3,200 -----
To Creditors A/c ------ 3,200
[Being equipment bought on credit]
28-10-20 Telephone expenses A/c Dr. 390 -----
 To Cash A/c ----- 390
[Being telephone bill paid]
29-10-20 Cash A/c Dr. 2,700 -----
To Customers A/c ------ 2,700
[Being cash received for the services to be
provided later]
30-10-20 Assistant’s Salaries A/c Dr. 2,300 -----
To Cash A/c ----- 2,300
[Being salaries paid for next fortnight]
31-10-20 Total 76,670 76,670

Ledger Accounts of Computer Care Ltd.

Dr. Bank A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
1-10-20 To Share capital A/c 40,000
31-10-20 By Balance C/d 40,000
40,000 40,000
1-11-20 To Balance B/d 40,000

Dr. Share Capital A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
1-10-20 By Bank A/c 40,000
31-10-20 To Balance C/d 40,000
40,000 40,000
1-11-20 By Balance B/d 40,000

Dr. Office Rent A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
2-10-20 To Cash A/c 2,200
31-10-20 By Balance C/d 2,200
2,200 2,200
1-11-20 To Balance B/d 2,200

Dr. Testing equipment A/c Cr.

 Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
3-10-20 To Creditors A/c 6,500
20-10-20 To Creditors A/c 3,200 31-10-20 By Balance C/d 9,700
9,700 9,700
1-11-20 To Balance B/d 9,700

Dr. Cash A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
7-10-20 To Customers A/c 6,900 2-10-20 By Office rent 2,200
A/c
19-10-20 To Customers A/c 9,700 4-10-20 By Office 480
supplies A/c
29-10-20 To Customers A/c 2,700 16-10-20 By Assistant’s 2,300
salary A/c
28-10-20 By Telephone 390
expenses A/c
31-10-20 By Assistant’s 2,300
salary A/c
31-10-20 By Balance C/d 11,630
19,300 19,300
1-11-20 To Balance B/d 11,630

Dr. Creditors A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
3-10-20 By Testing 6,500
equipment A/c
20-10-20 By Testing 3,200
equipment A/c
31-10-20 To Balance C/d 9,700
9,700 9,700
1-11-20 By Balance B/d 9,700

Dr. Office Supplies A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
4-10-20 To Cash A/c 480
31-10-20 By Balance C/d 480
480 480
1-11-20 To Balance B/d 480
Dr. Customers A/c Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
7-10-20 By Cash A/c 6,900
19-10-20 By Cash A/c 9,700
29-10-20 By Cash A/c 2,700
31-10-20 To Balance C/d 19,300
19,300 19,300
1-11-20 By Balance B/d 19,300

Dr. Assistant’s salary A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
16-10-20 To Cash A/c 2,300
30-10-20 To Cash A/c 2,300 31-10-20 By Balance C/d 4,600
4,600 4,600
1-11-20 To Balance B/d 4,600

Dr. Telephone expenses A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
No. [Rs.] No. [Rs.]
28-10-20 To Cash A/c 390
31-10-20 By Balance C/d 390
390 390
1-11-20 To Balance B/d 390

Trial balance of Computer Care Ltd. as on 31-10-2020

S.No Name of Account L. F. No Debit [Rs.] Credit [Rs.]
1 Share capital A/c ------ 40,000
2 Bank A/c 40,000 --------
3 Office rent A/c 2,200 --------
4 Cash A/c 11,630 --------
5 Testing equipment A/c 9,700 --------
6 Creditors A/c --------- 9,700
7 Office supplies A/c 480 --------
8 Customers A/c -------- 19,300
9 Assistant’s salary A/c 4,600 --------
10 Telephone expenses A/c 390 --------
Total 69,000 69,000