Q.1. Mr.

Waldo started a business “Waldo Printing Services” by investing

cash $30,000. Following transactions pertains to December 2023.
a) Purchased printing press on account $10,000
b) Purchased printing supplies on cash $5,000
c) Completed printing work for a client and collected cash $4,000
d) Salaries paid to workers $1,400
e) Billed client $5000 for printing services rendered on account.
f) Purchased a computer for $2,000, cash paid $500 and singed a note for
the balance amount
g) Received electricity bill for the month $1,500
h) Mr. Waldo withdrew cash from business for his personal needs $1,000
i) Cash collected from a customer to whom services rendered on account in
transaction e
j) Printing supplies on hand $2400
 Analysis of Business Transactions

Title of Classification Type of Normal Increase Effect

account account balance or
Decrease

Cash Asset Real Dr. Increase Dr.

Capital Owner’s equity Personal Cr. Increase Cr.

A Printing Press Asset Real Dr. Increase Dr.

A/c Payable Liability Personal Cr. Increase Cr.

B P. Supplies Asset Real Dr. Increase Dr.

Cash Asset Real Dr. Decrease Cr.

C Cash Asset Real Dr. Increase Dr.

Service Rev Income Nominal Cr. Increase Cr.

D Sal. Exp Expense Nominal Dr. Increase Dr.

Cash Asset Real Cr. Decrease Cr.

E A/c Receivable Asset Personal Dr. Increase Dr.

Service Rev Income Nominal Cr. Increase Cr.

F Computer Asset Real Dr. Increase Dr.

Cash Asset Real Dr. Decrease Cr.
Notes Payable Liability Personal Cr Increase Cr.

G Elec. Exp Expense Nominal Dr. Increase Dr.

A/c Payable Liability Personal Cr. Decrease Cr.

h Drawings Own Withdrawl Nominal Dr. Increase Dr.

Cash Asset Real Dr. Decrease Cr.

I Cash Asset Real Dr. Increase Dr.

A/c Receivable Asset Personal Dr. Decrease Cr.

j Supplies Exp Expense Nominal Dr. Increase Dr.

P. Supplies Asset Real Dr. Decrease Cr.
 Waldo Printing Services
General Journal
For the month of December 2023
Date Description Post Dr. Cr.
Ref
Cash 30000
Capital 30000
A Printing Press 10000
Account Payable 10000
B Printing Supplies 5000
Cash 5000
C Cash 4000
Service Revenue 4000
D Salary Expense 1400
Cash 1400
E Account receivables 5000
Service Revenue 5000
F Computer 2000
Cash 500
Notes Payable 1500
G Elec. Expense 1500
Account Payable 1500
H Drawings 1000
Cash 1000
I Cash 5000
Account Receivables 5000
J Supplies Expense 2600
Printing Supplies 2600

Cash Account

Capital 30000 Printing Supplies 5000

Service Revenue 4000 Salary Expense
1400
Accounts Receivable 5000 Computer 500
Drawings
1000
Balance
31100
39000 39000
 Cash Account
Description P/R Debit Credi Balance
t
Capital 30000 30000 Dr.
Printing supplies 5000 25000 Dr.
Service revenues 4000 29000 Dr.
Salary expense 1400 27600 Dr.
Computer 500 27100 Dr.
Drawings 1000 26100 Dr.
Accounts receivable 5000 31100 Dr.

Normal Balance Debit Normal Balance Credit

Assets Liabilities
Expenses/Losses Capital/ Owner’s equity/
Stockholders equity
Drawings Revenues/Sales/Gains

Waldo Printing Services

Trial Balance
For the month of December 2023
A/C No Title of Account Dr. Cr.
Cash 31100
Capital 30000
Printing Press 10000
Printing Supplies 2400
Account payable 11500
Notes Payable 1500
Service revenue 9000
Salary Expense 1400
Computer 2000
Elec. Expense 1500
Drawings 1000
Supplies Expense 2600
Total 52000 52000
 Waldo Printing Services
Trial Balance
For the month of December 2023
A/C No Title of Account Dr. Cr.
101 Cash 31100
102 Printing Supplies 2400
103 Printing Press 10000
104 Computer 2000
201 Account payable 11500
202 Notes Payable 1500
301 Capital 30000
302 Drawings 1000
401 Service revenue 9000
501 Salary Expense 1400
502 Elec. Expense
503 Supplies Expense 2600
Total 52000 52000

Errors that cause imbalance of

Trial Balance
Transposition error
Slide error
Fail to post one aspect of a business
transaction
Debit posted as credit or credit
posted as debit
Errors that don’t cause imbalance
of Trial Balance
Double transposition error
Double slide error
Fail to record a business transaction
Fail to post both aspects of a
business transactions
Debit posted as credit and credit
posted as debit