Prepare a General Journal and T-Accounts of the following business transactions in Feb 2021.

1. Mr. James organized a company to conduct a business by the name of Friends corp. by working out a partnership deal with 3 close friends namely Alpha, Bravo & Charlie with an equal investment of Rs. 2,500,000/- each
2. Opened a joint account in National Bank with a deposit of 50% of the total investment
3. Purchased an office building in an industrial park for a total price of Rs 2,400,000/- in which 1,500,000/- was applicable to the land & rest to the building. A cash down payment of Rs. 1,100,000/- was made & issued a cheque for the balance amount dated 10^th Feb
4. Hired Mr. John on daily wages as the security supervisor & agreed to pay Rs. 500/- at the closing of each day
5. Received utility bills amounting Rs. 16,800/- and due date is 9^th Feb & a penalty of 10% of late payment
6. Purchased office equipment from Falah corporation on credit amounting Rs. 200,000/- and payments to be made on 8^th Feb equally in cash & cheque
7. An item of worth Rs. 20,000/- in the purchased office equipment was found to be defective & returned, payment is to be adjusted
8. Purchased inventory from Zoho inventory amounting Rs. 1,200,000/- and 25% payment made by cheque and the remaining by cheque in 3 equal instalments on Feb 10^th, 11^th and 14^th respectively
9. Sold inventory amounting Rs. 200,000/- to Mushko electronics on credit
10. Transported the inventory to Mushko electronics, transportation expense Rs. 1500/- paid by the buyer
11. Received a cheque from Mushko electronics dated Feb 13^th
12. Paid the utility bill
13. Laid off Mr. John from his duty as security supervisor

Answer rating: 100% (QA)

General Journal Feb 2 Debit Cash 2500000 x 3 7500000 Credit Capital 2500000 x 3 7500000 Feb 4 Debit ... View the full answer