The following data is assembled from the accounting records of Subhan Industries, Islamabad. a) The company...
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The following data is assembled from the accounting records of Subhan Industries, Islamabad. a) The company borrowed Rs. 500,000 from the bank on November 01, 2019 issuing a Provisory Note which is payable after 03 months with an interest rate of 18% per annum. b) The company paid Rs. 136,000 for a fire insurance policy of stock covering a period of two years beginning from 01 October 2019. The Payment was recorded in prepaid Insurance Account. c) A note receivable of Rs. 600,000 dated 01 September 2019 was received from a customer in payment of his account. This note receivable could be collected after 6 months. d) The company collected an amount of Rs. 27,000 representing rent from the cafeteria contractor alongside the premises for a period of 06 months commencing from 01 August 2019. The amount was credited to the Unearned Rented Revenues. Required: Record necessary adjusting journal entries in the accounts which are closed on 31 December each year. The following data is assembled from the accounting records of Subhan Industries, Islamabad. a) The company borrowed Rs. 500,000 from the bank on November 01, 2019 issuing a Provisory Note which is payable after 03 months with an interest rate of 18% per annum. b) The company paid Rs. 136,000 for a fire insurance policy of stock covering a period of two years beginning from 01 October 2019. The Payment was recorded in prepaid Insurance Account. c) A note receivable of Rs. 600,000 dated 01 September 2019 was received from a customer in payment of his account. This note receivable could be collected after 6 months. d) The company collected an amount of Rs. 27,000 representing rent from the cafeteria contractor alongside the premises for a period of 06 months commencing from 01 August 2019. The amount was credited to the Unearned Rented Revenues. Required: Record necessary adjusting journal entries in the accounts which are closed on 31 December each year.
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Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date:
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