Answer to Question #240848 in Accounting for smezgebu

Question

1.     On January 3, 2003, Ale Hab, an ex-manager of the CBE Bole Branch, established his own consultancy business. He named his business "AH Consultancy Services". The objective of the business is to render financial consultancy services to clients on a fee basis. Below are business activities occurred during the first month of operation of the firm (3 to 31 of January, 2003). 

Answer 1

Solution:

The journal entries are as follows:

1.     Dr. Cash A/c                                                20,000

                           Cr. Ale Hab, Capital A/c                             20,000

2.     Dr. Furniture A/c                                          30,000

                           Vr. Ale Hab, Capital A/c                           30,000