Answer to Question #296485 in Accounting for yamiro

Question

i. On January 3, 2011 Gadi computer service business by investing birr 100,000 cash and equipment having birr 60,000 market value

ii. On January 6,2011 purchased office furniture on account for birr 400

iii. On January 9, 2011 purchased office furniture is purchase for birr 350 cash

iv. On January 15, 2011 paid birr 500 as partial settlement of January 3, 2009 borrowing

v. On January 21, 2011 received birr 150 from sale of old office furniture.

Required: -

ADAPT and ADOPT’S proceeds from the bank and compute recorded to discounting of note.

Answer 1

i.Debit investments in non-current assets credit cash desk - 100 000

ii.Debit materials credit cash desk - 400

Debit general business credit cash desk - 400

iii.Debit materials credit cash desk - 350

Debit general business credit cash desk - 350

iV.Debit short-term loans and loans credit cash desk - 500

v.Debit cash desk credit settlements with different creditors and debtors - 150