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Accounting

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Question.1: Selected transactions for A. Aslam, a property manager, in her first month of business, are as follows.                                                                                                                                (05)                                                                                                                                                      

Jan. 2    Invested RS15,000 cash in business.

         3    Purchased used car for RS5,200 cash for use in business.

         9    Purchased supplies on account for RS500.

         11 Billed customers RS2,100 for services performed.

         16 Paid RS450 cash for advertising.

         20 Received RS1,300 cash from customers billed on January 11.

         23 Paid creditor RS300 cash on balance owed.

         28 Withdrew RS2,000 cash for personal use of owner.

Instructions

For each transaction indicate the following.

(a) The basic type of account debited and credited (asset (A), liability (L), owner’s equity (OE)).

(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).

(c) Whether the specific account is increased or decreased.

(d) The normal balance of the specific account.

Use the following format, in which the January 2 transaction is given as an example.

                              Account Debited                                      Account Credited

                 (a)         (b)          (c)            (d)            (a)           (b)            (c)           (d)

            Basic Specific                    Normal     Basic      Specific Normal

Date    Type Account    Effect     Balance     Type      Account    Effect     Balance

Jan. 2      A      Cash          Incr.        Debit        OE          Owner’s    Incr.        Credit

                                                                                          Capital