Ms. Samina Noreen a Lawyer started his new business in Chiniot, Samina and Zafar law associates. She incurred the

Question

Ms. Samina Noreen a Lawyer started his new business in Chiniot, Samina and Zafar law associates. She incurred the following transactions during the Month of December 2020. She adjusts and closes accounts on monthly basis. 1st December: She introduces capital in the business Rs. 5000,000. 5th December: Acquired land and building worth Rs.2500,000. Payment was made through check Rs.1300,000 and remaining balance through issuance of 12.5%. p.a. Notes payable. 10th December: S.K mart want to obtain legal consultancy from Ms. Samina Noreen for future period and made advance payment of Rs. 108,000. 20th December: Wages and salary paid to employees for first three week of December Rs.60,000. 22nd December: Purchased office supplies Rs.12,000 on account. The supplies will last for several months. Data for Adjustments: The life of the building was 50 years. The interest for the month of December is accrued; legal services which were rendered to S.K mart during the month of December were

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Date Particulars Debit Credit 31-Dec Depreciation Expenses (2500000/10/12) 20,833 To Accumalated Depreciation -Building 20,833 (Being depreciation recorded for December) 31-Dec Interest Expense ((1200000*12.5%)/12 *27/31) 10,887 To Interest Payable 10,887 ( Being Interet on notes payable recorded) 31-Dec Unearned Service Revenue 25,000 To Service Revenue 25,000 ( Being revenue for December adjusted ) 31-Dec Salaries expenses 20,000 To Salaries Payable 20,000 ( Being Salary for December recorded) 31-Dec Supplies Expenses (12000-11500) 500 To Supplies 500 ( Being supplies expenses for Decmeber recorded) Samina and Zafar Law Associates Adjusted Trial Balance for the month of December Particulars Debit Credit Land and Building 2,500,000 Accumalated Depreciation -Building 20,833 Cash (working) 3,836,000 Supplies 11,500 Notes Payable 1,300,000 Salaries Payable 20,000 Interest Payable 10,887 Unearned Service Revenue (108000-25000) 83,000 Capital 5,000,000 Service Revenue 25,000 Salaries expenses 80,000 Supplies Expenses 500 Interest Expense 10,887 Depreciation 20,833 Total 6,459,720 6,459,720 Working 1 Cash To Capital 5,000,000 By Land and Building 1,200,000 To Unearned Service Revenue 108,000 By Salaries 60,000 By Supplies 12,000 By Balance cf 3,836,000 5,108,000 5,108,000

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Date	Particulars	Debit	Credit
31-Dec	Depreciation Expenses (2500000/10/12)	20,833
	To Accumalated Depreciation -Building		20,833
	(Being depreciation recorded for December)

31-Dec	Interest Expense ((120000012.5%)/12 27/31)	10,887
	To Interest Payable		10,887
	( Being Interet on notes payable recorded)
31-Dec	Unearned Service Revenue	25,000
	To Service Revenue		25,000
	( Being revenue for December adjusted )
31-Dec	Salaries expenses	20,000
	To Salaries Payable		20,000
	( Being Salary for December recorded)
31-Dec	Supplies Expenses (12000-11500)	500
	To Supplies		500
	( Being supplies expenses for Decmeber recorded)

Samina and Zafar Law Associates
Adjusted Trial Balance for the month of December
Particulars	Debit	Credit
Land and Building	2,500,000
Accumalated Depreciation -Building		20,833
Cash (working)	3,836,000
Supplies	11,500
Notes Payable		1,300,000
Salaries Payable		20,000
Interest Payable		10,887
Unearned Service Revenue (108000-25000)		83,000
Capital		5,000,000
Service Revenue		25,000
Salaries expenses	80,000
Supplies Expenses	500
Interest Expense	10,887
Depreciation	20,833
Total	6,459,720	6,459,720

Cash
To Capital	5,000,000	By Land and Building	1,200,000
To Unearned Service Revenue	108,000	By Salaries	60,000
		By Supplies	12,000
		By Balance cf	3,836,000
	5,108,000		5,108,000