Answer:
<u>Aracel Engineering Ltd.</u>
<u>Journal Entries</u>
<u>Sr. No. Accounts Debit Credit</u>
a. Investments $100,000
Cash $ 100,000
a. Office Equipment $ 5000
Cash $ 5000
Purchase office Equipment
a. Drafting Equipment $ 60,000
Cash $ 60,000
Purchase Drafting Equipment
b. Land $ 49,000
Cash $ 6,300
Note Payable $ 42,700
Purchase Land
c. Building $ 55,000
Cash $ 55,000
Purchase Building
d. Premium for Insurance $ 3000
Cash $ 3000
Paid Cash for Insurance Premium
e. Cash $ 6200
Drafting Services A/c $ 6200
Received Cash for a set of plans (drafts) from a client
f. Drafting Equipment $ 20,000
Cash $ 9500
Notes Payable $ 10,500
Bought equipment for cash and notes payable
g. Account Receivable $ 14,000
Engineering Services $ 14,000
Engineering Services rendered on credit
h. Office Equipment $ 1150
Accounts Payable $ 1150
Office Equipment bought on credit
i. Account Receivable $ 22,000
Engineering Services $ 22,000
Engineering Services rendered on credit
j. Rent Expense $ 1333
Rent Payable $ 1333
Rent to be paid within 30 days
k. Cash $ 7000
Account Receivable $ 7000
Received partial payment as Cash for Engineering services
l. Wages $ 1,200
Cash $ 1,200
Wages Paid
m. Accounts Payable $ 1150
Cash $ 1150
Payment made for office equipment purchased on credit
n. Maintenance ( equipment) $ 925
Cash $ 925
Maintenance charges paid for equipment
o. Drawing Account $ 9,480
Cash $ 9,480
Withdrew cash for personal use
p. Wages $ 1200
Cash $ 1200
Paid wages
q. Advertisements $ 2500
Cash $ 2500
Paid advertisement charges