Preparation of Cash/Bank Account, Share Premium Account, Share Discount Account, Share Capital Accounts, Preference Shares Account, And Ordinary Share Capital Account - SS2 Accounting Lesson Note
Question:
The following transactions were gathered from the trial balance for HAPPY SOAP Ltd. for the year ending December 2022. You are required to prepare:
-
cash/bank account
-
share premium account
-
share discount account
-
share capital accounts;
-
preference shares account
-
Ordinary share capital account.
TRIAL BALANCE OF HAPPY SOAP Ltd. FOR THE YEAR ENDED DECEMBER, 2022
|
Account |
Debit (₦) |
Credit (₦) |
|
Cash |
25,000 |
|
|
Inventory |
10,000 |
|
|
Equipment |
50,000 |
|
|
Accounts Payable |
8,000 |
|
|
Sales |
30,000 |
|
|
Rent Expense |
5,000 |
|
|
Salaries Expense |
8,000 |
|
|
Total |
98,000 |
38,000 |
Answer:
Cash/Bank Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Cash Account To Sales To Rent Expense To Salaries Expense Total |
30,000 5,000 8,000 43,000 |
25,000 25,000 |
Share Premium Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Share Premium Total |
50,000 50,000 |
Share Discount Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Share Discount Total |
2,000 |
2,000 |
Share Capital Accounts
|
Account |
Debit (₦) |
Credit (₦) |
|
Ordinary Share Capital Preference Shares Total |
60,000 30,000 90,000 |
Preference Shares Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Preference Shares Total |
30,000 30,000 |
Ordinary Share Capital Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Ordinary Share Capital Total |
60,000 60,000 |