The JDC Ambassador Milton A. Wolf Training Institute JDC-Israel
Accounting Cycle Illustrated Jdc
90
Acc. No. Current Assets 101 102 103 104 105 106 Non-current Assets 111 112 113 114 115 116 Current Liabilities 201 202 203 204 205 Non-current Liabilities 211 301 302 401 402 501 502 503 504 505 506 507 508 509 601
Transcript of Accounting Cycle Illustrated Jdc
Account Title
Accu(ulate$ )e"reciation * Oice 'urniture an$ 'i&tures
Oice %+ui"(ent
Accu(ulate$ )e"reciation * %+ui"(ent
Accu(ulate$ )e"reciation * !ervice Car
L I A B I L I T I E S
Accounts #a,able
/uan )ela Cru Ca"ital
" E ' E N % E
a&es an$ .icenses
Interest Inco(e
3 Oice !u""lies
4 Oice %+ui"(ent
5 Rent %&"ense
9 Accounts Receivable
#roessional 'ees
10 Notes Receivable
11 Accounts Receivable
#roessional 'ees
13 Cash
15 !alaries %&"ense
(paid half of the account due on the purchased of office equipment)
20 Cash
Accounts Receivable
ENE"AL J%"NAL
27 Cash
28 -tilities %&"ense
Cash
(owner withdrew cash)
A D J % S T I N E N T " I E S
31 Oice !u""lies %&"ense
Oice !u""lies
-tilities %&"ense
-tilities #a,able
)e"reciation %&"ense
2012 /ul,
(to record accrued interest on otes !eceivable)
C L S I N E N T " I E S
31 #roessional 'ees
Inco(e !u((ar,
/uan )ela Cru Ca"ital
(to close drawing account)
" E ' E " S I N E N T " I E S
1 -tilities #a,able
(to reverse the ad#usting entry for accrued electric bill)
Interest Inco(e
Interest Receivable
(to reverse the ad#usting entry for accrued interest on the notes)
2012 /ul,
2012 Au
Date Particulars P" Debit Date
1 initial invest(ent to start a business 1 100000 3
7 receive$ cash or services ren$ere$ 1 15000 5
13 receive$ cash or services ren$ere$ 1 8000 15
20 "artial collection ro( client on account 1 4600 17
27 receive$ cash or services ren$ere$ 2 12000 28
139600 31
"ai$ (onthl, rent 1 12000
"ai$ e("lo,ees salaries 1 7800
1 31250
oner ith$re cash 2 10000
76560
Acc. No.
Date Particulars P" Debit Date
9 chare$ client or services ren$ere$ 1 12000 10
11 chare$ client or services ren$ere$ 1 9200 20
22 chare$ client or services ren$ere$ 2 5000
26200
9600
2012 /ul,
2012 /ul,
16600
Acc. No.
10 1 12000 2012 /ul,
receive$ 60=$a, 10> note in sette(ent o account
to recor$ accrue$ interest on Notes Receivable ;A/%<
Date Particulars P" Debit Date
3 "ai$ cash or oice su""lies 1 6750 31
4610
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to recor$ su""lies e&"ense or the (onth ;A/%< 2 2140
Acc. No.
Date Particulars P" Debit Date
31 2012 /ul,
Acc. No.
17 1 31250 4 2012 /ul,
"ai$ hal o the account $ue on the "urchase$ o oice e+ui"(ent
2012 /ul,
"urchase$ oice e+ui"(ent on account 1 62500
31250
Acc. No.
31 2012 /ul,
Acc. No.
Date Particulars P" Debit Date
31 to close $rain account ;closin entries< 3 10000 1
31
3 26390
31 oner ith$re cash 2 10000 31
000
2012 /ul,
2012 /ul,
to close $rain account ;closin entries< 3 10000
Acc. No.
Date Particulars P" Debit Date
31 to close revenue accounts ;closin entries< 2 61200 7
9
11
13
22
27
chare$ client or services ren$ere$ 1 12000
chare$ client or services ren$ere$ 1 9200
receive$ cash or services ren$ere$ 1 8000
chare$ client or services ren$ere$ 2 5000
receive$ cash or services ren$ere$ 2 12000
61200
000
Acc. No.
Date Particulars P" Debit Date
31 to close the e&"ense accounts ;closin entries< 3 34880 31
3 26390
Acc. No.
5 "ai$ (onthl, rent 1 12000 31
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 12000
Acc. No.
15 "ai$ e("lo,ees salaries 1 7800 31
31 "ai$ e("lo,ees salaries 2 7800
15600
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 15600
Acc. No.
Date Particulars P" Debit Date
31 to recor$ su""lies e&"ense or the (onth ;A/%< 2 2140 31
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 2140
Acc. No.
000
2012 /u,
to recor$ $e"reaciaton on oice e+ui"(ent or the (onth ;A/%<
2012 /u,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 1000
Acc. No.
28 "ai$ (onthl, tele"hone bill 2 960 31
31 to recor$ accrue$ electic bill ;A/%< 2 3180
4140
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 4140
Acc. No.
Date Particulars P" Debit Date
31 to close revenue accounts ;closin entries< 2 70 31 2012 /ul,
2012 /ul,
Cash 101 63040
Oice !u""lies 105 6750
Oice %+ui"(ent 113 62500
Accounts #a,able 201 31250
/uan )ela Cru Ca"ital 301 100000
/uan )ela Cru )rain 302 10000
#roessional 'ees 401 61200
Rent %&"ense 502 12000
!alaries %&"ense 503 15600
-tilities %&"ense 508 960
TTAL 1@4,672 1@4,672
$d#ustment ata&
a< A "h,sical count o oice su""lies shoe$ that #4610 o oice su""lies re(aine$
b< Accrue$ electric bill or /ul, 31 is #3180
c< he oice e+ui"(ent has a salvae value o #2500 an$ an esti(ate$ lie o 5 ,ear
Accu(ulate$ )e"reciation * Oice 'urniture an$ 'i&tures
Oice %+ui"(ent
Accu(ulate$ )e"reciation * %+ui"(ent
Accu(ulate$ )e"reciation * !ervice Car
L I A B I L I T I E S
Accounts #a,able
/uan )ela Cru Ca"ital
" E ' E N % E
a&es an$ .icenses
Interest Inco(e
3 Oice !u""lies
4 Oice %+ui"(ent
5 Rent %&"ense
9 Accounts Receivable
#roessional 'ees
10 Notes Receivable
11 Accounts Receivable
#roessional 'ees
13 Cash
15 !alaries %&"ense
(paid half of the account due on the purchased of office equipment)
20 Cash
Accounts Receivable
ENE"AL J%"NAL
27 Cash
28 -tilities %&"ense
Cash
(owner withdrew cash)
A D J % S T I N E N T " I E S
31 Oice !u""lies %&"ense
Oice !u""lies
-tilities %&"ense
-tilities #a,able
)e"reciation %&"ense
2012 /ul,
(to record accrued interest on otes !eceivable)
C L S I N E N T " I E S
31 #roessional 'ees
Inco(e !u((ar,
/uan )ela Cru Ca"ital
(to close drawing account)
" E ' E " S I N E N T " I E S
1 -tilities #a,able
(to reverse the ad#usting entry for accrued electric bill)
Interest Inco(e
Interest Receivable
(to reverse the ad#usting entry for accrued interest on the notes)
2012 /ul,
2012 Au
Date Particulars P" Debit Date
1 initial invest(ent to start a business 1 100000 3
7 receive$ cash or services ren$ere$ 1 15000 5
13 receive$ cash or services ren$ere$ 1 8000 15
20 "artial collection ro( client on account 1 4600 17
27 receive$ cash or services ren$ere$ 2 12000 28
139600 31
"ai$ (onthl, rent 1 12000
"ai$ e("lo,ees salaries 1 7800
1 31250
oner ith$re cash 2 10000
76560
Acc. No.
Date Particulars P" Debit Date
9 chare$ client or services ren$ere$ 1 12000 10
11 chare$ client or services ren$ere$ 1 9200 20
22 chare$ client or services ren$ere$ 2 5000
26200
9600
2012 /ul,
2012 /ul,
16600
Acc. No.
10 1 12000 2012 /ul,
receive$ 60=$a, 10> note in sette(ent o account
to recor$ accrue$ interest on Notes Receivable ;A/%<
Date Particulars P" Debit Date
3 "ai$ cash or oice su""lies 1 6750 31
4610
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to recor$ su""lies e&"ense or the (onth ;A/%< 2 2140
Acc. No.
Date Particulars P" Debit Date
31 2012 /ul,
Acc. No.
17 1 31250 4 2012 /ul,
"ai$ hal o the account $ue on the "urchase$ o oice e+ui"(ent
2012 /ul,
"urchase$ oice e+ui"(ent on account 1 62500
31250
Acc. No.
31 2012 /ul,
Acc. No.
Date Particulars P" Debit Date
31 to close $rain account ;closin entries< 3 10000 1
31
3 26390
31 oner ith$re cash 2 10000 31
000
2012 /ul,
2012 /ul,
to close $rain account ;closin entries< 3 10000
Acc. No.
Date Particulars P" Debit Date
31 to close revenue accounts ;closin entries< 2 61200 7
9
11
13
22
27
chare$ client or services ren$ere$ 1 12000
chare$ client or services ren$ere$ 1 9200
receive$ cash or services ren$ere$ 1 8000
chare$ client or services ren$ere$ 2 5000
receive$ cash or services ren$ere$ 2 12000
61200
000
Acc. No.
Date Particulars P" Debit Date
31 to close the e&"ense accounts ;closin entries< 3 34880 31
3 26390
Acc. No.
5 "ai$ (onthl, rent 1 12000 31
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 12000
Acc. No.
15 "ai$ e("lo,ees salaries 1 7800 31
31 "ai$ e("lo,ees salaries 2 7800
15600
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 15600
Acc. No.
Date Particulars P" Debit Date
31 to recor$ su""lies e&"ense or the (onth ;A/%< 2 2140 31
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 2140
Acc. No.
000
2012 /u,
to recor$ $e"reaciaton on oice e+ui"(ent or the (onth ;A/%<
2012 /u,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 1000
Acc. No.
28 "ai$ (onthl, tele"hone bill 2 960 31
31 to recor$ accrue$ electic bill ;A/%< 2 3180
4140
000
2012 /ul,
2012 /ul,
Particulars P" Cre0it
to close the e&"ense accounts ;closin entries< 3 4140
Acc. No.
Date Particulars P" Debit Date
31 to close revenue accounts ;closin entries< 2 70 31 2012 /ul,
2012 /ul,
Cash 101 63040
Oice !u""lies 105 6750
Oice %+ui"(ent 113 62500
Accounts #a,able 201 31250
/uan )ela Cru Ca"ital 301 100000
/uan )ela Cru )rain 302 10000
#roessional 'ees 401 61200
Rent %&"ense 502 12000
!alaries %&"ense 503 15600
-tilities %&"ense 508 960
TTAL 1@4,672 1@4,672
$d#ustment ata&
a< A "h,sical count o oice su""lies shoe$ that #4610 o oice su""lies re(aine$
b< Accrue$ electric bill or /ul, 31 is #3180
c< he oice e+ui"(ent has a salvae value o #2500 an$ an esti(ate$ lie o 5 ,ear
