JOURNAL ENTRIES ACCORDING TO CASH BASIS

DATE PARTICULARS L.F. DEBIT CREDIT

APR 1 Bank a/c Dr 20,000

To Capital a/c 20,000

APR 5 Rent a/c Dr 3,600

To Cash a/c 3,600

APR 7 Office supplies Dr 610

To Cash a/c 610

APR 9 Cash a/c Dr 9,200

To Revenue from services 9,200

APR 16 Salaries a/c Dr 1,600

To Cash a/c 1,600

APR 24 Telephone Expense Dr 470

To Cash a/c 470

APR 28 Cash a/c Dr 2,600

To Revenue from services 2,600
 NET PROFIT UNDER CASH BASIS
REVENUES

Revenue from services 9,200

Revenue from services (Advance) 2,600

Total Revenues 11,800

EXPENSES

Rent Expense 3,600

Office Supplies Expense 610

Salaries Expense 1,600

Telephone Expense 470

Total Expenses 6,280

Net Profit 11,800 – 6,280= 5,520

 JOURNAL ENTRIES ACCORDING TO ACCURAL BASIS
DATE PARTICULARS L.F. DEBIT CREDIT

APR 1 Bank a/c Dr 20,000

To Capital a/c 20,000

APR 5 Prepaid rent a/c Dr 3,600

To Cash a/c 3,600

APR 7 Office supplies Dr 610

To Cash a/c 610

APR 9 Cash a/c Dr 9,200

To Revenue from services 9,200

APR 16 Salaries a/c Dr 1,600

To Cash a/c 1,600

APR 19 Unbilled revenue (debtor) Dr 9,700

To revenue from services a/c 9,700

APR 24 Telephone Expense Dr 470

To Cash a/c 470

APR 28 Cash a/c Dr 2,600

To Revenue from services 2,600
 ADJUSTMENT ENTRIES
DATE PARTICULARS L.F. DEBIT CREDIT

APR 30 Rent a/c Dr 1,200

To Prepaid Rent a/c 1,200

APR 30 Office supplies exp. a/c Dr 430

To Office supplies 430

APR 30 Electricity exp. a/c Dr 1,600

To Electricity Payable a/c 1,600

APR 30 Salary Expenses Dr 1,600

To salary payable a/c 1,600
 NET PROFIT UNDER ACCRUAL BASIS
REVENUES

Revenue from services 9,200

Billed Revenue 9,700

Total Revenues 18,900

EXPENSES

Rent Expense 1200

Office Supplies Expense 610-180 =430

Salaries Expense 1,600 +1600 = 3200

Telephone Expense 470

Electricity Exp. 130

Total Expenses 5430

Net Profit 18900 –5430 = 13470