Hint: You can refer to the Softbyte example we discussed in class for guidance on giving effect to these transactions.
Grading System: Each Transaction carries 1 point for a correct answer and 0 points for an incorrect answer
On December 1, 2013, Mr. Bansal started Algo Parts Limited by investing INR 10,000
On December 5, Algo Parts Limited paid registration and licensing fees for the business, INR 370.
On December 6, the company acquired tables, chairs, shelves, and other fixtures for a total of INR 3,000. The entire amount was paid in cash.
On December 7, the company acquired service equipment at INR 16,000. The company paid a 50% down payment and the balance will be paid after 60 days.
Also on December 7, Algo Parts Limited purchased service supplies on account amounting to INR 1,500.
On December 9, the company received INR 1,900 for services rendered.
On December 12, the company rendered services on account, INR 4,250.00. As per agreement with the customer, the amount is to be collected after 5 days.
On December 14, Mr. Bansal invested an additional INR 3,200.00 into the business.
Rendered services to a big corporation on December 15. As per agreement, the INR 3,400 amount due will be collected after 30 days.
On December 17, the company collected from the customer in transaction #7.
On December 20, the company paid some of its liability in transaction #5 by issuing a check. The company paid INR 500 of the INR 1,500 payable.
On December 25, the owner withdrew cash due to an emergency need. Mr. Bansal withdrew INR 7,000 from the company.
Transaction # 13:
On December 29, the company paid rent for December, INR 1,500.