Revision Example 1
NOTE: This exercise revises recording transactions in a
worksheet format.
Date Transaction Details
30 Sep 2020 Received a capital payout of $100,000 from the
partnership with which she used to work. She decided
that she needed to invest
$20, 000 in BHP shares as part of her personal share
portfolio and deposit the rest of the payout into a
separate business bank account.
Cash - 80,000 increase
Capital – 80,000 increase
01 Oct 2020 Entered into a rental agreement with the local business
centre to lease a two connecting rooms from which to
run the law practice. The rental is $1,200 per month in
arrears. She paid a deposit (bond) of $2,000.
Cash – 2000 decrease
Deposit – 2000 increase
Purchased the following office equipment (total $25,000),
office and waiting room furniture $15,000, a computer
$6,000, and second hand photocopier $4,000. Total was
paid in cash.
Office equipment – 25,000 increase
Cash – 25,000 decrease
02 Oct 2020 Employed a legal secretary to act as her assistant and
receptionist. Agreed on a fortnightly salary of $1,000,
with the period of service beginning on 7 October 20X0.
No transaction to be recorded
05 Oct 2020 Ordered stationery supplies, such as paper, disks and
files to be delivered on 7 October, and paid for by the
October 31. Total cost was $1,500.
Paid $300 cash for advertising to promote the business.
Cash – 300 decrease
Profit and loss – 300 decrease
07 Oct 2020 Received ordered goods. Began seeing clients.
Account payable – 1500 increase
Supplies – 1500 increase
12 Oct 2020 Government steps up attempts to get all sole Legal
Practitioners to accept a $5,000 grant in return for
agreeing to certain quality assurance measures and
undertaking a certain level of voluntary legal aid. Jobeth
NOTE: This exercise revises recording transactions in a
worksheet format.
Date Transaction Details
30 Sep 2020 Received a capital payout of $100,000 from the
partnership with which she used to work. She decided
that she needed to invest
$20, 000 in BHP shares as part of her personal share
portfolio and deposit the rest of the payout into a
separate business bank account.
Cash - 80,000 increase
Capital – 80,000 increase
01 Oct 2020 Entered into a rental agreement with the local business
centre to lease a two connecting rooms from which to
run the law practice. The rental is $1,200 per month in
arrears. She paid a deposit (bond) of $2,000.
Cash – 2000 decrease
Deposit – 2000 increase
Purchased the following office equipment (total $25,000),
office and waiting room furniture $15,000, a computer
$6,000, and second hand photocopier $4,000. Total was
paid in cash.
Office equipment – 25,000 increase
Cash – 25,000 decrease
02 Oct 2020 Employed a legal secretary to act as her assistant and
receptionist. Agreed on a fortnightly salary of $1,000,
with the period of service beginning on 7 October 20X0.
No transaction to be recorded
05 Oct 2020 Ordered stationery supplies, such as paper, disks and
files to be delivered on 7 October, and paid for by the
October 31. Total cost was $1,500.
Paid $300 cash for advertising to promote the business.
Cash – 300 decrease
Profit and loss – 300 decrease
07 Oct 2020 Received ordered goods. Began seeing clients.
Account payable – 1500 increase
Supplies – 1500 increase
12 Oct 2020 Government steps up attempts to get all sole Legal
Practitioners to accept a $5,000 grant in return for
agreeing to certain quality assurance measures and
undertaking a certain level of voluntary legal aid. Jobeth
