Question
Kingfisher Services opened in May 2025 with owner capital of $10,000, all held in cash. The following transactions occurred during June 2025.
| Date | Transaction | Amount |
|---|
| June 3 | Purchased office equipment for cash. | 6,000 |
| June 8 | Purchased supplies on account. | 3,500 |
| June 14 | Performed services for cash. | 12,400 |
| June 19 | Performed services on account. | 7,600 |
| June 23 | Paid creditors on account. | 2,000 |
| June 26 | Collected cash from customers on account. | 4,100 |
| June 30 | Paid monthly salaries. | 5,200 |
Instructions:
- Journalize the June transactions.
- Post the cash transactions to the Cash ledger account (running balance format), starting from the opening balance of $10,000.
- Prepare a trial balance at June 30, 2025.
Statements in this challenge
- Journal EntriesJournal Entry
- Cash Ledger AccountLedger
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
IAS 1 — Presentation of Financial Statements
Work the cycle in its fixed order: journalise, post to the ledger, extract an unadjusted trial balance, pass adjusting entries, extract an adjusted trial balance, prepare the statements, then close the temporary accounts. Each step consumes the output of the one before it, so an error early on propagates all the way to the closing entries rather than staying local.
Common mistakes
- Preparing the financial statements from the unadjusted trial balance instead of the adjusted one.
- Closing permanent accounts — assets, liabilities and capital carry forward; only revenue, expense and drawings/dividends close.
- Forgetting that the post-closing trial balance should contain no income statement accounts at all.
Further readingIAS 1: what goes where in a full set of statements