TEST EXAM JOURNAL

1. (a) Describe the objects and advantages of double entry system.
(b) Mr. Habib operates a shop at Khulna under the name of Habib auto repairs and painting shop. On June 31, 2008 the balance of account showed cash tk 80000, account receivable tk 20000, equipment tk 35000, supplies tk 6000, accounts payable tk 10000 and owner’s equity?
During the month of June the following transactions occurred:
June, 1 accounts payable paid in cash
2, cash collected from account receivable tk 15000
4, equipment purchase tk 4500 from progoti motors at Chittagong on account
6, received from a customers tk 20000 for future service
10, service charges received in cash tk 12000
12, rental contract singed for 36 months and cash paid tk 7200 
15, paid utilities expense tk 15000
20, paid rent expenses expense for the month tk 1000
25, paid salaries tk 3000
28, electric bill tk 500
30, acquired additional equipment costing tk 4000 by issuing a Notes payable in the amount of tk 2400 and paying cash for the difference.
Required:
1. Prepare general journal entries for these transactions.
2. Prepare necessary ledger account
3. Prepare an unadjusted trial balance