| Journal Entries | |||
| Date | Description | Debit $ | Credit $ |
| 1 | Cash | 10,000 | |
| Owners Equity | 10,000 | ||
| ( Owner Invested 10,000 in the company) | |||
| 2 | Cash | 6000 | |
| To service Revenue | 6000 | ||
| ( Being Service provided to customer) | |||
| 3 | Cash | 5000 | |
| To Borrowing | 5000 | ||
| ( Being Cash Borrowed from bank) | |||
| 4 | Expenses | 2500 | |
| To Cash | 2500 | ||
| ( Being expenses was incured) | |||
| 5 | Devidend | 1000 | |
| To cash | 1000 | ||
| Income statement | Amount In $ |
| Revenue | |
| Service to customer | 6000 |
| Less: | |
| Expenses | 2500 |
| Devidend Paid | 1000 |
| Net Income | 2500 |
| Cash | |||
| Owners Equity | 10,000 | Expenses | 2500 |
| Service to customer | 6000 | Devided | 1000 |
| Bank borowingd | 5000 | Balance | 17500 |
| 21,000 | 21000 | ||
| Owners Equity | |||
| Cash | 10,000 | ||
| Borrowings | |||
| Cash | 5000 |
| Balance sheet | |||
| Equity | |||
| Onwer Equity | 10000 | ||
| Add: | Cash | 17500 | |
| Net Income | 2500 | ||
| Borrowing | 5000 |
