Star Rentals

General Journal Entries

For the month ended January 31, 2009
Date Particulars

1-Jan Cash
Capital

To record investment by the owner in bussiness bank account

1-Jan Prepaid Rent

Security Deposit
Cash

To record Cash paid as advance agaisnt Rent and Security

1-Jan Office Supplies

A/C Payable

To record Purchased Office Supplies on Account due in 30 days

4-Jan Land
Building
Cash
Mortguage Payable
To record Purchased land and Building for Cash balance in mortgage 18% p.a

4-Jan Cash
Note Payable (UBL)
To record Cash received as Loadn from UBL Bank 24% p.a

5-Jan Cash
A/C Receivable
To record Cash received against A/R

6-Jan A/C Payable

Cash
To record Cash paid agaisnt Accounts Payable

7-Jan Rantel Equipments

Cash
Notes Payable (Bank)
To record Purchased Office Equipments and paid 50% in Cash

11-Jan Advertising Exp

Cash
To record Cash paid against Advertising exp during the M/o January
 Star Rentals
General Journal Entries
For the month ended January 31, 2009
Date Particulars
 Star Rentals
General Journal Entries
For the month ended January 31, 2009
Date Particulars
12-Jan Prepaid Insurance
Cash
To record Cash paid agaisnt Insurance Policy purchased for 12 Months

14-Jan A/C Receivable

Rental Income- Earned
To record Rent Income for 1st half of January

15-Jan Cash
A/C Receivable
To record Cash received from Customer against Rent Receivable

18-Jan Salary Exp

Cash
To record Cash paid against Salaries for the 1st half of January

19-Jan Repairing & Maint.

Cash
To record Cash paid against Repairing Exp

20-Jan Cash
A/C Receivable
To record Cash received from A/R

21-Jan A/C Payable

Cash
To record Cash paid against A/P

22-Jan Drawing
Cash
To record Cash Withdrew by the Owner

25-Jan Computer Equipments

Cash
To record Purchased 3 Computers from Micro Tech

26-Jan Cash
Rent Revenue - Unearned
To record cash received as advance agaisnt earthmover renteld to Indus Motor
 Star Rentals
General Journal Entries
For the month ended January 31, 2009
Date Particulars
28-Jan A/C Receivable
Rent Revenue - Earned
To record Rent Income for 2nd half of January

29-Jan Cash
A/C Receivable
To record Cash received from Customer against Rent Receivable

29-Jan Fuel Expense

A/C Payable
To record Received a fuel bill from Rafiq’s Petrol Service
 Debit Credit

500,000
500,000

9,000
9,000
18,000

15,000
15,000

2,400,000
600,000
300,000
2,700,000

500,000
500,000

50,000
50,000

25,000
25,000

600,000
300,000
300,000

3,000
3,000
Debit Credit
 Debit Credit
24,000
24,000

120,000
120,000

80,000
80,000

32,000
32,000

9,000
9,000

70,000
70,000

25,000
25,000

25,000
25,000

90,000
90,000

30,000
30,000
 Debit Credit
120,000
120,000

60,000
60,000

15,000
15,000
 03-048Star Rentals 0070C0
General Ledger Accounts
As Off January 31, 2009

Cash Accounts

Date Account Amount Date Account Amount

1-Jan B/F 310,000 1-Jan Prepaid rent 9,000
1-Jan Capital 500,000 1-Jan Security Deposit 9,000
4-Jan N/P - U.B 500,000 1-Jan Building 300,000
5-Jan A/R 50,000 6-Jan A/P 25,000
15-Jan A/R 80,000 7-Jan Rental Equipment 300,000
20-Jan A/R 70,000 11-Jan Advertising Exp 3,000
26-Jan Rent Revenue - Unearned 30,000 12-Jan Prepaid Insurance 24,000
29-Jan A/R 60,000 18-Jan Salary Expense 32,000
19-Jan R& M Exp 9,000
21-Jan A/P 25,000
22-Jan Drawing 25,000
25-Jan Computer Equipment 90,000
30-Jan C/F 749,000

Total 1,600,000 1,600,000

1-Feb B/F 749,000

Capital
Date Account Amount Date Account Amount
1-Jan B/F 3,500,000
1-Jan Cash 500,000
30-Jan C/F 4,000,000

Total 4,000,000 4,000,000

1-Feb B/F 4,000,000

Prepaid Rent
Date Account Amount Date Account Amount
1-Jan B/F 5,000
1-Jan Cash 9,000 30-Jan C/F 14,000

Total 14,000 14,000

1-Feb B/F 14,000
Security Deposited
Date Account Amount Date Account Amount
1-Jan Cash 9,000 30-Jan C/F 9,000

Total 9,000 9,000

1-Feb B/F 9,000

Office Supplies
Date Account Amount Date Account Amount
1-Jan B/F 120,000
1-Jan A/P 15,000 30-Jan C/F 135,000

Total 135,000 135,000

1-Feb B/F 135,000
 03-048Star Rentals 0070C0
General Ledger Accounts
As Off January 31, 2009

Land
Date Account Amount Date Account Amount
1-Jan N/P 2,400,000 30-Jan C/F 2,400,000

Total 2,400,000 2,400,000

1-Feb B/F 2,400,000
Building
Date Account Amount Date Account Amount
1-Jan N/P 300,000 30-Jan C/F 600,000
1-Jan Cash 300,000

Total 600,000 600,000

1-Feb B/F 600,000

Note Payable (UBL)

Date Account Amount Date Account Amount
30-Jan C/F 500,000 4-Jan Cash 500,000

Total 500,000 500,000

1-Feb B/F 500,000
Accounts Receivable
Date Account Amount Date Account Amount
1-Jan O/B 125,000 5-Jan Cash 50,000
14-Jan Rental Income-Earned 120,000 15-Jan Cash 80,000
28-Jan Rental Income-Earned 120,000 20-Jan Cash 70,000
29-Jan Cash 60,000
30-Jan C/F 105,000
Total 365,000 260,000
1-Feb B/F 105,000

Rental Equipments
Date Account Amount Date Account Amount
1-Jan O/B 3,500,000 30-Jan C/F 4,100,000
7-Jan Cash 300,000
7-Jan N/P 300,000

Total 4,100,000 4,100,000

1-Feb B/F 4,100,000
Computer Equipments
Date Account Amount Date Account Amount
25-Jan Cash 90,000 30-Jan C/F 90,000

Total 90,000 90,000

1-Feb B/F 90,000
 03-048Star Rentals 0070C0
General Ledger Accounts
As Off January 31, 2009

Notes Payable (Bank)

Date Account Amount Date Account Amount
30-Jan C/F 300,000 7-Jan Rental Equipment 300,000

Total 300,000 300,000

1-Feb B/F 300,000

Advertising Exp
Date Account Amount Date Account Amount
11-Jan Cash 3,000 30-Jan C/F 3,000

Total 3,000 3,000

1-Feb B/F 3,000
Prepaid Insurance
Date Account Amount Date Account Amount
1-Jan O/B 15,000 30-Jan C/F 39,000
12-Jan Cash 24,000

Total 39,000 39,000

1-Feb B/F 39,000

Rent Income- Earned

Date Account Amount Date Account Amount
30-Jan C/F 240,000 14-Jan A/R 120,000
28-Jan Rent Revenue - Earned 120,000

Total 240,000 240,000

1-Feb B/F 240,000
Note Payable
Date Account Amount Date Account Amount
30-Jan C/F 25,000 1-Jan B/F 25,000

Total 25,000 25,000

1-Feb B/F 25,000
Accounts Payable
Date Account Amount Date Account Amount
6-Jan Cash 25,000 1-Jan B/F 50,000
21-Jan Cash 25,000 1-Jan Office Supplies 15,000
30-Jan C/F 30,000 29-Jan Fuel Exp 15,000

Total 80,000 80,000

1-Feb B/F 30,000
Salary Exp
Date Account Amount Date Account Amount
18-Jan Cash 32,000 30-Jan C/F 32,000

Total 32,000 32,000

1-Feb B/F 32,000
 03-048Star Rentals 0070C0
General Ledger Accounts
As Off January 31, 2009

Repairing & Maint.

Date Account Amount Date Account Amount
19-Jan Cash 9,000 30-Jan C/F 9,000

Total 9,000 9,000

1-Feb B/F 9,000
Drawing
Date Account Amount Date Account Amount
22-Jan Cash 25,000 30-Jan C/F 25,000

Total 25,000 25,000

1-Feb B/F 25,000
 03-048Star Rentals 0070C0
General Ledger Accounts
As Off January 31, 2009

Fuel Exp
Date Account Amount Date Account Amount
29-Jan A/P 15,000 30-Jan 15,000

Total 15,000 15,000

1-Feb B/F 15,000

Acc. Depreciation
Date Account Amount Date Account Amount
30-Jan C/F 500,000 1-Jan O/B 500,000

Total 500,000 500,000

1-Feb B/F 500,000
Mortguage Payable (N.B)
Date Account Amount Date Account Amount
30-Jan C/F 2,700,000 1-Jan Land 2,400,000
1-Jan Building 300,000

Total 2,700,000 2,700,000

1-Feb B/F 2,700,000
Rent Revenue- Un Earned
Date Account Amount Date Account Amount
30-Jan C/F 30,000 26-Jan Cash 30,000

Total 30,000 30,000

1-Feb B/F 30,000
 Star Rentals
Trial Balance
As Off January 31, 2009
S.No. Particulars Debit
1 CASH 749,000
2 ACCOUNT. RECEIVABLE 105,000
3 PREPAID RENT 14,000
4 UNEXPIRED INSURANCE 39,000
5 SECURITY DEPOSIT 9,000
6 COMPUTER EQUIPMENT 90,000
7 OFFICE SUPPLIES 135,000
8 RENTAL EQUIPMENT 4,100,000
9 BUILDING 600,000
10 LAND 2,400,000
11 ADVERTISING EXPENSE 3,000
12 REPAIR & MAINTENANCE 9,000
13 FUEL EXPENSE 15,000
14 DRAWING - EXPENSE 25,000
15 SALARY EXPENSE 32,000
16 CAPITAL
17 MORTGUAGE PAYABLE - NB
18 NOTE PAYABLE - UBL
19 NOTE PAYABLE - BANK
20 NOTE PAYABLE
21 ACCOUNT. PAYABLE
22 ACC. DEPRECIATION
23 RENTAL INCOME - Earned
24 RENTAL INCOME - UnEarned
TOTAL 8,325,000
Credit

4,000,000
2,700,000
500,000
300,000
25,000
30,000
500,000
240,000
30,000
8,325,000
 Star Rentals
Adjusting Entries
For the month ended January 31, 2009
Date Particulars

30-Jan Rent Expense

Prepaid Rent
To Record monthly rent expense

30-Jan Office Supplies Expense

Office Supplies
To Record adjusting entry of Office Supplies

30-Jan Interest Expense

Interest Payable - National Bank
To Record Adjusting Entry of Interest Payable on Mortguage

30-Jan Depreciation Exp. - Building

Acc. Depreciation - Building
To Record Monthly Depreciation Expense on Building

30-Jan Interest Expense -United Bank

Interest Payable - United Bank
To Record Adjusting Entry of Interest Payable - United Bank

30-Jan Depreciation Exp. - Rental Equipment - Bank

Acc. Depreciation - Rental Equipment - Bank
To Record Monthly Depreciation Exp Rental Equipment - Bank

30-Jan Insurance Exp

Unexpired Insurance
To Record Monthly Insurance Exp

30-Jan Rent Revenue - Un Earned

Rent Revenue - Earned
To Record 6 days Revenue Earned from Indus Motors

30-Jan Salaries Expense

Salaries Paybale
To Record Salary Payable for 2nd Half
 Star Rentals
Adjusting Entries
For the month ended January 31, 2009
Date Particulars
30-Jan Electric Expense
Electricty Payable
To Record Electricity Bill Payable for Jan-09

30-Jan Bad Debt Expense

Allowance for Bad Debt
To Record Bad Debt Expense from Zaheer Brothers

30-Jan Rent Expense

Rent Payable - Warehouse
To Record Rent Expense Warehouse payable

30-Jan Insurance Expense

Unexpired Insurance - Old Eq
To Record monthly insurance exp of old equipment

30-Jan Depreciation Exp. Old Equipment

Acc. Depreciation - Old Equipment
To Record Monthly Dep Exp - Old Equipment
Debit Credit

3,000
3,000

10,000
10,000

40,500
40,500

2,000
2,000

10,000
10,000

5,000
5,000

2,000
2,000

6,000
6,000

36,000
36,000
 Debit Credit
12,000
12,000

5,000
5,000

1,000
1,000

5,000
5,000

41,667
41,667
 Star Rentals
Closing Entries
For the month ended January 31, 2009
Date Particulars

30-Jan Income Summary

Adevertising Expense
Repair & Maintenance Expense
Fuel Expense
Salary Expense
Rent Expense - Building
Office Supplies Expense
Interest Expense - National Bank
Depreciation Expense - Building
Interest Expense - United Bank
Depreciation Expense - Equip, Bank
Insurance Expense - Equip, Bank
Electric Expense -
Bad Debt - Expense
Rent Expense - Ware House
Insurance Expense - Old Equipment
Depreciation Expense - Old Equipment
To Close expense A/C

30-Jan Rental Revenue Earned

Income Summary
To Close Revenue A/C

30-Jan Income Summary

Arshad Capital
To Close Income Summary Account

30-Jan Arshad Capital

Drawing Expense
To Close Drawing Account
Debit Credit

232,167
3,000
9,000
15,000
68,000
3,000
10,000
40,500
2,000
10,000
5,000
2,000
12,000
5,000
1,000
5,000
41,667

#REF!
#REF!

13,833
#REF!

25,000
25,000
 STAR RENTAL
WORKSHEET
FOR THE MONTH OF JANUARY 31,2009
Trial Balance Adjustment Adj. Trial Balance Income Statement
Debit Credit Debit Credit Debit Credit Debit Credit
CASH 749,000 749,000
ACCOUNT. RECEIVABLE 105,000 105,000
PREPAID RENT 14,000 3,000 11,000
UNEXPIRED INSURANCE - OLD EQ 15,000 5,000 10,000
UNEXPIRED INSURANCE - BANK EQ 24,000 2,000 22,000
SECURITY DEPOSIT 9,000 9,000
COMPUTER EQUIPMENT 90,000 90,000
OFFICE SUPPLIES 135,000 10,000 125,000
RENTAL EQUIPMENT 4,100,000 4,100,000
BUILDING 600,000 600,000
LAND 2,400,000 2,400,000
ADVERTISING EXPENSE 3,000 3,000 3,000
REPAIR & MAINTENANCE 9,000 9,000 9,000
FUEL EXPENSE 15,000 15,000 15,000
DRAWING - EXPENSE 25,000 25,000
SALARY EXPENSE 32,000 36,000 68,000 68,000
CAPITAL 4,000,000 4,000,000
MORTGUAGE PAYABLE - NB 2,700,000 2,700,000
NOTE PAYABLE - UBL 500,000 500,000
NOTE PAYABLE - BANK 300,000 300,000
NOTE PAYABLE 25,000 25,000
ACCOUNT PAYABLE 30,000 30,000
ACC. DEPRECIATION - OLD EQ 500,000 41,667 541,667
RENTAL REVENUE - Earned 240,000 6,000 246,000 246,000
RENTAL REVENUE - UnEarned 30,000 6,000 24,000
8,325,000 8,325,000
RENT EXPENSE - BUILDING 3,000 3,000 3,000
OFFICE SUPPLIES EXPENSE 10,000 10,000 10,000
INTEREST EXPENSE -NB 40,500 40,500 40,500
INTEREST PAYABLE - NB 40,500 40,500
DEPRECIATION - EXPENSE - BUILDING 2,000 2,000 2,000
ACC. DEPRECIATION - BUILDING 2,000 2,000
INTEREST EXPENSE- UB 10,000 10,000 10,000
INTEREST PAYABLE - UB 10,000 10,000
DEPRECIATION - EXPENSE - EQ,BANK 5,000 5,000 5,000
ACC. DEPRECIATION - EQ,BANK 5,000 5,000
INSURANCE EXP- EQ,BANK 2,000 2,000 2,000
ELECTRIC EXP 12,000 12,000 12,000
ELECTRIC PAYABLE 12,000 12,000
BAD DEBT 5,000 5,000 5,000
ALL. FOR BAD DEBT 5,000 5,000
RENT EXPENSE - WAREHOUSE 1,000 1,000 1,000
RENT PAYABLE WAREHOUSE 1,000 1,000
INSURANCE EXP. OLD EQ 5,000 5,000 5,000
SALARY PAYABLE 36,000 36,000
DEPRECIATION EXP. OLD EQ 41,667 41,667 41,667
179,167 179,167 8,478,167 8,478,167 232,167 246,000
Net Income 13,833
Total 246,000 246,000
 Balance Sheet
Debit Credit
749,000
105,000
11,000
10,000
22,000
9,000
90,000
125,000
4,100,000
600,000
2,400,000

25,000

4,000,000
2,700,000
500,000
300,000
25,000
30,000
541,667

24,000

40,500

2,000

10,000

5,000

12,000

5,000

1,000

36,000

8,246,000 8,232,167
13,833
8,246,000 8,246,000
 Star Rentals
Adjusted.Trial Balance
As Off January 31, 2009
S.NO. Particulars Debit Credit
1 CASH 749,000
2 ACCOUNT. RECEIVABLE 105,000
3 PREPAID RENT 11,000
4 UNEXPIRED INSURANCE - OLD EQ 10,000
5 UNEXPIRED INSURANCE - BANK EQ 22,000
6 SECURITY DEPOSIT 9,000
7 COMPUTER EQUIPMENT 90,000
8 OFFICE SUPPLIES 125,000
9 RENTAL EQUIPMENT 4,100,000
10 BUILDING 600,000
11 LAND 2,400,000
12 ADVERTISING EXPENSE 3,000
13 REPAIR & MAINTENANCE 9,000
14 FUEL EXPENSE 15,000
15 DRAWING - EXPENSE 25,000
16 SALARY EXPENSE 68,000
17 CAPITAL 4,000,000
18 MORTGUAGE PAYABLE - NB 2,700,000
19 NOTE PAYABLE - UBL 500,000
20 NOTE PAYABLE - BANK 300,000
21 NOTE PAYABLE 25,000
22 ACCOUNT PAYABLE 30,000
23 ACC. DEPRECIATION - OLD EQ 541,667
24 RENTAL REVENUE - Earned 246,000
25 RENTAL REVENUE - UnEarned 24,000
27 RENT EXPENSE - BUILDING 3,000
28 OFFICE SUPPLIES EXPENSE 10,000
29 INTEREST EXPENSE -NB 40,500
30 INTEREST PAYABLE - NB 40,500
31 DEPRECIATION - EXPENSE - BUILDING 2,000
32 ACC. DEPRECIATION - BUILDING 2,000
33 INTEREST EXPENSE- UB 10,000
34 INTEREST PAYABLE - UB 10,000
35 DEPRECIATION - EXPENSE - EQ,BANK 5,000
36 ACC. DEPRECIATION - EQ,BANK 5,000
37 INSURANCE EXP- EQ,BANK 2,000
38 UNEXPIRED INSURANCE EQ,BANK
39 ELECTRIC EXP 12,000
40 ELECTRIC PAYABLE 12,000
41 BAD DEBT 5,000
42 ALL. FOR BAD DEBT 5,000
43 RENT EXPENSE - WAREHOUSE 1,000
44 RENT PAYABLE WAREHOUSE 1,000
45 SALARY PAYABLE 36,000
46 INSURANCE EXP. OLD EQ 5,000
47 DEPRECIATION EXP. OLD EQ 41,667
TOTAL 8,478,167 8,478,167
 Star Rentals
Statement of Owner Equity
As Off January 31, 2009
Arshad Capital 31-Dec-2008(B.S) 3,500,000
Add: Investment in Jan 1, 2009 500,000
Add: Profit for the Month 13,833
Arshad Capital 31-Jan-2009 4,013,833
Less: Arshad Drawing (25,000)
Arshad Capital 31-Jan-2009( B.S) 3,988,833
 Stars Rental
Income Statement
As Off Jan 31, 2009
Revenue
Rental Revenue Earned 246,000
Less: Expenses 246,000
Adevertising Expense 3,000
Repair & Maintenance Expense 9,000
Fuel Expense 15,000
Salary Expense 68,000
Rent Expense - Building 3,000
Office Supplies Expense 10,000
Interest Expense - National Bank 40,500
Depreciation Expense - Building 2,000
Interest Expense - United Bank 10,000
Depreciation Expense - Equip, Bank 5,000
Insurance Expense - Equip, Bank 2,000
Electric Expense - 12,000
Bad Debt - Expense 5,000
Rent Expense - Ware House 1,000
Insurance Expense - Old Equipment 5,000
Depreciation Expense - Old Equipment 41,667 (232,167)
Profit 13,833
 STAR RENTALS
Balance Sheet
As Off Jan 31, 2009
Assets Liability & Owner Equity
Assets Liability
Cash 749,000 Mortgage Payable N.B 2,700,000
Acc. Rec 105,000 Note Payable -UB 500,000
(5,000) 100,000 Note Payable - Bank 300,000
Prepaid Rent 11,000 Note Payable 25,000
UnexpInsurance - Old Eq 10,000 Account Payable 30,000
UnexpInsurance - Bank Eq 22,000 Unearned Revenue 24,000
Security Deposit 9,000 Interest Payabe - NB 40,500
Computer Equipment 90,000 Interest Payable - UB 10,000
Office Supplies 125,000 Electricity Payable 12,000
Rental Equipment - Old 3,500,000 Rent Payable Rent House 1,000
(541,667) 2,958,333 Salary Payable 36,000
Rental Equipment - Bank 600,000 Total Liability 3,678,500
(5,000) 595,000
Building 600,000 Arshad Capital 3,988,833
(2,000) 598,000
Land 2,400,000

Total 7,667,333 7,667,333