Reference no: EM132568227

Question - Modern Styles was organized on Jan 1 to operate as a real estate broker. The following transactions occurred during

January:

Jan 2: Modern Styles opened a bank account in the business name with the amount by depositing personal savings Rs=40,000

Jan 12: Purchased a small office building and land at a total price Rs=103,500, of which 69,000 was applicable to the land and the remaining to the building. The terms of the purchase required a cash payment of Rs=34,500 and issued a note payable for Rs=74,000.

Jan 16: Sold one quarter of the land at its cost Rs=21,000 to the friend's clinic namely Nadir& Sons clinic. Who issued a note promising payment of =21,000 in five equal installments.

Jan 22: Purchased office equipment on credit from Dilawar & Co in the amount of Rs=10,280.

Jan 26: Paid RS=8,440/- as a partial settlement of the liability to Dilawar & Co.

Jan 31: Received the first Rs=4,200 monthly installment on the note receivable from Nadir& Sons clinic.

Required - Prepare Journal entries for the month of January, 2020.