Q No.1 Use following title of accounts to complete journal entries of given transactions.

1)                  Mr.A deposited into bank Rs.50,000 to start a business

2)                  Paid rent for three months at Rs.2500 per month
3)                  Bought office equipment from B&Co. for Rs. 10000, paid to them Rs.3000 and promised to pay the balance after two months.
4)                  Rendered services to clients and received cash Rs. 5000
5)                  Purchase supplies for cash Rs. 400
6)                  Paid salaries to staff Rs. 5400
7)                  Bought furniture for Rs. 3200,paid to K&Co. Rs.1200 and promised to pay balance after one month
8)                  Withdrew cash for personal use Rs. 3000
9)                  Billed to Nasir for services rendered Rs. 12500
10)              Received from Nasir Rs.5000
Rules of Dr and Cr
Assets ### Dr Increaes Cr decrease
Expense### Dr Increaes Cr decrease
Capital ### Dr decrease Cr Increaes
###
Liabailities Dr decrease Cr Increaes
Revenue### Dr decrease Cr Increaes

1)                  Mr.A deposited into bank Rs.50,000 to start a business

Assets = liabilities + Capital
Cash
50,000 50,000

Name of company
general journal
for the month of Jan
Amount
S.No Particulars P/R
Dr Cr
1 Cash 50,000
Capital 50,000
invested cash in the buseinss
2 Prepaid rent 7,500
Cash 7,500
Paid three month rent
3 office equipment 10,000
Cash 3,000
a/c payable 7,000
Purhcase office equipment
4 Cash 5,000
service income 5,000
Rendered service and received cash
5 supplies 400
 Cash 400
Purhase supplies
6 Salary exp 5,400
cash 5,400
paid salary exp
7 furnitrue 3,200
Cash 1,200
a/c payable 2,000
Purhcase furniture
8 Darwing 3,000
Cash 3,000
with drew cash for presonal use
9 a/c receivable 12,500
service income 12,500
Rendered service
10 Cash 5000
A/c receivable 5000
Received cash from Nasir
y the balance after two months.
 Cash Capital
50,000 7,500 balance C/d 50,000
5,000 3,000
5,000 400 50,000
1,200
3,000
5,400
balance C/d 39,500 Perpaid rent
60,000 60,000 7,500
balance b/d 39,500
Drawing 7,500
3,000 balance C/d 3,000 balance b/d 7,500

3,000 office equipment

balance b/d 3,000 10,000

10,000
balance b/d 10,000

service income a/c payable

balance C/d 17,500 5,000 balance C/d 9,000
12,500
17,500 17,500 9,000
balance b/d 17,500

Supplies Furnitrue
400 balance C/d 400 3,200

400 400 3,200

balance b/d 400 balance b/d 3,200

HASF and company

trial balacne
for the period ended
Amount
S.No P/R DR
1 Cash 39,500
2 A/c receivable 7,500
3 Repaid rent 7,500
4 Supplies 400
5 Furniture 3,200
6 Equipment 10,000
7 A/c payable
 8 Capital
9 Drawing 3,000
10 Service income
11 salary exp 5,400
76,500

HASF and company

income statement
For the year ended Dec 31 2020
Service income 17,500
less expense
salary exp 5,400
total expense 5,400
net profit for the year 12,100

HASF and company

Balance Sheet
As OnDec 31 2020
Assets Liabilities + owaner equity
Current assets Liabilities
Cash 39,500 a/c payable 9,000
A/c receivable 7,500 total liabilities 9,000
Repaid rent 7,500 owaner equity
Supplies 400 capital 50,000
Total current assets 54,900 add net profit 12,100
Fixed assets 62,100
Furniture 3200 less drawing 3,000
Equipment 10000 total owaner equity 59,100
total fixed assets 13200
68,100 68,100
 Capital A/c receivable
50,000 12,500 5,000
balance C/d 7,500
50,000 12,500 12,500
balance b/d 50,000 balance b/d 7,500

Perpaid rent Salary exp

balance C/d 7,500 5,400 balance C/d 5,400

7,500 5,400 5,400

balance b/d 5,400

office equipment
balance C/d 10,000

10,000

a/c payable
7,000
2,000
9,000
balance b/d 9,000

Furnitrue
balance C/d 3,200

3,200

Amount assets
Cr liabilities
BS
a bs capital
a bs drawing
a bs revenue
IS
a bs exp
a bs
a bs
9,000 l bs
50,000 c bs
cc bs
17,500 R Is
E Is
76,500
 HASF and company
trial balacne
for the period ended
Amount
S.No P/R DR Cr
1 Cash 25,000
2 A/c receivable 7,500
3 Rent exp 7,500
4 Land 50,000
5 Furniture 3,200
6 Equipment 10,000
7 A/c payable 9,000
8 Capital 44,700
9 Drawing 3,000
10 Service income 87,500
11 salary exp 35,000
141,200 141,200

HASF and company

income statement
For the year ended Dec 31 2020
Service income 87,500
less expense
Rent exp 7,500
salary exp 35,000
total expense 42,500
net profit for the year 45,000

HASF and company

Balance Sheet
As OnDec 31 2020
Assets Liabilities + owaner equity
Current assets Liabilities
Cash 25,000 a/c payable 9,000
A/c receivable 7,500 total liabilities 9,000
Total current assets 32,500 owaner equity
capital 44,700
Fixed assets add net profit 45,000
Land 50,000 89,700
Furniture 3200 less drawing 3,000
Equipment 10000 total owaner equity 86,700
total fixed assets 63,200
95,700 95,700
0
Q No.2 Mr. Ahmed invested cash Rs. 125,000
1. Bought merchandise for cash Rs.20000
2. Paid rent for the month Rs.5000
3. Purchase office supplies for Rs.1500
4. Sold goods for cash Rs.5000
5. Purchase goods on credit from Nasir Ali Rs.10000
6. Paid salaries to office staff Rs. 12500
7. Paid to Nasir Ali Rs.3500
8. Sold goods on credit to Abid Rs.15000
9. Merchandise return to Nasir Ali Rs.250
10. Goods were returned by Abid Rs.750
11. Withdrew cash for personal use Rs.1000
12. Sold old machine at Rs.500
Rules of Dr and Cr
Assets ### Dr Increaes Cr decrease
Capital ### Dr decrease Cr Increaes
###
Liabailities Dr decrease Cr Increaes
Revenue### Dr decrease Cr Increaes
Expense### Dr Increaes Cr decrease

general journal
for the month of Jan
Amount
S.No Particulars P/R
Dr Cr
1 Cash 125,000
Ahmed s' Capital 125,000
  Mr.Ahmed deposited into bank to start a business
2 Purchase 20,000
Cash 20,000
Purchase merchandise for cash
3 Rent exp 5,000
Cash 5,000
Paid rent exp
4 Supplies 1,500
Cash 1,500
purhase office supplies
5 Cash 5,000
sales 5,000
sold merchandise for cash
6 Purchase 10,000
A/c payable 10,000
Purchase merchandise on account
7 salary exp 12,500
cash 12,500
paid salary exp
 8 a/c payable 3,500
cash 3,500
Paid to suppliers
9 A/c recivable 15,000
sales 15,000
sold merchandise for cash
10 A/c payable 250
purchase return 250
goods return
11 Sales return 750
a/c receivable 750
Goods were returned by Abid
12 Drawing 1,000
cash 1,000
withdrew cash for personal use
13 cash 500
Machine 500
sold old machine
Q No.3
In July 2005, Nasir Jamal started business and completed following transactions.
Jul-01 He deposited $ 165,000 cash in a business bank account.(use cash as title)
Jul-02 Purchased equipment for $ 55,000 from ABC Co. paid $20,000 and
balance will be paid after three month.
Jul-07 Paid rent for three months $ 1500
Jul-12 Purchase goods on credit from Khan & Co. $ 1200
Jul-17 Paid salaries to staff $ 2500
Jul-20 Paid to Khan & Co.$ 700
Jul-23 Paid insurance $ 400
Jul-27 Nasir withdrew $ 1500 cash from the business for personal use
general journal
for the month of Jan
Amount
S.No Particulars P/R
Dr
Cash 165,000
Nasir s' Capital
  Mr.Nasir deposited into bank to start a business
office equipment 55,000
Cash
a/c payable
Purhcase office equipment
Rent exp 1,500
cash
paid rent exp
Purchase 1,200
A/c payable
Purchase merchandise on account
salary exp 2,500
cash
paid salary exp
a/c payable 700
cash
Paid to suppliers
Insurance exp 400
cash
paid insurance exp
Darwing 1,500
Cash
with drew cash for presonal use
Amount
Cr

165,000

20,000
35,000

1,500

1,200

2,500

700

400

1,500
Q. NO. 4
1. Khalid invested in business cash Rs.40000, office equipment Rs.60,000
2. Purchase merchandise for cash Rs. 6000
3. Purchase goods on credit from Zahid Rs.10000
4. Sold merchandise on credit to Amir Rs.10000
5. Paid rent expense Rs.600
6. Sold merchandise for cash Rs. 3500
7. Earned commission Rs. 10000
8. Purchase supplies on credit from Aleem Rs. 800
9. Paid traveling expense Rs. 650
10. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
11. Khalid withdrew cash for personal use Rs. 3000
12. Rendered services to client and received commission Rs. 2000
13. Paid insurance for the month Rs. 500
general journal
for the month of Jan
Amount
S.No Particulars P/R
Dr Cr
1 Cash 40,000
office equipment 60,000
Capital 100,000
invested cash in the business
2 Purchase 6,000
Cash 6,000
Purchase merchandise for cash
3 Purchase 10,000
A/c payable 10,000
Purchase merchandise on account
4 A/c receivable 10,000
sales 10,000
sold merchandise
5 cash 10,000
commission income 10,000
earned commission
6 cash 3,500
sales 3,500
sold merchandise
7 Supplies 800
A/c payable 800
purhase office supplies
8 Traveling exp 650
cash 650
paid traveling exp
9 A/c recivable 4,000
 sales 4,000
sold merchandise for cash
10 Darwing 3,000
Cash 3,000
with drew cash for presonal use
11 Cash 2,000
commission income 2,000
Rendered service and received cash
12 Insurance exp 500
cash 500
paid insurance exp
Q. NO. 5
1. Khalid invested in business Rs.40000, Furniture Rs.24,000, equipment Rs.15000
2. Purchase merchandise for cash Rs. 6000
3. Purchase office stationary for Rs.2000
4. Purchase goods on credit from Zahid Rs.10000
5. Sold merchandise on credit to Amir Rs.10000
6. Paid rent expense Rs.600
7. Sold merchandise for cash Rs. 3500
8. Billed to Mr. Bilal for service rendered Rs. 10000
9. Purchase supplies on credit from Aleem Rs. 800
10. Paid traveling expense Rs. 650
11. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
12. Received cash from Mr. Kareem Rs.1500
13. Khalid withdrew cash for personal use Rs. 3000
14. Paid insurance for the month Rs. 500
15. Received cash from Mr. Bilal Rs.8000

general journal
for the month of Jan
Amount
S.No Particulars P/R
Dr Cr
1 Cash 40,000
Furniture 24,000
office equipment 15,000
Capital 79,000
invested cash in the business
2 Purchase 6,000
Cash 6,000
Purchase merchandise for cash
3 stationary 2,000
cash 2,000
purchase office stationary
4 Purchase 10,000
A/c payable 10,000
Purchase merchandise on account
5 A/c receivable 10,000
sales 10,000
sold merchandise
6 rent exp 600
Cash 600
paid rent exp
7 cash 3,500
sales 3,500
sold merchandise
 8 A/c recivable 10,000
commission income 10,000
rended service
9 Supplies 800
A/c payable 800
purhase office supplies
10 Traveling exp 650
cash 650
paid traveling exp
11 A/c receivable 4,000
sales 4,000
sold merchandise
12 Cash 1,500
a/c receivable 1,500
cash received from customer
13 Darwing 3,000
Cash 3,000
with drew cash for presonal use
14 Insurance exp 500
cash 500
paid insurance exp
15 Cash 8,000
a/c receivable 8,000
cash received from customer
 Cash Capital
125,000 20,000 balance C/d 125,000
5,000 5,000
500 1,500
12,500 balance b/d
1,000
3,500
balance C/d 87,500 rent exp
130,500 130,500 5,000 balance C/d
balance b/d 87,500
Drawing 5,000
1,000 balance C/d 1,000 balance b/d 5,000

1,000 1,000 Purchase return

balance b/d 1,000 balance C/d 250

250
balance b/d

Sales a/c payable

balance C/d 20,000 5,000 250
3,500
15,000 balance C/d 6,750
20,000 20,000 10,000
balance b/d 20,000 balance b/d

Supplies sales renturn

1,500 balance C/d 1,500 750 balance C/d

1,500 1,500 750

balance b/d 1,500 balance b/d 750

HASF and company

trial balacne
for the period ended
Amount
S.No P/R DR Cr
1 Cash 87,500
2 A/c receivable 14,250
3 Supplies 1,500
4 Machine 500
5 A/c payable 6,750
6 Capital 126,000
 7 Drawing 1,000
8 Service income 20,250
9 insurance exp 750
10 utilities exp 30,000
11 rent exp 5,000
12 salry exp 12,500
153,000 153,000
 Purchase
125,000 20,000
10,000 balance C/d 30,000
125,000 30,000 30,000
125,000 balance b/d 30,000

p Salary exp
5,000 12,500 balance C/d 12,500

5,000 12,500 12,500

balance b/d 12,500

urn A/c receivable

250 15,000 750
balance C/d 14,250
250 15,000 15,000
250 balance b/d 14,250

e old machine
10,000 balance C/d 500 500

10,000 500 500

6,750

urn
750

750

assets
liabilities
capital
drawing
revenue
exp
 Cash Capital
165,000 20,000 balance C/d 165,000
1,500
2,500 165,000
700 balance b/d
1,500
400
balance C/d 138,400 office equipment
165,000 165,000 55,000 balance C/d
balance b/d 138,400
Drawing 55,000
1,500 balance C/d 1,500 balance b/d 55,000

1,500 1,500
balance b/d 1,500

insurance exp a/c payable

400 balance C/d 400 700

400 400 balance C/d 35,500

balance b/d 400 10,000
balance b/d
HASF and company
trial balacne
for the period ended
Amount
S.No P/R DR Cr
1 Cash 138,400
2 equipment 55000
3 A/c payable 15,500
Service income 20,000
4 Capital 165,000
5 Drawing 1,500
6 utililties exp 1,200
7 insurance exp 400
8 rent exp 1,500
9 salry exp 2,500
200,500 200,500

HASF and company

income statement
For the year ended Dec 31 2020
Service income 20,000
less expenses
utililties exp 1,200
insurance exp 400
rent exp 1,500
salry exp 2,500
total expense 5,600
net profit for the year 14,400

HASF and company

Balance Sheet
As OnDec 31 2020
Assets Liabilities + owaner equity
Current assets Liabilities
Cash 138,400 a/c payable 15,500
Total current assets 138,400 total liabilities 15,500
Fixed assets owaner equity
Equipment 55000 capital 165,000
total fixed assets 55000 add net profit 14,400
179,400
less drawing 1,500
total owaner equity 177,900

193,400 193,400
 Purchase
165,000 1,200
balance C/d 1,200
165,000 1,200 1,200
165,000 balance b/d 1,200

ment Salary exp

55,000 2,500 balance C/d 2,500

55,000 2,500 2,500

balance b/d 2,500

e rent exp
35,000 1,500
1,200
balance C/d 1,500
10,000 1,500 1,500
35,500 balance b/d 1,500

assets
liabilities
capital
exp