1.SL. Mr. Saeed started his business with cash Rs. 65,000, Furniture Rs. 20,000 andBuilding Rs. 1,00,000 on Ist January, 1990.His transaction during the month were as follows :1990Jan. 1 Purchased goods on account from Asif worth Rs. 15,000."2 Purchased goods for cash Rs. 30,000."3 Sold goods for cash Rs. 22,000."5 Sold goods to Shahid & Sons for Rs. 14,000."8 Purchased a typewriter for Rs. 8,000." 10 Bought an iron safe for Rs. 4,000." 12 Made purchases from Salman Rs. 18,000." 14 Opened Bank Account with Rs. 20,000.LEDGER: THE MAIN BOOK OF ACCOUNTS105" 16 Received a cheque from Shahid & Sons for Rs. 9,000." 18 Issued a cheque in favour of Asif for Rs. 8,000.20 Cheque received from Shahid & Sons paid into the bank." 22 Goods sold for cash Rs. 19,000 'and paid into the bank." 24 Paid a cheque to Salman for Rs. 17,800 in full settlement of his account." 26 Received cash from Shahid & Sons Rs. 4,900 in full settlement of their account." 28 Withdrew cash for personal use Rs. 3,000." 30 Paid electricity bill Rs. 1,000." 31 Paid the following expenses by cheques: Salaries Rs. 2,000, insurance Rs. 1,000.Req:Journalise the above transactions and post them into the ledger.

Answered: 1.SL. Mr. Saeed started his business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On Ist January, 1990, the balances of M/s Khan Bros. are as follows; Assets Liabilities & Owner's equity Rs. 25000 Creditors 40000 Cash 17000 Capital 94000 Debtors of goods 22000 Stock of goods 70.000 134000 Building 134000 Transactions during the month of January; Jan: 1. Purchased goods for cash Rs. 4,000 subject to a trade discount of 10% 5. Sold goods for cash Rs. 12,000 Costing Rs. 10,500 7. Cash paid to creditors Rs. 25,000 9. Sold goods for cash Rs.5,000 and as credit basis Rs.3,000 costing Rs.6,000. 11. Goods returned by a customer Rs. 2,000 costing Rs. 1,900 15. Cash received from debtors Rs. 14,000 18. Cash paid for furniture purchased for owner's domestic use Rs. 1,000 22. Depreciation on building Rs. 1,400. 29. Paid telephone bill Rs. 600 30. Paid salaries Rs. 3,000. Req. Show the effects of above transactions on the accounfing equation. Ans: [Rs. 106400].
A company reported the following transactions. Journalize transactions that should be recorded in a cash receipts journal. July 1 Smith, the owner, contributed $13,300 cash to the company. July 6 Sold merchandise costing $1,800 to Garcia for $2,030 on credit, terms n/20. July 8 Purchased merchandise for $10,600 on credit from Jones, terms n/30. July 23 Sold merchandise costing $1,030 to Taylor for $1,080 cash. July 25 Received $2,030 cash from Garcia in payment of the July 6 purchase. July 27 Purchased $565 of supplies on credit from a company, terms 1/10, n/30. July 30 Borrowed $9,800 cash in exchange for a note payable to a bank. Date July 01 July 06 July 08 July 23 July 25 July 27 July 30 Account Credited Smith, Capital Garcia Jones Cash Debit 13,300 CASH RECEIPTS JOURNAL Accounts Sales Discount Debit Receivable Credit 2,030 Sales Credit Other Accounts Credit Cost of Goods Sold Debit Inventory Credit 1,800
1. Mr. X, an importer of wheat, imported wheat for Tk. 70. He paid VAT @15%. He sold it to a wholesaler Mr. W for Tk. 100 and collected VAT @ 4.5%. Mr. W sold it to a retailer for Tk. 150 and collected VAT @7.5%. Give necessary journal entries for these transactions. 2. Mr. X, an importer of wheat, imported wheat for Tk. 70. He paid VAT @15%. He sold it to a wholesaler Mr. W for Tk. 100 and collected VAT @ 4.5%. Mr. W sold it to a retailer for Tk. 150 and collected VAT @15%. Mr. W maintains all the necessary documents/records as required by the VAT laws. Give necessary journal entries for these transactions.
16. Joseph Howard owns a bicycle parts business called Quality Bike Products. The following transactions took place during July the current year. July 5 Purchased merchandise on account from Wheeler Warehouse, $3,300. 8 Paid freight charge on merchandise purchased, $330. 12 Sold merchandise on account to Big Time Spoiler, $4,500. The merchandise cost $2,500. 15 Received a credit memo from Wheeler Warehouse for merchandise, $470. Required: 1. Journalize the above transactions in a general journal using the periodic inventory method. 2. Journalize the above transactions in a general journal using the perpetual inventory method. GENERAL JOURNAL (Periodic Inventory Method) Page 1 Post Date Description Ref. Debit Credit
Q2. Prepare single columa cash book of Karim for the month Aprl 2000. April 1"cash in hand Rs 40000 April 4 cash sales Rs 5000. April 12 Purchases goods for cash Rs 8000. April 14 Received from Abbas & sons Rs S000. April 24 purchase stationary Rs 2000 April 26 Paid salaries 5000 April 29 paid rent Rs 6000. April 30 paid electric bill 2000.
Mr. Zubair sold Merchandise inventory worth OMR 50,000 for cash. Which books of prime entry will record the transaction? a. Purchase journal b. Cash disbursement journal c. Cash receipt journal d. Sales journal
Mr Johannes started business with Cash N$200000; purchased goods for cash N$60 000 and on credit N$150 000; sold goods for cash costing N$40 000 at a profit of 20% and on credit costing N$72 000 at a profit of 25%. He paid for rent N$5 000. Determine the selling price for goods sold for cash Answer:
July 01: Started business with an investment of cash Rs. 40,000, building valued at Rs. 60,000 and land valued at Rs. 13,000 July 04: Purchased a delivery truck from MR Autos, Rs. 25,000 issued a promissory note for the full amount July 06: Merchandise purchased on account for Rs. 15,000 July 08: Sold merchandise on account for Rs. 4,000 July 11: Purchase two plots for cash Rs. 20,000 July 14: Cash sales Rs. 18,000 July 17: Paid balance due for merchandise purchased July 20: Withdrew cash Rs. 500 for personal used July 23: Paid rent expense Rs. 1,000 July 25: Made an additional investment of Rs. 15,000 July 28: Collected one half of the amount due for the sales of July 08 July 31: Paid salary of Rs. 2,300 Required: • Prepare journal entries. Prepare general ledger accounts. Prepare Trial Balance.
25-Mr. Said Al busaidi is a trader of Mobile business. Which of the following transactions will be recorded in his cash disbursement Journal? a. Bought mobiles worth RO 30,000 from Muscat Supplies LLC 2/10, n/30 b. Bought mobiles worth RO 18,000 from Nizwa Mobiles under the terms of 2/10 n/30 c. Received cash from Sohar Supplies LLC for RO 12,500 d. Cash paid to Muscat Mobiles LLC RO 12,500
Illustration: You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: 1. ProvidedP100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpetual inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales is P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000.
Make the analysis of the following transactions and record them in various accounts by applying the rules of debit and credit. 1- Usama commenced business with cash Rs. 600,000, building Rs. 80,000 2- Purchased goods for cash Rs. 160,000 subject to trade discount @10% 3- Purchased office furniture for cash Rs. 30,000 4- Paid advertising expenses Rs. 3000 5- Purchased goods from Ali and Sons Rs. 15000 6- Sold goods for cash Rs. 37,000 7- Sold goods to Faisal and Sons Rs. 30,000 8- Received cash from Faisal and Sons Rs. 28000 and Discount allowed Rs. 2,000 9- Paid cash to Ali and Sons Rs. 12,000 10- Goods distributed as free sample Rs. 2,000
During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 6 14 30 Purchased goods for $1320 from Noah with terms 2/10, n/30. Purchased goods from Emma for $860 with terms 1/10, n/30. Paid Emma in full. Paid Noah in full. On January 30, when Ava pays Noah, the debit to cash will be ?

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