Question 01: Mr. Siddiqui started business on December 1, 2019 with the investment of cash Rs. 500,000 and office equipment worth Rs. 80,000. Following transactions were completed during the month: December 2: Purchased merchandise for cash Rs. 50,000, paid cash Rs. 30,000 and balance on credit. December 3: Purchased office supplies for cash Rs. 12,000. December 08: Purchased furniture on credit Rs. 75,000. December 15: Sold merchandise for Rs. 80,000, received cash Rs. 30,000 and balance on credit. December 18: Merchandise retuned to supplier Rs. 5,000. December 20: Merchandise retuned by customer Rs.8,000. December 22: Received cash from customer Rs. 35,000. December 24: Paid rent for the month Rs. 25000. December 26: Paid to suppliers Rs. 20,000. December 28: Mr. Siddiqui withdrew cash Rs, 30,000 for personal use. Required: a) Record the above transactions in the general journal. b) Post the transactions to "T" accounts. c) Balance the accounts and prepare a trial balance.
Question 01:
Mr. Siddiqui started business on December 1, 2019 with the investment of cash Rs. 500,000 and office equipment worth Rs. 80,000. Following transactions were completed during the month:
December 2: Purchased merchandise for cash Rs. 50,000, paid cash Rs. 30,000 and balance on credit.
December 3: Purchased office supplies for cash Rs. 12,000.
December 08: Purchased furniture on credit Rs. 75,000.
December 15: Sold merchandise for Rs. 80,000, received cash Rs. 30,000 and balance on credit.
December 18: Merchandise retuned to supplier Rs. 5,000.
December 20: Merchandise retuned by customer Rs.8,000.
December 22: Received cash from customer Rs. 35,000.
December 24: Paid rent for the month Rs. 25000.
December 26: Paid to suppliers Rs. 20,000.
December 28: Mr. Siddiqui withdrew cash Rs, 30,000 for personal use.
Required:
- a) Record the above transactions in the general journal.
- b)
Post the transactions to "T" accounts. - c) Balance the accounts and prepare a
trial balance .
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