Assignment # 3: Solve the following assignment and also solve the problem which we discussed in last class.

P3.1

Nasir Bajwa, an interior decorator, completed the following transactions during the month of April 1997: April 2 3 4 5 `6 7 8 10 11 12 13 14 15 18 20 22 23 24 25 29 30 30 Required i ii iii Prepare journal entries to record the above transactions in the special general journal format (Sales general, Purchase general, cash receipts and cash payment general etc.). Set up the T accounts and post all the journal entries. Prepare a trial balance. Began his business with equipment valued at Rs. 1,230,000 and placed Rs. 2,000,000 in a business bank account. Purchased a used Suzuki pickup costing Rs. 1200,000 and paid by cheque. Purchased supplies on account, Rs. 3,2000. Completed painting a two-storey house and billed the customer, Rs. 24,800. Billed customer but no yet received Rs. 200,000. Received cash for painting two rooms, Rs. 5,000. It was kept in the cash till. Hired assistant to work with him, to be paid Rs. 100 per day. Purchased supplies for Rs. 146,000 and paid by cheque. Received cheque from customer previously billed, Rs. 4,800. Paid by cheque Rs. 100,000 on insurance policy for 18 months coverage. Billed customer for painting job, Rs. 6,200. Paid assistant for six-day work, Rs. 600 in cash. Paid cash Rs. 150 for tuning of the pickup. Paid cheque for supplies purchased on April 4. Purchased new (equipment for Rs. 6000 and supplies for Rs. 2,9000, on account. Received telephone bill to be paid next month, Rs. 6000. Received cash from customer previously billed, Rs. 3,300. It was deposited in the bank. Transferred Rs. 3,000 to personal bank account. Received cheque for painting five-room apartment, Rs. 33,600. Paid assistant for 15 days work, Rs. 1,500 in cash. Paid Salaried to employees Rs. 30,000 Purchase goods Rs. 250,000, paid cash 50,000 and signed note for remaining.

A Comprehensive Illustration of Journalizing and Posting On 1st July of the current year, Muhammad Farooq started in business of buying and selling groceries at Islamabad with investment of Rs. 1,500,000 in cash and Rs. 500,000 in merchandise. During the month the following transactions took place: July 2 2 Bought groceries from various suppliers costing Rs. 200,000 all paid in cash. Bought display shelves for Rs. 65,000 and shop supplies for Rs. 18,000 all paid in cash. He paid Rs. 30,000 for 3 months rent of the shop premises. Sold groceries for cash, Rs. 20,000. Sold groceries on credit to Zia Inn for Rs. 85,000. Sold groceries on credit to Bilal Motel for Rs. 110,000.

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Bought merchandise on credit from Islamabad Wholesalers for Rs. 200,000 and paid Rs. 5,000 cash for carriage of merchandise. Sold groceries for cash, Rs. 40,000. Bilal Motel returned some defective canned goods worth Rs. 8,000. A credit note was issued. Bought merchandise on credit for Rs. 100,000 from Jamal Traders. - Muhammad Farooq took Rs. 10,000 cash for his personal use. Received the total amount owing from Zia Inn. Returned to Jamal Traders some goods damaged in transit, costing Rs. 6,000 and issued a debit note for the amount. Sold groceries on credit to Muhammad Ali for Rs. 90,000. Paid Islamabad Wholesalers Rs. 100,000 of the amount owing to them. Sold groceries for cash, Rs. 25,000. Paid the shop assistant wages for the month amounting to Rs. 6,000.

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Required i ii iii Prepare journal entries to record the above transactions in the special general journal format (Sales general, Purchase general, cash receipts and cash payment general etc.). Set up the T accounts and post all the journal entries. Prepare a trial balance.