Assignment # 1

Class : BAF I
Due Date: 19th Feb, 2018

1. Prepare the accounting equation on the basis of the following data.

i. Haris started business with cash Rs. 2,00,000

ii. Purchased goods from Nauman for cash Rs. 40,000
iii. Sold goods to Ali for Rs. 12,000
iv. Bought furniture on credit Rs. 7,000
2. Prepare accounting equation from the following:
i. Karim started business with cash Rs. 2,50,000
ii. He purchased furniture for cash Rs. 35,000
iii. He purchased goods on credit Rs. 40,000
iv. He sold goods for cash Rs. 26,000
3. Mohib has the following transactions, prepare the accounting equation:
i. Business started with cash Rs. 1,75,000
ii. Purchased goods from Rohail for cash Rs. 50,000
iii. Sold goods on credit to Mohammad Rs. 20,000
iv. Purchased furniture for office use for cash Rs. 10,000
v. Cash received from Mohammad Rs. 20,000
vi. Cash withdrew for personal use Rs. 3,000
4. Prepare accounting equation from the following:
i. Mr. Akram started a business by depositing Rs. 80,000in a company bank account
ii. Purchase land for Rs. 52,000, paying in cash
iii. Purchase a building for Rs. 36,000, paying Rs. 6,000 in cash and issuing a note payable
for the remaining Rs. 30,000
iv. Purchase tools & equipment on account , Rs. 13,800
v. Sold some of the tools & equipment at a price equal to their cost , Rs. 1,800 , collectible
within 45 days
vi. Received Rs. 600 in partial collection of the accounts receivable from the sale of tools.
vii. Paid Rs. 6,800 in partial payment of an accounts payable
5. Goldstar Communications was organized on December 1 of the current year and had the
following account balances at December31, listed in tabular form. Record the effects of
each of the five transactions in the format.
Assets = Liabilities + Capital
Office = Notes Accounts Capital
Cash + Land + Building + equipment Payable + Payable +
Rs 37,000 95,000 125,000 51,250 80,000 28,250 200,000
Early in January, the following transactions were carried out by Goldstar Communication:

i. Owner deposited Rs. 35,000 in bank account.

ii. Purchase land and a small office building for a total price of Rs. 90,000, of which Rs.
35,000 was the value of the land and Rs. 55,000 was the value of the building. Paid
Rs. 22,500 in cash and signed a notes payable for the remaining Rs. 67,500.
iii. Bought several computer systems on credit for Rs. 9,500.
 iv. Obtained a loan from Capital Bank in the amount of Rs. 20,000. Signed a note
payable.
v. Paid the Rs. 28,250 account payable due as December 31.

6. Rankin Truck Rental was organized on December 1of the current year and had the
following account balances at December 31, listed in tabular form. Record the effects of
six transactions in this tabular arrangements.
Assets = Liabilities + Capital
Office = Notes Accounts Capital
Cash + Accounts Trucks + equipment Payable + Payable +
Receivables
+
Rs 9,500 13,900 68,000 3,800 20,000 10,200 65,000
Early in January, the following transactions were carried out by Rankin Truck Rental:

i. Bought office equipment at a cost of Rs. 27,000. Paid in cash.

ii. Collected Rs. 4,000 of accounts receivable.
iii. Paid Rs. 3,200 of accounts payable.
iv. Borrowed Rs. 10,000 from a bank. Signed a note payable for that amount.
v. Purchased two trucks for Rs. 30,500. Paid Rs. 15,000 cash and signed a note payable
for the balance.