FUNDAMENTALS OF

ACCOUNTING
LECTURE NO.6
SECTION C & D
11-NOV-2020
Q1. Journalize the following transaction of Mr. Kashan for the month of April 2015:
April 01, Mr. Kashan Started business with cash Rs.250,000
02 Mr. Kashan Purchased goods on cash from Alam & Co., a supplier, for the Rs.85,000
purpose of resale
05 Sold goods to the Rehman Sons, a customer, for cash Rs.90,000
06 Mr. Kashan returned defected goods to Alam & Co. for cash Rs.5,000
06 Rehman Sons returned defected goods to Mr. Kashan for cash Rs.2,000
09 Purchased office furniture for cash Rs.4,000
10 Purchased Equipment for office Rs.35,000
13 Cash Paid for office Rent Rs.500
13 Mr. Kashan purchased stationery for office use Rs.500
16 Mr. Kashan purchased goods on cash for the purpose of resale Rs.8,000
18 Mr. Kashan paid cartage expense Rs.350
20 Mr. Kashan paid salary to his staff Rs.95,000
22 Mr. Kashan paid cash for telephone bill Rs.1,500
23 Bad debts expense for the year Rs.400
24 Depreciation expense for equipment Rs.1000
Q2. Company A was incorporated on January 1, 2020 with an initial capital of 500,000 Cash. During
the first month of its operations, the company engaged in the following transactions:

Jan 2 An amount of Rs.36,000 was paid as advance rent for three months.

Jan 3 Paid 60,000 cash on the purchase of equipment costing 80,000. The remaining amount
was recognized as a one year note payable with an interest rate of 9%.

Jan 4 Purchased office supplies costing 17,600 on account.

Jan 13 Provided services to its customers and received 28,500 in cash.

Jan 13 Paid the accounts payable on the office supplies purchased on January 4.