Professional Documents
Culture Documents
Lecture 18
Classwork:
1) Solved following question and also discussed concept of opening trial balance.
(Q. 5.16: Chapter 4, page 106 of RISE book) Mr. Ali started the business of retail shop. Following
transactions took place for the first year ended December 31, 2008:
i. Started in business with Rs.25,400 cash.
ii. Paid Rs.7,000 of the opening account into the bank.
iii. Bought office fixture on credit for Rs. 3,000
iv. Bought goods on credit Rs.410 from J Watson.
v. Bought goods for cash Rs.362.
vi. Sold goods on credit Rs.818 to L Less.
vii. L Less returned goods amounting to Rs.15.
viii. Sold goods for cash Rs.54.
ix. We paid J Watson his account by cheque Rs.200.
x. Sold goods worth Rs.150 to L Less on credit.
xi. We returned goods to J Watson amounting to Rs. 22.
xii. Received cheque from L Less amounting to Rs.100
xiii. We paid electricity bill by cash Rs.40.
xiv. Owner withdrew Rs. 200 in cash.
Closing stock as per physical count is Rs. 300.
Transactions for the subsequent year ending on December 31, 2009 were:
i. Bought goods on credit from B Brown Rs.1,530
ii. Sold goods for cash Rs.1,910.
iii. Sold goods on credit to H Rise Rs.1,374.
iv. Received cheque from L Less amounting to Rs. 818
v. Paid rent expense amounting to Rs. 150 by cash.
vi. Owner withdrew Rs. 100 in cash.
vii. Paid outstanding amount for fixture purchased by cash Rs.3,000.
viii. Paid J Watson by cheque Rs.100.
Closing stock as per physical count is Rs. 320.
Homework:
Complete above question 5.16.