Financial Account 1

Submitted by: Furqan Hameed

Submitted to: Dr Nayyar Zaidi

ID: 19U00482

Section: A

Date: 11/24/2020
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Table of Contents
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Executive Summary

Ali Silk and Buttons is located in Gari Shahu area, Lahore. It provides various types of adornments and

embellishments for clothing including tassels, laces, buttons, and other clothing accessories. They also deal in

artificial jewellery. They buy their merchandise from a number of suppliers some of whom manufacture or craft

it locally; however, imported goods are also sold. Sales are mostly made on cash basis however occasionally

credit is extended to some larger customers e.g. boutiques. The business does not offer the facility of returns or

exchanges because of the nature of the product. The business is there for over 10 years.
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1) Trial Balance at the beginning of the month:

Khurrum Button and Silk Centre

Opening Trial Balance
For the month ended September, 2020

Accounts Debit (Rs) Credit (Rs)

Cash 2494500
Accounts Receivables 48500
Merchandise Inventory 540000
Fixtures and Fittings 40000
Accounts Payable 1522500
Amjad Khurram, Capital 1600500
Total 3123000 3123000

2) Transactions for the month:

1. Oct 1, purchased Turkish jewellery from Bushra Ahmed for Rs.250000 on account.
2. Oct 1, Paid miscellaneous expenses Rs150.
3. Oct 1, sold buttons for Rs.300.
4. Oct 1, sold buttons for Rs.810.
5. Oct 1, sold lace for Rs 3450.
6. Oct 2, purchased velvet on account from Lahore Fabric Centre for Rs.15000.
7. Oct 2, purchased lace on account from Khan Lace shop for Rs.50000.
8. Oct 2, purchased buttons on account from The Lace Centre for Rs.7500.
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9. Oct 2, sold buttons for Rs.1000.

10. Oct 2, sold laces for Rs.1250.
11. Oct 2, sold tassels for Rs.750.
12. Oct 3, bought silk on account from Kashif Cloth for Rs.25000.
13. Oct 3, bought earring on account from Al Miraj Jewellry for Rs.17000.
14. Oct 3, sold buttons to Hawkes on account for Rs.30000.
15. Oct 3, sold jewellery for Rs.2695.
16. Oct 3, sold laces for Rs.1080.
17. Oct 3, sold cloth for Rs 1700.
18. Oct 4, sold cloth to Asma’s Boutique on account for Rs.11840.
19. Oct 4, sold cloth for Rs.1600.
20. Oct 5, sold laces to Sara Salman on account for Rs. 21500.
21. Oct 5, sold velvet for Rs.1900.
22. Oct 6, sold silk for Rs.2000.
23. Oct 7, purchased Turkish jewellery on account from Bushra Ahmed for Rs.30000.
24. Oct 7, sold velvet for Rs 4500.
25. Oct 8, paid The Button Centre for the purchase on Oct 2.
26. Oct 8, sold buttons for Rs. 720.
27. Oct 8, sold lace for Rs.975.
28. Oct 9, Amjad Khurram withdrew Rs10,000 for personal use.
29. Oct 9, sold jewellery for Rs.21075.
30. Oct 9, sold buttons for Rs.1490.
31. Oct 10, sold fabric to Elan on account for Rs.1200000.
32. Oct 10, Received payment from Hawkes for the purchase on Oct 3.
33. Oct 10, paid miscellaneous expenses of Rs.300.
34. Oct 11, Paid Al Miraj Jewellery for the transaction on Oc 3.
35. Oct 11, sold buttons on account to Hawkes for Rs.15000.
36. Oct 11, sold jewellery on account to Iqra & Zainab for Rs.23000.
37. Oct 12, purchased a delivery vehicle on account from Suzuki Motors BWP for Rs 500000.
38. Oct 12, sold fabric on account to Asma’s Boutique got Rs.35000.
39. Oct 12, received payment from Asma’s Boutique for the transaction on Oct 4.
40. Oct 13, paid insurance expense of Rs.15000.
41. Oct 13, paid water bills for Rs.9000.
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42. Oct 13, received payment from Sara Salman for the transaction on Oct 5.
43. Oct 14, paid miscellaneous expenses of Rs 200.
44. Oct 14, sold lace for Rs.800.
45. Oct 14, sold silk for Rs.2700.
46. Oct 15, sold lace for Rs 1656.
47. Oct 15, sold buttons for 975.
48. Oct 15, sold Sara Salman fabric on account for Rs.17000.
49. Oct 15, Amjad Khurram withdrew Rs.15000 for personal use.
50. Oct 15, sold Hawkes fabric on account for Rs.10000.
51. Oct 16, sold lace on account to Elan for Rs.75000.
52. Oct 16, sold buttons for Rs.600.
53. Oct 16, sold tassels for Rs.265.
54. Oct 17, paid Suzuki Motors BWP for the purchase on Oct 12.
55. Oct 17, paid Kashif Cloth for the purchase on Oct 3
56. Oct 17, sold lace for Rs.1070.
57. Oct 18, bought lace for Rs 4500.
58. Oct 18, paid miscellaneous expenses of Rs.2000.
59. Oct 18, sold lace for Rs.1300.
60. Oct 18, sold jewellery on account to Iqra & Zainab for Rs.27000.
61. Oct 19, sold fabric on account to Iqra & Zainab for Rs20,050.
62. Oct 19, paid utility expenses of Rs.900.
63. Oct 19, sold buttons for Rs.500.
64. Oct 20, received payments from Asma’s Boutique for the purchase on Oct 12.
65. Oct 20, sold cloth for Rs.1200.
66. Oct 20, Amjad Khurram invested Rs.50000 into his business.
67. Oct 21, sold buttons for Rs.975.
68. Oct 21, received payment from Iqra & Zainab for the transaction on Oct 11.
69. Oct 22, bought jewellery on account from Bushra Ahmed for Rs10,000.
70. Oct 22, sold lace for Rs.1490.
71. Oct 22, bought buttons on account from The Button Centre for Rs.7500.
72. Oct 23, paid Bushra Ahmed for the purchase on Oct 1.
73. Oct 23, sold fabric for Rs.1300.
74. Oct 24, paid workers, Rs.20000.
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75. Oct 24, received payment from Sara Salman for the purchase on Oct 15.
76. Oct 24, sold silk for Rs.5000.
77. Oct 24, sold lace for Rs.845.
78. Oct 25, paid Bushra Ahmed for the purchase on Oct 7.
79. Oct 25, paid miscellaneous expenses of Rs.1500.
80. Oct 25, received payment from Hawkes for purchase on Oct 15.
81. Oct 25, received payment from Hawkes for the purchase on Oct 11.
82. Oct 26, bought cloth on account from Kashif Cloth for Rs.5000.
83. Oct 26, paid Khan Lace Shop for the purchase on Oct 2.
84. Oct 26, paid Bushra Ahmed for the purchase on Oct 21.
85. Oct 26, sold buttons for Rs.500.
86. Oct 27, paid Kashif Cloth for the purchase on Oct 26.
87. Oct 27, paid rent expense for Rs.45000.
88. Oct 27, sold fabric for Rs.1425.
89. Oct 27, sold buttons for Rs.675.
90. Oct 28, received payment from Iqra & Zainab for the purchases on Oct 18.
91. Oct 28, Amjad Khurram invested 25000 into the business.
92. Oct 29, paid rent expense (for secondary location) Rs.21000.
93. Oct 29, received payment from Iqra & Zainab for the purchase on Oct 19.
94. Oct 29, sold buttons for Rs.580.
95. Oct 29, sold fabric for Rs.1425.
96. Oct 30, sold lace for Rs.2600.
97. Oct 30, sold fabric got Rs.2400.
98. Oct 30, paid The Lace Centre for the purchase on Oct 22.
99. Oct 30, received payment from Elan for the transaction on Oct 10.
100.Oct 31, received payment from Elan for the transaction on Oct 16.

3) Journal Entries:

Journal Entries 
Date Description P/R Debit Credit
2020  Oct (Rs) (Rs)
1 Merchandise Inventory  250000
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                                 Accounts Payable - Bushra Ahmed   250000

1 Miscellaneous Expense  150

                                           Cash  150

1 Cash  300
                                           Sales  300

1 Cash  810
                                           Sales  810

1 Cash  3450
                                           Sales  3450

2 Merchandise Inventory  15000

                    Accounts Payable - Lahore Fabric Centre  15000

2 Merchandise Inventory  50000

                           Accounts Payable - Khan Lace Shop   50000

2 Merchandise Inventory  7500

                           Accounts Payable - The Button Centre 7500

2 Cash  1000
                                           Sales  1000

2 Cash  1250
                                           Sales  1250

2 Cash  750
                                           Sales  750

3 Merchandise Inventory  25000

                                Accounts Payable - Kashif Cloth  25000

3 Merchandise Inventory  17000

                          Accounts Payable - Al Miraj Jewellry 17000

3 Accounts Receivables - Iqra & Zainab 30000

                                            Sales  30000

3 Cash  2695
                                           Sales  2695

3 Cash  1080
                                           Sales  1080

3 Cash  1700
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                                           Sales  1700

4 Accounts Receivables - Asma’s Boutique 11840

                                            Sales  11840

4 Cash  1600
                                           Sales  1600

5 Accounts Receivables - Sara Salman 21500

                                            Sales  21500

5 Cash  1900
                                           Sales  1900

6 Cash  2000
                                           Sales  2000

7 Merchandise Inventory  30000

                                  Accounts Payable - Bushra Ahmed   30000

7 Cash  4500
                                           Sales  4500

8  Accounts Payable - The Button Centre 7500

                                            Cash  7500

8 Cash  720
                                           Sales  720

8 Cash  975
                                           Sales  975

9 Amjad Khurrum, Drawings  10000

                                          Cash 10000

9 Cash  21075
                                           Sales  21075

9 Cash  1490
                                           Sales  1490

10 Accounts Receivables - Elan 1200000

                                            Sales  1200000

10  Cash  30000
                           Account Receivables - Iqra & Zainab 30000

10 Miscellaneous Expense  300

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                                           Cash  300

11  Accounts Payable - Al Miraj Jewellry 17000

                                            Cash  17000

11 Accounts Receivables - Iqra & Zainab 15000

                                            Sales  15000

11 Accounts Receivables - Iqra & Zainab 23000

                                            Sales  23000

12 Delivery Vehicle  500000

                   Accounts Payables - Suzuki Motors BWP 500000

12 Accounts Receivables - Asma’s Boutique 35000

                                       Sales 35000

12 Cash  11840
Accounts Receivables - Asma’s Boutique 11840

13 Insurance Expense   15000

                                         Cash 15000

13 Water Expense  9000

                                         Cash  9000

13 Cash 21500
                     Accounts Receivables - Sara Salman 21500

14 Miscellaneous Expenses  200

Cash 200

14 Cash 800
Sales 800

14 Cash 2700
Sales 2700

15 Cash 1656
Sales 1656

15 Cash 975
Sales 975

15 Accounts Receivables - Sara Salman 17000

Sales 17000

15 Amjad Khurrum, Drawings  15000

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Cash 15000

15 Accounts Receivables - Hawkes 10000

Sales 10000

         
16 Account Rec- Elan   75000  
  Sales     75000
         
16 Cash    600  
  Sales     600
         
16 Cash    265  
  Sales     265
         
17 Account Payable-Suzuki Motors BWP    500000  
  Cash     500000
         
17 Account Payable-Kashif Cloth    25000  
  Cash     25000
         

17 Cash   1070  
  Sales     1070
         
18 Merchandise Inventory   4500  
  Cash     4500
         
18 Miscellaneous expenses    2000  
  Cash     2000
         
18 Cash   1300  
  Sales     1300
         
18 Accounts Rec - Iqra & Zainab    27000  
  Sales     27000
         
19 Accounts Rec - Iqra & Zainab    20050  
  Sales     20050
         
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19 Utility expenses    900  

  Cash     900
         
19 Cash   500  
  Sales     500
         
20 Cash   25000  
  Accounts Pay - Asma's Boutique     25000
         
20 Cash   1200  
  Sales     1200
         
20 Cash   50000  
  Amjad, Khurram, Capital     50000
         
21 Cash   975  
  Sales     975
         
21 Cash   23000  
  Accounts payables - Iqra & Zainab     23000
         
21 Merchandise Inventory   10000  
  Accounts Payable - Bushra Ahmed     10000
         
22 Cash    1490  
  Sales     1490
         
22 Merchandise Inventory   7500  
  Accounts Payable-The button Centre     7500
         
22 Accounts Payables -Bushra Ahmed    250000  
  Cash     250000
         
23 Cash   1300  
  Sales     1300
         
23 Wages   20000  
  Cash     20000
         
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24 Cash   17000  
  Accounts Receivables - Sara Salman     17000
         
24 Cash    5000  
  Sales     5000
         
24 Cash    845  
  Sales     845
         
25 Accounts Payables - Bushra Ahmed    30000  
  Cash     30000
         
25 miscellaneous expenses    1500  
  Cash     1500
         
25 Cash   10000  
  Accounts Rec - Hawkes     10000
         
25 Cash   15000  
  Accounts Rec - Hawkes     15000
         
26 Merchandise Inventory   5000  
  Accounts Rec - Kashif Cloth     5000
         
26 Accounts Pay - Khan Lace   50000  
  Cash     50000
         
26 Accounts Pay - Bushra Ahmed   10000  
  Cash     10000
         
26 Cash    500  
  Sales     500
         
27 Acconts Pay - Kashif Cloth    5000  
  Cash     5000
         
27 rent expense   45000  
  Cash     45000
         
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27 Cash   1425  
  Sales     1425
         
27 Cash   675  
  Sales     675
         
28 Cash   27000  
  Accounts Rec - Iqra & Zainab     27000
         
28 Cash   25000  
  Amjad Khurram, Capital     25000
         
29 Rent Expense   21000  
  Cash     21000
         
29 Cash   20050  
  Accounts Rec - Iqra & Zainab     20050
         
29 Cash   580  
  Sales     580
         
29 Cash   1425  
  Sales     1425
         
30 Cash   2600  
  Sales     2600
         
30 Cash   2400  
  Sales     2400
         
30 Accounts Pay - The Button Centre    7500  
  Cash     7500
         
30 Cash   120000  
  Accounts Rec - Elan     120000
         
31 Cash   75000  
  Accounts Rec - Elan     75000
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4) General Journal:

General Journal
Date Description P/R Debit Credit
2020 Amjad Khurram, Drawings 32 10000
Oct 9
Cash 11 10000

15 Amjad Khurram, Drawings 32 15000

Cash 11 15000

20 Cash 11 50000
Amjad Khurram, Capital 31 50000

28 Cash 11 25000
Amjad Khurram, Capital 31 25000

5) Special Journals:

Purchases Journal

Date Accounts P/R Accounts Merchandising Other P/R Amount

Credited Payable Inventory Accounts
Cr. Dr. Dr.
2020 Oct
1 Bushra Ahmed √ 250000 250000
2 Lahore Fabric √ 15000 15000
Center
2 Khan Lace Shop √ 50000 50000
2 The Button √ 7500 7500
Centre
3 Kashif Cloth √ 25000 25000
3 Al Miraj √ 17000 17000
Jewellery
7 Bushra Ahmed √ 30000 30000
12 Suzuki Motors √ 500000 Delivery 18 500000
BWP Vehicle
21 Bushra Ahmed √ 10000 10000
22 The Button √ 7500 7500
Centre
26 Kashif Cloth √ 5000 5000
31 917000 417000 500000
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((21)) ((15)) (√√)

Cash Payments Journal

Date Accounts Debited P/R Other Accounts Payable Cash

Accounts Dr. Cr.
Dr.
2020
Oct
1 Miscellanous Expenses 58 150 150
8 The Button Centre √ 7500 7500
10 Miscellanous Expenses 58 300 300
11 Al Miraj Jewellery √ 17000 17000
13 Insurance Expense 55 15000 15000
13 Utility Expenses 52 9000 9000
14 Miscellanous Expenses 58 200 200
17 Suzuki Motors BWP √ 500000 500000
17 Kashif Cloth √ 25000 25000
18 Merchandise Inventory 15 4500 4500
18 Miscellanous Expenses 58 2000 2000
19 Utility Expenses 52 900 900
23 Bushra Ahmed √ 250000 250000
24 Salaries Expense 53 20000 20000
25 Bushra Ahmed √ 30000 30000
25 Miscellanous Expenses 58 1500 1500
26 Khan Lace Shop √ 50000 50000
26 Bushra Ahmed √ 10000 10000
27 Kashif Cloth √ 5000 5000
27 Rent Expense 54 45000 45000
29 Rent Expense 54 21000 21000
30 The Button Centre √ 7500 7500
31 119550 902000 1021550
(√√) ((21)) ((11))
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Revenue Journal
Date Accounts Debited P/R Acc. Rec. Dr.
Sales Cr.
2020
Oct
3 Iqra & Zainab √ 30000
4 Asma’s Boutique √ 11840
5 Sara Salman √ 21500
10 Elan √ 1200000
11 Iqra & Zainab √ 23000
11 Iqra & Zainab √ 15000
12 Asma’s Boutique √ 35000
15 Sara Salman √ 17000
15 Iqra & Zainab √ 10000
16 Elan √ 75000
18 Iqra & Zainab √ 27000
19 Iqra & Zainab √ 20050
31 1485390
((12)) ((41))

Cash Receipts Journal

Date Accounts Credited P. R Accounts Cash Dr

Recievable Cr.
2020
Oct
1 Sales 42 300
1 Sales 42 810
1 Sales 42 3450
2 Sales 42 1000
2 Sales 42 1250
2 Sales 42 750
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3 Sales 42 2695
3 Sales 42 1080
3 Sales 42 1700
4 Sales 42 1500
5 Sales 42 1900
6 Sales 42 2000
7 Sales 42 4500
8 Sales 42 720
8 Sales 42 975
9 Sales 42 21075
9 Sales 42 1490
10 Iqra & Zainab √ 30000 30000
12 Asma’s Boutique √ 11840 11840
13 Sara Salman √ 21500 21500
14 Sales 42 800
14 Sales 42 2700
15 Sales 42 1656
15 Sales 42 975
16 Sales 42 300
16 Sales 42 265
17 Sales 42 1070
18 Sales 42 1300
19 Sales 42 500
20 Asma’s Boutique √ 35000 35000
20 Sales 42 1200
21 Sales 42 975
21 Iqra & Zainab √ 23000 23000
22 Sales 42 1490
23 Sales 42 1300
24 Sara Salman √ 17000 17000
24 Sales 42 5000
24 Sales 42 845
25 Iqra & Zainab √ 10000 10000
25 Iqra & Zainab √ 15000 15000
26 Sales 42 500
27 Sales 42 1425
27 Sales 42 675
28 Iqra & Zainab √ 27000 27000
29 Iqra & Zainab √ 20050 20050
29 Sales 42 580
29 Sales 42 1425
30 Sales 42 2600
30 Sales 42 2400
30 Elan √ 1200000 1200000
31 Elan √ 75000 75000
1485390 1562566
((21)) ((11))
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6) General Ledger:

Cash Account No. 11

Date Item P/R Debit Credit Balance
Oct Debit Credit
2020
1 Balance b/d 2494500
9 J10 10000 2484500
15 J10 15000 2469500
20 J10 50000 2519500
25 J10 25000 2544500
31 CR35 1562566 4107066
31 CP15 1021550 3085516

31 Balance b/d 3085516

Accounts Receivable Account No. 12

Date Item P/R Debit Credit Balance
2020 Oct Dr Cr
1 Balance b/d 48500

31 R12 1485390 1533890

31 CR35 1485390 48500
31 Balance b/d 48500

Merchandise Inventory Account No. 15

Date Item P/R Debit Credit Balance
Dr Cr
1 Balance b/d 540000

18 CP15 4500 544500

31 R11 417000 961500
31 CR35 46305.6 915194.4
31 R12 891234 23960.4
31 Balance b/d 23960.4
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Delivery Vehicle Account No. 18

Date Item P/R Debit Credit Balance
2020 Oct Dr Cr

31 500000 500000

Accounts Payable Account No 21

Date Item P/R Debit Credit Balance
2020 Dr Cr
Oct
1 Balance b/d 1522500

31 R11 917000 2439500

31 CP15 902000 1537500
31 Balance b/d 1537500

Amjad Khurram, Capital Account No. 31

Date Item P/R Debit Credit Balance

1 Balance b/d 1600500 1600500

20 J10 50000 1650500
25 J10 25000 1675500

31 Balance b/d 1675500

Amjad Khurram, Drawing Account No. 32

Date Item P/R Debit Credit Balance
9 J10 10000 10000
15 J10 15000 25000
31 Balance b/d 35000
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Sales Account No. 41

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
1 Sales CR35 300 300
1 Sales CR35 810 1110
1 Sales CR35 3450 4560
2 Sales CR35 1000 5560
2 Sales CR35 1250 6810
2 Sales CR35 750 7560
3 Sales CR35 2695 10255
3 Sales CR35 1080 11335
3 Sales CR35 1700 13035
4 Sales CR35 1500 14535
5 Sales CR35 1900 16435
6 Sales CR35 2000 18435
7 Sales CR35 4500 22935
8 Sales CR35 720 23655
8 Sales CR35 975 24630
9 Sales CR35 21075 45705
9 Sales CR35 1490 47195
14 Sales CR35 800 47995
14 Sales CR35 2700 50695
15 Sales CR35 1656 52351
15 Sales CR35 975 53326
16 Sales CR35 300 53626
16 Sales CR35 265 53891
17 Sales CR35 1070 54961
18 Sales CR35 1300 56261
19 Sales CR35 500 56761
20 Sales CR35 1200 57961
21 Sales CR35 975 58936
22 Sales CR35 1490 60426
23 Sales CR35 1300 61726
24 Sales CR35 5000 66726
24 Sales CR35 845 67571
26 Sales CR35 500 68071
27 Sales CR35 1425 69496
27 Sales CR35 675 70171
29 Sales CR35 580 70751
29 Sales CR35 1425 72176
30 Sales CR35 2600 74776
30 Sales CR35 2400 77176
31 1485390 1562566
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31 Balance b/d 1562566

Cost of Merchandise
Sold Account No. 51
Date Item P/R Debit Credit Balance
2020
Oct Dr Cr
31 R12 891234 891234
31 CR35 46305.6 937539.6
31 Balance b/d 937539.6

Utilities Expense Account No. 52

Date Item P/R Debit Credit Balance
2020
Oct Dr Cr
13 CP15 9000 9000
19 CP15 900 900
31 Balance b/d 9900

Salaries Expense Account No. 53

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
24 CP15 20000 20000
31 Balance b/d 20000

Rent Expense Account No. 54

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
27 45000 45000
29 21000 66000
31 Balance b/d 66000
`
Insurance Expense Account No. 55
Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
13 15000 15000
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31 Balance b/d 15000

Depreciation Expense-Delivery Vehicle Account No. 56

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
31 J10 1500 1500
31 Balance 1500

Depreciation Expense-Fixtures and Fittings Account No. 57

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
31 J10 500
31 Balance 500

Miscellaneous Expense Account No. 58

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
1 CP15 150 150
10 CP15 300 450
14 CP15 200 650
18 CP15 2000 2650
25 CP15 1500 4150
31 Balance b/d 4150
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7) Subsidiary Ledger:

i. Accounts Receivables Subsidiary Ledger

Iqra & Zainab

Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
3 R12 30000 30000
10 R35 30000 0
11 R12 15000 15000
15 R12 10000 25000
25 R35 10000 15000
25 R35 15000 0
31 Balance 0

Elan
Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
10 R12 1200000 1200000
16 R12 75000 1275000
30 R35 1200000 75000
31 R35 75000 0
31 Balance 0

Sara Salman
Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
5 R12 21500 21500
13 R35 21500 0
15 R12 17000 17000
24 R35 17000 0
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Iqra & Zainab

Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
11 R12 23000 23000
18 R12 27000 50000
19 R12 20050 70050
21 R35 23000 47050
28 R35 27000 20050
29 R35 20050 0

Asma’s Boutique
Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
4 R12 11840 11840
12 R35 11840 0
12 R12 35000 35000
20 R35 35000 0

ii. Accounts Payable Subsidiary Ledger

Kashif Cloth
Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
3 P11 25000 25000
17 CP15 25000 0
26 P11 5000 5000
27 CP15 5000 0
31 Balance 0
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Khan Lace Shop

Date Item P/R Debit Credit Balance
2020
Oct Debit Credit
2 P11 50000 50000
26 CP15 50000 0
31 Balance 0

Al Miraj Jewellery
Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
Bushra Ahmed
Date 3 Item P11
P/R Debit Credit17000 Balance 17000
2020 11 CP15 17000 Debit Credit 0
Oct 31 Balance 0
1 P11 250000 250000
7 P11 30000 280000
21 P11 10000 290000
23 CP15 250000 40000
25 CP15 30000 10000
26 CP15 10000 0
31 Balance 0

Suzuki Motors BWP

Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
12 P11 500000
17 CP15 50000 0
31 Balance 0

The Button Centre

Date Item P/R Debit Credit Balance
2020 Debit Credit
Oct
2 P11 7500 7500
8 CP15 7500 0
22 P11 7500
30 CP15 7500 0
31 Balance 0
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8) Unadjusted Trial Balance

Khurrum Button and Silk Centre

Unadjusted Trial Balance

For the month ended September, 2020

Accounts Debit (Rs) Credit (Rs)
Cash 3085516
Accounts Receivable 48500
Merchandise Inventory 23960.4

Fixtures and Fittings 40000

Delivery Vehicle 500000
Accounts Payable 1537500
Amjad Khurram, Capital 1675500

Amjad Khurram, Drawing 35000

Sales 1562566
Cost of Merchandise Sold 937539.6
Rent Expense 66000
Salaries Expense 20000
Insurance Expense 15000
Utilities Expense 9900
Miscellaneous Expense 4150

Total 4775566 4775566

9) Adjusting Entries:
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Date Description P/R Debit Credit

(Rs) (Rs)
2020
Oct
31 Depreciation Expense: Fixtures and Fittings 500
Accumulated depreciation: Fixtures and Fittings 500

Depreciation Expense: Delivery Vehicle 1500

Accumulated depreciation: Delivery Vehicle 1500

10) Adjusted Trial Balance:

Khurrum Button and Silk Centre

Adjusted Trial Balance
For the month ended October, 2020
Accounts Debit Rs Credit Rs
Cash 3085516
Accounts Receivable 48500
Merchandise 23960.4
11) Financial Inventory Statements:
Fixtures and Fittings 40000
i. Income Delivery Vehicle 500000 Statement:
Accounts Payable 1537500
Amjad Khurram, 1675500
Capital
Amjad Khurram, 35000
Khurrum Button and Silk Centre
Drawing
Sales 1562566
Cost of Merchandise Income Statement 937539.6
Sold
Rent ExpenseFor the month ended October, 66000
2020
Salaries Expense 20000
Insurance Expense 15000 (Rs) (Rs)
Utilities Expense 9900
Sales during October 1562566
Miscellaneous 4150
Less Cost of Expense
Merchandise Sold: 937539.6
Total
Gross Profit 4775566 4775566 625026.4
Less Expenses:
Rent Expense 66000
 28

Salaries Expense 20000

Insurance Expense 15000
Utilities Expense 9900
Depreciation Expense: Fixtures and Fittings 500
Depreciation Expense: Delivery Vehicle 1500
Miscellaneous Expense 4150
Total Expenses 117050

Net Income 507976.4

ii. Statement of Owner’s Equity:

Khurrum Button and Silk Centre

Statement of Owner’s Equity
For the month ended October, 2020
Amjad Khurram Capital, October 1st 2020 1600500
Investment during this month 75000
Net Income during this month 507976.4
Withdrawals during this month -35000
Increase in Owner's Equity 547976.4
Amjad Khurram, Capital, November 1st 2020 2148476.4

iii. Balance Sheet

 29

Khurrum Button and Silk Centre

Balance Sheet

As at 30th October, 2020

Rs Rs Rs
Current Assets:
Cash 3085516
Accounts receivable 48500
Merchandise inventory 23960.4
Total current assets 3163976.4
Property, plant, and equipment:

Fixtures and Fittings 40000

Accumulated Depreciation: Fixtures -500
and Fittings
Net Book Value 35500
Delivery Vehicle 500000
Accumulated Depreciation: -1500
Delivery Vehicle
Net Book Value 498500
Total property, plant, and equipment 534000

Total assets 3685976.4

Liabilities
Current liabilities:
Accounts payable 1537500
Total current liabilities 1537500
Total liabilities 1537500
Owner's Equity
Amjad Khurram, Capital 2148476.4
Total liabilities and owner's equity 3685976.4

12) Closing Entries:

Closing Entries
Date Description P/R Debit  Credit
       (Rs) (Rs)
2020        
Oct
31 Fees Earned   1,562,566  
Cost of Merchandise Sold 937539.6
 30

       Rent Expense     66,000

       Salaries Expense     20,000
       Insurance Expense     15,000
       Utilities Expense     9,900
       Depreciation Expense: Fixtures and Fittings     500
       Depreciation Expense: Delievery Vehicle     1,500
       Miscellaneous Expense     4,150
                      Amjad Khurram, Capital     507,976.4
         
         
         
31 Amjad Khurram, Capital   35,000  
  Amjad Khurram, Drawings     35,000
         

13) Post Closing Trial Balance

Khurram Button & Silk Center

Post Closing Trial Balance
For the month ended October 2020
Accounts   Debit  (Rs) Credit   (Rs)
Cash   3085516  
Accounts Receivable   48500  
Merchandise Inventory   23960.4  
Fixtures and Fittings   40000  
Accumulated Depreciation: Fixtures and Fittings     500
Delivery Vehicle   500000  
Accumulated Depreciation: Delivery Vehicle     1500
Accounts Payable     1537500
Amjad Khurram, Capital     2148476.4
 31

Total   3687976.4 3687976.4