LAHORE GARRISON UNIVERSITY

(DHA, Phase 6 sector C)

Name: MUHAMMAD HUZAIFA

Roll No: Fa-19/BSSE-D/219

Submitted To: MAM SARA MUNIR

Course Title: Principle of Accounting

Assignment # 4

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Q: Enter the following transaction in journal and then into the ledger and then make a trial
balance;

In 2000

January, 1 Mr. Umer started a business with cash Rs. 80,000 and machinery Rs. 20,000.

January, 3 purchased goods of Rs. 20,000 on credit from Mr. Adeel.

January, 5 sold goods for cash 10,000.

January, 7 sold goods on credit to Mr. Asim for Rs. 15,000.

January, 9 cash received from Mr. Asim Rs. 13,000 in full settlement of his account.

SOLUTION:

RJ Company
JOURNAL
January 1, 2000

DATE PARTICULARS L. DEBIT CREDIT

F (Rs.) (Rs.)
2000 Cash a/c Dr. 80,000
Jan, 1 Machinery a/c Dr. 20,000

Capital a/c Cr. 1,00,000

(investor invest cash and machinery)

Jan 3 Purchase a/c Dr. 20,000

Mr. Adeel a/c 20,000

(purchase goods on credit by Mr. Adeel)

Jan 5 Cash a/c Dr. 10,000

Sales a/c Cr. 10,000

(sale goods for cash)

Jan 7 Mr. Asim a/c Dr. 15,000

 Sales a/c 15,000
(sale goods on credit to Mr. Asim)
Jan 9 Cash a/c Dr. 13,000
Discount a/c Dr. 2,000

Mr. Asim a/c 15,000

(cash receive and discount allowed to Mr.
Asim)

Ledger (standard form of ledger):

Cash Account no. 5

Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)

R R
2000
Jan 1 Capital a/c 80,000
Balance c/d 1,03,000
Jan 5 Sales a/c 10,000

Jan 9 Mr. Asim a/c 13,000 1,03,000

1,03,000

Machinery Account no. 7

Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)

R R
2000
Jan 1 Capital a/c 20,000 Balance c/d 20,000

20,000 20,000
 Capital Account no. 9
Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)

2000
Balance c/d 1,00,000 Jan. 1 Cash a/c 80,000
Machinery a/c 20,000

1,00,000 1,00,000

Purchase Account no. 11

Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)

R R
2000
Jan 3 Mr. Adeel a/c 20,000 Balance c/d 20,000

20,000 20,000

Mr. Adeel Account no. 13

Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)

2000
Balance c/d 20,000 Jan. 3 Purchase a/c 20,000

20,000 20,000
 Sale Account no. 15
Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)

2000
Balance c/d 25,000 Jan. 5 Cash a/c 10,000

Jan.7 Mr. Asim a/c 15,000

25,000 25,000

Mr. Asim Account no. 17

Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)

2000 2000
Jan.7 Sales a/c 15,000 Jan. 9 Cash a/c 13,000

Jan. 9 Discount a/c 2,000

15,000 15,000

Discount Account no. 19

Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)

R R
2000
Jan 9 Mr. Asim a/c 2,000 Balance c/d 2,000

2,000 2,000
 RJ Company
Trial Balance
January 9, 2000

S. No Account names A/c Debit Credit

No.
1 Cash Account 5 1,03,000 -
2 Machinery Account 7 20,000 -
3 Capital Account 9 - 1,00,000
4 Purchase Account 11 20,000
5 Mr. Adeel Account 13 - 20,000
6 Sales Account 15 - 25,000
7 Mr. Asim Account 17 - -
8 Discount Account 19 2,000 -

_______ _______
1,45,000 1,45,000

Final Result = 1,45,000