SUBMITTED BY: SUBMITTED TO:

SYEDA MEHAR UN NISA SIR ZEESHAN AKRAM

SUBJECT
FINANCIAL ACCOUNTING

ROLL NO: CLASS:

10 BSIT-3rd-A

DEPARTMENT
INFORMATION
TECHNOLOGY MINHAJ
UNIVERSITY
Question No:1
Muhammad Faizan abid had the following transactions. Use accounting equation to show
their effect on his Assets, Liabilities and Capital?
 Started Business with Cash Rs. 15,0000.
 Purchased Goods for cash Rs. 7,5000.
 Purchased a Building for Rs. 15,000 for Cash
 Sold Goods costing Rs. 1,0000 for Rs. 1,3000.
 Purchase a car for Rs. 2,800 cash.
 Salary Paid for the Month Rs. 3,600.
 Paid cash for Electricity Bill expenses Rs. 1,500.
 Sold Goods on Credit for the sum of Rs.5,000 to Mr Rashid
 Received cash Rs.3,000 from Rashid.
 Purchase Goods Worth Rs. 30,000 from Alia on Credit.


Accounting equation
Assets Owner’s Equity
Sr.No cash Goods Building car Rashid liabilities Capital
a. 150,000 150,000
150,000 150,000
b. -75,000 75,000
75,000 75,000 150,000
c. -15,000 15,000
60,000 75,000 15,000 150,000
d. +13,000 -10,000 +3,000
73,000 65,000 15,000 153,000
e. -2,800 2,800
70,200 65,000 15,000 2,800 153,000
f. -3,600 -3,600
66,600 65,000 15,000 2,800 149,400
g. -1,500 -1,500
65,100 65,000 15,000 2,800 147,900
h. -5,000 5,000
65,100 60,000 15,000 2,800 5,000 147,900
i. +3,000 -3,000
68,100 60,000 15,000 2,800 2,000 147,900
j. +30,000 +30,000
68,100 90,000 15,000 2,800 2,000 177,900
Total 177,900 177,900
Question No:2
Mr Babar has the following transactions, prepare accounting
equation:

 Commenced business with cash 1,50,000

 Purchased machinery on credit 50,000
 Purchased goods for cash 20,000
 Purchased car for personal use 80,000
 Paid to creditors in full settlement 36,000
 Sold goods for cash costing Rs 5,000 6,500
 Paid rent 2,000
 Commission received in advance 4,000

Accounting Equation
Sr.no Assets Liabilities Capital
a. 150000 150000
(Cash) (Capital)
b. 50,000 50,000
(Machinery) (A/c Payable)
c. 20,000
(Stock)
-20,000
(Cash)
d. -80,000 -80,000
(Car) (Drawings)
e. -36,000 -50,000 2000
(Cash) (A/c Payable) (Discount
Earned)
f. 4,500 -500
(Cash) (Loss on
Sales)
-5,000
(Stock)
g. -1,000 -1,000
(Cash) (Expenses)
h. 2,000 2.000
(Cash) (Commission Received in
advance)
Total 85,500 85,500