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ASSIGNMENT (1)

INTRODUCTION TO FINANCIAL ACCOUNTING

SUBMITTED TO: SIR SHAHID MAHMOOD

SUBMITTED BY: BILAL SHER

ROLL NO: L1F19BBAM0677

SUBMISSION DATE: April 29, 2020

QUESTION: 01
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RIAZ’S JOURNAL
Date Detail Debit Credit
Bank Account 550,000
1st November Capital Account 550,000
(started business with cash)
Cash Account 22,000
3rd November Yasin account 22,000
(Received loan from yasin)
purchases Account 46,200
rd
3 November Bilal Account 46,200
(Bought goods on credit)
Purchases Account 198,000
rd
3 November Waqas Account 198,000
(Bought goods on credit)
Cash Account 11,000
5th November Sales Account 11,000
(Sold goods for cash)
Bank Account 13,750
7th November Cash Account 13,750
(paid cash Into the bank)
Rafi Account 9,900
9th November Sales Account 9,900
(Sold goods on credit)
Azam Account 12,100
th
9 November Sales Account 12,100
(Sold goods on credit)
Purchases Account 20,350
TH
10 Bilal Account 20,350
November (Bought goods for Cash)
Sales Returned Account 2,200
11TH Rafi Account 2,200
November (Returned sold goods from rafi)
Amin Account 10,450
13TH Arif Account 17,600
November Sales Account 28,050
(Sold goods on credit to Amin and Arif)
Bilal Account 7,700
TH
14 Purchases return Account 7,700
November (Return Purchased goods to Bilal)
Motor Vehicle Account 143,000
16TH Falcon Motors Account 143,000
November (Bought motor vehicle on credit)
Office Furniture Account 33,000
17TH Wood Worth Account 33,000
November (Bought office furniture on credit)
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Waqas Account 6,050

TH
19 Purchases return Account 6,050
November (Return bought goods to Waqas)
Purchases Account 12,100
19TH Cash Account 12,100
November (Bought goods for cash)
Cash Account 3,850
23RD Sales Account 3,850
November (Being goods sold for cash)
Bilal Account 58,850
24TH Bank Account 58,850
November (Being paid amount by cheque)
Sales return Account 1,650
TH
24 Amin Account 1,650
November (being sold goods return by amin)
Wood Worth Account 8,800
TH
25 Purchase return Account 8,800
November (being bought goods return to Wood)
Cash Account 27,500
27TH Capital Account 27,500
November (being more investment in business)
Falcon motors Account 143,000
28TH Cash Account 143,000
November (being paid cash to falcon motors)
Office furniture Account 5,500
30TH Cash Account 5,500
November (Being bought furniture for cash)
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QUESTION: 02
TALHA’S JOURNAL
Date Detail Debit Credit
ST
1 March Cash Account 1,500
2007 Capital Account 1,500
(Started business with cash)
Purchases Account 296
nd
2 March Hassan Account 296
(Being bought goods on credit)
Rent Account 28
rd
3 March Cash Account 28
(Paid rent for cash)
Bank Account 1,000
4th March Cash Account 1,000
(Paid cash into the bank)
Ehsan Account 54
5th March Sales Account 54
(Being sold goods on credit)
Stationery Account 15
7th March Bank Account 15
(Being stationery bought by cheque)
Cash Account 49
11 March Sales Account 49
(Being sold goods on cash)
Hassan Account 17
14 March Purchase return Account 17
(Return bought goods to Hassan)
Musharif Account 29
17 March Sales Account 29
(Being sold goods on credit)
Building repairing Account 18
20 March Cash Account 18
(Repair building for cash)
Sales return Account 14
22 March Ehsan account 14
(Return sold goods by Ehsan)
Cash Account 27
25 March Ehsan Account 27
(received cash)
Hassan Account 270
27 March Bank Account 270
(Being paid amount to Hassan by cheque)
Purchases Account 125
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28 March Cash Account 125

(Being bought goods for cash)
Motor van Account 395
29 March Bank Account 395
(Being bought motor van by cheque)
Motor expenses Account 15
30 March Cash Account 15
(Being paid expenses)
Fixture Account 120
31 March Waseem Account 120
(Bought fixtures on credit)

LEDGER’S ACCOUNT
CASH ACCOUNT

Date Reference Amount Date Reference Amount

1 March Capital A/c 1500 3 March Rent A/C 28
11 March Sales A/C 49 4 March Bank A/C 1,000
25 March Ehsan A/C 27 20 March Repair A/C 18
28 March Purchase A/C 125
30 March Motor van A/C 15
Balance c/d 390
1576 1576

CAPITAL ACCOUNT
Date Reference Amount Date Reference Amount
1 March Balance c/d 1500 1 March Cash A/C 1500

1500 1500
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PURCHASE ACCOUNT
Date Reference Amount Date Reference Amount
2 March Hassan A/C 296 “ Balance c/d 421
28 March Cash A/C 125

421 421

HASSAN ACCOUNT
Date Reference Amoun Date Reference Amount
t
14 March Purchase return A/C 17 2 March Purchases A/C 296
27 March Bank A/C 270
Balance c/d 9

296 296

RENT ACCOUNT
Date Reference Amount Date Reference Amount
3 March Cash A/C 28 “ Balance c/d 28

28 28

BANK ACCOUNT
Date Reference Amount Date Reference Amount
4 March Cash A/C 1,000 7 March Stationery A/C 15
27 March Hassan A/C 270
29 March Motor van A/C 395
“ Balance c/d 320

1,000 1,000
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EHSAN ACCOUNT
Date Reference Amount Date Reference Amount
5 March Sales A/C 54 22 March Sales return A/C 14
25 March Cash A/C 27
“ Balance c/d 13

54 54

SALE ACCOUNT
Date Reference Amount Date Reference Amount
“ Balance c/d 132 5 March Ehsan A/C 54
11 March Cash A/C 49
17 March Musharif A/C 29

132 132

STATIONERY ACCOUNT
Date Reference Amount Date Reference Amount
7 March Bank A/C 15 “ Balance c/d 15

15 15

PURCHASE RETURN ACCOUNT

Date Reference Amount Date Reference Amount
“ Balance c/d 17 14 March Hassan A/c 17

17 17
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MUSHARIF ACCOUNT
Date Reference Amount Date Reference Amount
17 March Sales A/C 29 “ Balance c/d 29

29 29

REPAIR OF BUILDING ACCOUNT

Date Reference Amount Date Reference Amount
20 March Cash A/C 18 “ Balance c/d 18

18 18

SALES RETURN ACCOUNT

Date Reference Amount Date Reference Amount
22 March Ehsan A/C 14 “ Balance c/d 14

14 14

MOTOR VAN ACCOUNT

Date Reference Amount Date Reference Amount
29 March Bank A/C 395 “ Balance c/d 395

395 395
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MOTOR EXPENSES ACCOUNT

Date Reference Amount Date Reference Amount
30 March Cash A/C 15 “ Balance c/d 15

15 15

FIXTURES ACCOUNT
Date Reference Amount Date Reference Amount
31 March Waseem A/C 120 “ Balance c/d 120

120 120

WASEEM ACCOUNT
Date Reference Amount Date Reference Amount
“ Balance c/d 120 31 March Fixtures A/C 120

120 120
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TRAIL BALANCE
Serial no Accounts Debit Credit
1 Cash Account 390
2 Capital Account 1,500
3 Purchase Account 421
4 Hassan Account 9
5 Rent Account 28
6 Bank Account 320
7 Ehsan Account 13
8 Sales Account 132
9 Purchase return Account 17
10 Stationery Account 15
11 Musharif Account 29
12 Repairing of building Account 18
13 Sales return Account 14
14 Motor van Account 395
15 Motor expenses Account 15
16 Fixtures Account 120
17 Waseem Account 120
TOTAL 1,778 1,778
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QUESTION: 03
TRADING AND PROFIT & LOSS ACCOUNT

FOR THE YEAR ENDED 31ST DECEMBER 2006

Detail Amount Detail Amount
Opening stocks 50,600 Sales 902,000
Purchases 486,200 Less returns: 8,800 893,200
Less returns: 13,200 473,000 Closing stock 41,800
Carriage inward 43,010
Wages 47,850
Gross profit c/d 320,540
Total 935,000 Total 935,000

Salaries 72,600 Gross profit b/d 320,540

Advertising expense 11,220 Discount received 2,420
Office equipment 219,670
Rates & taxes 5,830
Office electricity 10,340
expense
Telephone charges 4,840
Printing & stationary 12,320
Postage & stems 1,199
Stock of stationary 1,320
Petty cash 231
Insurance premium 3,300
Carriage outward 13,200
Bad debts 880
Net loss 33,990
Total 356,950 Total 356,950
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BALANCE SHEET
AS ON 31ST DECEMBER 2006

Assets Amount Current Liabilities Amount

Fixed assets : Bill payable 11,000
Furniture 220,000 Sundry creditors 44,000
Land & building 369,600 Long-term liabilities &
Owner’s equity
Current assets : Bank loan 165,000
Cash at bank 19,800 Capital 524,590
Closing stock 41,800 Less net loss: 33,990 490,600
Bills receivable 9,900
Sundry debtors 49,500

Total 710,600 Total 710,600