Problem 1

On April 01, 2020, Amit started business with ₹ 100,000 and other transactions for the
month are:
2 April 2020. Purchase Furniture for Cash ₹7,000.
8 April 2020. Purchase Goods for Cash ₹ 2,000 and for Credit ₹ 1,000 from Khalid Retail
Store.
14 April 2020. Sold Goods to Khan Brothers ₹ 12,000 and Cash Sales ₹ 5,000.
18 April 2020. Owner withdrew of worth ₹ 2,000 for personal use.
22 April 2020. Paid Khalid Retail Store ₹ 500.
26 April 2020. Received ₹ 10,000 from Khan Brothers.
30 April 2020. Paid Salaries Expense ₹ 2,000

Problems 2:
Prepare general journal entries for the following transactions of a business called MS Traders
in 2020:
Aug. 1: Rahim Khan, the owner, invested ₹ 57,500 cash and ₹ 32,500 of equipment in the
business.
Aug. 04: Paid ₹ 3,000 cash for an insurance policy covering the next 24 months.
Aug. 07: Services are performed and clients are billed for ₹ 10,000.
Aug.13: Purchased office supplies for ₹ 1,400. Cash paid ₹ 400 and remaining outstanding.
Aug. 20: Received ₹ 2,000 cash in photography fees earned previously.
Aug. 24: The client immediately pays ₹ 15,000 for services to be performed at a later date.
Aug.29: The business acquires equipment. The purchase price is ₹ 100,000, pays ₹ 25,000
cash and signs a note for the balance.