Example:

Transaction No. 1
Mr. Rashid invests $200,000 to commence his business.

Transaction No. 2:
He opens current account with bank and deposits $60,000.

Transaction No. 3:
He borrows $100,000 from Mr. Salim at 12% per annum.

Transaction No. 4:
He purchases furniture worth $40,000 for cash.

Transaction No. 5:
He purchases goods from Mr. Ali for $50,000 and paid cash $30,000.

Transaction No. 6:
He sells goods for cash $18,000.

Transaction No. 7:
He sells goods for $10,000 to Mr. Nabil on credit basis:

Transaction No. 8:
He purchases stationary for $6,000.

Transaction No. 9:
He purchases an inventory for $20,000 and pays by check:

Transaction No. 10:

He pays $12,000 to Mr. Ali on account.

Transaction No. 11
He collects $7,000 cash from Mr. Nabil.
  Solution:

1- Special Journal for Purchase:

Date Account Credited Reference A/P Purchased
Credited Debited
+ +
No .5 Mr. Ali T1 $ 20,000 $ 20,000
No .8 stationary T8 $ 6,000 $ 6,000
$ 26,000 $ 26,000

2- Special Journal for Cash Payment:

Date Reference Account Debited A/P Cash Credited Other
Debited - Account
- Debited
+
No .10 T 10 Mr. Ali $ 12,000 $ 12,000
Total $ 12,000 $ 12,000

3- Subsidiary Ledgers of A/P

 Mr. Ali:
Date Reference Dr - Cr + Balance
No .5 T1 $ 20,000 $ 20,000
No .10 T8 $ 12,000 $ 8,000
Balance $ 8,000
 1. Special Journal for Sales:
Date Invoice Account Debited A/R Debited Sales Credited
Number + + +
No .7 T7 Mr. Nabil $ 10,000 $ 10,000
Total $ 10,000 $ 10,000

2. Special Journal for Cash Receipts:

Date Referenc Account Credited A/R Cash Debited Other
e - Credited + Account
- Credited
+
No .11 T 11 Mr. Nabil $ 7,000 $ 7,000
Total $ 7,000 $ 7,000

3. Subsidiary Ledgers of A/R

 Mr. Nabil:
Date Reference Dr + Cr - Balance
No .7 T7 $ 10,000 $ 10,000
No .11 T 11 $ 7,000 $ 3,000
Balance $ 3,000