SPRING 2023

FINANCIAL ACCOUNTING (MGT101)

ASSIGNMENT Solution # 01

1. Based on the above transactions, calculate the amount/balance of the following

accounts at the end of April 2023.

A. Cash in hand

B. Cash at bank
Solution:
Cash in Hand
From purchase journal:
Initial amount = Rs. 400,000
Goods purchased on 4th April = Rs. 20,000
Amount paid in cash on 9th April = Rs. 100,000
Goods sold in 24th April = Rs. 80,000
Calculation of cash in hand will be carried out by:
Initial amount - Goods purchased on 4th April –
Amount paid in cash on 9th April + Goods sold in 24th April = 400,000 – 20,000 –
100,000 + 80,000
Cash in Hand = Rs. 360,000
Cash in Bank
From purchase journal:
Initial amount = Rs. 350,000
Goods purchased on 2nd April by cheque = Rs. 200,000
Goods purchased on 24rth April = Rs. 40,000
Calculation of cash in bank will be carried out by:
Initial amount - Goods purchased on 2nd April –
Goods purchased on 24rth April = 350,000 – 200,000 – 40,000
Cash at bank = Rs. 110,000

2. Based on the above transactions, prepare the Sales Journal and Purchase
Journal by following the format given below.
 Sale Journal

Date Name of Debtors Rs.

14th Saleem Brothers Rs.180,000

April

26th Rs.120,000
RST Brothers
April

24th Rs.40,000
April Goods sold on cash basis

Total Rs.
380,000

Purchase Journal

Date Name of Creditor Rs.

2nd
April XYZ brothers Rs.300,00

4th
April Goods purchased on Cash basis Rs. 20,000

24th
April Rs. 40,000
PO Store
th
30
April Rs. 75,000
Rahim Store
Total Rs.
435,000