Mr. Ahmad is running a General Store.

Following transactions were conducted in

the month of December, 2019:
Date Details Amount

Dec. 1. Commenced business with cash Rs. 200,000

& goods worth 300,000

2 Bought goods for cash from Bashir General Corporation 100,000

3 Purchased goods from Meta Corporation, 2/10, Net 30 150,000
4 Sold goods to Salmon & Co 125,000
5 Sold goods for Cash to Safi General Merchants 50,000
5 Received Cash from Salmon & Co 75,000
6 Returned goods to Meta Corporation 15,000
7 Purchased office furniture from Furniture Manufacturing Co 30,000
Payment is to be made in three equal installments.

8 Paid Rent of the shop for the month of December 25,000

9 Salmon & Co returned goods found defective 5,000
13 Payment due to Meta Corporation made within discount period.
15 Received balance payment from Salmon & Co.
16 Owner drew funds for personal use 15,000
16 M/S Global Company has signed an agreement for purchase of
Goods from us worth Rs. 800,000 in next month, payment would be
Made in eight six equal fortnightly installments 800,000

17 Paid Electricity Bill for the month 2,500

19 Bought a Pickup for business use for cash 35,000
20 Paid first installment to Furniture Manufacturing Co
21 Safi General Merchants retuned goods for refund 15,000
25 Paid salaries to salesmen for the month 25,000
30 Sold goods to Muslim Retail House. Payment due in 30 days 180,000
31 Claim settled & payment sent to Safi General Merchants 15,000

Ending Inventory as on December 31 was valuing Rs. 265,000.

Required: Journalize the transactions & post to General Ledger and prepare Trial
Balance as on December 31, 2019. Prepare Income Statement or Profit & Loss Account
for the month & Balance Sheet as on December 31, 2019.

Date Particulars Debit Credit

Dec 01 Cash Rs.200,000
Beginning Inventory 300,000
Owner’s Capital Rs.500,000

02 Purchases 100,000
Cash 100,000
(Bashir General)
03 Purchases 150,000
Accounts Payable (Meta Corporation) 150,000
2/10, Net 30

04 Accounts Receivable (Salmon & Co.) 125,000

Sales 125,000

05 Cash 50,000
Sales 50,000
(Safi General)

05 Cash 75,000
Accounts Receivable (Salmon & Co.) 75,000

06 Accounts Payable (Meta Corporation) 15,000

Purchase Returns 15,000

07 Furniture & Fixture 30,000

Accounts Payable (Furniture M. Co.) 30,000
To be payable in 3 monthly installments

08 Rent Expense 25,000

Cash 25,000

09 Sales Returns 5,000

Accounts Receivable (Salmon & Co.) 5,000

13 Accounts Payable (Meta Corporation) 135,000

Discount Received 2,700
Cash 132,300
150,000-15,000x2%

15 Cash 45,000
 Accounts Receivable (Salmon & Co.) 45,000

16 Owner’s Drawing 15,000

Cash 15,000
17 Utilities Expense 2,500
Cash 2,500

19 Office Vehicles 35,000

Cash 35,000

20 Accounts Payable (Furniture M. Co.) 10,000

Cash 10,000
First installment paid.

21 Sales Returns 15,000

Accounts Payable (Safi General) 15,000

25 Salaries Expense 25,000

Cash 25,000

30 Accounts Receivable (Muslim Retail Store) 180,000

Sales 180,000
To be collected within 30 days

31 Accounts Payable (Safi General) 15,000

Cash 15,000

CASH ACCOUNT

Date Particulars Debit Credit Balance

Dec 01 Owner’s Capital Rs. 200,000 Rs. 200,000
02 Purchases 100,000 100,000
05 Sales 50,000 150,000
05 Accounts Receivable 75,000 225,000
08 Rent Expense 25,000 200,000
13 Accounts Payable 132,300 67,700
15 Accounts Receivable 45,000 112,700
16 drawing 15,000 97,700
17 Utilities 2,500 95,200
19 Vehicles 35,000 60,200
20 Accounts Payable 10,000 50,200
25 Salaries Expense 25,000 25,200
31 Accounts Payable 15,000 Rs.10,200
 Accounts Payable
Date Particulars Debit Credit Balance
Dec 03 Purchases Rs.150,000 Rs.150,000
6 Purchase Returns Rs.15,000 135,000
7 Furniture & Fixture 30,000 165,000
13 Cash/Discount 135,000 30,000
20 Cash 10,000 20,000
21 Sales Returns 15,000 35,000
23 Cash 15,000 Rs. 20,000
Account Receivable
Date Particulars Debit Credit Balance
Dec 4 Sales Rs.125,000 Rs. 125,000
5 Cash Rs.75,000 50,000
9 Sales Returns 5,000 45,000
15 Cash 45,000 0
30 Sales 180,000 180,000