ASSIGNMENT # 7

Name: 6. STUDENT6 Date: 26-Feb-25

Instructor: ASLAM MURAD Course: POA - I

QUESTION # 1
Kamal Company’s chart of accounts includes the following selected accounts.
101 Cash 401 Sales
112 Accounts Receivable 414 Sales Discounts
120 Merchandise Inventory 505 Cost of Goods Sold
301 Kamal, Capital
On June 1 the accounts receivable ledger of Kamal Company showed the following balances:

Moosa & Sons $2,100

Chachar & Co. $1,680
Chand Khan Bros. $1,440
Mahmood Bros. $1,200
The June transactions involving the receipt of cash were as follows.
1-Jun-25 The owner,Kamal, invested additional cash in the business . $7,200
3-Jun-25 Received check in full from Mahmood Bros. less cash discount. 3%
6-Jun-25 Received check in full from Chachar & Co.less cash discount. 3%
7-Jun-25 Made cash sales of merchandise totaling . $5,220
The cost of the merchandise sold was $3,000
9-Jun-25 Received check in full from Moosa & Son less cash discount. 3%
11-Jun-25 Received cash refund from a supplier for damaged merchandise. $270
15-Jun-25 Made cash sales of merchandise totaling. $3,900
The cost of the merchandise sold was $2,400
20-Jun-25 Received check in full from Chand Khan Bros. $1,440

Instructions
(a) Journalize the transactions above in a six-column cash receipts journal with columns for Cash Dr.,
Sales Discounts Dr.,Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold
Dr./Merchandise Inventory Cr.Foot and crossfoot the journal.
(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the
June transactions to these accounts. Use three columanr account format.

(c) Prove the agreement of the control account and subsidiary account balances

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QUESTION # 2
Shahab Company’s chart of accounts includes the following selected accounts.
101 Cash 157 Equipment
120 Merchandise Inventory 201 Accounts Payable
130 Prepaid Insurance 301 Shahab, Drawing
On November 1 the accounts payable ledger of Shahab Company showed the following balances:
Meraj Din & Sons $2,400
Ladha Bros $1,260
Haroon & Co, $480
Lateef Traders $780
The November transactions involving the receipt of cash were as follows.
1-Nov-25 Purchased merchandise,check no.11, $570
3-Nov-25 Purchased store equipment,check no.12, $840
5-Nov-25 Paid Lateef Traders balance due less 2% discount,check no.13, $780
The above payment was made net of discount 2%
11-Nov-25 Purchased merchandise,check no.14, $840
15-Nov-25 Paid Haroon & Co. balance due less 1% discount,check no.15, $480
The above payment was made net of discount 1%
16-Nov-25 Shahab, the owner,withdrew cash for own use, check no.16. $240
19-Nov-25 Paid Ladha Bros balance due less 3% discount,check no.17, $1,260
The above payment was made net of discount 3%
25-Nov-25 Paid premium due on one-year insurance policy,check no.18, $1,440
30-Nov-25 Paid Meraj Din & Sons in full for invoice no.832,,check no.19 $1,740

Instructions
(a) Journalize the transactions above in a four-column cash payments journal with columns for Other
Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and Cash Cr. Foot and crossfoot the
journal.
(b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the
November transactions to these accounts. . Use three columanr account format.
(c) Prove the agreement of the control account and subsidiary account balances

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QUESTION # 3
Khalid Company’s chart of accounts includes the following selected accounts.
112 Accounts Receivable 401 Sales
120 Merchandise Inventory 414 Sales Returns and Allowances
126 Supplies 505 Cost of Goods Sold
157 Equipment 610 Advertising Expenses
201 Accounts Payable
In May the following selected transactions were completed.All purchases and sales were on account
except as indicated.
The cost of all merchandise sold was 65% of the sales price.
3-May-25 Purchased merchandise from Omer Company $3,000
4-May-25 Received freight bill from Fast Freight on Omer purchase . $150
7-May-25 Sales were made to Chaudary Bros. $1,080
7-May-25 Sales were made to Mahir Company $780
7-May-25 Sales were made to Laiba Company . $600
8-May-25 Purchased merchandise from Wajiha Company $3,240
8-May-25 Purchased merchandise from Zaitoon Company . $1,800
13-May-25 Received credit on merchandise returned to Zaitoon Company . $210
17-May-25 Purchased supplies from Maham’s Supplies. $360
18-May-25 Purchased merchandise from Omer Company. $1,860
18-May-25 Purchased merchandise from Wajiha Company. $2,880
19-May-25 Returned supplies to Maham’s Supplies,receiving credit. $42
20-May-25 Received freight bills on May 18 purchases from Fast Freight. $195
20-May-25 Returned merchandise to Omer Company receiving credit. $120
25-May-25 Made sales to Chaudary Bros. $960
25-May-25 Made sales to to Laiba Company. $1,500
25-May-25 Received bill for advertising from Orient Advertising $372
27-May-25 Granted allowance to Laiba Company for merchandise damaged in shipment. $84
28-May-25 Purchased equipment from Maham’s Supplies. $240

Instructions
(a) Journalize the transactions above in a purchases journal,a sales journal,and a general journal. The
purchases journal should have the following column headings: Date, Account Credited
(Debited),Ref.,Accounts Payable Cr.,Merchandise Inventory Dr.,and Other Accounts Dr.
(b) Post to both the general and subsidiary ledger accounts.(Assume that all accounts have zero beginning
balances.) Use three columnar account format.
(c) Prove the agreement of the control account and subsidiary account balances

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