FA1- Recording Financial Transactions

Problem 7.1: M/s Baig Co. deals in electronic items. The following transactions were completed during April
April 1: Sold merchandise on account to Zaheer & Sons for Rs.20000.
April 5: Sold merchandise on credit to Arif & Brothers for Rs.27000.
April 15: Sold merchandise for cash Rs.15000
April 18: Sold merchandise to Ahmed & Co. on credit for Rs.21000
April 26: Sold merchandise to Hakeem & Co. Rs.13000

Required:
(i) Enter the above transactions in Sales day book page 5.
(ii) Set up Account receivable No.1102 and sales account No.4001 in the General ledger.
(iii) Prepare an Account receivable in General Ledger

Problem 7.2: The following is the copy of page 8 of the single column Sales day book of Global traders
prepared incorrectly by a newly appointed and inexperienced employee.
Global traders
Sales day book page 8
Date Invoice # Name of customer P.R Amount
1.4.19 Sales of merchandise to Tanvir sons on credit: n/30 5000
5.4.19 Sales of merchandise for Cash 3500
10.4.19 Sales of old furniture on credit 2000
15.4.19 Sale of merchandise to Rehman Co. on credit term 8000
2/10, n/30
20.4.19 Sale of merchandise to Taha Co. on account term 7500
1/10,n/30
25.4.19 Sale of NIT units for Cash 6800

Required:
(a) Prepare in good form a revised and correct Sales day book from the above data. Rule off the journal on
April 30, 2019 giving the journal entry and post the total giving posting references. Account Receivable control
bears No.5 and Sales Account No.41.
(b) Set up a ‘T’ account for each Controlling account in the General Ledger.

Problem 7.3: Following are selected transactions of Sadaf & Co. For the month of April 2019
April 3: Sold merchandise to Shamim & Co. Rs.7250 invoice No. 3212.
April 7: Sold merchandise to Nasim Traders Rs.8200 invoice No. 3213.
April 10: Merchandise returned from Shamim & Co. Rs. 600 issued credit memo No. 124.
April 13: Issued invoice No. 3214 to Nigar Zehra for merchandise sold Rs.8750.
April 15: Sold merchandise to Raza Brothers for Rs.15150 invoice No.3215.
April 16: Merchandise returned from Nigar Zehra Rs.775 credit memo No.126.
April 20: Credit sales to Azhar Brothers Rs.3300 invoice No. 3216.
April 25: Merchandise returned from Azhar Brothers Rs.50 credit memo No. 128.

Required: Prepare Sales day book (22) and Sales Return day book(15) & pass the entries on April 30, 2019.

Prepared by: Amir iqbal Page 1

 FA1- Recording Financial Transactions

Problem 7.4: Below are selected transactions for Khalid & Co.
April 2: Sold merchandise on account to Ahmed Co. Rs.4000.
April 4: Sold merchandise on account to Basit Sons Rs.5000.
April 8: Merchandise returned from Ahmed Rs.1000.
April 10: Sold old typewriter for cash Rs.500.
April 12: Sold merchandise on account to M/s Mubeen and Khan Rs.2000.
April 16: Basit Co. Returned merchandise at invoice price Rs.800.
April 19: sold merchandise for cash Rs.3000.
April 23: Sold merchandise to Ahmed Co. on account for Rs.6000.
April 30: Returned merchandise at invoice price Rs.700.

Required:
(a) Record the above transactions in the relevant following journals:
(i) Sales day book page 3 (ii) Sales return day book page 7.
Ignore irrelevant transactions.
(b) Give a Journal entry at the close of each journal and post the totals giving posting references. Account
receivable control account No.1002. Sales account No. 4011 and sales return & Allowance No.4012
(c) Set up Account receivable control account. Sales account and sales return & allowance account in the
general ledger.

Problem 7.5: The following are the selected transactions completed by Asad Traders during March 2019.
March 7: Purchased goods for resale, on account from Asim sons for Rs.9000
11: Purchased merchandise on account from Ismail Brothers for Rs.13000
17: Purchased merchandise on credit from Sattar & Co. for Rs.4000
26: Purchased merchandise on account from Asim sons for Rs.6000
27: Purchased merchandise for cash from Sattar Sons Rs.3400.
29: Purchased furniture for office use from Shamim Sons for Rs.34800 paying cash.

Required: Record the above transactions in the purchase journal.

Problem 7.6: Following information for the month of February 2019 is extracted from the books of Shahzaman
Co.
Feb 2: Purchased goods from Momin Co. for Rs.12000 on credit with trade discount 10%..
Feb 5: Purchased merchandise from Muslim Bros. for Rs.30000, issuing a cheque for Rs.12000 and agreeing to
pay the balance after 10 days.
Feb 10: Purchased office supplies on account from Jazib Sons. Rs.2000.
Feb 15: Purchased merchandise from Qazi Co. for Rs.17000, terms 2/10, n/30.
Feb 20: Purchased merchandise from Imran Co. for Rs.40000, subject to a quantity discount of Rs.2000.

Required: Prepare a Purchase day book from the above given information. Total it and write entry on Feb 28
to indicate Debit & Credit.

Prepared by: Amir iqbal Page 2

 FA1- Recording Financial Transactions

Problem 7.7: Given below is page 8 of the single column Purchases day book for Ali Traders, containing some
irrelevant transactions recorded incorrectly by a newly appointed and inexperienced accountant.
Ali Traders
Purchases day book page 8
Date Invoice # Name of supplier P.R Amount
3.5.19 Purchased merchandise from Akbar & Co., term 2/10, 6500
n/30
8.5.19 Purchased merchandise for Cash 1800
10.5.1 Purchased furniture for office use on account from 5000
Saqib Furniture.
15.5.19 Purchased merchandise from Nazeer & Co. 8000
20.5.19 Purchased office supplies on account from Fahad & Co. 900

25.5.19 Purchased merchandise from Akbar & Co. 8100

30.5.19 Purchased merchandise on account from Kamil Co. 7600
Required: (a) Prepare in proper form a revised and correct Purchase day book from the above data. Rule off
the journal on May 31, 2019 giving the journal entry and the post the total and posting references. Accounts
payable control bears No.2101 and Purchases Account No.5001.
(b) Set up ‘T’ account for controlling accounts in the General ledger.

Problem 7.8: Kamran Co. deals in electronic items. The following transactions
were completed during the month of March, 2019.
March 1: Purchased merchandise on credit from Obaid & Company for Rs.30000.
March 5: Sold merchandise to Usman Brothers on credit for Rs.50000.
March 15: Purchased equipment on account from Arshad & Co. Rs.52000.
March 18: Purchased merchandise on account from Khalil & Sons for Rs.40000.
March 26: Sold merchandise to Shabbir on credit for Rs.45000.
March 27: Sold furniture to Jawaid Co. for Rs.5000.
March 29: Sold merchandise for cash Rs.15000.
Required: Record the above transactions in the following journals:
(i) One column Purchase day book of page No.220.
(ii) One column Sales day book of page No.110.

Problem 7.9: The Following transactions were completed Wajid & Co.
Jan 2: Purchased merchandise on account from Shakeel Co. for Rs.5000.
Jan 9: Purchased merchandise on account from Akbar & Sons for Rs.7000.
Jan 10: Merchandise returned to Shakeel worth Rs.1000
Jan 15: Merchandise returned to Akbar Sons worth Rs.2000.
Jan 16: Purchased merchandise on cash from. Amjad Rs.4000.
Jan 20: Purchased merchandise from Shakeel Co. Rs.9000.
Jan 25: Purchased merchandise from Akbar & Sons. on account Rs.5000.
Jan 30: Purchased merchandise from Arshad Bros on account for Rs.6000.
Required:
(i) Enter the above transactions in a Purchase day book page 3 and Purchase Return day book page 5.
(ii) Set up account payable No.1202 and Purchases Account No.5101 and purchases return & allowance
Account No. 5102 in the General ledger.

Prepared by: Amir iqbal Page 3