ANALYSIS OF BUSINESS TRANSACTIONS

TITLE OF ACCOUNT ( at least two) NATURE OF ACCOUNT ( any of five) INCREASE OR DECREASE DEBIT OR CREDIT

Q:PURCHASE FURNITURE FOR CASH RS.4000

FURNITURE A/C ASSET INCREASE DEBIT CASH A/C ASSET DECREASE CREDIT

Q: PURCASHE MACHINE FOR CASH RS.5000

MACHINE A/C ASSET INCREASE DEBIT CASH A/C ASSET DECREASE CREDIT

Q:PURCASHE OFFICE SUPPLIES FOR CASH RS.700

OFFICE SUPPLIES ASSES INCREASE DEBIT CASH A/C ASSET DECREASE CREDIT

Q:CASH DEPOSITED IN BANK A/C RS.25,000

BANK A/C ASSET INCREASE DEBIT CASH A/C ASSET DECREASE CREDIT

CASH WITHDREW FROM BANK FOR OFFICE RS.5000

CASH A/C ASSET INCREASE DEBIT BANK A/C ASSET DECREASE CREDIT

PURCAHSE MERCHANDISE FOR CASH RS. 10,000

PURCHASES A/C ASSET INCREASE DEBIT CASH A/C ASSET DECREASE CREDIT

PURCASHE EQUIPMENT AND PAID BY CHEQUE RS.36,000

EQUIPMENT A/C ASSET INCREASE DEBIT BANK ASSET DECREASE CREDIT

Q.PAID RENT EXPENSE RS.4000

RENT EXPENSE EXPENSE INCREASE DEBIT CASH ASSET DECREASE CREDIT

Q.RECEIVED CONSULTING FEE INCOME RS.25,000

CASH ASSET INCREASE DEBIT FEE INCOME REVENUE INCREASE CREDIT

BILLED TO MR.AMIR FOR SERVICES GIVEN ON CREDIT RS. 32,000

A/C RECEIVABLE(AMIR) ASSET INCREASE DEBIT FEE INCOEM REVENUE INCREASE CREDIT

RECEIVED CASH FROM MR. AMIR RS.20,000

CASH A/C RECEIVABLE(AMIR) ASSET ASSET INCREASE DECREASE DEBIT CREDIT

PURCASHE COMPUTER ON CREDIT FROM REHMAN RS.30,000

EQUIPMENT ASSET INCREASE DEBIT A/C PAYABLE(Rehman) LIABILITY INCREASE CREDIT

PAID BY CHEQUE TO MR. REHMAN RS. 10,000

A/C PAYABLE(Rehman) LIABILITY DECREASE DEBIT BANK A/C ASSET DECREASE CREDIT

MR.ABID INVESTED IN BUSINESS RS.100,000

CASH A/C ASSET INCREASE DEBIT CAPITAL-ABID CAPITAL INCREASE CREDIT

MR. ABID WITHDRAW FROM BUSINESS FOR PERSONAL USE RS.6000

DRAWING-ABID CAPITAL DECREASE DEBIT CASH A/C ASSET DECREASE CREDIT

MR.ABID GENERAL JOURANL

DATE DESCRIPTION P/R DEBIT CREDIT

MR.ABID GENERAL JOURANL

DATE DESCRIPTION 1 Jan Furniture a/c Cash a/c (Purchase furniture by cash) P/R DEBIT 4,000 4,000 CREDIT

MR.ABID GENERAL JOURANL

DATE 1 Jan DESCRIPTION Furniture a/c Cash a/c (Purchase furniture by cash) Machine a/c Cash a/c (Purchase machine by cash) Office supplies Cash a/c (Purchase supplies ) P/R DEBIT 4,000 4,000 CREDIT

2 Jan

5,000 5,000

3 Jan

700 700

Class activity
1. 2. 3. 4. 5. 6. Purchase supplies for cash Rs. 400 Purchase machine for cash Rs.7000 Services rendered to client for cash Rs. 5000 Cash deposited in bank a/c Rs. 10,000 Mr. Khalid invested in business Rs. 65,000 Services rendered to client on credit to Baber Rs. 6000 7. Cash withdraw from bank for office Rs.500 8. Purchase computer on credit from Amir Rs. 20,000 9. Paid salaries expense by cheque Rs. 15,000

Class activity
Purchase equipment for Rs.30,000 from Amir and paid cash Rs.20,000, balance is payable Sold merchandise for Rs.10,000 to Baber and received cash Rs.6000, balance is receivable Paid to Amir by cheque Rs.4000 Received from Baber Rs.1000 Paid salaries expense by cheque Rs.3000 Earned commission Rs 7000

CLASS ACTIVITY
Purchase office building of $256,600 of which $ 56,600 was applicable to the land. A cash payment of $156,600 was made and accept a note for the balance.

Prepare Journal entry

ANSWER
DR CR BUILDING-----------200,000 LAND------------------56,600 CASH----------------------156,600 NOTE PAYABLE--------100,000

CLASS ACTIVITY
Five computers were purchased at $500 each from ABC Co. on June 1. Firm paid cash $1500 and balance will be paid in two instalment of $500 each.

Prepare Journal entry

ANSWER
DR CR EQUIPMENT ---------- 2500 CASH-----------------------------1500 A/C PAYABLE(ABC)---------1000

CLASS ACTIVITY
One of the computer got defect and returned to ABC Co. ABC company accepted to give allowance of $500.

Prepare Journal entry

ANSWER
DR A/c payable (ABC Co) 500 Equipment CR 500

CLASS ACTIVITY
Sold old plant at $ 126,000 to Classic Co. Client agree to pay cash $26,000 as down payment. The balance will be paid in five installments after every three months.

Prepare Journal entry

ANSWER
DR CR

Cash------------------------- 26,000 A/c Receivable-----------100,000 Plant---------------------------126,000

CLASS ACTIVITY
Mr Ahmer borrowed from MCB on five year term Rs.1 million at 11.5% interest per annum. This amount is deposited into business bank account. Prepare Journal entry

ANSWER
DR CR

Bank a/c --------------1,000,000 Loan payable-------------------1,000,000

CLASS ACTIVITY
Mr.A started business with Rs.50,000. Paid rent for three months at Rs.7500. Bought office equipment from B&Co. for Rs. 10000, paid to them Rs.3000 and promised to pay the balance after two months. Rendered services to clients and received cash Rs. 5000 Purchase supplies for cash Rs. 400

CLASS ACTIVITY
Paid salaries to staff Rs. 5400 Bought furniture for Rs. 3200,paid to K&Co. Rs.1200 and promised to pay balance after one month Withdrew cash for personal use Rs. 3000 Billed to Nasir for services rendered on credit Rs. 12500 Received from Nasir Rs.5000