Question

Habib Ullah Sadiq is wholesale trader; following transactions are record in Accounting Equation?

i. Commence business with cash Rs. 200,000 and Land Rs. 50,000.

ii. Bought merchandising for cash Rs. 80,000.

iii. Cash sales of worth Rs. 25,000.

iv. Bought goods on credit from Salman of worth Rs. 50,000.

v. Sales on account to Ali Raza Rs. 12,000.

vi. Purchase furniture of the value of Rs. 5,000 by cash.

vii. Received cash form Ali Raza of Rs. 10,000.

viii. Return defective furniture of worth Rs. 1,500.

xi. Paid wages Rs. 1,000, Rent 2,000 and Electricity Bill Payable Rs. 1,500.

Answer 1

Land A/c Dr 50,000

Cash A/c Dr 2,00,000

To Capital A/c 2,50,000

Purchase A/c Dr 80,000

To Cash A/c 80,000

Cash A/c Dr 25000

To Sales A/c 25000

Purchase A/c Dr 50,000

To Salman 50,000

Ali raza Dr 12,000

To sales A/c 12,000

Furniture A/c Dr 5000

To Cash A/c 5000

Cash A/c Dr 10,000

To Ali raza 10,000

Purchase return A/c Dr 1500

To Cash A/c 1500

Wages A/c Dr 1000

Rent A/c Dr 2000

Electricity Bill payable A/c Dr 1500

To Cash A/c 4500