Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.12 PRACTICAL PROBLEMS P.1-1 Mr. Asif has stated a trading business. The transactions for the month of March, 2020 are as under:- March 1. Invested

1.12 PRACTICAL PROBLEMS

P.1-1 Mr. Asif has stated a trading business. The transactions for the month of March, 2020 are as under:-

March

1. Invested $ 450,000 cash as capital.

3. Purchased furniture at the cost of $ 70,000 on credit.

4. Purchased merchandise at the cost of $ 250,000 for sale and paid cash.

6. Paid rent of shop for the month amounting to $ 25,000.

8. Sold merchandise costing $ 50,000 at the price of $ 75,000 and collected cash.

10. Sold merchandise to Mr. Arshad costing $ 40,000 at the selling price of $ 60,000 and collected cash of $ 40,000, the balance due.

13. Paid telephone bill amounting to $ 3,000

16. Purchased merchandise costing $ 80,000 on credit from Subhan Company.

18. Collected cash of $ 10,000 from Mr. Arshad for goods sold to him on credit.

22. Paid electricity bill amounting to $ 6,500. 25. Paid $ 50,000 for the furniture purchased on credit.

31. Paid Salary of an employee amounting to $ 20,000.

Required

Prepare a statement of an accounting equation in detail and record the above transactions indicting the balance of each item of every transaction

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Mr Barry Elliott, Jamie Elliott

10th Edition

0273703641, 978-0273703648

More Books

Students also viewed these Accounting questions

Question

Describe an active monetary policy.

Answered: 1 week ago