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