Case Study:

You are appointed as a junior accountant in a sole proprietor business. You are required to enter the below transactions in the books of accounts by following the below assessment

May $1$ Capital invested as cash RO $86,000$ to start up the business

May $5$ Paid RO $25500$ in cash to Purchase Factory building

May $7$ Purchase of goods on credit for RO $32300$ and $33245$ on cash from Suad trading

May & Sale of goods RO $34600$ on credit to Suhail trading and for cash RO $55600$

May $11$ Paid advertisement of RO $2400$

May $17$ Paid salaries of RO $6400$

May $16$ Paid rent RO $200$ for the house of the sole trader

May $28$ Collection of accounts receivable RO $24000$ from Suhail trading

Task:$1$ Enter the accounts in the books of original entry, the proper journal with the required format with the date, details, amount debit columns, amount credit column and narrations. $(10$ Marks$)$

Task :$2$ Classify the transactions of similar nature under one account and prepare the ledger accounts in the required format with date, details, amount column. $(10$ Marks$)$