Q No.1 Use following title of accounts to complete journal entries of given transactions.

1. Mr.A deposited into bank Rs.50,000 to start a business
2. Paid rent for three months at Rs.2500 per month
3. Bought office equipment from B&Co. for Rs. 10000, paid to them Rs.3000 and promised to pay the balance after two months.
4. Rendered services to clients and received cash Rs. 5000
5. Purchase supplies for cash Rs. 400
6. Paid salaries to staff Rs. 5400
7. Bought furniture for Rs. 3200,paid to K&Co. Rs.1200 and promised to pay balance after one month
8. Withdrew cash for personal use Rs. 3000
9. Billed to Nasir for services rendered Rs. 12500
10. Received from Nasir Rs.5000

INSTRUCTION

A: Prepare journal entries

Q No.2 Mr. Ahmed invested cash Rs. 125,000

1. Bought merchandise for cash Rs.20000
2. Paid rent for the month Rs.5000
3. Purchase office supplies for Rs.1500
4. Sold goods for cash Rs.5000
5. Purchase goods on credit from Nasir Ali Rs.10000
6. Paid salaries to office staff Rs. 12500
7. Paid to Nasir Ali Rs.3500
8. Sold goods on credit to Abid Rs.15000
9. Merchandise return to Nasir Ali Rs.250
10. Goods were returned by Abid Rs.750
11. Withdrew cash for personal use Rs.1000
12. Sold old machine at Rs.500

INSTRUCTION

A: Prepare journal entries

Q No.3

In July 2005, Nasir Jamal started business and completed following transactions.

July 1 He deposited $ 165,000 cash in a business bank account.(use cash as title)

July 2 Purchased equipment for $ 55,000 from ABC Co. paid $20,000 and

balance will be paid after three month.

July 7 Paid rent for three months $ 1500

July 12 Purchase goods on credit from Khan & Co. $ 1200

July 17 Paid salaries to staff $ 2500

July 20 Paid to Khan & Co.$ 700

July 23 Paid insurance $ 400

July 27 Nasir withdrew $ 1500 cash from the business for personal use

INSTRUCTION

A: Prepare journal entries

Q. NO. 4

1. Khalid invested in business cash Rs.40000, office equipment Rs.60,000
2. Purchase merchandise for cash Rs. 6000
3. Purchase goods on credit from Zahid Rs.10000
4. Sold merchandise on credit to Amir Rs.10000
5. Paid rent expense Rs.600
6. Sold merchandise for cash Rs. 3500
7. Earned commission Rs. 10000
8. Purchase supplies on credit from Aleem Rs. 800
9. Paid traveling expense Rs. 650
10. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
11. Khalid withdrew cash for personal use Rs. 3000
12. Rendered services to client and received commission Rs. 2000
13. Paid insurance for the month Rs. 500

INSTRUCTION

A: Prepare journal entries

Q. NO. 5

1. Khalid invested in business Rs.40000, Furniture Rs.24,000, equipment Rs.15000
2. Purchase merchandise for cash Rs. 6000
3. Purchase office stationary for Rs.2000
4. Purchase goods on credit from Zahid Rs.10000
5. Sold merchandise on credit to Amir Rs.10000
6. Paid rent expense Rs.600
7. Sold merchandise for cash Rs. 3500
8. Billed to Mr. Bilal for service rendered Rs. 10000
9. Purchase supplies on credit from Aleem Rs. 800
10. Paid traveling expense Rs. 650
11. Sold merchandise to Mr. Kareem Rs. 4000 on credit.
12. Received cash from Mr. Kareem Rs.1500
13. Khalid withdrew cash for personal use Rs. 3000
14. Paid insurance for the month Rs. 500
15. Received cash from Mr. Bilal Rs.8000

INSTRUCTION

A: Prepare journal entries

Q-6 Helen Ingersoll owns and operates an interior design studio called Ingersoll Interiors. The following amounts summarize the financial position of her business on August 31, 20X2:

During September 20X2, the following events occurred.

0. Ingersoll inherited $20,000 and deposited the cash in the business bank account.
1. Performed services for a client and received cash of $700.
2. Paid off the beginning balance of accounts payable.
3. Purchased supplies on account, $1,000.
4. Collected cash from a customer on account, $1,000.
5. Invested personal cash of $1,000 in the business.
6. Consulted on the interior design of a major office building and billed the client for services rendered, $2,400.
7. Recorded the following business expenses for the month:
   1. Paid office rent, $900.
   2. Paid advertising, $100.
8. Sold supplies to another business for $150 cash, which was the cost of the supplies.
9. Withdrew cash of $1,100 for personal use.

Required

1. Prepare General Journal entries of above transactions.

Q -7 Following transactions were completed by Mr.khalid during the month of July,02.

July 1: Khalid invested in business cash Rs.55000 , office supplies Rs.1500, office

equipment Rs.45000

July3: Obtained loan from bank Rs.100,000

July 5: Purchase office equipment from Karim &Co. for Rs.25000 and paid Rs.12000

July 10: Paid rent for office premises in advance for three moths Rs.3000 per month.

July 12: Purchase goods on credit from ABC & Co. Rs 25000

July 15: Sold merchandise to Kashif Rs.5000

July 16 Paid salaries Rs.4500

July 20: Paid to Karim Rs.2000

July 23: Received form Kashif Rs.1500

July 25: Paid to ABC & Co. Rs.3000

July 27: Paid installment of bank loan Rs 5000

July 30: Paid advertising expense Rs 3000

INSTRUCTION

Prepare journal entries

Q-8 Recording transactions directly in the ledger, preparing a trial balance

Ken Mazanec obtained a corporate charter form the state of Pennsylvania and started a cable television service. During the first month of operations Mazanec completed the following selected transactions:

1. Mazanec began the business with an investment of $30,000 cash and a building valued at $50,000. The corporation issued common stock to Mazanec.
2. Borrowed $25,000 from the bank, signed a note payable.
3. Paid $32,000 for transmitting equipment.
4. Purchased office supplies on account, $400.
5. Paid employee salary, $1,300.
6. Received $500 for cable TV service performed for customers.
7. Sold cable service to customers on account, $2,300.
8. Paid $100 of the account payable created in d.
9. Received a $600 bill for utility expense that will be paid in the near future.
10. Received cash on account, $1,100.
11. Paid the following cash expense:
    1. Rent on land, $1,000
    2. Advertising, $800.
12. Declared and paid dividends of $2,600.

Required:

Prepare General Journal entries of above transactions.