Q.1Show the Accounting Equation on the basis of the following transactions and prepare a Balance Sheet on the basis of the last equation. (5 marks) 1. Abdullah started business with cash 60,000

2. He purchased furniture 10,000

3. He paid rent 2,000

4. He purchased goods on credit from Mr. Mohammed 30,000

5. He sold goods (cost price SR.20, 000) for cash 25,000

Q.2Journalize the following transactions in book of Khan ltd:(5 marks)

2014, Jan. 1 Khan commenced business with cash 30,000 S.R.

2014,Jan. 2 Paid into bank 21,000 S.R.

2014, Jan. 10 Purchased goods by cheque 12,000 S.R

. 2014, Jan. 15 Purchased goods from Rahim 15,000 S.R. on Credit. 2014

, Jan. 20 Cash Sales for S.R. 30000 2014, Jan. 31 Paid salaries S.R. 2,000