Question# 1

Q1) the following balance sheet

	Fahad	Raheel
Cash	120,000	180,000
Account receivable	280,000	300,000
Merchandise inventory	90,000	150,000
Office furniture	200,000	220,000
Total assets	690,000	850,000
Account payable	90,000	120,000
Capital	600,000	730,000
Total equities	690,000	850,000

All assets and liabilities were taken over under name of Friend and Co Under the following agreed valued

Fahad

Account receivable be realized Rs 240,000

Merchandise inventory be valued at Rs 90,000

Office furniture valued at Rs. 150,000

Raheel

Account receivable be realized Rs 250,000

Merchandise inventory be valued at Rs 135,000

Office furniture valued at Rs. 200,000

Account payable is to be accepted till Rs. 100,000

They further decided that they make capital of Rs 550,000 and 650,000

Required

General journal and balance sheet Question# 2

David Company Ltd. Completed the following transactions

1. The Company issued 70,000 share of Rs. 10 each at Rs. 12 but received applications for 80,000 shares. The Company finalized the allotment and refunded the excess amount.

2. The Company purchased a running business and acquired the following assets and liabilities.

4. Purchased a machine worth Rs. 2,00,000 and in consideration issued shares of Rs. 10 each. Each share had a market value of Rs. 12.50.

5. Purchased Office Equipment and in consideration issued 10,000 shares of Rs. 10 each. The market value of the share was Rs. 13.

6. Issued 2,000 10% debenture of Rs. 100 each at Rs. 95 redeemable after five years at Rs. 105.

Required

Give Journal entries in proper form of the above transactions on the books of David Company Ltd