The Reliable Furniture's Inc. is a furniture brand which have customized furniture made

from different suppliers. It is engaged in national and international customer serving. It started its

operations in August 2020. The transactions for last two months are as follows:

August 02: Business was commenced with initial capital of PKR.2, 000,000 and a Show room

building worth PKR.800, 000.

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August 03: Bought furniture and fittings for the shop of PKR.250, 000 from Wooden Co. on

account.

August 04: Opened a bank account for business and deposited 1,800,000 rupees out of business

cash.

August 05: Ordered goods from Shayan Co. worth PKR.500, 000. Title will be transferred when

goods are received.

August 07: Purchased Goods from Kashi Ltd. PKR.1, 625,000 and Camel & Co. PKR.2, 500,000

on credit.

August 08: Goods received from Shayan Co. and payment was made through cheque. Delivery

charges PKR.12, 000 were also paid by cash.

August 09: Sold goods on cash PKR. 150,000.

August 10: Goods costing PKR.25, 000 returned to Kashi Ltd.

August 11: Purchased goods from: Crown Furniture's PKR.500, 000; Pakwood Furniture's PKR.

750,000. On credit terms of 2/ 20, n/30.

August 12: Paid business insurance through cheque PKR. 25,000.

August 14: Sold goods on credit to Rasheed & Co. PKR.550, 000; Hussain & Co. PKR.250, 000.

August 15: Paid advertising expenses through cheque PKR.100, 000.

August 16: Purchased goods on credit from Omega Ltd. PKR. 300,000; Stylewood Ltd. PKR.

520,000; Zubaida & Co. PKR.450, 000. Paid transportation in cash PKR.15, 000

August 20: Sold goods on cash PKR.520, 000.

August 21: Cash deposited into bank PKR.800, 000.

August 22: Goods returned from Hussain & Co. PKR.25, 000.

August 23: Purchased office supplies PKR.5,500 on cash.

August 24: Received payment from Rasheed & Co. and allowed 2% cash discount.

August 25: Sold goods on credit to Rasheed & Co. PKR.300, 000; Naveed dealers PKR.

265,000.

August 26: Sold goods on cash PKR. 320,000. And cheque was received. The same was

deposited into bank on the same day.

August 27: Goods returned to Zubaida & Co. PKR.22, 500.

August 29: Paid amount due from Pakwood Furniture's by online transfer after deducting 2%

discount.

August 31: Paid utilities expenses PKR.14, 200 by cash.

Required:

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a. Record above transactions in their respective journals. (i.e. SJ, CB. GJ etc)

b. Post the transactions from Journals to ledgers.

c. Prepare the Trial Balance.

d. Prepare income statement and Balance sheet. Closing stock valued at PKR.5, 120,000.

e. Prepare Closing entries.