SEMESTER SPRING 2017

FINANCIAL ACCOUNTING (MGT101)

ASSIGNMENT # 01
DUE DATE: 11th May 2017 MARKS: 10

TOPIC TO BE TESTED:
Basic concepts to prepare Journal, Ledger and Trial balance

LEARNING OBJECTIVES:
To understand the basic concepts required for understanding and preparing the
fundamental books of accounts

QUESTION
Date Transactions Rs.

2017

April 01 Mr. Aslam started his business with:

Cash balance 400,000
Machinery 700,000
Furniture 300,000

02 Purchased merchandises for cash 250,000

10 Goods purchased on credit basis from Mr. Akram & Sons 85,000

12 Machinery sold for cash 400,000

14 Merchandises sold for cash 350,000

18 Sold goods on credit basis to Farhan Brothers 280,000

26 Furniture purchased for cash 200,000

29 Paid rent for the month 90,000

Required:

On the following pages, you would find an incomplete journal, a ledger and
the corresponding trial balance based on transactions given on the previous
page. You are required to:

1. Pass the missing journal entries in General Journal of April 18, 2017
and April 26, 2017

2. Prepare the complete Cash account

3. Prepare the complete Trial balance

Note: In addition to study of handouts and recommended books, the

study material uploaded in download tab of VU-LMS are also most
important for successful completion of assignment. The file names of
relevant study material to the given assignment are Types of Accounts
and Rules of Debit & Credit, General Journal and Ledger & Trial
Balance. This study material is helpful for strengthening your basic
knowledge to understand the subject.
 General Journal
Page # 01
Debit Credit
Date Description L/F
Rs. Rs.

2017

April 01 Cash A/c 1 400,000

Machinery A/c 3 700,000

Furniture A/C 5 300,000

To Capital A/c 7 1,400,000

(being the initial Investment made in business)

02 Purchases A/c 9 250,000

To Cash A/c 1 250,000

(being the purchases of goods on cash basis)

10 Purchases A/c 9 85,000

To Accounts Payable - Mr. Akram & Sons 11 85,000

(Being the purchase of goods on credit basis)

12 Cash A/c 1 400,000

To Machinery A/c 3 400,000

(Being the sale of machinery on cash basis)

14 Cash A/c 1 350,000

To Sales A/c 13 350,000

(Being the sale of goods on cash basis)

18 ? 15 ?

To ? 13 ?

(Being the sale of goods on credit basis)

Total C/F 2,765,000 2,765,000

 Page # 02

Debit Credit
Date Description L/F
Rs. Rs.

2017

Total B/F 2,765,000 2,765,000

April 26 ? 5 ?

To ? 1 ?

(purchase of furniture on cash)

29 Rent A/c 17 90,000

To Cash A/c 1 90,000

(Being the payment of rent)

Grand Total 3,055 ,000 3,055 ,000

 LEDGER

Title of Account Cash Account A/C Code No. 1

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount

(Rs.) (Rs.)

2017 2017

April 01 Capital A/c 1 400,000

April 30 Balance c/d

1,150,000 1,150,000

Title of Account Machinery Account A/C Code No. 3

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount

(Rs.) (Rs.)

2017 2017

April 01 Capital A/c 1 700,000 April 12 Cash a/c 400,000

30 Balance c/d 300,000

700,000 700,000
 Title of Account Furniture Account A/C Code No. 5

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount

(Rs.) (Rs.)

2017 2017

April 01 Capital A/c 1 300,000

26 Cash A/c 2 200,000

April 30 Balance c/d 500,000

500,000 500,000

Title of Account Capital Account A/C Code No. 7

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount

(Rs.) (Rs.)

2017 2017

April 01 Cash A/c 1 400,000

01 Machinery A/c 1 700,000

April 30 Balance c/d 1,400,000 01 Furniture A/c 300,000

1,400,000 1,400,000
Title of Account Purchases Account A/C Code No. 9

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount

(Rs.) (Rs.)

2017 2017

April 02 Cash A/c 1 250,000

10 Accounts Payable 1 85,000

A/c
April 30 Balance c/d 335,000

335,000 335,000

Title of Account Accounts Payable - Mr. Akram & Sons Account A/C Code No. 11

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount

(Rs.) (Rs.)

2017 2017

April 10 Purchases A/c 1 85,000

April 30 Balance c/d 85,000

85,000 85,000
Title of Account Sales Account A/C Code No. 13

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount (Rs.)

(Rs.)

2017 2017

April 14 Cash A/c 1 350,000

18 Accounts 1 280,000
Receivable A/c

April 30 Balance c/d 630,000

630,000 630,000

Title of Account Accounts Receivable - Farhan Brothers Account A/C Code No. 15

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount (Rs.)

(Rs.)

2017 2017

April 18 Sales A/c 1 280,000

April 30 Balance c/d 280,000

280,000 280,000
Title of Account Rent Account A/C Code No. 17

Debit Credit

Date Particulars J.R Amount Date Particulars J.R Amount (Rs.)

(Rs.)

2017 2017

April 29 Cash A/c 2 90,000

April 30 Balance c/d 90,000

90,000 90,000

Mr. Akram

Trial Balance

As on April. 30, 2017

Account Debit Credit

S. No. Account Names
Code No. Rs. Rs.

1 Cash account 1 ?
2 Machinery account 3 300,000
3 Furniture account 5 500,000
4 Capital account 7 1,400,000
5 Purchases account 9 335,000
6 Accounts Payable- Mr. Akram & Sons 11 85,000
7 Sales account 13 630,000
8 Accounts Receivable - Farhan Brothers 15 280,000
9 Rent account 17 ?
2,115,000 2,115,000
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IMPORTANT INSTRUCTIONS
Take help from internet for collecting the information.
Carefully watch relevant lectures and consult the relevant material
from handouts along with recommended books.
Attempt the assignment by yourself and it will be entertained
positively.

OTHER IMPORTANT INSTRUCTIONS:

DEADLINE:
Make sure to upload the solution file before the due date on VULMS.
Any submission made via email after the due date will not be
accepted.

FORMATTING GUIDELINES:
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RULES FOR MARKING

Please note that your assignment will not be graded or graded as Zero (0), if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word or Open Office; e.g. Excel,
PowerPoint, PDF etc.
It is cheated or copied from other students, internet, books, journals
etc.
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