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Lahore Garrison University: Assignment # 4

The document records various business transactions from January 1-9, 2000 for a company called RJ Company. It provides the journal entries for starting the business with cash and machinery investments, purchases and sales on credit and for cash, and receipt of cash from credit customer. The transactions are then posted to ledger accounts and a trial balance is prepared showing the total debits equal to total credits.

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Muhammad huzaifa
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28 views

Lahore Garrison University: Assignment # 4

The document records various business transactions from January 1-9, 2000 for a company called RJ Company. It provides the journal entries for starting the business with cash and machinery investments, purchases and sales on credit and for cash, and receipt of cash from credit customer. The transactions are then posted to ledger accounts and a trial balance is prepared showing the total debits equal to total credits.

Uploaded by

Muhammad huzaifa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LAHORE GARRISON UNIVERSITY

(DHA, Phase 6 sector C)

Name: MUHAMMAD HUZAIFA

Roll No: Fa-19/BSSE-D/219

Submitted To: MAM SARA MUNIR

Course Title: Principle of Accounting

Assignment # 4

< ---------------------------- >


Q: Enter the following transaction in journal and then into the ledger and then make a trial
balance;

In 2000

January, 1 Mr. Umer started a business with cash Rs. 80,000 and machinery Rs. 20,000.

January, 3 purchased goods of Rs. 20,000 on credit from Mr. Adeel.

January, 5 sold goods for cash 10,000.

January, 7 sold goods on credit to Mr. Asim for Rs. 15,000.

January, 9 cash received from Mr. Asim Rs. 13,000 in full settlement of his account.

SOLUTION:

RJ Company
JOURNAL
January 1, 2000

DATE PARTICULARS L. DEBIT CREDIT


F (Rs.) (Rs.)
2000 Cash a/c Dr. 80,000
Jan, 1 Machinery a/c Dr. 20,000

Capital a/c Cr. 1,00,000


(investor invest cash and machinery)

Jan 3 Purchase a/c Dr. 20,000

Mr. Adeel a/c 20,000


(purchase goods on credit by Mr. Adeel)

Jan 5 Cash a/c Dr. 10,000

Sales a/c Cr. 10,000


(sale goods for cash)

Jan 7 Mr. Asim a/c Dr. 15,000


Sales a/c 15,000
(sale goods on credit to Mr. Asim)
Jan 9 Cash a/c Dr. 13,000
Discount a/c Dr. 2,000

Mr. Asim a/c 15,000


(cash receive and discount allowed to Mr.
Asim)

Ledger (standard form of ledger):

Cash Account no. 5


Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)


R R
2000
Jan 1 Capital a/c 80,000
Balance c/d 1,03,000
Jan 5 Sales a/c 10,000

Jan 9 Mr. Asim a/c 13,000 1,03,000


1,03,000

Machinery Account no. 7


Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)


R R
2000
Jan 1 Capital a/c 20,000 Balance c/d 20,000

20,000 20,000
Capital Account no. 9
Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)


2000
Balance c/d 1,00,000 Jan. 1 Cash a/c 80,000
Machinery a/c 20,000

1,00,000 1,00,000

Purchase Account no. 11


Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)


R R
2000
Jan 3 Mr. Adeel a/c 20,000 Balance c/d 20,000

20,000 20,000

Mr. Adeel Account no. 13


Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)


2000
Balance c/d 20,000 Jan. 3 Purchase a/c 20,000

20,000 20,000
Sale Account no. 15
Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)


2000
Balance c/d 25,000 Jan. 5 Cash a/c 10,000

Jan.7 Mr. Asim a/c 15,000


25,000 25,000

Mr. Asim Account no. 17


Dr. Cr.

Date Reference J.R (Rs.) Date Reference J.R (Rs.)


2000 2000
Jan.7 Sales a/c 15,000 Jan. 9 Cash a/c 13,000

Jan. 9 Discount a/c 2,000


15,000 15,000

Discount Account no. 19


Dr. Cr.

Date Reference J. (Rs.) Date Reference J. (Rs.)


R R
2000
Jan 9 Mr. Asim a/c 2,000 Balance c/d 2,000

2,000 2,000
RJ Company
Trial Balance
January 9, 2000

S. No Account names A/c Debit Credit


No.
1 Cash Account 5 1,03,000 -
2 Machinery Account 7 20,000 -
3 Capital Account 9 - 1,00,000
4 Purchase Account 11 20,000
5 Mr. Adeel Account 13 - 20,000
6 Sales Account 15 - 25,000
7 Mr. Asim Account 17 - -
8 Discount Account 19 2,000 -

_______ _______
1,45,000 1,45,000

Final Result = 1,45,000

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