Golden Rule of Finance:
i. Debit what comes in, Credit what goes out
ii. Debit the receiver, Credit the giver
iii. Debit all expenses and losses, Credit all incomes and gains
53. Prepare general journal entries for the following transactions of a business called Pose for
Pics in 2016:
Aug. 1: Hashim Khan, the owner, invested Rs. 57,500 cash and Rs. 32,500 of photography
equipment in the business.
04: Paid Rs. 3,000 cash for an insurance policy covering the next 24 months.
07: Services are performed and clients are billed for Rs. 10,000.
13: Purchased office supplies for Rs. 1,400. Cash paid Rs. 400 and remaining outstanding.
20: Received Rs. 2,000 cash in photography fees earned previously.
24: The client immediately pays Rs. 15,000 for services to be performed at a later date.
29: In addition, the business acquires photography equipment. The purchase price is Rs.
100,000, pays Rs. 25,000 cash and signs a note for the balance.
54. On March 2017, Farhan Rahim, starts wholesaling business.
Following transactions as follows:
1. He started business with capital of Rs. 15,000 and Land worth Rs. 10,000.
8. Bought goods from Bilal and Friends Rs. 1,000 and by cash from XYZ Co. Rs 2,000.
13. Sold goods to Rehman& sons Rs. 1,500 and sale by cash Rs. 5,000.
17. Gave away charity of cash Rs. 50 and merchandising worth Rs. 30.
21. Paid Bilal and Friends cash Rs. 975; discount received Rs. 25.
28. Received cash from Rehman& Sons Rs. 1,450; allowed him discount of Rs. 50.
55. Shah Sauood Marine is a boat repair yard. During August 2016, its transactions included
the following:
03. Loan taken from Habib Bank Ltd. of Rs. 25,000. Rs. 20,000 withdrawn for business and
remaining in the bank a/c.
06. Paid rent for the month of August Rs. 4,400 and accrued rent expenses was Rs. 600.
12. At request of Kiwi Insurance, Inc, made repairs on boat of Jon Seaways. Sent bill for Rs.
5,620 for services rendered to Kiwi Insurance Inc. (credit Repair Service Revenue).
18. Made repairs to boat of Dennis Copper and collected in full the charge of Rs. 2,830.
20. Placed Advertisement in The Dawn of Rs. 165, payment to be made within 30 days.
25. Received a check for 5,620 from Kiwi Insurance Inc representing collection of the
receivable of August 12. 30. Sent check to The Dawn in payment of the liability incurred on
August 20
56. Journalize the following transaction 2022:
January 1. Mr. Brad commences business as a computer merchant, starts trading with the
Capital of Rs. 3,00,000.
3. He buys on credit from HUL 10 machines @ 10,000 each.
12. He received an invoice from Airway Crop. Respect of 5000 carriage of m/c.
18. He opens bank a/c by depositing Rs. 50,000
22. He sells 6 m/c on credit to Softech @ Rs. 15,000 each.
27. He paid 4000 by cheque the amt for carriage.
31. He received cash Rs. 1,00,000 from softech.
31. He issue a cheque to HUL of Rs. 50,000
57. From the following list balance prepare a Trial balance as on 30.6.2022
Opening Stock 18,300,
Plant & m/c 7,500,
Wages 10,000,
Loose Tools 1,800,
Sales 1,20,000,
Lighting 2,300,
Bank Loan 4,400,
Creditors 8,000,
Coal & Coke 3,000,
Capital 40,000,
Purchase 75,000,
Misc. Receipt 600
Repair 2,000,
Office Salaries 2,500,
Carriage 1,500,
Office Furniture 600,
Income tax 1,500,
Patents 1,000,
Debtors 20,000,
Goodwill 15,000,
Leasehold premises 6,000,
Cash In Bank 5,100
58.
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60.
61.
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