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Financial - Accounting - Assignment BC230400138

Financial Accounting

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19 views2 pages

Financial - Accounting - Assignment BC230400138

Financial Accounting

Uploaded by

sardar.emoo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BC230400138

AFAN ZAHEER
BBA SEMESTER 03

Financial Accounting (MGT101) - Assignment #01 Statement

ABC Brothers showed balances of Cash in hand Rs. 800,000, Cash at bank Rs. 700,000,
Debtors Rs. 35,000 and Creditors Rs. 45,000 as on 1st July 2024. Some transactions of
Rahim Brothers for the month of July 2024 are given below. Date Transactions 4th July
Machinery purchased from ABC Machine Corporation for Rs. 250,000 and payment is
made through cheque. 7th July Goods purchased amounting to Rs. 30,000 on account. 9th
July Goods for Rs. 15,000 have been stolen during the period. 15th July Rs. 10,000 paid
to creditors. 24th July Sold goods to a customer for Rs. 20,000 on credit basis 28th July
Cash collected from a customer Rs. 5,000. 29th July A cheque of Rs. 150,000 received
against the sale of spoiled part of machinery

Required: Based on the transactions given in the previous page, calculate the
amount/balance of the following accounts at the end of July 2024.

1- Debtors 2- Creditors 3- Cash in hand 4- Cash at bank

Solution
Below are the closing balances for ABC Brothers as of 31st July 2024 based on the given
transactions.

Solution:
1. 1. Debtors (Accounts Receivable)

Opening Balance: Rs. 35,000


- 24th July: Sold goods on credit + Rs. 20,000
- 28th July: Cash collected from a customer - Rs. 5,000

Closing Balance for Debtors = Opening Balance + Sales on Credit - Cash Collected
= 35,000 + 20,000 - 5,000 = Rs. 50,000

2. 2. Creditors (Accounts Payable)


Opening Balance: Rs. 45,000
- 7th July: Goods purchased on account + Rs. 30,000
- 15th July: Paid to creditors - Rs. 10,000

Closing Balance for Creditors = Opening Balance + Purchases on Credit - Payments


= 45,000 + 30,000 - 10,000 = Rs. 65,000

3. 3. Cash in Hand

Opening Balance: Rs. 800,000


- 9th July: Goods stolen (deducted) - Rs. 15,000

Closing Balance for Cash in Hand = Opening Balance - Goods Stolen


= 800,000 - 15,000 = Rs. 785,000

4. 4. Cash at Bank

Opening Balance: Rs. 700,000


- 4th July: Paid for machinery by cheque - Rs. 250,000
- 15th July: Paid to creditors by cheque - Rs. 10,000
+ 29th July: Cheque received from machinery sale + Rs. 150,000

Closing Balance for Cash at Bank = Opening Balance - Payments + Receipts


= 700,000 - 250,000 - 10,000 + 150,000 = Rs. 590,000

Summary of Closing Balances as of 31st July 2024


1. Debtors: Rs. 50,000
2. Creditors: Rs. 65,000
3. Cash in Hand: Rs. 785,000
4. Cash at Bank: Rs. 590,000

End of Assignment.

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