The secret of success is to know something nobody else know (Aristotle)

A Case Study
Royal Computers & Mobile (a wholesale/Distribution business)
On 1st January2011, Mr. Asad started business with Cash Rs. 6,000,000. On 3rd January he opened an account with Meezan Bank and deposited Rs. 4500,000. On 4th January he bought a shop for the business Rs. 1,500,000 and issued a check. On 5th January he bought the following assets: Furniture & Fixture Rs. 110,000 Office Equipments Rs. 35,000

On 6th January he paid: Rs. 5000 for streamers, Rs. 5000 for banners, Rs. 15000 for a hoarding and Rs. 10,000 for main sign board. On 7th January he bought the following goods for resale purposes: (a) Mobile Supplier Model/Specification Price (Rs.) Qty Nokia 7200-Black 7000 100 Samsung C-200-White 5000 70 (b) Computer Supplier Model/Specification Price (Rs.) Dell P IV-Black /Tower 10000 Compaq P IV-White/Desktop 12000 HP P IV-Black/Desktop 9000

Qty 30 20 15

On the same date amount paid to all vendors on the same date except Nokia against purchase of mobile phones. 50% amount paid to Nokia.

Total Sale of the month is as follow: Date Customer Product Price (Rs.) Qty 8.1.2010 Usman Mobile Nokia-7200 8000 45 9.01.2010 Tanveer Computers Dell-Black 11000 20 10.01.2010 Hassan Communication Samsung C-200 5500 40 12.01.2010 My Computers Compaq-White 14000 20 13.01.2010 The Best Computer HP-Desktop 10000 12 Amount received from all customers except Usman Mobiles against sale of Mobile phones. Usman Mobiles paid only 50% of amount. On 2nd February he paid the following Expenses: Salary to Sales Staff Rs. 25000 Utility Bills Rs. 20000 Traveling Expenses Rs. 5000 Required: 1. Open Customer, Vendor and Inventory Account 2. Make the journal entries 3. Show the Ledger, Trial Balance of each account 4. Show Income Statement and Balance Sheet 5. Also show budgeted I/S and B/S