INSTITUTE OF BUSINESS MANAGEMENT

1st Hourly/AnalyticalExamination – Summer 2020

Course Title: Financial Accounting Course Code: ACC419

Faculty: M. Muzaffar Ali Section: WWE-7671
Day / Date: Sunday, 5th July, 2020 Total Marks: 05
Student’s Name Student ID:

Q.1 Demonstrate how certain business transactions affect the elements of the accounting

equation: Assets = Liabilities+ Owner's Equity.

Q. 2 Following are the information provided by Sun Shine Traders for the month of August
2019.
August 1. The owner Commenced with cash Rs. 800,000 and transferred his personal bank
account having Balance of Rs. 350,000 to his business bank account.
August2. Purchased Furniture on Cash Rs. 86,000.
August 3. Purchased Office equipment of Rs. 125,000 and paid cash Rs.70,000 along with a
cheque for balance amount.
August 4. Purchased merchandise on cash Rs. 85,000 on cash and paid Rs 700 to delivery
van driver
August 5. Sold merchandise on cash Rs. 50,000.
August 6. Goods returned to supplier Costing Rs. 1,800.
August 7. Goods returned by customer costing Rs. 2,000.
August 8. Paid Wages by chequeRs. 5,000.
August 9. Purchased merchandise on credit from Jamal Traders Rs. 70,000.
August 10. Sold Furniture on cash Rs. 5,000.
August 11. Goods returned to Jamal Traders Rs. 4,000.
August 12. Sold merchandise on credit to Pasha Traders Rs. 90,000 and paid cash Rs. 1,000
to delivery van driver.
August 13. Issued a cheque of Rs.30,000 to Jamal Traders.
August 14. Paid Rent Rs. 9,000 by cheque.
August 15. Received cash Rs 20,000 from Pasha Traders.
August 16. Received a cheque of Rs. 30,000 from Pasha Traders
August 17. The owner withdrew cash from Bank for personal use Rs130,000
August 18. Paid Salaries Rs. 20,000.
August 19. Chequ dated August 16 deposited into Bank.
August 20. The owner withdrew cash Ts 50,000 and merchandise costing Rs. 20,000 from
the business for his personal use.
August 21. Paid cash Rs.15,000 and issued a cheque of Rs. 20,000 to Jamal Traders in full
and final settlement of his account.
August 22. Received commission Rs. 7,000

Page 1 of 2
August 23. Purchased Office supplies on cash Rs. 6,000.
August 24. Received a cheque of Rs. 38,500 from Pasha Traders in full and final settlement
of his account (The cheque deposited into Bank on the same date)
August 25. Sold merchandise on cash Rs.34,600.
August 31. Goods remained un sold at the end of the month were Rs13,000 and Office
supplies Rs.
8,00.
REQUIRED:
Give entries in General Journal.

Page 2 of 2