Q.

12
Date Particulars Dr Cr
i Cash 20,000
Machinery 8,000
Capital 28,000
ii Furniture 4,000
Cash 4,000
iii Purchases 4,000
Mr. Ali 4,000
iv Wages 2,000
Cash 2,000
v Mr. Ali 2,000
Cash 2,000
vi (a) Cash 2,500
Sales 2,500
(b) Cost of Sales 2,000
Merchandise Inventory 2,000
vii (a) Mr. Rashid-A/R 1,000
Sales 1,000
(b) Cost of Sales 900
Merchandise Inventory 900
viii Cash 1,000
Mr. Rashid-A/R 1,000
ix Salaries 6,000
Cash 6,000
Q. 13
Date Particulars Dr Cr
i Cash 8,000
Capital 8,000
ii Building 5,000
Cash 5,000
iii Purchases 9,000
Account Payable 9,000
iv Furniture 600
Account Payable 600
v (a) Cash 7,000
Sales 7,000
(b) *Cost of Sales 5,600
Merchandise Inventory 5,600
* 7000 x 100/125= 5600 OR
Alternatively Sales=Cost +Profit
7,000= x + 25% of x
7,000= x + 0.25x
7,000=1.25x
x= 7000/1.25= 5,600
 vi Account Payable 3,700
Cash 3,700
vii Salaries 1,200
Cash 1,200
viii Drawings 400
Cash 400
Q.14
Date Particulars Dr Cr
i Cash 100,000
Capital 100,000
ii Purchases 110,000
Cash 50,000
Account Payable 60,000
iii Furniture 10,000
Cash 10,000
iv (a) Cash 70,000
Sales 70,000
(b) Cost of Sales 50,000
Merchandise Inventory 50,000
v (a) Account Receivables 80,000
Sales 80,000
(b) Cost of Sales 60,000
Merchandise Inventory 60,000
vi Cash 80,000
Account Receivables 80,000
vii Account Payable 60,000
Cash 60,000
viii Rent of Shop 14,000
Cash 14,000
ix Wages 8,000
Cash 8,000
x Cash 5,000
Capital Loss 5,000
Q.15 Furniture 10,000
Date Particulars Dr Cr
Cash 15,000
Furniture 6,000
Capital 21,000
i Equipment 5,000
Cash 5,000
ii Purchases 5,000
Account Payable 5,000
iii Account Receivables 8,000
Sales 8,000
Cost of Sales 5,000
 Merchandise Inventory 5,000
iv Cash 5,000
Account Receivables 5,000
v Accounts Payable 5,000
Cash 4,900
Discount Received 100
vi Drawings 500
Cash 500
vii Salary 500
Cash 500
Q.16
S.No Assets Liabilities
a 12,500 1,800
b 28,000 4,900
c 16,800 4,300
d 19,600 3,150
e 25,500 6,300
f 51,400 11,650
Note: i. Assets - Liabilities= Capital
ii. Assets - Capital= Liabilities
iii. Assets= Capital + Liabilities
Q.17
S.NO ASSETS S.NO LIABILITIES
a Loan to Ali b Bank Overdraft
c Furniture & Fittings e We owe a supplier for goods
d Computer
f Ware-house we own

Note: In Case (a) we have given loan to Ali so it is our Asset

Q.18
S.NO ASSETS S.NO LIABILITIES
a Motor Vehicles c Creditor for goods
b Premises f Owing to bank
d Stock of goods h Loan from Bashir
e Debtors
g Cash in Hand
i Machinery
Taken Given
Cash Rs.20,000
Machinery Rs.8,000
Internal claim on assets (Capital) Rs.28,000
Furniture
Cash
Merchandise
External claim on assets (Liabilities)
Benifit Taken/ Internal claim on asstets (Capital) taken back or reduced
Cash
External Claim on assets (Liability) taken back or reduced
Cash
Cash
i. Merchandise Rs.2,000
ii. Internal claim on Assets (Capital) Rs.500 as profit is added to capital

Claim on Customer (Account Receivables) Rs. 1,000

i. Merchandise Rs. 900

ii. Internal claim on Assets (Capital) Rs.100 as profit is added to capital
Cash
Claim on customer (Account Receivables) Reduced
Benifit Taken/ Internal claim on asstets (Capital) taken back or reduced
Cash

Taken Given
Cash
Internal claim on assets (Capital)
Building
Cash
Merchandise
External claim on assets (Liabilities)
Furniture
External claim on assets (Liabilities)
Cash Rs.7,000

i.Merchandise Rs.5,600
ii.Internal claim on assets (capital) Rs.1,400 as profit is added to capital
External Claim on assets (Liability) taken back or reduced
Cash
Benifit Taken/ Internal claim on asstets (Capital) taken back or reduced
Cash
Drawing reduces Capital so internal claim on assets taken back
Cash

Taken Given
Cash
Internal claim on assets (Capital)
Merchandise
Cash
External claim on assets (Liabilities)
Furniture
Cash
Cash Rs.70,000
i.Merchandise Rs. 50,000
ii.Internal claim on Assets (Capital) Rs.20,000 as profit is added to capital

Account Receivable Rs.80,000

i. Merchandise Rs. 60,000
ii. Internal claim on Assets (Capital) Rs.20,000 as profit is added to capital

Cash
Claim on customer (Account Receivables) Reduced
External Claim on assets (Liability) taken back or reduced
Cash
Benifit Taken/ Internal claim on asstets (Capital) taken back or reduced
Cash
Benifit Taken/ Internal claim on asstets (Capital) taken back or reduced
Cash
Cash Rs.5,000
Internal claim on assets (Capital) Rs.5,000 reduced as loss is deducted from Capital
Furniture (Total furniture disposed off) Rs.10,000
Taken Given
Cash
Furniture
Internal claim on assets (Capital)
Equipment
Cash
Merchandise
External claim on assets (Liabilities)
Claim on Customer (Account Receivables) Rs.8,000

i.Merchandise Rs.5,000
 ii. Internal claim on Assets (Capital) Rs.3,000 as profit is added to capital
Cash
Claim on customer (Account Receivables) Reduced
External Claim on assets (Liability) Rs.5,000 taken back or reduced
Cash Rs.4,900
Internal claim on assets (Capital) Rs.100 as discount received is profit and it will be added to Capital
Drawing reduces Capital so internal claim on assets taken back
Cash
Benifit Taken/ Internal claim on asstets (Capital) taken back or reduced
Cash

Capital
10,700
23,100
12,500
16,450
19,200
39,750
e added to Capital