SPRING 2023

FINANCIAL ACCOUNTING (MGT101)

ASSIGNMENT # 01
DUE DATE: 17th May 2023 MARKS: 15

LEARNING OBJECTIVES:
• To understand the basic concepts of accounting and Books of Original Entries.

QUESTION
ABC & Sons showed balances of cash in hand Rs. 400,000 and Cash at bank Rs. 350,000
as on 1st April 2023. Some transactions of ABC & Sons for the month of April 2023 are
given below.
Date Transactions

2023
2ndApril
Goods purchased amounting to Rs. 300,000 from XYZ Brothers. ABC & Sons
gave a cheque of Rs. 200,000 to XYZ Brothers on the date of transaction and
promised to pay the remaining amount before 30 th April 2023.

4th April Goods purchased amounting to Rs. 20,000 on cash basis.

9th April Remaining amount paid in cash by ABC & Sons to XYZ Brothers in order to
settle the due amount of 2 nd April 2023.
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14th April Sold goods to Saleem Brothers for Rs. 180,000 on credit basis.

20th April Sold goods for Rs. 80,000 on cash basis.

24th April Merchandises purchased amounting to Rs. 40,000 from PO Store and paid the
whole amount by giving a cheque for the same amount on the same date.

26th April Sold merchandises to RST Brothers for Rs. 120,000 on credit basis.

30th April Goods purchased amounting to Rs. 75,000 from Rahim Stores on credit basis.

Required:

1. Based on the above transactions, calculate the amount/balance of the following

accounts at the end of April 2023.

A. Cash in hand

Particulars Rs. Particulars Rs.

 Balance b/d 400,000 Purchases Account
80,000 20,000
Sales Account XYZ Brothers
100,000

Balance c/d
360,000

480,000 480,000

B. Cash at bank

Particulars Rs. Particulars Rs.

Balance b/d 350,000 Purchases Account
200,000
Purchases Account
40,000
Balance c/d
110,000

350,000 350,000

2. Based on the above transactions, prepare the Sales Journal and Purchase
Journal by following the format given below.

Sale Journal

Date Name of Debtors Rs.

 2023 Saleem Brothers 180,000

April 14

RST Brothers 120,000

April 26

Total 300,000

Purchase Journal

Date Name of Creditor Rs.

2023 XYZ Brothers 100,000

75,000
April 02

Rahim Stores

April 30

Total 175,000

IMPORTANT NOTE:

REQUIREMENT- 01:
Preparation of complete accounting equation (all columns) is not required.
You may simply calculate the amount of cash in hand and cash at bank
 based on given information or you may prepare the cash column and bank
column of accounting equation to find the required amounts.

It is necessary to mention “Add” or Plus sign (+) / “Less” or Minus sign (-

) in the working otherwise marks for working will not be awarded.

REQUIREMENT- 02:
You must follow the given formats to prepare the “Sale Journal” and
“Purchase Journal” otherwise marks for working/solution will not be
awarded.

REQUIREMENT - 01 & 02:

Any mistake in any part will be awarded zero marks in that part. So be
careful while solving the assignment.