Submitted To: Miss Nausheen Shahzad

Submitted by:
Ahmed Naveed Gillani
Ummad Ali
Ahmad Raza
Hamda Ahmad Makhdumi
Aiman Irfan
Section: C
 Table of Contents
Executive Summary ..................................................................................................................3

Transactions ..............................................................................................................................4

General Journal ........................................................................................................................8

Special Journal ........................................................................................................................ 17

General Ledgers ...................................................................................................................... 21

Subsidiary Ledgers.................................................................................................................. 27

Unadjusted Trial Balance ....................................................................................................... 29

Adjusting Entries .................................................................................................................... 30

Adjusted Trial Balance ........................................................................................................... 31

Financial Statements ............................................................................................................... 32

Closing Entries ........................................................................................................................ 34

Post-Closing Trial Balance ..................................................................................................... 35

Conclusion ............................................................................................................................... 35
 Executive Summary

The report consists of 110 major financial transactions of Care Pharmacy for October &
November 2022 which are used to prepare relevant ledgers, journals and financial statements of
the business to analyze its financial position in the specific month. Transactions have been
categorized in the special journals under 4 main types, i.e. Credit Sales, Credit Purchases, Cash
Receipts, and Cash Payments. Individual accounts under the categories of assets, liabilities,
owner’s equity and expenses are then posted in the general ledger. Subsidiary Ledgers of
accounts receivable and accounts payable are created which hold the individual accounts of all
creditors and debtors to ensure the accuracy of accounts receivable and accounts payable
balances in the general ledger. The trial balances confirm that the debit balances in the general
ledger equal all credit balances. The adjusting entries that are made at the end of the month are
used to create the financial statements. Income statement finds out the net income/profit
generated in the month. The statement of owner’s equity reports the changes in owner’s equity to
facilitate the creation of balance sheet. The balance sheet provides an overview of the assets and
liabilities of the business and therefore, its net worth. Lastly, closing entries are made to close the
temporary accounts and then, a post-closing trial balance is also made to make sure that the
closing debit and credit balances are equal.
 Transactions

1. October 1, purchased goods worth Rs 300,000 on account from Nadeem Trader.

2. October 1, paid Rs 5000 for delivery expenses.

3. October 2, made sales of Rs 140,200 against cash costing Rs 82,600.

4. October 3, Sold goods for Rs 8,000 to Mr. Farhan on account costing Rs 4,600.

5. October 3, Sold medicines for Rs 15,000 on cash costing Rs 6,400.

6. October 4, paid Rs 10,000 for delivery expenses.

7. October 5, paid Rs 300,000 to Nadeem Trader for the purchase of October 1.

8. October 5, paid Rs 10,000 in rent expense.

9. October 6, Goods purchased from Mateen Enterprise worth Rs 400,000 with 50% on cash and 50%
on account.

10. October 6, Cash Sales of Rs 99,500 made costing Rs 56,700

11. October 7, Mr. Abdul Rahman (Owner) took Rs.50,000 for his personal use.

12. October 8, Paid maintenance expenses for the AC worth Rs 7,500.

13. October 8, purchased new furniture for shop worth Rs 20,000.

14. October 8, Sold goods for Rs 124,200 on cash costing 65,750

15. October 9, Paid Electricity bill of Rs 86,788.

16. October 9, Bought refills for the nestle water bottle worth Rs 1250.

17. October 10, purchased goods worth Rs 200,000 from Wilshire laboratories on account Credit terms
15/20, n/30.

18. October 10, Salaries paid to workers for Rs 57,650.

19. October 11, Sold Panadol costing Rs 6,200 on cash for Rs 10,450.

20. October 12, Paid Rs 200,000 to Mateen Enterprise for goods purchased October 6.
21. October 12, Paid maintenance expenses of Rs 3200/- for the photocopier machine.

22. October 13, Purchased goods worth Rs 80,000 from Mateen Enterprise and worth Rs.96,000 from
Biovus pharmaceuticals on cash.

23. October 13, Bought a new battery for the UPS of the shop worth Rs 13000.

24. October 14, Paid the electrician Rs 1500 for changing the battery and fixing the UPS.

25. October 14, Owner made additional investment in the business of Rs 300,000.

26. October 14, bought shopping bags worth Rs 5000.

27. October 14, sold goods for Rs 72,200 to customers costing Rs 39,500.

28. October 15, Purchased goods worth Rs 50,000 on cash from Wilshire laboratories supplier.

29. October 16, paid internet bill of Rs 2800.

30. October 17, Sold goods for Rs 109,400 costing 67,400.

31. October 17, sold goods to Mr. Saad for Rs 15,000 on account costing Rs 7950.

32. October 18, Sold goods costing Rs 36,500 for Rs 78,400 on cash

33. October 18, Received Rs 8,000 from Mr. Farhan for the sale of October 3.

34. October 19, Paid Insurance expense of Rs 22500 for the next 12 months.

35. October 20, Paid Rs 15000 for painting the shop.

36. October 20, sold goods for Rs 61,900 on cash costing Rs 34,450

37. October 21, sold goods costing Rs 75,600 for cash amounting Rs 134,200.

38. October 22, purchased goods for cash worth Rs 50,000 from Nadeem Trader.

39. October 23, Sold goods costing Rs 77,400 for Rs. 139,300 to customers on cash

40. October 23, Paid expenses worth Rs 3200 for food and beverages used.

41. October 24, paid Rs 8,000 for delivery expenses.

42. October 24, cash sale recorded Rs 99,850 costing Rs 55,400.

43. October 25, Credit Purchases worth Rs 20,000 from NH pharmaceuticals.

44. October 26, paid Rs 170,000 to Wilshire laboratories for the purchases on October 10.

45. October 27, Received Rs. 12,000 from Mr. Saad for the sale of October 17.

46. October 28, Paid Rs 8000 to security guard.

47. October 29, sold goods costing Rs 37,200 on cash to customers amounting Rs 67,000.

48. October 30, sold goods for cash of Rs 1,55,000 costing 85,850.

49. October 31, Storage rent paid amounting Rs. 30,000 including Rs 10,000 prepaid for November

50. October 31, Rs 15000 salaries accrued by the end of the month.

51. November 1, paid Rs 3000 for delivery expenses.

52. November1, purchased goods worth Rs 150,000 on account from Nadeem Trader

53. November 2, made sales of Rs 90000 against cash costing Rs 35,000

54. November 3, Sold goods for Rs 6,000 to Mr. Farhan on account costing Rs 3,600.

55. November 4, paid Rs 8,000 for delivery expenses

56. November 5, sold goods costing Rs 185,000 for cash amounting Rs, 65,000

57. November 5, Paid the electrician Rs 2000 fixing the UPS.

58. November 6, paid Rs 150,000 to Nadeem Trader for the purchase of November 1

59. November 7, paid Rs 10,000 in rent expense.

60. November 7, Purchased goods worth Rs 60,000 on cash from Wilshire laboratories supplier.

61. November 8, sold goods for Rs 85,200 to customers costing Rs 45000

62. November 8, sold goods to Mr. Saad for Rs 18,000 on account costing Rs 11000.

63. November 9, purchased new furniture for shop worth Rs 4500

64. November 9, Paid maintenance expenses for the AC worth Rs 2,500

65. November 10, Paid maintenance expenses of Rs 3200/- for the photocopier machine.

66. November 10, Purchased goods worth Rs 25,000 from NH pharmaceuticals on cash

67. November 11, Sold goods for Rs 124,000 on cash costing 63000.

68. November 12, Salaries paid to workers for Rs 60,000.

69. November 13, Received Rs 6,000 from Mr. Farhan for the sale of November 3.

70. November 14, paid Rs 6,000 for delivery expenses.

71. November 14, Received Rs. 18,000 from Mr. Saad for the sale of October 17

72. November 15, bought shopping bags worth Rs 1000.

73. November 16, Bought refills for the nestle water bottle worth Rs 1250.

74. November 17, sold goods for Rs 20000 to customers costing Rs 2500

75. November 18, purchased goods worth Rs 25,000 on account from Nadeem Trader.

76. November 19, Goods purchased from Mateen Enterprise worth Rs 8000

77. November 19, bought shopping bags worth Rs 3000.

78. November 19, sold goods costing Rs 38000 for cash amounting Rs 80,000

79. November 20, purchased goods worth Rs 26,000 from Nadeem Trader

80. November 21, Paid Rs 5000 for painting the inventory room.

81. November 21, Bought a used delivery bike for Rs 28000 for cash

82. November 22, paid for the maintenance of the bike 2500

83. November 22, Filled petrol in bike for 1200

84. November 22, , paid internet bill of Rs 2800.

85. November 23, paid 15000 to AB advertising for printing broacher.

86. November 24, Salaries paid to workers for Rs 57,650.

87. November 24, Purchased goods worth Rs 15,000 from NH pharmaceuticals on cash

88. November 24, purchased paracetamol worth Rs 6,000 from Nadeem Trader on account

89. November 25, paid Rs 25000 to Nadeem Trader for the purchase of November 18

90. November 25, Paid maintenance expenses of Rs 3200/- for the photocopier machine.

91. November 26, paid Rs 6,000 to Nadeem Trader for the purchase of November 24

92. November 27, paid 800 for the bike maintenance

93. November 27, paid Rs 2,000 for delivery expenses

94. November 28, sold goods costing Rs 18,600 for cash amounting Rs 27400

95. November 28, paid 2800 for Miscellaneous expense

96. November 28, Purchased goods worth Rs 8,000 from NH pharmaceuticals on cash

97. November 29, Paid Electricity bill of Rs 92000.

98. November 30, Salaries paid to photocopier for Rs 5,000.

99. November 30, Paid maintenance expenses for the AC worth Rs 800

100. November 31, sold goods costing Rs 8000 for cash amounting Rs 15000

General Journal
 CARE PHARMACY
General Journal
DATE Description Post ref. Debit Credit
2022
OCT 1 Merchandise Inventory 115 300000
Accounts payable – Nadeem Trader 210 300000

1 Delivery expense 523 5000

Cash 110 5000

2 Cash 110 140200

Sales 410 140200
Cost of merchandise sold 510 82600
Merchandise inventory 115 82600

3 Accounts Receivable - Farhan 112 8000

Sales 410 8000
Cost of merchandise sold 510 4600
Merchandise Inventory 115 4600

3 Cash 110 15000

Sales 410 15000
Cost of merchandise sold 510 6400
Merchandise inventory 115 6400

4 Delivery expense 523 10000

Cash 110 10000

5 Accounts payable – Nadeem Trader 210 300000

Cash 110 300000

5 Rent expense 530 10000

Cash 110 10000

6 Merchandise inventory 115 400000

Cash 110 200000
Accounts payable - Mateen Enterprise 210 200000

6 Cash 110 99500

Sales 410 99500
Cost of merchandise sold 510 56700
Merchandise inventory 115 56700

7 Drawings – Abdul Rahman 311 50000

Cash 110 50000
8 Maintenance Expense - AC 536 7500
Cash 110 7500

8 Store equipment - Furniture 123 20000

Cash 110 20000

8 Cash 110 124200

Sales 410 124200
Cost of merchandise sold 510 65750
Merchandise inventory 115 65750

9 Utilities expense - electricity bill 531 86788

Cash 110 86788

9 Miscellaneous expense - nestle 529 1250

Cash 110 1250

10 Merchandise inventory 115 170000

Accounts payable – Wilshire laboratories 210 170000

10 Salaries expense 520 57650

Cash 110 57650

11 Cash 110 10450

Sales 410 10450
Cost of merchandise sold 510 6200
Merchandise inventory 115 6200

12 Accounts payable – Mateen Enterprise 210 200000

Cash 110 200000

12 Maintenance expense - photocopier machine 536 3200

Cash 110 3200

13 Merchandise inventory 115 176000

Cash 110 176000

13 Office expense - UPS battery 534 13000

Cash 110 13000

14 Maintenance expense - fixing of UPS 536 1500

cash 110 1500
14 Cash 110 300000
Capital – Abdul Rahman 310 300000

14 Miscellaneous expense - shopping bags 529 5000

Cash 110 5000

14 Cash 110 72200

Sales 410 72200
Cost of merchandise sold 510 39500
Merchandise inventory 115 39500

15 Merchandise Inventory 115 50000

Cash 110 50000

16 Utilities expense - internet bill 531 2800

Cash 110 2800

17 Cash 110 109400

Sales 410 109400
Cost of merchandise sold 510 67400
Merchandise inventory 115 67400

17 Accounts receivable - Saad 112 15000

Sales 410 15000
Cost of merchandise sold 510 7950
Merchandise inventory 115 7950

18 Cash 110 78400

Sales 410 78400
Cost of merchandise sold 510 36500
Merchandise inventory 115 36500

18 Cash 110 8000

Accounts receivable - Farhan 112 8000

19 Prepaid insurance 118 22500

Cash 110 22500

20 Office expenses - painting 534 15000

Cash 110 15000

20 Cash 110 61900

 Sales 410 61900
Cost of merchandise sold 510 34450
Merchandise inventory 115 34450

21 Cash 110 134200

Sales 410 134200
Cost of merchandise sold 510 75600
Merchandise inventory 115 75600

22 Merchandise inventory 115 50000

Cash 110 50000

23 Cash 110 139300

Sales 410 139300
Cost of merchandise sold 510 77400
Merchandise inventory 115 77400

23 Miscellaneous expense - food and beverages 529 3200

Cash 110 3200

24 Delivery expense 523 8000

Cash 110 8000

24 Cash 110 99850

Sales 410 99850
Cost of merchandise sold 510 55400
Merchandise inventory 115 55400

25 Merchandise inventory 115 17000

Accounts payable - NH pharmaceuticals 210 17000

26 Accounts payable – Wilshire laboratories 210 170000

Cash 115 170000

27 Cash 115 12000

Accounts receivable - Saad 112 12000

28 Salaries expense - security guard 520 8000

Cash 110 8000

29 Cash 110 67000

Sales 410 67000
Cost of merchandise sold 510 37200
 Merchandise inventory 115 37200

30 Cash 110 155000

Sales 410 155000
Cost of merchandise sold 510 85850
Merchandise inventory 115 85850

31 Prepaid rent 530 30000

Cash 110 30000

Nov 1 Delivery expense 523 3000

Cash 110 3000

1 Merchandise Inventory 150000

Accounts payable – Nadeem Trader 150000

2 Cash 110 90000

Sales 410 90000
Cost of merchandise sold 510 35000
Merchandise inventory 115 35000

3 Accounts Receivable - Farhan 112 6000

Sales 410 6000
Cost of merchandise sold 510 3600
Merchandise Inventory 115 3600

4 Delivery expense 523 8000

Cash 110 8000

5 Cash 110 185000

Sales 410 185000
Cost of merchandise sold 510 65000
Merchandise inventory 115 65000

5 Maintenance expense - fixing of UPS 536 2000

cash 110 2000

6 Accounts payable – Nadeem Trader 210 150000

Cash 110 150000

7 Rent expense 530 10000

Cash 110 10000
 8 Cash 110 85200
Sales 410 85200
Cost of merchandise sold 510 45000
Merchandise inventory 115 45000

8 Accounts receivable - Saad 112 18000

Sales 410 18000
Cost of merchandise sold 510 11000
Merchandise inventory 115 11000

9 Store equipment - Furniture 123 4500

Cash 110 4500

9 Maintenance Expense - AC 536 2500

Cash 110 2500

10 Maintenance expense - photocopier machine 536 3200

Cash 110 3200

11 Merchandise inventory 115 25000

Cash 110 25000

11 Cash 110 124000

Sales 410 124000
Cost of merchandise sold 510 63000
Merchandise inventory 115 63000

12 Salaries expense 520 60000

Cash 110 60000

13 Cash 110 6000

Accounts receivable - Farhan 112 6000

14 Delivery expense 523 6000

Cash 110 6000

14 Cash 115 18000

Accounts receivable - Saad 112 18000

15 Miscellaneous expense - shopping bags 529 1000

Cash 110 1000

16 Miscellaneous expense - nestle 529 1250

 Cash 110 1250

17 Cash 110 20000

Sales 410 20000
Cost of merchandise sold 510 2500
Merchandise inventory 115 2500

18 Merchandise Inventory 210 25000

Accounts payable – Nadeem Trader 110 25000

19 Merchandise inventory 115 8000

Cash 110 8000

19 Miscellaneous expense - shopping bags 529 3000

Cash 110 3000

19 Cash 110 80000

Sales 410 80000
Cost of merchandise sold 510 38000
Merchandise inventory 115 38000

20 Merchandise inventory 115 26000

Cash 110 26000

21 Office expenses - painting 534 5000

Cash 110 5000

21 Motor Bike 28000

Cash 110 28000

22 Maintenance expense - Delivery Bike 2500

Cash 110 2500

22 Miscellaneous expense - Bike Petrol 529 1200

Cash 110 1200

22 Utilities expense - internet bill 531 2800

Cash 110 2800

23 Advertising expense 15000

Cash 110 15000

24 Salaries expense 520 57650

 Cash 110 57650

24 Merchandise inventory 115 15000

Cash 110 15000

24 Merchandise Inventory 210 6000

Accounts payable – Nadeem Trader 110 6000

25 Accounts payable – Nadeem Trader 210 25000

Cash 110 25000

25 Maintenance expense - photocopier machine 536 3200

Cash 110 3200

26 Accounts payable – Nadeem Trader 210 6000

Cash 110 6000

27 Maintenance expense - Delivery Bike 536 800

Cash 110 800

27 Delivery expense 523 2000

Cash 110 2000

28 Cash 110 27400

Sales 410 27400
Cost of merchandise sold 510 18600
Merchandise inventory 115 18600

28 Maintenance expense - photocopier machine 536 2800

Cash 110 2800

28 Merchandise inventory 115 8000

Cash 110 8000

29 Utilities expense - electricity bill 531 92000

Cash 110 92000

30 Salary expense- photocopier 5000

cash 110 5000

30 Maintenance Expense - AC 536 800

Cash 110 800
 30 Cash 110 15000
Sales 410 15000
Cost of merchandise sold 510 8000
Merchandise inventory 115 8000
6313988 6313988

Special Journal

CARE PHARMACY
Revenue Journal
Accounts Receivable - Debit
DATE Accounts Debited Post ref.
Sales - Credit
2021
OCT 3 Farhan  8000
17 Saad  15000
Nov 3 Farhan  6000
8 Saad  18000
30 47000
 CARE PHARMACY
Cash Receipts Journal
Other Accounts
DATE Accounts Credited Post ref. Accounts Sales Receivable Cash Dr.
Cr. Cr.
2021
OCT 2 Sales 410 140200 140200
3 Sales 410 15000 15000
6 Sales 410 99500 99500
8 Sales 410 124200 124200
11 Sales 410 10450 10450
14 Capital – Abdul Rahman 310 300000 300000
15 Sales 410 72200 72200
17 Sales 410 109400 109400
18 Sales 410 78400 78400
18 Farhan  8000 8000
20 Sales 410 61900 61900
21 Sales 410 134200 134200
23 Sales 410 139300 139300
24 Sales 410 99850 99850
27 Saad  12000 12000
29 Sales 410 67000 67000
30 Sales 410 155000 155000
Nov 2 sales 410 90000 90000
5 Sales 410 185000 185000
8 Sales 410 85200 85200
11 Sales 410 124000 124000
13 Farhan  6000 6000
14 Saad  18000 18000
17 Sales 410 20000 20000
19 Sales 410 80000 80000
28 Sales 410 27400 27400
31 Sales 410 15000 15000
31 300000 1933200 44000 2277200
 CARE PHARMACY
Cash Payments Journal

Other Merchandise Accounts

Post Cash
DATE Accounts Debited Accounts Inventory Payable
ref. Cr.
Dr. Dr. Dr.

2021
OCT 1 Delivery expense 523 5000 5000
4 Delivery expense 523 10000 10000
5 GSK laboratories  300000 300000
5 Rent expense 530 10000 10000
6 Merchandise inventory 115 200000 200000
7 Drawings – Abdul Rahman 311 50000 50000
8 Maintenance expense 536 7500 7500
8 Store Equipment - Furniture 123 20000 20000
9 Utilities expense 531 86788 86788
9 Miscellaneous expense 529 1250 1250
10 Salaries expense 520 57650 57650
12 Dosaco Laboratories  200000 200000

12 Maintenance expense 536 3200 3200

13 Merchandise inventory 115 176000 176000

13 Office expense 534 13000 13000
14 Maintenance expense 536 1500 1500
14 Miscellaneous expense 529 5000 5000
15 Merchandise inventory 115 50000 50000
16 Utilities expense 531 2800 2800
19 Prepaid insurance 118 22500 22500
20 Office expense 534 15000 15000
22 Merchandise inventory 115 50000 50000
23 Miscellaneous expense 529 3200 3200
24 Delivery expense 523 8000 8000
26 Abbot laboratories  170000 170000
28 Salaries expense 520 8000 8000
31 Prepaid Rent 119 30000 30000
Nov 1 Delivery expense 523 3000 3000
4 Delivery expense 523 8000 8000
5 Maintenance expense - fixing of UPS 536 2000 2000
6 GSK laboratories  150000 150000
7 Rent expense 530 10000 10000
9 Store equipment - Furniture 123 4500 4500
9 Maintenance Expense - AC 536 2500 2500
Maintenance expense - photocopier
536 3200
10 machine 3200
11 Merchandise inventory 115 25000 25000
12 Salaries expense 520 60000 60000
14 Delivery expense 523 6000 6000
15 Miscellaneous expense - shopping bags 529 1000 1000
16 Miscellaneous expense - nestle 529 1250 1250

19 Merchandise inventory 115 8000 8000
19 Miscellaneous expense - shopping bags 529 3000 3000
20 Merchandise inventory 115 26000 26000
21 Office expenses - painting 534 5000 5000
21 Motor Bike 28000 28000
22 Maintenance expense - Delivery Bike 530 2500 2500
22 Miscellaneous expense - Bike Petrol 529 1200 1200
22 Utilities expense - internet bill 531 2800 2800
23 Advertising expense 542 15000 15000
24 Salaries expense 520 57650 57650
24 Merchandise inventory 115 15000 15000
25 GSK laboratories 210 25000 25000
Maintenance expense - photocopier
536 3200
25 machine 3200
26 Accounts payable – GSK laboratories 210 6000 6000
27 Maintenance expense - Delivery Bike 536 800 800
27 Delivery expense 523 2000 2000
Maintenance expense - photocopier
536 2800
28 machine 2800
28 Merchandise inventory 115 8000 8000
29 Utilities expense - electricity bill 531 92000 92000
30 Salary expense- photocopier 5000 5000
30 Maintenance Expense - AC 536 800 800
31 683588 558000 851000 2092588
 General Ledgers

Account: Cash Account no. 110

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 30 CR1 2277200 2277200
30 Balance CP1 2092588 184612

Account: Accounts Receivable Account no. 112

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 30 S1 47000 47000
30 Balance CR1 44000 3000

Account: Merchandise Inventory Account no. 115

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
OCT 30 P1 837000 837000
31 CP1 558000 1395000
NOV 30 510 1029200 365800

Account: Prepaid rent Account no. 119

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 30 Balance CP1 30000 30000
Adjusting 10000 20000

Account: Prepaid Insurance Account no. 118

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 19 Balance CP1 22500 22500
30 Adjusting 1875 20625
Account: Store Equipment - Furniture Account no. 123
Post
Date Item Debit Credit Balance
ref.
2021 Debit Credit
OCT 8 CP1 20000 20000
NOV 9 Balance CP1 4500 24500

Account: Accounts Payable Account no. 210

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 30 P1 868000 868000
30 Balance CP1 851000 17000

Account: Capital – Abdul Rahman Account no. 310

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 14 Balance CR1 300000
30 Closing 325337 625337
30 Closing 50000 250000 575337

Account: Salaries Payable Account no. 211

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 30 Adjusting 15000

Account: Drawings - Abdul Rahman Account no. 311

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 7 Balance CP1 50000
30 Closing 50000 0

Account: Sales Account no. 410

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
NOV 30 S1 47000 47000
30 Balance CR1 1933200 1796200
 30 Closing 1980200 0

Account: Salaries expense Account no. 520

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
OCT 10 CP1 57650 57650
28 CP1 8000 65650
31 Adjusting 15000 80650
NOV 12 CP1 60000 140650
24 CP1 57650 198300
30 Balance CP1 5000 203300
30 Closing 203300 0

Account: Miscellaneous expense Account no. 529

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
OCT 9 CP1 1250 1250
14 CP1 5000 6250
23 CP1 3200 9450
NOV 15 CP1 1000 10450
16 CP1 1250 11700
19 CP1 3000 14700
22 Balance CP1 1200 15900
Closing 15900 0

Account: Delivery expense Account no. 523

Date Item Post ref. Debit Credit Balance
2021 Debit Credit
OCT 1 CP1 5000 5000
4 CP1 10000 15000
24 CP1 8000 23000
NOV 1 CP1 3000 26000
4 CP1 8000 34000
14 CP1 6000 40000
27 Balance CP1 2000 42000
Closing 42000 0
 Account: Miscellaneous expense Account no. 529
Date Item Post ref. Debit Credit Balance
2021 Debit Credit
OCT 9 CP1 1250 1250
14 CP1 5000 6250
23 CP1 3200 9450
NOV 15 CP1 1000 10450
16 CP1 1250 11700
19 CP1 3000 14700
22 Balance CP1 1200 15900
Closing 15900 0

Account: Utilities expense Account no. 531

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 9 CP1 86788 86788
16 CP1 2800 89588
NOV 22 CP1 2800 92388
29 Balance CP1 92000 184388
Closing 92000 0

Account: Rent expense Account no. 530

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
5 CP1 10000 10000
31 Adjusting CP1 10000 20000
NOV 7 Balance CP1 10000 30000
Closing 30000 0

Account: Insurance expense Account no. 533

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
NOV 30 Adjusting 1875 1875
30 Closing 1875 0
 Account: Office expense Account no. 534
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 13 CP1 13000 13000
20 CP1 15000 28000
NOV 21 Balance CP1 5000 33000
Closing 33000 0

Account: Insurance expense Account no. 533

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
NOV 30 Adjusting 1875 1875
30 Closing 1875 0

Account: Maintenance expense Account no. 536

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 8 CP1 7500 7500
12 CP1 3200 10700
14 CP1 1500 12200
NOV 5 CP1 2000 14200
9 CP1 2500 16700
10 CP1 3200 19900
22 CP1 2500 22400
25 CP1 3200 25600
27 CP1 800 26400
28 CP1 2800 29200
30 Balance CP1 800 30000
Closing 30000 0

Account: Motor Bike Account no. 117

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
NOV 30 Balance 28000 28000
 Account: Cost of Merchandise Sold Account no. 510
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 2 J1 82600 82600
3 J1 4600 87200
3 J1 6400 93600
6 J1 56700 150300
8 J1 65750 216050
11 J1 6200 222250
14 J1 39500 261750
17 J1 67400 329150
17 J1 7950 337100
18 J1 36500 373600
20 J1 34450 408050
21 J1 75600 483650
23 J1 77400 561050
24 J1 55400 616450
29 J1 37200 653650
30 J1 85850 739500
NOV 2 J1 35000 774500
3 J1 3600 778100
5 J1 65000 843100
8 J1 45000 888100
8 J1 11000 899100
11 J1 63000 962100
17 J1 2500 964600
19 J1 38000 1002600
28 J1 18600 1021200
30 Balance J1 8000 1029200
Closing 1029200 0

Account: Advertising Expense Account no. 578

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
NOV 30 Balance 15000 15000
 Subsidiary Ledgers

Accounts Receivable Subsidiary Ledger

Account: Farhan
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 3 S1 8000 8000
18 CR1 8000 0
NOV 3 S1 6000 6000
13 CR1 6000 0

Account: Saad
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 17 S1 15000 15000
27 Balance CR1 12000 3000
NOV 8 S1 18000 21000
14 CR1 18000 3000

Accounts Payable Subsidiary Ledger

Account: Nadeem Trader
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 1 P1 300000 300000
5 CP1 300000 0
1 P1 150000 150000
NOV 6 CP1 150000 0
18 P1 25000 25000
25 Cp1 25000
24 P1 6000 6000
26 Balance CP1 6000 0
 Account: Mateen Enterprise
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 6 P1 200000 200000
12 Balance CP1 200000 0

Account: Wilshire laboratories

Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 10 P1 170000 170000
26 Balance CP1 170000 0

Account: NH pharmaceuticals
Date Item Post ref. Debit Credit Balance
2022 Debit Credit
OCT 25 Balance P1 17000 17000
 Unadjusted Trial Balance

CARE PHARMACY
Unadjusted Trial Balance
30th NOV 2022
Description Account No. Debit Credit
Cash 110 184612
Accounts Receivable 112 3000
Merchandise Inventory 115 1029200
Prepaid Insurance 118 18750

Store Equipment - Furniture 123 24500

Accounts Payable 210 17000
Capital – Abdul Rahman 310 300000
Drawings - Abdul Rahman 311 50000
Sales 410 1980200
Motor Bike 510 28000
Salaries Expense 520 203300
Delivery Expense 523 42000
Miscellaneous Expense 529 15900
Rent Expense 530 50000
Utilities Expense 531 92000
Building expense 529 474188
Insurance expense 524 3750
Office Expense 534 33000
Adverstising expense 578 15000
Maintenance Expense 536 30000
2297200 2297200
 Adjusting Entries

CARE PHARMACY
Adjusting entries
DATE Description Post ref. Debit Credit
2022
NOV 30 Heat Expense 533 4500
Heat expense payable 118 4500

30 Depreciation Expense-Motorbike 530 2000

Accumulated Depreciation 119 2000
 Adjusted Trial Balance

CARE PHARMACY
Adjusted Trial Balance
30th NOV 2022
Description Account No. Debit Credit
Cash 110 184612
Accounts Receivable 112 3000
Merchandise Inventory 115 1029200
Prepaid Insurance 118 18750
Store Equipment - Furniture 123 24500
Accounts Payable 210 17000
Capital – Abdul Rahman 310 300000
Drawings - Abdul Rahman 311 50000
Sales 410 1980200
Motor Bike 510 28000
Salaries Expense 520 203300
Accumulated Depreciation 561 2000
Depreciation expense motorbike 560 2000
Delivery Expense 523 42000
Miscellaneous Expense 529 15900
Rent Expense 530 50000
Utilities Expense 531 92000
Heat Expense 586 4500
Heat Expense Payable 586 4500
Building expense 529 474188
Insurance expense 524 3750
Office Expense 534 33000
Adverstising expense 578 15000
Maintenance Expense 536 30000
2303700 2303700
 Financial Statements

CARE PHARMACY
Income Statement
For the Month Ended 30TH November 2022
Sales 1980200
Less: Cost of Merchandise Sold 1029200
Gross Profit 951000

Less: Expenses
Salaries expense 203300
Advertising expense 15000
Delivery expense 42000
Miscellaneous expense 15900
Rent Expense 50000
Depreciation 2000
Heat expense 4500
Building expense 108388
Utilities Expense 92000
Insurance Expense 3750
Office Expense 33000
Maintenance Expense 30000
TOTAL EXPENSES 599838
NET INCOME 351162
 CARE PHARMACY
Statement of Owner's Equity
For the Month Ended 30TH November 2022
Abdul Rahman, Opening Capital 300000
Add: Income 351162
Less: Drawings 50000
Increase in owner's equity 301162
Abdul Rahman, Closing Capital 601162

CARE PHARMACY
Balance Sheet
As at 30TH November 2022
ASSETS
Current Assets
Cash 184612
Accounts Receivable 3000
Merchandise Inventory 365800
Prepaid Insurance 18750
TOTAL CURRENT ASSETS 572162

Property, Plant & Equipment

Store Equipment - Furniture 24500
Motor Bike 28000
Depreciation Bike 2000 26000
TOTAL ASSETS 622662

LIABILITIES
Accounts Payable 17000
Heat expense payable 4500

TOTAL LIABILITIES 21500

Owner's Equity
Abdul Rahman, Capital 601162
 TOTAL LIABILITIES & OWNER'S EQUITY 622662

Closing Entries

CARE PHARMACY
Closing Entries
DATE Description Post ref. Debit Credit
2021
NOV 30 Sales 410 1980200
Cost of Merchandise Sold 510 1029200
Salaries Expense 520 203300
Delivery Expense 523 42000
Miscellaneous Expense 529 15900
Depreciation expense 588 2000
Advertising expense 578 15000
Building Expense 598 108388
Rent Expense 530 50000
Utilities Expense 531 92000
Heat expense 569 4500
Insurance Expense 533 1875
Office Expense 534 33000
Maintenance Expense 536 30000
Abdul Rahman - Capital 310 353037

30 Abdul Rahman - Capital 310 50000

Abdul Rahman - Drawings 311 50000
 Post-Closing Trial Balance

CARE PHARMACY
Post-Closing Trial Balance
30th november2022
Account
Description Debit Credit
No.
Cash 110 184612
Accounts Receivable 112 3000
Merchandise Inventory 115 365800
Prepaid Insurance 118 18750

Motor bike 119 26000

Store Equipment - Furniture 123 24500
Accounts Payable 210 17000
Heat expense payable Payable 211 4500
Capital - Abdul Rahman 310 601162
622662 622662

Conclusion

After making the Financial Statements of the Care Pharmacy, we have arrived at the conclusion
that they are running successfully. They were able to make a profit of 351162 Rs in a period of 2
months which is impressive. This Massive profit led to an increase in owners’ equity by 301162.
More equity exists in business now because the owner of the care pharmacy added back the
profits. The company is running smoothly as is has the right number of payables and
Receivables. We wish that Care pharmacy continues to Flourish