1. Pass Journal Entries:  Mr. A started business with 50,000$.  Bought merchandise for cash 10,000$.  Sold goods for cash 15,000$.  Purchased goods from X on credit for 5,000$.  Sold good for cash6,000$.  Purchased furniture for office use in cash 4,000$.  Paid wages in cash 4,000$.

2.  May 1 2009 Mr. A Started business with cash.  Debit: Cash (increase an assets). (current asset)  Capital is introduced in the business is an increase in liability. (Owner investment)

3. Date DescriptionPost. Ref Debit$ Credit $ 2009 May 1 Cash a/c Capital a/c Introduced cash in business 50,000

4.  (2 May 2009 Bought merchandise for cash 10,000)  Debit : Merchandise increase in expenses (merchandise purchased for resale).  Credit : Cash credit because going out (decrease in assets). ( current assets)

5. DateDescriptionPost. Ref Debit $ Credit $ May 2Merchandise a/c Cash a/c Merchandise purchased 10,000

6.  May 3 Sold goods for cash 15,000$.   Debit: cash (increase in an assets a/c) (cash is coming into the business that is the increased in an asset.)  Credit: Sale (increase in revenue a/c)

7. DateDescriptionPost. Ref Debit $ Credit $ May 3Cash a/c sale a/c Sold goods for cash 15,000

8.  Purchased goods from x 5000$.  Debit: Merchandise a/c (increase in expenses) Credit: Account payable (increase in liability)

9. DateDescriptionPost. Ref Debit $ Credit $ May 4 Merchandise a/c Act. Pay a/c (Goods purchased on account from x) 5,000

10.  5 may 2009 Sold goods to b for 6,000$.  Debit: Account receivable (increase in an assets a/c)  Credit: Sale (increase in revenue a/c)

11. DateDescriptionPo st. Ref Debit $ Credit $ May 5Account Receivable (B) a/c Sale a/c Goods sold on account 6,000

12.  (6 may 2009 Furniture purchased for office use in cash 4,000$.)  Debit: Furniture (increase in an assets). (fixed asset).  Credit: Cash (Decrease in an asset)

13. DateDescriptionPost. Ref Debit $ Credit $ May 6Furniture a/c Cash a/c Asset purchased 4,000

14.  (7 may 2009 plant purchased on cash 10,000$.)  Debit: Plant (Increase in an assets).  Credit: Cash (Decrease in an asset)

15. DateDescriptionPost. Ref Debit $ Credit $ May 7Plant a/c Cash a/c Plant purchased 10,000

16.  (7 may 2009 Wages paid in cash 4,000$).  Debit: Wages (Increase in Expenses)  Credit: Cash (decrease in asset)

17. DateDescriptionpost. Ref Debit $ Credit $ May 7Wages a/c Cash a/c Wages paid 4,000

18. 02 : Purchased merchandise for cash 150000 04 : Purchased furniture for cash 15000 06 : Purchased merchandise from Ahmad worth 50000 09 : Sold merchandise in cash 35000 10 : Returned merchandise to Ahmad 20000 12 : Sold merchandise to Sameen for 20000 17 : Settle the claim of Ahmad in full 24 : Received cash from Sameen 20000 30 : Paid rent expense in cash 25000

19. 01: Laiba started a business with cash 50000$ 02: Purchased a car for Cash 10000$ 05: Purchased merchandise from Sami 5000$ 11: Purchased Furniture for cash 3000$ 15: Sold merchandise to Sania for 2500$ 19: Salaries paid 6000$ 20: Sania returned merchandise worth 1000$ 27: Received cash from Sania 1500$

20. 2010 March, 1:Mr.Peter commences business as a computer merchant trading under the name of “Computer Point”with capital of 400000 in cash 3: He buys 10 computers @30000 each from “Brilliant computers Ltd.” on credit 15: He opens a bank account by depositing 100000 cash 20: He sells 6 computers on credit to ABC computers @ 35000 each 22: Paid wages 5000 25: He issues a cheque to Brilliant computers Ltd. for 30000. 2

21. Oct 1. The owner Fahad invested an additional $80,000 cash in the business. Oct 5. Purchased a plot for $102,000 of which $30600 was paid in cash, a account payable is created for balance. Oct15.Issued a check for $71400 in full payment of an account payable. Oct18.Borrowed $30,000 cash from the bank by signing a 90 day note payable. Oct23. Collected an account receivable of $2900 from customer Oct30. Acquired office equipment for $6000 made a cash down payment of $2000,balance to be paid with in 30 days.

22.  1 ST Oct: Fahad as an owner started a business with cash so for fahad you will apply the rule of Owner equity and 2 nd account is cash.so for cash u will apply the rule of Asset.  Increase in asset in shape of cash  Increase in owner equity as capital so entry will be  Cash a/c Debit 80000 Capital a/c Credit 80000 (started business with cash)

23.  05 th Jan: It is a compound entry. compound entry involves three or more than three accounts. So  Plot a/c Debit 102000(Increase in asset) Cash a/c Credit 30600(decrease in Asset) Account Payable Cr 71400(Increase in Liability) Note: 102000-30600=71400 for balance u have created liability of outsider

24.  15 th Oct: we have issued a check in favor of an account payable instead of cash so he will draw money from our bank account then entry is: Account payable Dr 71400(Decrease in Liability) Bank a/c Cr 71400(Decrease in Asset)

25. Oct18: we have taken loan from a bank so increased in Asset and increased in outsider Liability Cash a/c Dr 30000(Increase in Asset) Bank Loan Cr 30000(Increase in Liability)

26.  23 Oct: Received cash from A/c Receivable. It means increase in cash bcoz we have received cash and decrease in another asset i.e. A/c Receivable  Cash a/c Dr 2900(Increase in Asset)  A/c Receivable Cr 2900(Decrease in asset)

27.  30 th Oct: Again Compound Entry:  Office Equipment Dr 6000(increase in Asset)  Cash a/c Cr 2000(Decrease in Asset)  A/c Payable Cr 4000 (Increase in Liability)  Note: Out of 6000 we have paid only 2000 so a portion(balance) is still payable to creditor i.e. 6000 – 2000= 4000(Balance Amount)