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zaheerswati@ciit.net.pk General Journal (Solved)

26
Unit 3

GJ # 3.1 On April 01, 2008 Anees stared business with Rs. 100,000 and other transactions for the month as follows.
2. Purchase Furniture for Cash Rs. 7,000.
8. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store.
14. Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000.
18. Owner withdrew of worth Rs. 2,000 for personal use.
22. Paid Khalid Retail Store Rs. 500.
26. Received Rs. 10,000 fromKhan Brothers.
30. Paid Salaries Expense Rs. 2,000 and Rent Expense Rs. 3,000.
General Journal
Date Account Title and Explanations Ref
Amount (Rs)
Debit Credit
2008
April
1 Cash 100,000
Owners Equity_ Anees 100,000
(Started business with cash)
2 Furniture 7,000
Cash 7,000
(Purchase furniture for cash)
8 Purchases 3,000
Cash 2,000
Account Payable_ Khalid Retail Store 1,000
(Purchase good on cash and credit)
14 Cash 5,000
Account Receivables_ Khan Brothers 12,000
Sales 17,000
(Cash and Credit Sales recorded)
18 Drawing 2,000
Cash 2,000
(Owner withdrew for personal use)
22 Account Payable_ Khalid Retail Store 500
Cash 500
(Paid credit to Khalid Retail Store)
26 Cash 10,000
Account Receivable_ Khan Brothers 10,000
(Receive cash fromcredit customer)
30 Salaries Expense 2,000
Rent Expense 3,000
Cash 5,000
(Paid expenses)

Total Rs. 144,500 Rs. 144,500
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Unit 3

GJ # 3.2 Mr. Naveed Khan is sole owner of business. He has been started business since 1990 in Karachi. Following
are transaction of Naveeds business for the month of August 2007.
3. Reinvestment in the shape of Cash Rs. 80,000 and Furniture Rs. 20,000.
5. Cash Sales Rs. 10,000 and on account Sales Rs. 12,000.
6. Bought goods fromAhmed Co. Rs. 60,000 paid Rs. 15,000 cash and remaining Note payable pay with in 30 days.
9. Purchase Office Equipment fromAli Malik & Sons worth Rupees Rs. 99,000, a cash down payment of Rs. 19,000 and
balance will be paid by four instalments, first due on 30 August.
21. Goods return by credit customer of worth Rs. 12,000.
30. Paid first instalment of Rs. 20,000.
General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2007
Aug. 3 Cash 80,000
Furniture 20,000
Owners Equity_ Naveed Khan 100,000
(Reinvest by owner in the business)
5 Cash 10,000
Account Receivable 12,000
Sales 22,000
(Cash and Credit Sales)
6 Purchases 60,000
Cash 15,000
Note Payable_ Ahmed Co. 45,000
(Purchases by cash and credit fromAhmed)
9 Office Equipment 99,000
Cash 19,000
Account Payable_ Malik & Sons 80,000
(Purchase O. equipment on instalments by A. Malik)
21 Sales Return 12,000
Account Receivable 12,000
(Goods return by credit customer)
30 Account Payable_ Malik & Sons 20,000
Cash 20,000
(Paid 1
st
instalment to Ali Malik & Sons)
Total
Rs. 313,000 Rs. 313,000

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zaheerswati@ciit.net.pk General Journal (Solved)

28
Unit 3
GJ # 3.3On March 2009, a merchandise trader ABC, starts wholesaling business. Following transactions as follows
1. A merchant started business with capital of Rs. 15,000 and Land worth Rs. 10,000.
8. Bought goods from Bilal and Friends Rs. 1,000 and by cash from XYZ Co. Rs 2,000.
13. Sold goods to Rehman & sons Rs. 1,500 and sale by cash Rs. 5,000.
17. Gave away charity of cash Rs. 50 and merchandising worth Rs. 30.
21. Paid Bilal and Friends cash Rs. 975; discount received Rs. 25.
28. Received cash fromRehman & Sons Rs. 1,450; allowed himdiscount of Rs. 50.

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2009
March 1 Cash 15,000
Land 10,000
Owners Equity_ ABC 25,000
(Owner started business by assets)
8 Purchases 3,000
Account Payable_ Bilal and Friends 1,000
Cash 2,000
(Purchases by cash and by credit)
13 Account Receivable_ Rehman & sons 1,500
Cash 5,000
Sales 6,500
(Purchases by cash and Credit fromAhmed)
17 Charity 80
Cash 50
Purchases 30
(Charity by cash and by goods)
21 Account Payable_ Bilal and Friends 1,000
Cash 975
Discount 25
(Discount received and liability payoff)
28 Cash 1,450

Discount 50
Account Receivable_ Rehman & sons 1,500
(Account receivable realized and discount allowed)

Total Rs. 37,080 Rs. 37,080

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zaheerswati@ciit.net.pk General Journal (Solved)

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Unit 3
GJ # 3.4 Goodwood Marine is a boat repair yard. During August 2009, its transactions included the following
03. Loan taken fromHabib Bank Ltd. of Rs. 25,000. Rs. 20,000 withdrawn for business and remaining in the bank account.
06. Paid rent for the month of August Rs. 4,400 and accrued rent expenses was Rs. 600.
12. At request of Kiwi Insurance, Inc, made repairs on boat of J on Seaways. Sent bill for Rs. 5,620 for services rendered to
Kiwi Insurance Inc. (credit Repair Service Revenue).
18. Made repairs to boat of Dennis Copper and collected in full the charge of Rs. 2,830.
20. Placed Advertisement in The Dawn to be published in August 23 at a cost of 165, payment to be made within 30 days.
25. Received a check for 5,620 fromKiwi Insurance Inc representing collection of the receivable of August 12.
30. Sent check to The Dawn in payment of the liability incurred on August 20.

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2009
Aug. 3
Cash 20,000
Bank 5,000
Bank Loan 25,000
(Bank loan liability has been taken)
6 Rent Expenses 5,000
Cash 4,400
Rent Payable 600
(Rent Expenses paid and outstanding)
12 Account Receivable_ Kiwi Insurance Inc. 5,620
Repair Service Revenue 5,620
(Sent bill to customer)
18 Cash 2,830
Repair Service Revenue 2,830
(Repair services received by cash)
20 Advertisement Expenses 165
Advertisement Payable_ The Dawn 165
(Advertisement Expenses incurred but not paid)
25 Bank 5,620

Account Receivable_ Kiwi Insurance Inc. 5,620

(Receivable collected by bank)
30 Advertisement Payable_ The Dawn 165
Bank 165
(Paid liability by bank)


Total Rs. 44,400 Rs. 44,400

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zaheerswati@ciit.net.pk General Journal (Solved)

30
Unit 3
GJ # 3.5 1
st
January, 2010, a trader started business other transactions for the month of June as follows
02. Purchased from Kareemgoods of list price of Rs. 6,000 subject to 10% trade discount by cash.
04. Sold goods to Din Muhammad Rs. 800 and cash sales of Rs. 200.
10. Distributed goods worth Rs. 200 as free samples and goods taken away by the proprietor for personal use Rs. 100.
12. Received discount Rs 20 and Commission Rs 500.
17. Goods returned by Din Muhammad Rs. 200 and payment other outstanding amount.
24. Furniture lost by fire of worth Rs. 500.
30. Bad Debts during the period was Rs.100.

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2010
Jun 2
Purchases 5,400
Cash 5,400
(Cash purchases and trade discount)
4 Account Receivable_ Din Muhammad 800
Cash 200
Sales 1,000
(Cash and credit sales)
10 Free Sample 200

Drawing 100
Purchases 300
(Free sample and drawing through purchases)
12 Cash 520
Discount 20
Commission 500
(Other income in terms of discount and commission)
17 Return Inward 200
Cash 600

Account Receivable_ Din Muhammad 800
(Sales return and received other amount by customer)
24 Lost by Fire 500
Furniture 500
(Furniture lost by fire)
30 Bad Debts 100
Account Receivable 100
(Bad Debts are recorded)

Total Rs. 8,620 Rs. 8,620

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zaheerswati@ciit.net.pk General Journal (Solved)

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Unit 3

GJ # 3.6 Rahim and company started business with capital of Rs. 40,000 and Inventory of worth Rs. 5,000.
2009
October 03 Purchased Inventory fromAli Ltd. of worth Rs. 2,000 on account; terms being 2/10- n/30
08 Sold inventory at price equal to Rs. 4,000 costing Rs. 2,500 by cash transaction
16 Defective material returns to Ali Ltd. of worth Rs. 300
18 Purchased Inventory fromAhmed Ltd. of worth Rs. 1,000 on account; terms being 2/15- n/30
23 Paid Rs. 1,500 for 3
rd
January credit transaction and full amount to Ahmed Ltd.
28 Inventory sold to Jamil for Rs. 3,500 costing Rs. 2,800

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2009
Oct 1
Cash 40,00
Inventory 5,000
Owners Equity 45,000
(Started business with cash and inventory)
3 Inventory 2,000
Account Payable_ Ali Ltd. 2,000


(Credit Purchase of inventory with credit terms)
8 Cash 4,000
Inventory 2,500
Profit and Loss 1,500
(Sales of inventory and profit recognition)
16 Account Payable_ Ali Ltd. 300
Inventory 300
(Defective inventory return to vendor)
18 Inventory 1,000
Account Payable_ Ahmed Ltd. 1,000

(Credit Purchase of inventory with credit terms)
23 Account Payable_ Ali Ltd. 1,500

Account Payable_ Ahmed Ltd. 1,000
Discount 20
Cash 2,480
(Payment of liabilities and earn discount)
28 Account Receivable_ Jamil 3,500
Inventory 2,800
Profit and Loss 7,00
(Credit sales of inventory and recording of profit )

Total Rs. 58,300 Rs. 58,300

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zaheerswati@ciit.net.pk General Journal (Solved)

32
Unit 3

GJ # 3.7 Record the following transaction in General Journal as July, 2009
01. Starts a business by opening a bank account with Rs. 50,000 and petty cash of worth Rs. 10,000.
06. Buys stationary fromInk stores valued at Rs. 700. It expects to pay for the stationary in a months time.
09. Goods purchase of worth Rs. 10,000 by cash and trade discount received 10%.
11. Unearned sales of Rs. 3,200 earned during the July.
17. Made sales of worth totalling Rs. 1,800. Collected 400 by bank balance due with in 30 days in terms of Note.
24. Paid Salaries Expenses of Rs. 1,200; Rent Expenses of Rs. 1,400 and Carriage Expense are outstanding Rs. 2,400.
29. Sold Goods to Ahmed Ali on cash Rs. 4,000 with 10% trade discount.

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2009
July 1
Bank 50,000
Cash 10,000

Owners Equity 60,000
(Started business with bank and cash)
6 Stationery 700
Account Payable_ Ink stores 700
(Credit Purchase of stationery)
9 Purchases 9,000
Cash 9,000
(Purchases with trade discount on cash)
11 Unearned Sales 3,200

Sales 3,200
(Unearned sales now earned)
17 Note Receivable 1,400
Bank 400
Sales
1,800
(Cash and credit sales)
24 Salaries Expenses 1,200
Rent Expenses 1,400
Carriage Expenses 2,400

Cash 2,600

Carriage Payable 2,400
(Expenses paid and incurred liability)
29 Cash 3,600
Sales 3,600
(Cash sales subject to trade discount )
Total Rs. 83,300 Rs. 83,300
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zaheerswati@ciit.net.pk General Journal (Solved)

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Unit 3

GJ # 3.8 During April 2009, following transactions were completed by business.
4. Cash received customer billed earlier Rs. 14,000.
5. Paid advance rent for six months of Rs. 6,000.
7. Received advance payment fromcustomers Rs. 1,200, services will be provided in August.
11. Services revenue of worth Rs. 3,200 now earned which had received in advance
14. Rs. 1,000 cash was loan to ABC Co. evidenced by note receivable.
17. Billed customer for services provided Rs. 3,000.
24. Rs. 10,000 borrowed from local bank and signed a note payable.
27. Owner draws out Rs. 100 fromthe business bank account for his own use.

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2009
July 4
Cash 14,000
Account Receivable 14,000
(Cash received fromcustomers)
5 Prepaid Rent 6,000
Cash 6,000
(Advance rent paid)
7 Cash 1,200
Unearned Services Revenue 1,200
(Payment received in advance by clients)
11 Unearned Services Revenue 3,200
Services Revenue 3,200
(Unearned services revenue now earned)
14 Note Receivable_ ABC Co. 1,000
Cash 1,000
(Loan granted to ABC company by note)
17 Account Receivable 3,000

Services Revenue 3,000
(Billed to customer)
24 Cash 1,000

Note Payable 1,000

(Obtained loan from bank by note payable)
27 Drawing 100
Bank 100
(Owner personal withdrawal by bank )

Total Rs. 29,500 Rs. 29,500
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zaheerswati@ciit.net.pk General Journal (Solved)

34
Unit 3

GJ # 3.9 Pass the following transaction in the book of original entry for XYZ business for year 2010.
Jan 1 Customer check Rs. 7,000 was dishonoured and return unpaid by the company bank and credit sales Rs. 5,000.
9 Charged interest on capital Rs. 1,000 and reinvestment of capital by owner of worth Rs. 3,000.
11 Goods return by credit customer of Rs. 4,000 and cash customer of worth Rs. 2,000.
17 Write off Depreciation of Machinery was Rs. 5,000 by using cost method and Rs. 4,000 by using (WDM).
24 Goods costing Rs. 500 was taken away by the proprietor and goods donated to charities Rs. 1,000.
29 Interest accrued on bill payable during the month was Rs. 1,000 and interest expense paid Rs. 1,500.

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2010
Jan 1
Account Receivable (7,000 +5,000) 12,000
Bank 7,000

Sales
(Check dishonoured and credit sales recorded)
5,000

9 Interest on Capital 1,000

Cash 3,000
Owners Equity 4,000
(Interest on capital and introduced capital)
11 Return Inward (4,000 +2,000) 6,000
Account Receivable 4,000
Cash 2,000
(Sales return by credit and cash customers)
17 Depreciation Expense_ Machinery (5,000 +4,000) 9,000
Accumulated Depreciation_ Machinery 5,000
Machinery 4,000
(Depreciation recording by cost and WDM)
24 Drawing 500
Charity 1,000
Purchases (500 +1,000) 1,500

(Goods withdrawn and give as charity)
29 Interest Expenses (1,000 +1,500) 2,500
Interest Payable 1,000

Cash 1,500
(Interest Liability and portion paid)

Total Rs. 35,000 Rs. 35,000

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zaheerswati@ciit.net.pk General Journal (Solved)

35
Unit 3

GJ # 3.10 Record the following economic events in the book of prime entry for Star business for year 2010.
Feb 2. Merchandise return to supplier Rs. 5,000 so reduces liability and return to cash vendor of Rs. 3,000.
5. Replenished inventory for Rs. 6,000 cash and paid Insurance expenses Rs. 500.
12. Interest on drawing charged Rs. 8,000.
16. Receive cash fromMr. Farooq Rs. 6,000 and sold merchandise to Mr. Zamir by cash Rs. 3,000.
23. Received dividend on securities by bank of Rs. 1,500 and sold marketable securities of Rs, 8,000 by cash.
27. Sales goods for Rs. 30,000 (cost 20,000).

General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2010
Jan 2
Account Payable 5,000
Cash 3,000
Purchase Return
(Goods return to credit and cash customers)
8,000

5 Inventory 6,000
Insurance Expense 500
Cash 6,500
(Bought inventory and paid expenses)
12 Owner Equity 8,000
Interest on Drawing 8,000
(Interest on drawing is recorded)
16 Cash (6,000 +3,000) 9,000
Account Receivable_ Farooq 6,000
Sales 3,000
(Receivable realized and cash sales)
23 Bank 1,500
Cash 8,000
Dividend 1,500

Marketable Securities 8,000
(Dividend received and securities sold)
27 Cash 30,000
Inventory 20,000
Profit and Loss 10,000
(Sold inventory and earned profit)

Total Rs. 71,000 Rs. 71,000

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zaheerswati@ciit.net.pk General Journal (Solved)

36
Unit 3

GJ # 3.11 On 1st April, 2010 a Company started business with Inventory valued at Rs. 85,000, placed Cash Rs. 65,000
in a business Bank Account and Marketable Securities of worth Rs. 10,000.
03 Purchase Inventory of Rs. 5,000 paid cash Rs. 1,000 by check and promising the rest on a Note Payable.
14 Sale of marketable securities that cost Rs. 5,000 for Rs. 6,500
25 Note Payable paid Rs. 2,000 and interest expense Rs. 2,500 both expenses by bank.
29 Old machinery sales of worth Rs. 17,000 whose book value was Rs. 20,000
General Journal
Date Account Title and Explanations Ref
Amount (Rs.)
Debit Credit
2010
April 1 Inventory 85,000
Bank 65,000
Marketable Security 10,000
Owners Equity 160,000
(Reinvest by owner in the business)
3 Inventory 5,000
Cash 1,000
Note Payable 4,000
(Purchases of inventory)
14 Cash 6,500
Marketable Security 5,000
Capital Gain 1,500
(Sale of marketable securities and earn gain)
25 Note Payable 2,000
Interest Expense 2,500
Bank 4,500
(Payments by bank)
29 Cash 17,000

Capital Loss 3,000
Machinery 20,000
(Old machinery sales and sustain loss)
Total
Rs. 189,500 Rs. 189,500