I.Com Part I - Chapter 2

Accounting Equation Theory and Comprehensive Example

Amir (started, invested, commenced, began) his business with Cash PRs. 500,000

Amir purchased building for cash PRs. 150,000

Amir bought goods/merchandises and paid cash PRs. 110,000

Goods/merchandises worth PRs. 55,000 sold by Amir for cash PRs. 70,000

Amir purchases goods from Umair for PRs. 25,000 on credit basis.

Amir bought furniture PRs. 10,000 on credit basis.

Amir sold goods on credit to Zubair PRs. 65,000 costing PRs. 40,000.

Amir paid to Umair A/C Payable PRs. 24,000 against full settlement.

Amir bought Land for PRs. 100,000 and Delivery Van PRs. 100,000 and paid cash.

Amir received cash from Zubair PRs. 64,000 in full settlement of PRs. 65,000.

Amir opened a bank account and deposit PRs. 40,000

Amir paid salary to his staff and issued cheque of PRs. 15,000.

Amir deposited a cheque of PRs. 75,000 as rent received.

Amir paid telephone bill PRs. 1,000.

Paid electricity bill PRs. 4,000.

Bought goods from Umair on credit PRs 60,000 and paid carriage PRs. 500

Amir withdraw money from bank for personal use PRs. 50,000

Sold goods costing 50,000 on cash 30,500 and on Credit 40,000

Amir paid for petrol PRs. 2,000, office Stationery PRs. 1,000 and Repair Vehicle PRs. 2,000.