A Case Study

Royal Computer&Mobiles (a wholesale/Distribution business)

On 1st January2014, Mr. Asad
started business with Cash Rs.
6,000,000. On 3rd January he
opened an account with Meezan
Bank and deposited Rs. 4500,000.

On 4th January he bought a shop for the business Rs.

1,500,000 and issued a check. On 5th January he bought the
following assets:
Furniture & Fixture
Rs. 110,000
Office Equipments
Rs. 35,000

On 6th January he paid: Rs. 5000 for streamers, Rs. 5000 for banners, Rs. 15000 for a hoarding and Rs.
10,000 for main sign board.
On 7th January he bought the following goods for resale purposes:
(a) Mobile
Supplier
Model/Specification
Price (Rs.)
Qty
Nokia
7200-Black
7000
100
Samsung
C-200-White
5000
70
(b) Computer
Supplier
Model/Specification
Price (Rs.)
Dell
P IV-Black /Tower
10000
Compaq
P IV-White/Desktop
12000
HP
P IV-Black/Desktop
9000

Qty
30
20
15

On the same date amount paid to all vendors on the same date except Nokia against purchase of
mobile phones. 50% amount paid to Nokia.

Total Sale of the month is as follow:

Date
Customer
Product
Price (Rs.)
Qty
8.1.2010
Usman Mobile
Nokia-7200
8000
45
9.01.2010
Tanveer Computers
Dell-Black
11000
20
10.01.2010
Hassan Communication
Samsung C-200
5500
40
12.01.2010
My Computers
Compaq-White
14000
20
13.01.2010
The Best Computer
HP-Desktop
10000
12
Amount received from all customers except Usman Mobiles against sale of Mobile phones. Usman
Mobiles paid only 50% of amount.
On 2nd February he paid the following
Expenses:
Salary to Sales Staff
Rs. 25000
Utility Bills
Rs. 20000
Traveling Expenses
Rs. 5000

Required: (Only journal entries atleast 3 times on the

paper)
1. Open Customer, Vendor and Inventory Account
2. Make the journal entries
3. Show the Ledger, Trial Balance of each account
4. Show Income Statement and Balance Sheet

A Case Study
Hussan and Sons (rubber&tubes)(a wholesale/Distribution business)
On 1st January2015, Mr. hassan
started business with Cash Rs.
20,000,000. On 2rd January he
opened an account with Meezan
Bank and deposited Rs.
10,000,000.

On 4th January he bought a factory for the business Rs.

1,0000,000 and issued a check. On 5th January he bought the
following assets:
Furniture & Fixture
Rs. 510,000
Office Equipments
Rs. 135,000

On 6th January he paid: Rs. 5000 for streamers, Rs. 5000 for banners, Rs. 15000 for a hoarding and Rs.
10,000 for main sign board.

Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining amount was
recognized as a one year note payable with interest rate of 9%.
On 7th January he bought the following goods for resale purposes:
(a) Rubber Suppler
Supplier
Model/Specification
Price (Rs.)
Qty
Ali and sons BlackRubber
800
7000
Memon & CO Silver rubber
500
1000
(b) Tubes
Supplier
Model/Specification
Price (Rs.)
Nauman Co
NN-long tubes
600
Harris Plastic
HH-long-Plastic-tubes
700
Zeeshan Metal
PP-long-Metal-tubes
900

Qty
300
202
152

On the same date amount paid to all vendors on the same date except Nokia against purchase of
mobile phones. 50% amount paid to Nokia.

Total Sale of the month is as follow:

Date
Customer
Product
Price (Rs.)
Qty
8.1.2011
Usman
HH-long-Plastic-tubes 1000
100
9.01.2010
Tanveer
BlackRubber
1100
6000
10.01.2010
Hassan
PP-long-Metal-tubes 1500
70
12.01.2010
all rubbers Retails
Silver rubber
800
800
13.01.2010
medical Co
NN-long tubes
1000
200
Amount received from all customers except Usman Mobiles against sale of Mobile phones. Usman
Mobiles paid only 50% of amount.
On 2nd February he paid the following
Expenses:
Salary to Sales Staff
Rs. 25000
Utility Bills
Rs. 20000
Traveling Expenses
Rs. 5000

Required: (Only journal entries atleast 3 times on the

paper)
5. Open Customer, Vendor and Inventory Account
6. Make the journal entries
7. Show the Ledger, Trial Balance of each account
8. Show Income Statement and Balance Sheet

Miscellaneous expenses paid during the month totaled $3,470

A Case Study
Star Mattress(a wholesale/Distribution business)
On 1st January2015, Mr. Nauman
started business with Cash Rs.
7,000,000. On 2rd January he
opened an account with Meezan
Bank and deposited Rs. 4,000,000.

On 4th January he bought a shop for the business

Rs. 100,000 and issued a check. On 5th January he bought the
following assets:
Furniture & Fixture
Rs. 100,000
Office Equipments
Rs. 45,000

On 6th January he paid: Rs. 7000 for streamers, Rs. 8000 for banners, Rs. 17000 for a hoarding and Rs.
9,000 for main sign board.
On 7th January he bought the following goods for resale purposes:
Supplier
Model/Specification
Price (Rs.)
Diamend
5inh-plan
5000
Master
12inh-plan
8000
AL-khair
6inh-Plan
6000
5 star
star 6inch
7000
shaheen
S-8inch
8000

Qty
120
75
100
110
75

On the same date amount paid to all vendors on the same date except Master. 50% amount paid to
Nokia.

Total Sale of the month is as follow:

Date
Customer
Product
Price (Rs.)
8.1.2012
Usman
5inh-plan
6000
9.01.2010
Tanveer
12inh-plan
9000
10.01.2010
Hassan
6inh-Plan
7500
12.01.2010
Molti Retails
star 6inch
8000
13.01.2010
Mattress Co
S-8inch
10,000
Amount received from all customers except Usman. Usman paid only 50% of amount.

On 2nd February he paid the following

Expenses:
Salary to Sales Staff
Rs. 50000
Utility Bills
Rs. 200000
Freight Charges
Rs. 50000

Widhdrew from bank for personal use

Qty
100
60
80
60
70

Required: (Only journal entries atleast 3 times on the

paper)
9. Open Customer, Vendor and Inventory Account
10. Make the journal entries
11. Show the Ledger, Trial Balance of each account
12. Show Income Statement and Balance Sheet

A Case Study
Wristwatches (a wholesale/Distribution business)
On 1st January2014, Mr. zeeshan
started business with Cash Rs.
1,000,000. On 3rd January he
opened an account with Meezan
Bank and deposited Rs. 8,000,00.

On 4th January he bought a shop for the business Rs. 1,000,00

and issued a check. On 5th January he bought the following
assets:
Furniture & Fixture
Rs. 90,000
Office Equipments
Rs. 25,000

On 7th January he bought the following goods for resale purposes:

(b) Wrist Watches
Supplier
Model/Specification
Price (Rs.)
AA-Watches
Black Diamond
14000
BB-Watches
White Diamond
12000
CC-Watches
cc-k90
7000
DD-Watches
dd-p-550
9000

Qty
10
12
20
16

On the same date amount paid to all vendors on the same date except BB-Watches 50% amount paid to
Nokia.

Total Sale of the month is as follow:

Date
Customer
Product
Price (Rs.)
8.1.2013
Usman Mobile
dd-p-550
15000
9.01.2010
Tanveer Computers
cc-k90
11000
10.01.2010
Hassan Communication
Black Diamond
20000
12.01.2010
My Computers
White Diamond
18000
Amount received from all customers except Tanveer .Tanveer paid only 50% of amount.

On 2nd February he paid the following

Expenses:
Salary to Sales Staff
Rs. 50,000
Utility Bills
Rs. 20000
Traveling Expenses
Rs. 5000

Widhdrew from bank for office use

Qty
8
18
5
6

Required: (Only journal entries atleast 3 times on the

paper)
13. Open Customer, Vendor and Inventory Account
14. Make the journal entries
15. Show the Ledger, Trial Balance of each account
16. Show Income Statement and Balance Sheet

shoes

A Case Study
Shoes (a wholesale/Distribution business)
On 1st January2014, Mr. omer
started business with Cash
Rs.3000,000. On 3rd January he
opened an account with Meezan
Bank and deposited Rs. 2500,000.

On 4th January he bought a shop for the business Rs.

2,000,000 and issued a check. On 5th January he bought the
following assets:
Furniture & Fixture
Rs. 200,000
Office Equipments
Rs. 40,000

On 6th January he paid: Rs. 5000 for streamers, Rs. 5000 for banners, Rs. 15000 for a hoarding and Rs.
10,000 for main sign board.
On 7th January he bought the following goods for resale purposes:
(a) Mobile
Supplier
Model/Specification
Price (Rs.)
Qty
Nokia
7200-Black
7000
100
Samsung
C-200-White
5000
70
(b) shoe
Supplier
Model/Specification
Price (Rs.)
Qty
Bata
SM-200
3000
70
service
SD-500
3000
60
Hush
IM-L-90
9000
75
Versa chi
IM-S-90
8000
75
On the same date amount paid to all vendors on the same date except Service. 50% amount paid to
Nokia.

Total Sale of the month is as follow:

Date
Customer
Product
Price (Rs.)
Qty
8.1.2014
Usman Mobile
Nokia-7200
8000
45
9.01.2010
Tanveer Computers
Dell-Black
11000
20
10.01.2010
Hassan Communication
Samsung C-200
5500
40
12.01.2010
My Computers
Compaq-White
14000
20
13.01.2010
The Best Computer
HP-Desktop
10000
12
Amount received from all customers except Usman Mobiles against sale of Mobile phones. Usman
Mobiles paid only 50% of amount.
On 2nd February he paid the following
Expenses:
Salary to Sales Staff
Rs. 25000
Utility Bills
Rs. 20000
Traveling Expenses
Rs. 5000

Brought additional capital in business

Required: (Only journal entries atleast 3 times on the

paper)
17. Open Customer, Vendor and Inventory Account
18. Make the journal entries
19. Show the Ledger, Trial Balance of each account
20. Show Income Statement and Balance Sheet

Purchase stationary from asad and co

Interest Received from bank
. Depreciation on fixed assets Rs. 500
a) Depreciation on fixed assets is the loss of business, and every loss will be debited.
b) There is a decrease in asset and we will apply what goes from business on it. So, asset
account will be credited.
Bank charges or interest charged by bank Rs. 200
a) Bank charges are the expenditures of business, so it will be debited.
b) There is decrease in bank balance, so bank account will be credited.
Bank charge Account Debit 200
Bank account Credit 200
4. Loan taken Rs. 1,00,000
a) Cash comes in, so cash account will be debited.
b) Lender is giver, so his loan account will be credited.
Cash Account Debit 1, 00,000
Lenders loan Account Credit 1,00,000
27. Investment purchased Rs. 50,000
a) Asset in the form of investment comes in, so investment account will be debited.
b) Cash goes out, so its account will be credited.
Investment Account Debit 50000
Cash Account Credit 50000
28. Cash stolen from office. Rs. 6000
a) Cash stolen from office is loss of business, so this account will be debited.
b) Cash goes out, so its account will be credited.
Loss by Theft Account Debit 6000
Cash Account Credit 6000
10. Cash withdrawn from bank for office use Rs. 2000
a) Cash comes in the business, so cash account will be debited.
b) Bank is the giver, so bank account will be credited.
Cash Account Debit 2000
Bank Account Credit 2000
11. Cash drawn by proprietor from business for personal use Rs. 3000
a) Proprietor is the receiver of cash, but business will give him as drawing which is decrease in

his capital, so proprietors drawing account will be debited.

b) Cash goes out, so cash account will be credited.
Drawing Account Debit 3000
Cash Account Credit 3000
13. Bad Debts written off Rs. 500
a) Bad debt is loss of business due to not paying the amount by our debtors, so it will be debited.
b) There is decrease in debtor. We are applying what goes from business, debtor is also our
asset, if he does not pay, and it means this asset has gone from business, so its account will be
credited.
Bad Debt Account Debit 500
Debtor Account Credit 500
14. Bad debts recovered in cash Rs. 300
a) Cash comes in, so cash account will be debited.
b) Bad debts recovered are an income, so its account will be credited.
Cash Account Debit 300
Bad Debts Recovered Account Credit 300