MUHAMMAD SUFYAN KHAWAJA (LECTURER SHADAB COLLEGES)
M.S (Finance), MBA (Finance) + MBA (HRM), B.Ed
Cell#: 03328605257
_________________________________________________________________
PRACTICE QUESTIONS.
Prepare accounting equations.
Q1.
a. Started Business with Cash $ 300000.
b. Purchased goods for cash $ 40000.
c. Sold Goods for Cash $ 20000.
d. Bought furniture for cash $ 10000.
e. Sold furniture for cash $ 7000.
f. Purchase building for cash 25000.
g. Purchase Motor car on credit Rs. 70000.
Q2.
a. Started Business with Cash $ 500000.
b. Purchased goods for cash $ 100000.
c. Bought Machinery for cash $ 30000.
d. Sold Machinery for cash $ 15000.
e. Purchase Motor car on credit $ 70000.
f. Sold goods costing $ 50000 for $ 60000. (Profit)
g. Sold goods costing $ 35000 for $ 50000. (Profit)
h. Paid Rent $ 4000.
i. Paid Salaries $ 7000.
Q3.
a. Commenced Business with Cash $ 600000 and bank Rs. 200000.
b. Purchased goods and paid by Cheque $ 50000.
c. Bought Machinery and paid by cheque $ 20000.
d. Sold goods costing $ 10000 for $ 15000. (Profit)
e. Sold goods costing $ 20000 for $ 18000. (loss)
f. Sold goods costing $ 5000 on credit to Ali.
g. Sold Machinery $ 8000 on credit to Dawood.
h. Paid Insurance $ 6000.
i. Paid Wages $ 9000
j. Received Commission $ 15000.
Q4.
a. Commenced Business with Cash $ 700000 and bank Rs. 400000.
b. Purchased goods and paid by Cash $ 100000.
c. Bought Building and paid by cheque $ 250000.
d. Sold goods costing $ 25000 for $ 40000 and received cheque. (Profit)
e. Sold goods costing $ 50000 for $ 45000. (loss)
f. Sold goods costing $ 1000 on credit to Ali.
g. Purchase goods on credit from Dawood $ 20000.
h. Paid Freight by cheque $ 30000.
i. Paid Carriage by cheque $ 60000
j. Received Interest $ 8000.
Q5.
a. Started business with Cash $ 500,00, Building $ 80000 & Machinery $
20000.
b. Open a bank account and deposited $ 15000.
c. Purchased goods for cash $ 8000 and on account $ 2000 from Mr. Tahir.
d. Cash Sales $ 3000 (cost 2000).
e. Commission paid $ 1,000.
f. Sold goods to Rashid on credit basis for $ 800 costing $ 650.
g. Machinery was purchased $ 5000 on credit.
Q6.
a. Started business with Cash $ 400,00, Building $ 75000 & Machinery $
12000.
b. Open a bank account and deposited $ 18000.
c. Purchase an old car for $ 2,800 cash.
d. Purchased a home for $ 15,000: giving $ 5,000 in cash and the balance
through loan account.
e. Bought goods on credit from Salman of worth Rs. 50,000
f. Rent paid by cheque $ 4,000.
g. Sold goods to Rashid on credit basis for $ 4000 costing $ 45000.