(b) : Take the transactions in Qno:3 of this paper.

REQUIRED:
Record all the transactions in standard form of general journal giving explanation
below each entry.
Q no: 2
The following transactions were completed by ABC Company, during the month of
January 2015:
Jan 1st: commenced business with an investment of cash Rs. 50, 000 and
merchandise worth Rs. 40, 000.
2nd: purchased merchandise on account from Naim & Co. for Rs.30, 000 and paid
carriage thereon Rs.400
4: purchased shop furniture for cash Rs. 4, 000
5: with drew merchandise worth Rs. 400 an cash Rs. 500 for personal use.
8: cash sales for the day Rs. 6, 000
15: purchased sales supplies for cash Rs. 800
20: paid insurance expense in cash Rs. 1, 000
22: sold merchandise on account to Mani Rs. 8, 000
23: Mani returned defected goods worth Rs. 700
24: Paid rent expense in cash Rs1, 000
29: Paid to Naim for merchandise cash Rs. 15, 000
30: received cash from Mani on account Rs. 4, 000
31: Paid for salaries expense Rs. 1000 cash
REQUIRED:
a) Set up necessary T-accounts in the ledger of ABC Company and record the
above transactions direct into the accounts affected, completing the double
entry in each case.
b) Foot the accounts in pencil and enter the balances in appropriate columns.
c) Test the accuracy of your postings by taking out a pre- closing trial balance
on January 31st , 2015 having complete title and column headings.