Lab Task 7
Course: Financial Accounting Lab Semester: Spring 2021
XYZ Company started a business of import and sale of mobile cell phones on March 1, 2020 by investing Rs. 5,000,000. The company’s buying and selling price of Phone Y3 respectively is Rs. 7,000 and Rs. 14,000 each excluding General Sale Tax (GST) at 7.5%. The following transactions occurred during the month of March, 2020.
March 4 Purchased office equipment for Rs. 250,000 on cash.
March 7 Purchased office furniture costing Rs. 450,000 on cash.
March 10 Opened a bank account and deposited all cash available on March 10 in the bank account.
March 11 Company created a purchase order to purchase 450 phones (Y3) on credit from China Mobile Company. The phones were received on the same date.
March 13 Sold 150 phones to Jami Mobile System on cash.
March 14 Sold 250 phones to United Mobile Company on account
March 16 Issued a cheque of Rs. 15,000 for insurance charges.
March 19 Received Rs. 1,200,000 from United Mobile Company.
March 21 Paid Rs. 900,000 in cash to China Mobile Company against the purchases made on
March 23 Paid advance rent for the office building Rs. 90,000.
March 25 United Mobile Company paid Rs. 700,000 against Account Receivables of March 14.
March 27 Paid Rs. 1,500,000 cash to China Mobile Company against transaction on March 11.
March 31 Issued a cheque to China Mobile Company for Rs. 1,000,000.
March 31 Issued a cheque amounting Rs. 150,000 for salaries and wages.
Requirements:
You as an accountant of ‘ABC Company.’ are required to pass necessary Journal Entries in Express Accounting Software and to prepare Financial Statements. Each student enters his Roll No. XXF-XXXX as the company’s registered no.
Note: Submit only Journal Entries, Trial Balance, Income Statement, Balance Sheet and Cash flow Statement Reports.