MGT101 FINANCIAL ACCOUNTING Assignment No. 1 Spring Solution Semester 2013

DUE DATE: 2nd May 2013


On 1st March 2013, Mr. Adnan organized a business called A.R Rentals. Mr. Adnan’s new business was able to begin operations immediately by purchasing the assets and taking over the location of Ammar Rentals, an equipment rental business. Below are the transactions for the month of March 2013:

Date – Transactions

2013, March 01
Mr. Adnan deposited Rs. 900,000 cash in the name of his business – A. R Rentals in the bank.

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March 01
Paid Rs. 90,000 to Mr. Irfan as three month’s advance rent for the rental yard and originally recorded this payment as an asset as per policy.

March 01
Purchased for Rs. 280,000 all the equipment from Ammar Rentals and paid Rs. 170,000 cash and issued a 3 months note payable for Rs. 110,000.

March 04
Purchased office supplies and office furniture from Ashar & Co. amounting to Rs. 5,000 and Rs. 50,000 respectively.

March 08
Received Rs. 10,000 cash from Mukhtar Construction Co. as rent of equipment

March 10
Sent an invoice for Rs. 5,000 to M/S ABC for rental services provided.

March 17
Rs. 3,400 paid for maintenance of equipment to Raza & company

March 27
Bank charges of Rs. 150 deducted by bank from bank account of business

March 30
Received a cheque of Rs. 10,000 from M/S ABC against rental services

March 31
Paid salaries for the month of March amounting to Rs. 3,600


Fill the appropriate boxes of table given below
(1st transaction is given as sample attempt in the table)