Q No 3: M/s. Khalid Traders started business on March 1, 2006 with a cash investment of Rs.700,000. They completed the following transactions during the month:
Mar.2:Paid shop rent in advance for one year Rs.120,000.
Mar.4:Purchased furniture for shop on cash Rs.50,000.
Mar.5:Opened a bank account with Rs.200,000.
Mar.7:Purchased a computer for the business worth Rs.50,000.
Mar.10:Purchased merchandise for cash Rs.150,000.
Mar.15:Sold merchandise for cash Rs.150,000.
Mar.18:Purchased merchandise on credit Rs.50,000.
Mar.20:Sold merchandise on credit for Rs.80,000.
Mar.23:Proprietor withdrew cash and merchandise for Rs.10,000 and Rs.5,000 respectively.
Mar.27:Paid for advertising Rs.25,000.
Mar.31:Paid salary to the salesman Rs.15,000 by cheque.

REQUIRED
i.Identify the each record as a cash, credit or mixed transaction
ii.Record the above transactions in the General Journal of M/s. Khalid Traders

Answer rating: 100% (QA)

Step 1 Journal means the book of prime entry where all entries are recorded in different pages Ledge... View the full answer