The Financial Techniques And Strategies Are Necessary For The Efficient Operation Of An International Business
Question 1
- Journalize the following transactions and post them to ledger.From the following transactions of Phoenix Inc for Oct ,2016.
(i)Journalize the below transactions
(ii)Post the Journal entries in to ledger accounts
| Date | Transactions |
| 2016 Oct 1 | Niel started business with cash $ 800,000 |
| Oct 2 | purchased goods worth $ 3000 |
| Oct 15 | Sold goods for $ 25000 |
| Oct 18 | Purchased stationeries $4000 |
| Oct 23 | Purchased furniture for $ 24,000 |
| Oct 25 | Paid electricity charges with cash $3000 |
| Oct 26 | Paid Salary $18000 |
| Oct 28 | Paid rent $500 |
(10 Marks)
- “Bookkeeping is synonymous to accounting”Analyse this statement.
(10 marks)
Question 2
- Prepare income statement and balance sheet of Indus Corp as on 31st Dec,2016.
| Particulars | Amount ($ ‘000) |
| Sales | 37,436 |
| Cash | 4,895 |
| Cost of goods sold | 26,980 |
| Accounts Payable | 7,156 |
| Accounts Receivable | 5,714 |
| Selling, general, and administrative expense | 3,624 |
| Inventories | 8,517 |
| Research and Development expense | 1,982 |
| Plant and Equipment | 7,154 |
| Interest expense | 450 |
| Long term liability | 20105 |
| Land | 981 |
| Income tax expense | 1,100 |
