Q. No. 1: Muneeb & Company sold foods to Haseeb & Company on 1st May, 1991 valued at Rs.

30000 and drew upon them a three months bill for the amount. The Bill was discounted from bank @ 12% p.a. Haseeb & Company accepted the bill but on maturity Haseeb & Company expressed their inability to meet the bill and offered to pay Haseeb & Company Rs. 12,000 cash and to accept fresh bill for the balance plus interest at 5% per annum for three months. Muneeb & Company agreed to the proposal and the bill was renewed. The new bill was met on maturity. Pass journal entries in the books of Muneeb and Haseeb. Q. No. 2: Prepare the accounting equation of the following transaction. (i) Mr. Ali started business with Rs. 300, 000 (ii) Purchased merchandise with Rs. 50, 000 from Mr.Z (iii)Sold goods for Rs. 30, 000 to Mr. Zaheer, costing Rs. 25, 000 (iv) Paid to Mr.Z Rs. 49, 000 with full settlement of his debts. (v) Received cash from Mr. Zaheer Rs. 29, 500 with full settlement. Q. No. 3: Prepare the Double Column Cash Book. Jan 1 Cash in hand Rs. 500,000 Cash at Bank Rs. 700,000. Jan 2 Deposited cash in bank Rs. 10,000. Jan 5 Received cash from Ali Rs. 50,000. Jan 8 Deposited Alis Cheque into bank. Jan 15 Alis Cheque returned dishonoured. Jan 30 Bank credited interest Rs. 900.