‘Waqas Rentals started a business on January 01 2011; the selected transactions related to the organization were as follows:
1- Waqas invested total capital of Rs. 1,200,000/- in the business on January 01, 2011 out
of which he deposited Rs. 600,000/- in the bank account of the business
2- Purchased two cars worth Rs. 100,000/- on cash on February 01, 2011
3- Bought office furniture costing Rs.70,000/- on February 01, 2011 and made payment through cheque
4- Collected Rs. 4,000/- on accounts receivable on June 05, 2011
5- Paid accounts payable of Rs 3,200/- on July 11, 2011 by issuing cheque
6- Borrowed Rs. 10,000/- from Mr. Ali on August 01, 2011 and signed a note payable for the amount.
Required:
1- Record the Journal entries for the above transactions.
2- Prepare the cash account and bank account for the above given transactions