FINANCIAL ACCOUNTING ASSIGNMENT-

LEARNING OBJECTIVES-

To understand the basic concepts/terminologies required for understanding the financial accounting

QUESTION-

Mr. Akram started a business with cash of Rs. 500,000 and necessary fixed assets of Rs. 900,000 on 1^st January 2014. He has taken loan of Rs. 300,000 from his wife to expand the business on 1^st July 2014. Firm purchased merchandises of Rs. 250,000 on cash basis during the year. Firm sold all merchandises on cash and credit basis amounting to Rs. 600,000 and Rs. 100,000 respectively during the year. Amount of all credit sales will be received in next accounting period. Firm paid rental charges and other necessary commercial expenses of Rs. 70,000 and Rs. 140,000 respectively during the year. Firm repaid the loan amounting to Rs. 130,000 till the end of December 2014. 

Note: All purchases should be treated as revenue expenditure. Firm closes the books of accounts on 31^st December each year. 

Required: Based on the above information of Mr. Akram's business, you are required to calculate the amount of:

1. "Revenue" and "Net Profit" for the period ended on 31^st December 2014.

2. "Cash in hand", "Liabilities" and "Capital" as on 31^st December 2014.