On December 01, 2015, Dr. Ahmad Khan started a hospital.

The
transactions are as follows,
May 01.

He deposited Rs. 12,000 in bank as capital.

May 01.

Paid Building rent Rs. 1,700 for the month of may.

May 02.

Purchased office equipment for cah Rs. 7,200

May 03.

Purchased Medical Instruments from Servaid Inc. at a cost of Rs. 9,000.

He paid cash payment Rs. 1,000 and issued a notes payable of Rs.
8,000.

May 04.

Services given to a construction company at the rate of Rs. 400 per

month. Fee for may has been collected in cash.

May 15.

Fees earned during the month for services provided to other customers
is Rs. 1,600 of which Rs. 600 collected in cash and Rs. 1,000 has been
added in Accounts receivables.

May 15.

Paid salary of first 15 days to Lab. Incharge Mr. Hashim Rs. 1,000.

May 16.

Dr. Ahmed withdrew Rs. 975 for his personal use.

May 27.

Mr. Alvi (Accounts Officer of CCL) has been treated at hospital for which
he paid Rs. 25 in cash and promised to pay Rs. 35 on June, 01.

May 31.

Fees earned during the month for providing treatment to patients has
been received in cash Rs. 2,100 and Rs. 1,900 has been added in the
accounts receivable.

May 31.

Salary for the 2nd half of the month has been paid to lab. Incharge Rs.
1000.

May 31.

Received a bill of Rs. 640 from instrument supplier for the supplies
during the month.

May 31.

Paid utilities for the month Rs. 300.

Instructions:
1. Prepare journal entries for the transactions occurred.
2. Prepare ledgers and trial balance.
3. Prepare adjusting Trial Balance by making adjusting entries for the
depreciation.
4. Depreciation for the equipment is as follows,
a. For medical Instruments (Cost Rs.9000 3 Years 1/2)
b. For Office Equipment (Cost Rs. 7200 5 Years 1/12)
5. Prepare an Income Statement, Statement of Owners Equity and Balance
Sheet for the year end.