ch-1income statement balance sheet

8/6/2019 Ch-1Income Statement Balance Sheet

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Debit Credit

a Finished goods 49,000

Income Statement-F.G 49,000

To transfer the closing Finished goods inventory to Income Statement

a Income Statement-F.G 36,000

Finished goods 36,000

To transfer the opening Finished goods inventory to Income Statement

b W.I.P 28,000

Manufacturing Statement-W.I.P 28,000

To transfer the closing W.I.P inventory to Manufacturing Statement

b Manufacturing Statement-W.I.P 21,000

W.I.P 21,000

To transfer the opening W.I.P inventory to Manufacturing Statement

c Raw materials 20,000

Manufacturing Statement-Raw Mat 20,000

To transfer the closing raw material inventory to Manufacturing Statement

c Manufacturing Statement-Raw Mat 17,000

Raw materials 17,000

To transfer the opening raw material inventory to Manufacturing Statement

d Factory supplies expenses 4,300

Factory supplies 4,300

To record the cost of supplies used

XYZ LIMITED

Adjustment Entries

Adjustment


2/37

e Office supplies expenses 2,100

Office supplies 2,100

To record the cost of supplies used

f Bad debts 1,800

Less Allowance for bad debts 1,800

To provide the provision for doubtful accounts

g Depreciation-Building 1,700

less accumulated dep-building 1,700

To record the Depreciation on Building

h Depreciation-Machinery 3,200

less accumulated dep-machinery 3,200

To record the Depreciation on Machinery

i Depreciation-office furin&fixtyre 500

less acc dep-office furni&fixture 500

To record the Depreciation on Furniture & Fixture

j Depreciation-delivery equipment 1,600

less acc dep-delivery equipment 1,600

To record the Depreciation on Equipment

k Depreciation-Tools 2,500

Tools 2,500

To record the Depreciation on Tools

l amortization-Patents 500

Patents 500

To record the amortization of patents


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m

m1 direct labour 1,400

m2 indirect labour 300

m3 sales salaries & commission 400

m4 delivery salaries 200

Accrued Expensesm1 -- Direct Labour 1,400

m2 -- indirect labour 300

m3 -- sales salaries & commission 400

m4 -- delivery salaries 200

To record the accrued expenses- salaries & Wages

n insurance expenses 2,400

Prepaid Insurance 2,400

To record the expired insurance

O Income tax 10,000

income tax payable 10,000

To record the estimated income tax payable

TOTAL 203,900 203,900


4/37


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7/37


8/37

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Cash 41,910 41,910

Petty Cash 200 200

Account Receivable 58,000 58,000

f Less Allowance for bad debts 610 1,800 2,410

op st1/cl st1 a Finished goods 36,000 49,000 36,000 49,000

op st1/cl st1 b W.I.P 21,000 28,000 21,000 28,000

op st1/cl st1 c Raw materials 17,000 20,000 17,000 20,000

n Prepaid Insurance 5,000 2,400 2,600

d Factory supplies 5,500 4,300 1,200

e Office supplies 2,800 2,100 700

l Patents 6,500 500 6,000

Goodwill 40,000 40,000

Land 64,300 64,300

Building 42,500 42,500

g less accumulated dep-building 6,800 1,700 8,500

Machinery 64,000 64,000h less accumulated dep-machinery 9,300 3,200 12,500

Office furniture & fixture 5,000 5,000

i less acc dep-office furni&fixture 1,600 500 2,100

Delivery equipment 8,000 8,000

j less acc dep-delivery equipment 3,600 1,600 5,200

k Tools 10,000 2,500 7,500

Accounts Payable 52,550 52,550

Common Stock Tk. 20 per 272,000 272,000

R.E

Balance of RETAINED EARNINGS: 50,450 50,450

Sales 365,000 365,000

sales return & allowance 5,000 5,000

sales discount 3,100 3,100

purchase 85,400 85,400

freight in 4,700 4,700purchase return and allowance 2,100 2,100

purchase discount 2,180 2,180

m1 direct labour 76,200 1,400 77,600

m2 indirect labour 22,600 300 22,900

factory superintendence 20,000 20,000

o building maintenance & repair 3,000 2,550 450

factory heat, light, & power 20,480 20,480

o local taxes 16,400 13,940 2,460

miscellaneous factory overhead 3,300 3,300

WORK SHEET AS ON 31st Dec'2002

XYZ LIMITED

Income Statement Balance Sheet

Account

Trail Balance Adjustment Manufacturing


9/37

m3 sales salaries & commission 24,000 400 24,400

advertising expenses 8,100 8,100

miscellaneous selling expenses 2,200 2,200

m4 delivery salaries 9,000 200 9,200

miscellaneous delivery expenses 2,100 2,100

officers salaries 16,000 16,000

office salaries 10,000 10,000

miscellaneous general expenses 2,300 2,300

interest income 2,750 2,750

interest expenses 7,350 7,350

TOTAL 768,940 768,940

op st1/cl st1 a Income Statement-F.G 36,000 49,000 36,000 49,000

op st1/cl st1 b Manufacturing Statement-W.I.P 21,000 28,000 21,000 28,000

op st1/cl st1 c Manufacturing Statement-Raw Mat 17,000 20,000 17,000 20,000

d Factory supplies expenses 4,300 4,300

e Office supplies expenses 2,100 2,100

f Bad debts 1,800 1,800

O g Depreciation-Building 1,700 1,445 255

h Depreciation-Machinery 3,200 3,200

i Depreciation-office furin&fixtyre 500 500j Depreciation-delivery equipment 1,600 1,600

k Depreciation-Tools 2,500 2,500

l amortization-Patents 500 500

m Accrued Expenses

m1 Direct Labour 1,400 1,400

m2 indirect labour 300 300

m3 sales salaries & commission 400 400

m4 delivery salaries 200 200

O n insurance expenses 2,400 2,040 360

O Income tax 10,000 10,000

income tax payable 10,000 10,000

Cost of goods manufactured 250,575 250,575

Net Income 20,900 20,900

TOTAL 768,940 768,940 203,900 203,900 302,855 302,855 416,750 416,750 438,910 438,910


10/37


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NET SALES: 356,900

Sales 365,000

less sales return & allowance (5,000)

less sales discount (3,100)

356,900LESS: Cost Of Goods Sold: 237,575

Cost of goods manufactured SCHEDULE:1 250,575

add. Opening finished goods 36,000

a less closing finished goods (49,000)Cost of goods sold 237,575

Gross Profit: 119,325

LESS: OPERATIONAL EXPENSES: 83,825

Administrative & General Overhead: 36,225

officers salaries 16,000

office salaries 10,000

miscellaneous general expenses 2,300

f bad debts 1,800

local taxes "=16400*15% *o 2,460

e office supplies exp "=2800-700 2,100

g.2 Dep. On building "=42500*4%*15% *o 255

i Dep on furniture & fixture "=5000*10% 500

n2 Insurance Expenses ("=5000-2600)*15% *o 360

building maintenance & repair "=3000*15% *o 45036,225

Selling & Distribution Overhead: 39,500

m3 sales salaries & commission "=24000+400 24,400

miscellaneous selling expenses 2,200

m4 delivery salaries "=9000+200 9,200

miscellaneous delivery expenses 2,100

j Dep. Delivery equipment "=8000*20% 1,60039,500

Marketing & R&D overhead: 8,100

Advertising expenses 8,1008,100

TOTAL Operational Expenses 83,825

Net Operating Profit 35,500

Other Revenue & Expenses Items:

Add Other Profit:

interest income 2,750

Less Other Loss:

interest expenses (7,350)

(4,600)

Excess of expenditure over income (4,600)Net Profit after extraordinary items 30,900

XYZ LIMITEDIncome Statement for the year ended 31st Dec'2002


12/37

SCHEDULE:1

Cost Of Goods Manufactured: 250,575

Opening stock of raw materials 17,000

add purchase 85,400

add freight in 4,700

less purchase return and allowance (2,100)

less purchase discount (2,180)

c less closing stock of raw materials (20,000)

Total cost of raw material used 82,820

m.1 add. Direct labour "=76200+1400 77,600

PRIME COST 160,420

add Factory Overhead 97,155

m.2 indirect labour "=22600+300 22,900

factory superintendence 20,000

o building maintenance & repair "=3000*85% 2,550factory heat, light, & power 20,480

o local taxes "=16400*85% 13,940

miscellaneous factory overhead 3,300

d Factory supplies exp "=5500-1200 4,300

g. o Dep. On building "=42500*4%*85% 1,445

h Dep on machinery "=64000*5% 3,200

k Dep on tools "=10000-7500"=2500 2,500

l amortization of patents "=500 500

n. o Insurance Expenses ("=5000-2600)*85% 2,040Factory Overhead 97,155

FACTORY COST 257,575

Add. Opening w.i.p 21,000

b less closing w.i.p (28,000)

Cost of goods manufactured 250,575

Opening Retained Earnings 50,450

Add Profit & Loss of current period

Profit for the current year 30,900

Total Available profit 81,350

o Less: Income tax 10,000Balance of Retained Earnings 71,350

transferede to Balance Sheet

XYZ LIMITEDCost of Goods manufactured Statement for the year ended 31st Dec'2002

XYZ LIMITEDRetained Earnings Statement for the year ended 31st Dec'2002


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TOTAL ASSETS:

CURRENT ASSETS:

Cash 41,910

Petty Cash 200

Account Receivable 58,000 55,590

f Less Allowance for bad debts "=-610-1800 (2,410)

55,590

n Prepaid Insurance 2,600

d factory supplies "=5500-1200 1,200

e office supplies "=2800-700 700

Inventory: 97,000

c Raw material 20,000

b W.I.P 28,000

a Finished Goods 49,00097,000

TOTAL CURRENT ASSETS 199,200

FIXED ASSETS:

l Patents "=6500-500 6,000

Goodwill 40,000

Land 64,300

Building 42,500 34,000

g less accumulated dep-building "=6800+1700 (8,500)34,000

Machinery 64,000 51,500

h less accumulated dep-machine "=9300+3200 (12,500)51,500

Office furniture & fixture 5,000 2,900

i less acc dep-office furni&fixtur "=1600+500 (2,100)2,900

Delivery equipment 8,000 2,800

j less acc dep-delivery equipmen "=3600+1600 (5,200)2,800

Tools 10,000 7,500

k less Dep (2,500)7,500

TOTAL FIXED ASSETS 209,000

TOTAL ASSETS: 408,200

XYZ LIMITEDBalance Sheet as on 31st Dec'2002


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TOTAL CAPITAL EMPLOYED:WORKING CAPITAL:

CURRENT ASSETS: 4,115,000

Cash 2,315,000

cash at bank (Current Account) -

Short term Deposit FRD with different bank (maturity within 1 year) -

Stock: 1,000,000

Raw Material 1,000,000

Work in process -

Finished Goods -1,000,000

Account Receivable 800,000

Prepaid/Advance Expenditure -

Accrued Income -

4,115,000

Current Liabilities: 1,400,000

Account Payable 400,000

Note Payable -

Advance receive of Income -

Deffered Income -

Short term Bank Loans-City Bank NA 1,000,000

1,400,000

WORKING CAPITAL 2,715,000

Add Fixed Assets: 2,400,000

Land & Land decvelopment 1,090,000

Building 810,000

Machinery 500,000

Preliminary Expenditure -

2,400,000

Total Ca ital Em lo ed 5,115,000

Total Ca ital Em lo ed Financed B :

TOTAL LONG TERM LOANS 0

Total Long Term Loans 0

Debentures 0

0

Owners Equity: 5,115,000

Share Capital 5,000,000

Accmulated Profit & Loss Account 115,000

Retain Earnings 0 5,115,000

Profit for the Year 115,000

115,000

Total Capital Employed 5,115,000

TOTAL CAPITAL EMPLOYED:

WORKING CAPITAL:


Cash 3,310,000

cash at bank (Current Account) -

Short term Deposit FRD with different bank (maturity within 1 year) -

Stock: 1,500,000

Raw Material 1,500,000

Work in process -

Finished Goods -

1,500,000


Prepaid/Advance Expenditure -

Accrued Income -

5,260,000

A/P - M/s. Mart Advertising

Inventory

Bank Loan City Bank NA

A/P - Rint Co.

A/R - Trimp co.

Machinery

M-Heart CompanyBalance Sheet as on 31 st Jan'2010

Owner's Equity

Retain Earnings

CASH ACCOUNT

M-Heart CompanyBalance Sheet as on 28th Feb'2010

M-Heart Company

Trail Balance as on 28th

Land

Building


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Net Sales 1,300,000

Gross Sales 1,300,000Less Sales Discount and Commission -

1,300,000

Less

Cost of Goods Sold 645,000

Opening Inventory - Raw Material -

Add Purchade of Raw Material 1,400,000

Freight In 45,000

Total Material Available for sale 1,445,000Less Closing Inventory - Raw Material 1,000,000

Cost of Material Sale or used in production 445,000Add Direct Labor - manufacturing 200,000

Prime Cost of Goods sold 645,000


Gross Profit 655,000

Less

Other Operational Overhead 620,000

Advertisement 400,000

Salaries to officers & Staff 200,000

Insurance 20,000


NET PROFIT Before Interest & Tax 35,000Add Other Income: Other Sales 80,000

Total Income berote Interest & Tax 115,000

DEBIT CREDIT

Net Sales 3,300,000

Gross Sales 3,300,000

Less Sales Discount and Commission -

3,300,000

Less 2,800,000

Cost of Goods Sold 2,685,000 145,000

Opening Inventory - Raw Material 1,000,000 240,000

Add Purchade of Raw Material 2,800,000 800,000Freight In 145,000

Total Material Available for sale 3,945,000

Less Closing Inventory - Raw Material 1,500,000 3,300,0

Cost of Material Sale or used in production 2,445,000 350,000

Add Direct Labor - manufacturing 240,000 30,000

Prime Cost of Goods sold 2,685,000 180,0

Cost of Goods Sold 2,685,000

20,000

Gross Profit 615,000 1,000,000 1,500,0

Less 5,385,000 4,980,0

Other Operational Overhead 1,200,000 405,0

Advertisement 800,000Salaries to officers & Staff 350,000

Insurance 30,000

Carriage outward 20,000

Other Operational Overhead 1,200,000

NET Loss Before Interest & Tax (585,000)

Add Other Income: Other Sales 180,000

Total Loss berote Interest & Tax (405,000)

M-Heart CompanyIncome Statement for the month ended 28th Feb'2010

Inventory

TOTAL

Loss

Insurance

Other Sales

Carriage Outward

Sales

Salaries to officers & Staffs

Freigh in

Wages

Advertising

Purchase A/c

M-Heart CompanyIncome Statement for the month ended 31 st Jan'2010

M-Heart Company

Trail Balance as on 28th Feb'2010


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Net Sales 1,850,000Gross Sales 1,900,000Less Sales Discount and Commission 50,000

1,850,000

Less


Opening Inventory - Raw Material 300,000

Add Purchade of Raw Material + 800,000

Total Material Available for sale or production 1,100,000Less Closing Inventory - Raw Material - 350,000

Cost of Material Sale or used in production 750,000

Add Direct Labor - manufacturing + 100,000Prime Cost of Goods sale or production 850,000Add Direct Factory/manufacturing overhead + 30,000

Factory Cost of Goods sale or production 880,000

Add Opening Work in Process + 120,000Less Closing Work in Process - 100,000

Cost of Goods Manufactured 900,000

Add Opening Finish Goods + 75,000

Less Closing Finish Goods - 25,000


Gross Profit 900,000

Less


Indirect Factory Overhead 60,000

Administrative & Selling Overhead 100,000

Promotional Overhead 300,000Other Operational Overhead 460,000

NET PROFIT Before Interest & Tax 440,000

Add Other Income 35,000Total Income berote Interest & Tax 475,000

LessFinancial Costs 20,000

Total Income after Interest before Tax 455,000

LessTAX @ 30% 136,500

Total Net Income/Net Profit after Tax 318,500

M/S. TED SMART EnterprizeIncome Statement for the year ended 31 st Dec'2009


22/37


Cash 500,000

cash at bank (Current Account) 500,000

Short term Deposit FRD with dif ferent bank (maturity within 1 year) 1,000,000

Stock: 475,000

Raw Material 350,000

Work in process 100,000

Finished Goods 25,000

475,000


Prepaid/Advance Expenditure 25,000

Accrued Income 25,000

2,625,000

Current Liabilities: 745,000

Account Payable 200,000

Note Payable 15,000

Advance receive of Income 15,000

Deffered Income 15,000

Short term Bank Loans 500,000

745,000

WORKING CAPITAL 1,880,000

Add Fixed Assets: 3,900,000

Land & Land decvelopment 1,500,000

Building 1,500,000

Machinery 750,000Preliminary Expenditure 150,000

3,900,000

Total Capital Employed 5,780,000

Total Capital Employed Financed By:

TOTAL LONG TERM LOANS 2400000

Total Long Term Loans 1200000

8% Debentures 1200000

2400000

Owners Equity: 3380000

Share Capital 2500000

Accmulated Profit & Loss Account 880000

Retain Earnings 561500 3380000

Profit for the Year 318500

880000

Total Capital Employed 5780000

M/S. TED SMART EnterprizeBalance Sheet as on 31 st Dec'2009


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Ledger P-1

Ref. Debit Credit Debit Credit

1--1 2010 5,000,000 5,000,000

2--1 2010 500,000 4,500,000

3--1 2010 200,000 4,300,000

4--1 2010 300,000 4,000,000

5--1 2010 300,000 3,700,000

6--1 2010 100,000 3,600,000

7--1 2010 200,000 3,400,000

8--1 2010 50,000 3,350,000

9--1 2010 100,000 3,250,000

10--1 2010 150,000 3,100,000

11--1 2010 210,000 2,890,000

12--1 2010 90,000 2,800,000

13--1 2010 200,000 2,600,000

14--1 2010 200,000 2,400,000

16--1 2010 45,000 2,355,00017--1 2010 200,000 2,155,000

17--1 2010 200,000 1,955,000

20--1 2010 500,000 2,455,000

21--1 2010 200,000 2,255,000

21--1 2010 20,000 2,235,000

25--1 2010 80,000 2,315,000

LEDGER ACCOUNT

BALANCE

Sales

Purchase

Land

Other Sales

Insurance

Wages

Advertising


Building

Freight in

Machinery

Land

Building

Building

Land

Land

CASH ACCOUNT

Date: Particulars

Building

Land

Land

Owner's Equity

Machinery


24/37

Ledger P-2


1--1 2010 5,000,000 5,000,000


2--1 2010 500,000 500,000

3--1 2010 200,000 700,000

6--1 2010 100,000 800,000

8--1 2010 50,000 850,000

10--1 2010 150,000 1,000,000

12--1 2010 90,000 1,090,000

Date:

BALANCE

Cash

Cash

Cash

Land Account

Owner's Equity Account

Cash

LEDGER ACCOUNT

BALANCE

LEDGER ACCOUNT

Particulars

Owner's Equity

Date:

Cash

Particulars

Cash


25/37

Ledger P-3


4--1 2010 300,000 300,0007--1 2010 200,000 500,000

9--1 2010 100,000 600,000

11--1 2010 210,000 810,000


5--1 2010 300,000 300,000

13--1 2010 200,000 500,000


14--1 2010 200,000 200,000

15--1 2010 1,200,000 1,400,000

CashCash

Cash

Cash

Date:

BALANCE

Particulars

PURCHASE ACCOUNT

Cash

Building Account

LEDGER ACCOUNT

Particulars

Cash

BALANCE

Cash

A/P - M/s. Rint co.

LEDGER ACCOUNT

Machinery Account

Date:

LEDGER ACCOUNT

Date: Particulars

BALANCE


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Ledger P-4


16--1 2010 45,000 45,000


17--1 2010 200,000 200,000


17--1 2010 200,000 200,000

29--1 2010 200,000 400,000

Advertising Account BALANCE


LEDGER ACCOUNT

Date:

BALANCE

LEDGER ACCOUNT

Cash

Cash

Wages

Date: Particulars

BALANCEFreight In

Cash

Particulars

LEDGER ACCOUNT

Date: Particulars


27/37

Ledger P-5


18--1 2010 1,000,000 1,000,000


15--1 2010 1,200,000 1,200,000

18--1 2010 1,000,000 200,000


19--1 2010 800,000 800,000

BALANCE

Date: Particulars

Date:

Particulars

BALANCE

Date:

A/P - M/s. Rint co.

LEDGER ACCOUNT

Bank Loan - City Bank NA

LEDGER ACCOUNT

A/P - M/s. Rint co. BALANCE

Bank Loan-City Bank NA

A/R - M/s. Trimp co. Account

Sales

LEDGER ACCOUNT

Purchase

Particulars


28/37

Ledger P-6


19--1 2010 800,000 800,000

20--1 2010 500,000 1,300,000


21--1 2010 200,000 200,000


21--1 2010 20,000 20,000

Cash

LEDGER ACCOUNT

Date: Particulars

Insurance BALANCE

Date: Particulars

Cash

Sales Account

LEDGER ACCOUNT

Cash

Salaries to officers & Staffs BALANCE

A/R - M/s. Trimp co.

BALANCE

ParticularsDate:

LEDGER ACCOUNT


29/37

Ledger P-7


25--1 2010 80,000 80,000


29--1 2010 200,000 200,000

LEDGER ACCOUNT

Other Sales BALANCE

Cash

Date: Particulars

Advertising

Date: Particulars

LEDGER ACCOUNT

BALANCEA/P - M/s. Mart Advertising


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Ledger P-8

Debit Credit

2,315,000 5,000,000

1,090,000

810,000

500,000

1,400,000

45,000

200,000

400,000

1,000,000

200,000

800,000

1,300,000

200,000

20,000

80,000

200,000

7,780,000 7,780,000

CASH ACCOUNT

Sales Account

A/P - M/s. Rint co.

A/R - M/s. Trimp co. Account

TOTAL

BALANCEPARTICULARS

Owner's Equity Account

Bank Loan - City Bank NA

Building Account

Machinery Account

Wages

Advertising Account

Land Account


InsuranceOther Sales

PURCHASE ACCOUNT

Freight In


M-Heart Company

Trail Balance as on 31st'Jan 2010


31/37

Ref. Debit Credit

--

650,000

--

500,000

--

20,000

--

50,000

--

200,000

--

800,000

--

2,000,000

--

145,000

--

500,000

--

240,000

--

300,000

--

1,800,000

--

1,000,000

--

350,000

--

30,000

--

180,000

--

1,500,000

--

500,000

--

JPURNAL

Pa e -2

A P - M s. Mart Advertisin

A R - M s. Trim co.

Advertisin

A P - M s. Mart Advertisin

Cash

Other Sales

Cash

Insurance

Cash

Sales


Cash

A R - M s. Trim co.

Sales

Cash

Advertisin

Cash

Cash

Wa es

Cash

Frei ht in

Cash

Buildin

Purchase

A P - M s. Rint co.

Cash

Purchase

Cash

Land

Cash

Machiner

Carria e Outward

Cash

Cash

Sales

Date: Particulars

Cash

JOURNAL ENTRIES

Pa e -1

JPURNAL

GENERAL JOURNAL/DAY BOOK

A R - M s. Trim co.


32/37


33/37

Page-5

=

= +

Cash Land Building Machinery

Accounts

receivable

Material in

Hand = OE +

Income

Statement +

= +

Accounts

Payable Ba

1--1 2010 5,000,000 5,000,000 = 5,000,000

2--1 2010 (500,000) 500,000 - =

3--1 2010 (200,000) 200,000 - =

4--1 2010 (300,000) 300,000 - =

5--1 2010 (300,000) 300,000 - =

6--1 2010 (100,000) 100,000 - =

7--1 2010 (200,000) 200,000 - =

8--1 2010 (50,000) 50,000 - =

9--1 2010 (100,000) 100,000 - =

10-- 2010(150,000) 150,000 - =

11-- 2010 (210,000) 210,000 - =

12-- 2010 (90,000) 90,000 - =

13-- 2010 (200,000) 200,000 - =

14-- 2010 (200,000) (200,000) = (200,000)

15-- 2010 - = (1,200,000) 1,200,000

16-- 2010 (45,000) (45,000) = (45,000)

17-- 2010 (200,000) (200,000) = (200,000)

17-- 2010 (200,000) (200,000) = (200,000)

18-- 2010 - = (1,000,000) 1

19-- 2010 800,000 800,000 = 800,000

20-- 2010 500,000 500,000 = 500,000

21-- 2010 (200,000) (200,000) = (200,000)

21-- 2010 (20,000) (20,000) = (20,000)

25-- 2010 80,000 80,000 = 80,000

29-- 2010 - = (200,000) 200,000

31-- 2010 1,000,000 1,000,000 = 1,000,000

2,315,000 1,090,000 810,000 500,000 800,000 1,000,000 6,515,000 = 5,000,000 + 115,000 + 400,000 1

6,515,000 = 6,515,000

ASSETS LIABILITIES

TOTAL

ASSETS Liabilitie

Liabilitie

Owners Equity


34/37

Page-5

=

= Owners Equity +

Cash Land Building Machinery

Accounts Material in

= OE +

Income

+

= +

1--1 2010 5,000,000 5,000,000 = 5,000,000

2--1 2010 (500,000) 500,000 - =

3--1 2010 (200,000) 200,000 - =

4--1 2010 (300,000) 300,000 - =

5--1 2010 (300,000) 300,000 - =

ASSETS

ASSETS

LIABILITIES


35/37

Page-1

From the following details write up the journals and draw up the Cash A/C

1st July 2009

Cash Tk. 10,00,000 received from owners to start business.

DR CR

Cash 1,000,000

Owners Equity 1,000,000

2nd July 2009

Purchase of Land worth of Tk. 5,00,000 from Mr. Noor by cash

DR CR

Land & Land Development 500,000

Cash 500,000

3rd July 2009

Land development expenditure paid in cash to the tune of Tk. 2,00,000

DR CR


Cash 200,000

4th July 2009

Land development cost to the tune of Tk. 50,000 done by the M/s. Study Atlas on credit

DR CR


M/s. Study Atlas 50,000

5th July 2009

Further a cash Tk. 10,00,000 was received from owners.

DR CR

Cash 1,000,000

Owners Equity 1,000,000

6th July 2009

Cash deposit was made in Hearts Bank amounting to Tk. 10,00,000

DR CR

Hearts Bank 1,000,000

Cash 1,000,000

7th July 2009

Cash paid to M/s. Study Atlas through bank by Tk. 40,000

DR CR

M/s. Study Atlas 40,000

Hearts Bank 40,000

8th July 2009A contractor M/s. Web Const was engaged to complete the factory construction work

It had completed 80% of construction work done and submitted a bill amounting to Tk. 2,50,000

DR CR

Factory Building 250,000

M/s. Web Const 250,000

10th July 2009

Payment was made to M/s. Web Const amounting to Tk. 2,20,000 through bank

DR CR


Hearts Bank 220,000


36/37

Page-2

12th July 2009

M/s. Web Const was submitted his final bill and ask for final settlement

DR CR

Factory Building 62,500


15th July 2009

Payment was made to M/s. Web Const for the due amount for final settlement through bank

DR CR


Hearts Bank 92,500

TED MART Enterprize

Cash Account

DR CR

1,000,000 1,000,000 DR500,000 500,000 DR

200,000 300,000 DR

1,000,000 1,300,000 DR

1,000,000 300,000 DR

Land & Land Development

Land & Land Development

Owners Equity

Hearts Bank

2nd July 2009

3rd July 2009

5th July 2009

6th July 2009

BalancePARTICULARSDate

1st July 2009 Owners Equity


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RULES:

1 any cash receiveDR CR

Cash *******

Loans (of any kind) *******

or Owners Equity *******

or Sales/Revenue/Income from operation *******

or collection from Accounts receivable *******

or Revenue of any kind of business activity *******

2 any cash Expenditure

Loan Remayment (of amy Kind) *******

or Withdrawn of Equity *******

or Purchase of Materials *******

or Purchase of Fixed Assets *******

or Payment to Accounts Payable *******or Expenditure of any kind of business activi ty *******

Cash *******

3 for any credit sales

Accounts Receivable *******

Sales *******

3 for any credit Purchase

Purchase *******

Accounts Payable *******

4 cash deposit to babk

Bank *******

Cash *******

5 cash payment through bank

Party *******

Bank *******

6 cash receive through bank

Bank *******

Party *******

7 cash withdrown from bank

Cash *******Bank *******

TED SMART Enterprize's Business activities for the month of July 2009 will be

1st July 2009

Cash Tk. 10,00,000 received from owners to start business.

2nd July 2009

Purchase of Land worth of Tk. 5,00,000 from Mr. Noor by cash

3rd July 2009

Land development expenditure paid in cash to the tune of Tk. 2,00,000

4th July 2009

Land development cost to the tune of Tk. 50,000 done by the M/s. Study Atlas on credit

5th July 2009

Further a cash Tk. 10,00,000 was received from owners.

6th July 2009

Cash deposit was made in Hearts Bank amounting to Tk. 10,00,000

7th July 2009

Cash paid to M/s. Study Atlas through bank by Tk. 40,000

8th July 2009

A contractor M/s. Web Const was engaged to complete the factory construction work

It had completed 80% of construction work done and submitted a bill amounting to Tk. 2,50,000

10th July 2009

Payment was made to M/s. Web Const amounting to Tk. 2,20,000 through bank

12th July 2009

M/s. Web Const was submitted his final bill and ask for final settlement

Recognition of Economic Events in Accounting

Recording Business Transactions

Journal Entries

ch-1income statement balance sheet

Documents