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This is report prepared by me and my friends. This not an official report..
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Submitted by: Muhammad Dawar, Zohaib AliMuhammad Usman
K & N’s– Final Report
Table of ContentsTransactions.........................................................................................................................................3
General Journal....................................................................................................................................4
T-Accounts...........................................................................................................................................7
Cash.........................................................................................................................................................7Purchases.................................................................................................................................................7Sales.........................................................................................................................................................7Accounts Payable.....................................................................................................................................8Insurance Expense...................................................................................................................................8Sales Return.............................................................................................................................................8Marketing Expense..................................................................................................................................8Stationary Expense..................................................................................................................................8Computer Expense..................................................................................................................................8Drawing Expense.....................................................................................................................................8Bank.........................................................................................................................................................9Capital......................................................................................................................................................9Account Receivable.................................................................................................................................9Building....................................................................................................................................................9Equipments..............................................................................................................................................9Supplier...................................................................................................................................................9Furniture..................................................................................................................................................9Rent Expense.........................................................................................................................................10Wages Expense......................................................................................................................................10Rent Expense.........................................................................................................................................10Transportation Expense.........................................................................................................................10Wages Expense......................................................................................................................................10Transportation Expense.........................................................................................................................10
Trial Balance......................................................................................................................................11
Introduction.......................................................................................................................................12
Adjusting Entries for the Period Ended...............................................................................................12
Income Statement..............................................................................................................................13
Balance Sheet....................................................................................................................................14
Cash Flow Statement..........................................................................................................................15
Page | 2
K & N’s– Final Report
Transactions1. K&N’s was started on 1st July 2013 with the investment of cash Rs.100000, shop
equipment Rs. 50000 and Building Rs. 1000000.
2. Purchased merchandise for cash to 25000 and on account 15000
3. Purchased of a supplier for cash Rs.2000
4. Purchased shop furniture on account Rs. 5000
5. Sold merchandise for cash Rs.50000
6. Paid to supplier Rs.10000
7. Sold merchandise on account Rs.15000
8. Paid rent for the month Rs.1500
9. Paid transportation exp Rs. 5000
10. Paid wages in cash 10000
11. Received cash 1500
12. The business cash deposit into the business bank account Rs.10000
13. Received cash from Mr. Shan Rs. 80000
14. Paid for salaries Rs.30000
15. Paid Insurance exp Rs.5000
16. Mr. Ali returned defective goods Rs. 10000
17. Paid to Mr.Ali Rs. 15000
18. Deposit into bank the cash received Rs.10000
19. Purchased stationary for shop Rs.10000
20. Advertisement exp for promotion of K&Ns Rs.20000
21. Sold old computers on cash Rs.50000
22. Purchased merchandise for shop on cash Rs.20000
23. Purchasing a new computer on cheque Rs.50000
24. Purchased gold ring for personal use on cash Rs.50000
25. Purchased merchandise for shop on cash Rs.10000
Page | 3
K & N’s– Final Report
General JournalAdded Particular Debit Credit 1/3/2013 Cash 100,000
Shop Equipment 50,000 Building 1,000,000
Capital 1,150,000 ( To K&N’s invest cash, Equipment and building)
1/4/2013 Purchases 40,000
Cash 25,000 Account Payable 15,000
(To record brought merchandise on cash and account)
1/25/2013 Office supplier 2,000
Cash 2,000 (To record brought supplier on cash)
2/15/2013 Shop Furniture 5,000
Account Payable 5,000 (To record brought shop furniture on Account
3/26/2013 Cash 50,000
Sales 50,000 (To record sold merchandise on cash)
3/27/2013 Account Payable 10,000 Cash 10,000
(To record paid to supplier)
3/29/2013 Account Receivable 15,000
Sales 15,000 (To record sold on account)
4/1/2013 Rent Expense 1,500
Cash 1,500 (To record paid for rent)
4/15/2013 Transportation Expense 5,000
Cash 5,000 (To record paid for transportation)
4/26/2013 Wages Expense 10,000
Page | 4
K & N’s– Final Report
Cash 10,000 (To record paid for wages)
5/10/2013 Cash 1,500
Account Receivable 1,500 (To record received cash to Mr. Ali)
6/25/2013 Bank 10,000
Cash 10,000 (To record deposit to the bank)
7/9/2013 Cash 80,000
Account Receieable 80,000 (To record received cash)
8/15/2013 Salaries Expense 30,000
Cash 30,000 (To record paid for the salaries)
8/25/2013 Insurance Expense 5,000
Bank 5,000
9/5/2013 Sales Return 10,000 Cash 10,000
(To record Mr. Ali returned defective)
9/10/2013 Account Payable 15,000
Cash 15,000 (To record paid to Mr. Ali)
10/15/2013 Bank 10,000
Cash 10,000 (To record deposit into bank)
10/29/2013 Stationary Expense 10,000
Cash 10,000 (To record stationary expense)
11/5/2013 Marketing Expense 20,000
Cash 20,000 (To record Paid to Advertisement)
11/7/2013 Cash 50,000
Machinery 50,000
Page | 5
K & N’s– Final Report
(To record sale old computers)
11/25/2013 Purchases 20,000
Cash 20,000 (To record bought merchandise)
12/5/2013 Machinery 50,000
Bank 50,000 (To record buy computers)
12/12/2013 Drawing 50,000
Cash 50,000 (To record buy gold ring)
12/11/2013 Purchase 10,000
Cash 10,000 (To record bought merchandise
Page | 6
K & N’s– Final Report
T-Accounts
CashDebit Credit
100,000 25,000 50,000 20,000 15,000 10,000 80,000 1,500 50,000 5,000
10,000 10,000 30,000
5,000 10,000 15,000 10,000 10,000 20,000 20,000 50,000 10,000
295,000 261,500 Balance C/D 33,500
295,000 295,000
PurchasesDebit Credit
40,000 10,000 20,000
Balance C/D 70,000 70,000 70,000
SalesDebit Credit
Balance C/D 115,000 50,000 15,000 50,000 115,000
115,000 115,000
Page | 7
K & N’s– Final Report
Accounts PayableDebit Credit
10,000 15,000 15,000 5,000
Balance C/D 5,000 25,000 25,000
Insurance ExpenseDebit Credit
5,000 Balance C/D 5,000 5,000 5,000
Sales ReturnDebit Credit 10,000 Balance C/D 10,000 10,000 10,000
Marketing ExpenseDebit Credit 20,000 Balance C/D 20,000 20,000 20,000
Stationary ExpenseDebit Credit 10,000 Balance C/D 10,000 10,000 10,000
Computer ExpenseDebit Credit 50,000 Balance C/D 50,000 50,000 50,000
Drawing ExpenseDebit Credit 50,000 Balance C/D 50,000 50,000 50,000
Page | 8
K & N’s– Final Report
BankDebit Credit
10,000 50,000 10,000
Balance C/D 30,000 50,000 50,000
CapitalDebit Credit
Balance C/D 1,150,000 1,150,000 1,150,000 1,150,000
Account ReceivableCredit Debit
15,000 1,500 Balance C/D 66,500 80,000
81,500 81,500
BuildingDebit Credit
1,000,000 Balance C/D 1,000,000 1,000,000 1,000,000
EquipmentsDebit Credit
50,000 Balance C/D 50,000 50,000 50,000
SupplierDebit Credit
2,000 Balance C/D 2,000 2,000 2,000
FurnitureDebit Credit
50,000 Balance C/D 50,000 50,000 50,000
Page | 9
K & N’s– Final Report
Rent ExpenseDebit Credit
1,500 Balance C/D 1,500 1,500 1,500
Wages ExpenseDebit Credit
10,000 Balance C/D 10,000 10,000 10,000
Rent ExpenseDebit Credit
1,500 Balance C/D 1,500 1,500 1,500
Transportation ExpenseDebit Credit
5,000 Balance C/D 5,000 5,000 5,000
Wages ExpenseDebit Credit
10,000 Balance C/D 10,000 10,000 10,000
Transportation ExpenseDebit Credit
30,000 Balance C/D 30,000 30,000 30,000
Page | 10
K & N’s– Final Report
Trial BalanceParticular Debit Credit
Cash
Bank
Purchase
Sales
Sales return and allowance
Capital
Drawing
Account payable
Account Receivable
Equipment
Building
Furniture
Rent Exp
Computers
Advertisement Exp
Stationary Exp
Insurance exp
Wages exp
Salaries Exp
Transportation Exp
Suppliers Exp
38000
70000
10000
50000
5000
5000
1000000
5000
1500
50000
20000
10000
5000
10000
30000
5000
2000
30000
115000
1150000
66500
Total 1361500 1361500
Page | 11
K & N’s– Final Report
Page | 12
K & N’s– Final Report
IntroductionMerchandise inventory opening Rs 50000, Notes payable 43000, Sales 100000, Allowances for depreciation on building Rs. 90000.
Adjusting entry:
(i) Merchandise inventory ending for Rs. 50000(ii) Paid Depreciation Expense on building Rs. 10000(iii) Paid Bad Debt exp for Rs.10000
Adjusting Entries for the Period EndedParticular p/r Debit Credit
(i)
(ii)
(iii)
Merchandise inventory ending
Expense and revenue summary
(To record paid to merchandise inventory)
Depreciation Exp
Allowance for depreciation
(To recode paid depreciation expense)
Bad Debt Expense
Allowance for bad debt
(To record paid bad debt expense)
50000
10000
10000
50000
10000
10000
Page | 13
K & N’s– Final Report
Income StatementSales
Sales return and allowances
Net Sales
Cost of Goods Sold:
Merchandise inventory opening
Purchase
Net Purchase
Less: Merchandise inventory Ending
Total cost of good sold available for sales:
Less: Operating Expenses:
Rent Expense
Advertisement Expense
Stationary Expense
Insurance Expense
Wages Expense
Salaries Expense
Transportation Expense
Supplier Expense
Bad debt Expense
Depreciation expense
50000
70000
1500
20000
10000
5000
10000
30000
5000
2000
10000
10000
215000
(10000)
120000
(50000)
205000
(70000)
135000
(103500)
31500
Page | 14
K & N’s– Final Report
Net Profit:
Balance SheetAssets:CashBankAccount ReceivableAllowances for Bad DebtEquipmentComputersMerchandise Inventory endingTotal Current Assets:
Fixed Assets:BuildingAllowances for depreciationFurnitureTotal Fixed Assets:
Balance Amount:
Liabilities:Account PayableNotes PayableTotal Liabilities:
Owner Equity:CapitalDrawingProfitTotal Equity:
Balance Amount:
66500(10000)
3800030000
56500500005000050000
274500
905000
1000000(10000) 900000
5000
1150000(50000)
500043000
1179500
48000
1131500
110000031500
1179500
Page | 15
K & N’s– Final Report
Cash Flow StatementOperations
Cash receipts from customers 693,200
Cash Paid For
Inventry Purchases 50,000
Wage Expense 10,000
Income Tax 32,000
Net Cash Flow from Operations 601,200
Investing Activities
Cash receipts from
Sale of Machinery 50,000
Collection of Principal on loans
Sale of investment activity
Cash Paid for
Purchase of Property and Equipment 1,050,000
Net Cash Flow from Investing (1,000,000)
Page | 16