A Software House

Group participants:

Name Roll Number Email

Salman Haider B-19507 Salman14haider@gmail.com

Syed Haider Ali B-20174 Mrhaider100@gmail.com

Muhammad Javed Arshad B-19487 moh_jav_ars@hotmail.com

Mirza Farhan Baig B-19543 casper_farhan@hotmail.com

Submitted To:

Subject Name: Principles of Accounting

Submission Date: 30-Apr-2018

Introduction of Company:
Novel Solution Technologies, Inc. was founded in the year 2018 by five friends; Asad ur Rehman,
Ahsan Ali, Abdul Moeed , M.Husnain and Abdulla , each of whom was a successful professional
in his own right. Having started out with humble beginnings in the city of Lahore, Novel Solution
soon grew to a sizable business having operations in Pakistan, UK, and a headquarters in
California, USA. In 2018 Novel Solution got its big break, when it was awarded a major offshore
contract with Mercedes Benz Thailand, many more such contracts were to follow. Focusing on
quality Novel Solution went on to attain the ISO 9001 and ISO 27001 certifications in 1998 and
2008 respectively, and in 2006 it achieved CMMI Level 5 certification, a distinction shared by
fewer than 100 companies worldwide. Novel Solution was also the first US Company to dual list
on both the NASDAQ Capital Market and the Dubai International Financial Exchange DIFX,
which became NASDAQ Dubai in 2008.

Mission Statement:
Novel solutions is the software house which is concentrating on Pakistani projects specially to
participate in development of Pakistan thus enhancing IT value and strength in country.

Vision Statement:
Focusing on providing quality services to the target market which is playing important role in
country economy and progress i.e. business concerns, manufacturing concern, banks and
educational institutes. Thus we can promote technology within these working concerns which
results into their efficient participation in Pakistan’s economy and progress.

Objectives
 Maintain quality and standard of the existing products and services.
 Increase revenue by triple for the first two years.

Board Composition:
Najeeb Ghauri Chairman and Chief Executive
Naeem Ghauri Co-Founder, President Global Sales, Chief Executive Officer Innovation
Eugen Beckert Independent Director and Chair of Nomination

Financial Transactions
1. Started business Rs. 28, 00,000.
2. Bank loan received of amount Rs. 220,000
3. Paid legal expenses of Rs.100,000
4. Paid licenses fee of Rs. 20,000
5. Bought furniture of Rs. 900,000
6. Bought fixtures and fittings of Rs. 350,000
 7. Bought stationery from Aslam costing Rs. 1500 and received discount of Rs. 100.
8. Purchased computers of Rs. 100,000
9. Purchased server of Rs. 10,00,000
10. Paid networking setup charges of Rs. 10,000
11. Spent Rs.250, 000 for incubation process.
12. Cash drawn by Asad for his personal use of Rs. 25,000
13. Got advance payment of 50,000 from Ali for desktop application of general store project
costing 140,000 total.
14. Got remaining payment after selling the completed project of general store Rs. 90,000
15. Ali paid maintenance charges of application costing Rs. 5000 per month.
16. Sold web Application and received payment of 50,000 from Ahmad for College.
17. Sold mobile application received payment of Rs. 90,000 from
18. Paid back loan of 220,000 to bank in cash
19. Paid salaries of Rs. 250,000

Journal
Date Details L/F Amount (Rs.) Amount (Rs.)
Apr. 1, 2018 Cash A/C … Dr. 2,800,000
Capital account …Cr. 2,800,000
(Started business)
Apr. 2, 2018 Cash A/C… Dr. 220,000
Account payable …Cr. 220,000
(took loan from bank)
Apr. 3, 2018 Legal expense account…Dr. 100,000
Cash Account …Cr. 100,000
(paid legal expenses)
Apr. 4, 2018 License A/C … Dr. 10,000
Cash A/C …Cr. 10,000
(paid license charges)
Apr. 5, 2018 Furniture A/C … Dr. 900,000
Cash A/C …Cr. 900,000
(bought furniture)
Apr. 7, 2018 Fixture and fixing A/C… Dr. 350,000
Cash A/C …Cr. 350,000
(Fixture and fixing expenses)
Apr. 9, 2018 Stationary A/C … Dr. 1500
Discount A/C …Cr. 100
Alsam A/C …Cr. 1400
(Bought stationary and received
discount)
Apr. 10, 2018 Computer A/C… Dr. 100,000
Cash account …Cr. 100,000
(Bought computers)
Apr. 13, 2018 Server A/C… Dr. 10,00,000
Cash A/C …Cr. 10,00,000
(Purchased server setup )
Apr. 16, 2018 Network charges …Dr. 10,000
Cash A/C…Cr. 10,000
(Paid network charges )
Apr. 18, 2018 Incubation startup A/C…Dr. 250,000
Cash A/C …Cr. 250,000
(Spend cash for the incubation startup)
Apr. 19, 2018 Drawing A/C…Dr. 25,000
Cash A/C …Cr. 25,000
(Asad draw cash for personal use)
Apr. 20, 2018 Sales A/C…Dr. 50,000
Ali A/C …Cr. 50,000
(Received advance payment for
general store project)
Apr.28, 2018 Sales A/C…Dr. 90,000
Ali A/C …Cr. 90,000
(Received remaining payment for
general store project)
Apr.28, 2018 Sales A/C…Dr. 5,000
Ali A/C …Cr. 5,000
(ali paid monthly maintenance charges
)
Apr.30, 2018 Sales A/C…Dr. 50,000
Ahmad A/C…Cr. 50,000
(Received payment for the website)
Apr.30, 2018 Sales A/C…Dr. 90,000
Ahsan A/C 90,000
(Received payment for the mobile
application)
May.1, 2018 Account payable A/C…Dr. 220,000
Cash A/C…Cr. 220,000
(Return the bank loan )
May. 1, 2018 Salaries A/C…Dr. 250,000
Cash A/C…Cr. 250,000
(Paid salaries of employee’s)

Ledger
1) Capital A/C
Date Ref JR Amount Date Ref JR Amount
1/04/2019 Cash A/C 1 2800000
CB
2800000
 2800000 2800000
2) Account Payable
Date Ref JR Amount Date Ref JR Amount
2/04/2019 Cash A/C 220000
CB 220000
220000 220000

3) Expense A/C
Date Ref JR Amount Date Ref JR Amount
3/04/2019 Cash A/C 1 100000
CB 100000
100000 100000

4) License A/C
Date Ref JR Amount Date Ref JR Amount
4/04/2019 Cash A/C 1 10000
CB 10000
10000 10000

5) Furniture A/C
Date Ref JR Amount Date Ref JR Amount
5/04/2019 Cash A/C 1 900000
CB 900000
900000 900000

6) Furniture & Fixture A/C

Date Ref JR Amount Date Ref JR Amount
7/04/2019 Cash A/C 1 350000
CB 350000
350000 350000
 7) Stationary A/C
Date Ref JR Amount Date Ref JR Amount
9/04/2019 Discount 1 100
A/C
Aslam A/C 1 1400
CB 1500
1500 1500

10) Discount A/C

Date Ref JR Amount Date Ref JR Amount
4/04/2019 Stationary 1 100
CB 100
100 100

11) Aslam A/C

Date Ref JR Amount Date Ref JR Amount
9/04/2019 Stationary 1 1400
CB 1400
1400 1400

12) Computer
Date Ref JR Amount Date Ref JR Amount
10/04/2019 Cash A/C 1 100,000
CB 100000
100000 100000

13) Server
Date Ref JR Amount Date Ref JR Amount
13/04/2019 Cash A/C 1 100000
CB 100000
100000 100000

14) Network
Date Ref JR Amount Date Ref JR Amount
16/04/2019 Cash A/C 2 10000
 CB 10000
10000 10000

15) Incubation
Date Ref JR Amount Date Ref JR Amount
19/04/2019 Cash A/C 2 250000
CB 250000
250000 250000

16) Drawing A/C

Date Ref JR Amount Date Ref JR Amount
19/04/2019 Cash A/C 1 25000
CB 25000
25000 25000

17) Ali A/C

Date Ref JR Amount Date Ref JR Amount
28/04/2019 Sales A/C 2 90000
20/04/2019 Sales A/C 2 50000
CB 28/04/2019 Sales A/C 2 5000
145000
145000 145000

18) Ahmed A/C

Date Ref JR Amount Date Ref JR Amount
30/04/2019 Sales A/C 3 50000
CB
50000
50000 50000

19) Ahsan A/C

Date Ref JR Amount Date Ref JR Amount
30/04/2019 Sales A/C 3 90000
 CB
90000
90000 90000

20) A/C Payable

Date Ref JR Amount Date Ref JR Amount
01/05/2019 Cash A/C 3 220000
CB 220000
220000 220000

21) Salaries A/C

Date Ref JR Amount Date Ref JR Amount
01/05/2019 Cash A/C 3 250000
CB 250000
250000 250000
22) Sales A/C
Date Ref JR Amount Date Ref JR Amount
20/04/2019 Ali A/C 2 50000
28/04/2019 Ali A/C 2 90000 CB 285000
28/04/2019 Ali A/C 2 5000 285000
30/04/2019 Ahmad 3 50000
A/C
30/04/2019 Ahsan A/C 3 90000