INTRODUCTION OF COMPANY

The “Soho Fisheries” is one of the leading fish company in the Sindh
which deals in different kinds of fresh water fishes. The company is
owned by two brothers of Soho family. Soho Fisheries has almost
2000 acres of land where they grow fishes and then sell. The
company only participates in the perfectly competitive market. The
land where the operations are held of the company is situated in
District Sujawal, Sindh. It is the leading distributor of fresh water
fishes in the markets of Thatta, Hyderabad & Larkana. Soho Fisheries
buy the baby fishes from the different parts of Pakistan such as
Lahore, Gujranwala etc and then grow the fishes till ready to market.
Recently, the company has started to produce the baby fishes of
their own in order to cover their variable costs and maximize
marginal profit. It offers the best quality of fresh water fishes and
soon it will start exporting the fresh water fish outside the Pakistan.

ACCOUNTING POLICY

The company follows a FIFO(First In First Out) method for their

business transactions. The reason is that Soho Fisheries is known for
the big size of the fresh water fish, the average weight of their fish is
4-5 KG and the company want all of its fishes to meet the average so
the first baby fish in the pond must go out first so that the last baby
fish should also get enough time to grow up much to meet the
requirement.
 RECORDING THE TRANSACTION

The company is well known and has an accountant who does all his
work on excel sheet and uses the software named as “Quickbook” to
record the general journal entries. Unfortunately the company did
not allow us to see how that software works due to the terms and
conditions of company but we are assuming it would look something
like that:

Rs

Water Engine xxxxx

Cash xxxxx

ANALYSIS OF TRANSACTION

Above stated transaction shows that the Soho Fisheries has bought a
“Water Engine” used to drain out the water so the fishes can easily
be caught by paying cash amount xxxxx. The terms and conditions of
the company did not allow to disclose the amount. The “Water
Engine” is a depreciable asset and therefore in case of increase it
would be written on debit side whereas “Cash” is also asset
therefore in case of decrease it would be written on credit side.
 LEDGER ACCOUNTS
Rs

Dr ENGINE MACHINE Cr

Cash xxxxx Balance b/d xxxxx

Balance c/d xxxxx

Rs

Dr CASH Cr

Engine Machine xxxxx Balance b/d xxxxx

Balance c/d xxxxx

 TRIAL BALANCE

S.N PARTICULARS DEBIT CREDIT

O
Rs Rs
1. Cash xxxxx
2. Land xxxxx
3. A/C Payables xxxxx
4. A/C Receivables xxxxx
5. Water Engine xxxxx
6. Salaries Expense xxxxx

ADJUSTED TRIAL BALANCE

The format of Adjusted Trail Balance was same as of Unadjusted Trail
Balance followed by adjusting entries which were done on software
“Quickbook” and once again company did not allow us to see the
format of their adjusting entries.
BALANCE SHEET