Maarij Khan (8166)

MR. WASEEM
COMPUTATION OF CAPITAL AT END AND AT START.

ACCOUNTS TITLE JANUARY 1ST,2016 DECEMBER 31ST,2016

ADD : ASSETS

Cash Rs 320,000 Rs 600,000

Account Receivables Rs 800,000 Rs 950,000
Merchandise Inventory Rs 100,000 Rs 300,000
Sales Equipment 0 Rs 100,000
Machinery Rs 400,000 Rs 600,000

TOTAL ASSETS Rs 1,620,000 Rs 2,550,000

LESS : LIABILITIES

Account Payable Rs 98,500 Rs 139,200

Salaries Payable Rs 58,800 Rs 68,900

TOTAL LIABILITIES -157300 -208,100

CAPITAL RS 1,462,700 Rs 2,341,900

ER 31ST,2016
 MR. WASEEM
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31ST, 2016

Capital at End 2,341,900

ADD: Drawings 96,000

2,437,900
LESS: Additional Investment -128,560
LESS: Capital at Start -1,462,700

Unadjusted Net Profit 846,640

LESS: Expense:
Depreciation Expense (600,000 * 14%) 84,000
Rent Expense 20,000
Salaries Expense 16,500
Bad debts Expense 8,000
-128,500
ADD: Prepaid Advertising 30,000

Total Expense -98,500

NET PROFIT : 748,140

IT AND LOSS
1ST, 2016
 MR. WASEEM
BALANCE SHEET
AS ON DECEMBER 31ST, 2016

ASSETS

CURRENT ASSETS:
Cash 600,000
Merchandise Inventory 300,000
Account Receivables 950,000
LESS: Allowance for bad debts -8000
942,000
Sales Equipment 100,000
Prepaid Advertising 30,000

TOTAL CURRENT ASSETS 1,972,000

FIXED ASSETS:
Machinery 600,000
LESS: Allowance for dep -84,000
516,000

TOTAL FIXED ASSETS 516,000

TOTAL ASSETS = 2,488,000

BALANCE SHEET
ER 31ST, 2016

EQUITIES

LIABILITIES:
Account Payable 139,200
Rent Payable 20,000
Salaries Payable 85,400

TOTAL LIABILITIES 244,600

OWNER'S EQUITY:
Capital at Start 1,462,700
ADD: Investment 128,560
LESS: Drawings -96,000
ADD: Net Profit 748,140

ADJUSTED CAPITAL 2,243,400

TOTAL EQUITIES = 2,488,000

 KAREEM LIMITED
GENERAL JOURNAL

S.NO DATE PARTICULARS DEBIT

1 ─ Bank (100,000 * 10) 1,000,000

Share Application
( to record the receiving of 100,000 shares @
Rs 10)

2 ─ Share Application (80,000*10) 800,000

Share Capital
( to record the allotment of 80,000 shares @
Rs 10)

3 ─ Share Application (20,000*10) 200,000

Bank
( to record the refund of 20,000 shares @
Rs 10)

4 ─ Land (6000* 12) 72,000

Share premium (6000 * 2)
Share Capital ( 6000 * 10)
( to record the issuance of 6000 shares @
Rs 12)

5 ─ Bonds Payable ( 5000 * 12) 60,000

Share Premium ( 5000*2)
Share Capital (5000*10)
( to record the issuance of 5000 shares for the settl-
ement @ Rs 12)

6 ─ Preliminiary Expense (7000 * 16) 112,000

Share Premium (7000 * 6)
Share Capital (7000 * 10)
( to record the issuance of 7000 shares to promote-
rs @ Rs 16)

7 ─ Account Payable 950,000

Share Premium
Share Capital
(to record issuance of shares for the acquisition of
business @ Rs 25)
CREDIT

1,000,000

800,000

200,000

12,000
60,000

10,000
50,000

42,000
70,000

570,000
380,000