Balance sheet

Assets Liabilities

Cash Accounts Inventor PP&E Accumulated Bank

receivabl y depreciation borrowing
 Transactions es (CA)
Initial capital 1200 1200
Bank borrowing 800 800
Buy T shirts -500 500
Printer cost 1200 -1200 1200
Depreciation 100 -100
Wages -100 100
Revenue @60 Tshirts 600
COGS= 60*700/100 -420
Cash collection for 60 Tsh 200 -200
admin staff salary -100

End of year balance 300 400 280 1200 -100 800

 Income Statement
Contribu Retained Revenues Expenses = Net
ted Earnings Income
Capital
COGS Wages Depreciat
ion

1200

100
600 600 600
-420 420 -420
0
-100 100 -100

1200 80 600 520 100 0 80

Entry no.  Transactions Debit Credit

1 Cash 1200
SE 1200
2 Bank Loan 800
Cash 800
3 Inventory: Buy T sh 500
cash 500
4 PP&E 1200
cash 1200
5 Inventory 100
: depreciation 100
6 Inventory 100
cash 100
7 Accounts recievabl 600
sales 600
8 COGS 420
inventory 420
9 Cash 200
accounts recievable 200
10 salary expense 100
cash 100
T accounts

Cash Bank Borrowing Capital

Debits Credits Debits Credits Debits Credits
1,200 800 1,200
800 500
1,200
100
200
100

Sales revenue COGS Accumulated

Debits Credits Debits Credits Depreciation
Debits Credits
600 420 100
 Inventory PP&E Accounts recievable
Debits Credits Debits Credits Debits Credits
500 1,200 600
100 200
100
420

Salary expense
Debits Credits
100
Trial Balance Income Statement Balance Sheet
Transactions Debit Credit sales Assets
Cash cogs
Inventory salary expense
Equipment net income
Acc recievable
bank borrowing
Paod capital beginning RE
sales net income
cogs dividends Liabilities and SE
acc depreciation closing RE
rent expense