FINANCIAL ACCOUNTING

Assignment #1

Name: Zamzama Azimi

F.name: Ghulam Muhammad
Field: Economic
Department: BBA
Instructor: Mr. Najibulah Haddad
Year: 2022

JUNE 11, 2022

1. Transactions made by Ahmad Yar Company, the points for the month of August are shown
below. Prepare a transaction analysis which shows the effects of these transactions on the
expanded accounting equation.

▪ The owner invested 450,000 AFN cash in the business.

▪ The company purchased 38,000 AFN of office equipment on credit.
▪ The company received 19,000 AFN cash in exchange for services performed.
▪ The company paid 20000 AFN for this month’s rent.
▪ The owner withdrew 13000 AFN cash for personal use.
▪ The company purchased 23000 cash AFN machinery tools to office.

Assets Liabilities
Cash Account Supplies Equipment Account Owner’s Owner’s Revenues Expenses
receivable payable Capital Drawings

450,000 AFN 450,000

AFN
38,000 AFN 38,000
AFN

19,000 AFN 19,000

AFN

20,000 AFN 20,000 AFN

13,000 AFN 13,000

AFN

23,000 AFN 23,0000

AFN

413,000 AFN 23,0000 38,000 38,000 450,000 13,000 19,000 20,000

AFN AFN AFN AFN AFN AFN AFN

474,000 AFN 474,000 AFN

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2. Assume Tata Company began operations on January 1 and completed the following
transactions during its first month of operations.

▪ Jamsetji Tata invested $4,000 cash in the Tata Company.

▪ The company purchased $2,000 of equipment on credit.
▪ The company provided $540 of services for a client on credit.
▪ The company paid $250 cash for an employee’s salary.

Assets Liabilities
Cash Account Supplies Equipment Account Owner’s Owner’s Revenues Expenses
receivable payable Capital Drawings

4,000 $ 4,000 $

2,000 $ 2,000 $

540 $ 540 $

250 $ 250 $

3,750 $ 540 $ 2,000 $ 2,000 $ 4,000 $ 540 $ 250 $

6,290 $ 6,290 $

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 3. Analyze the following transactions:

▪ On first January Ahmad put 1100300 AFN initial cash as a capital into his business.
▪ The company bought a car with price money of 500000 AFN and paid rent of the
house 4000 AFN.
▪ Purchases good on credit about 2000 chairs price of each chair was 230 AFN and
agreed to pay it next month on account.
▪ On 27 January Company took loan from bank about 500000 AFN.
▪ Feb 2 Company sold 20000 AFN of goods to Suhail and he agreed to pay it later.
▪ On March 6 Company took money from Alokozay about 250000 AFN and agreed to
deliver the goods on next week.

Assets Liabilities
Cash Account Supplies Equipment Account Owner’s Owner’s Revenues Expenses
receivable payable Capital Drawings

1,100,300 AFN 1,100,300

AFN
500,000 AFN 500,000 AFN

4,000 AFN 4,000 AFN

460,000 460,000
AFN AFN

500,000 AFN 500,000

AFN

20,000 20,000
AFN AFN

250,000 250,000
AFN AFN

1,096,300 270,000 460,000 500,000 960,000 1,100,300 270,000 4,000 AFN

AFN AFN AFN AFN AFN AFN AFN

2,326,300 AFN 2,326,300 AFN

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 4. Transaction analysis for the Expression Company.

▪ On August 1, Worthy invested 3,000 AFN cash and 15,000 AFN of equipment.
▪ On August 2, Expressions paid 600 AFN cash for furniture for the shop.
▪ On August 3, Expressions paid 500 AFN cash to rent space in a strip mall for August.
▪ On August 4, it purchased 1,200 AFN of equipment on credit for the shop (using a
long-term note payable).
▪ On August 5, Expressions opened for business. Cash received from haircutting
services in the first week and a half of business (ended August 15) was 825 AFN.
▪ On August 15, it provided 1000 AFN of haircutting services on credit.
▪ On August 17, it received a 1000 AFN check for services previously rendered on
account.
▪ On August 17, it paid 1250 AFN cash to an assistant for hours worked during the
grand opening.
▪ Cash received from services provided during the second half of August was 930
AFN.
▪ On August 31, it paid a 400 AFN installment toward principal on the note payable
entered into on August 4.
▪ On August 31, Worthy made a 3000 AFN cash withdrawal from the company for
personal use.

Assets Liabilities
Cash Account Supplies Equipment Account Owner’s Owner’s Revenues Expenses
receivable payable Capital Drawings
3,000 AFN 15,000 AFN 18,000
AFN
600 AFN 600 AFN

500 AFN 500 AFN

12,000 AFN 12,000 AFN

825 AFN 825 AFN

1,000 AFN 1,000 AFN

1,000 AFN 1,000 AFN

1,250 AFN 1,250 AFN

930 AFN 930 AFN

400 AFN 400 AFN

3,000 AFN 3,000 AF

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 5 AFN 1,000 600 27,000 11,600 AFN 18,000 3,000 3,755 1,750
AFN AFN AFN AFN AFN AFN AFN

28,605 AFN 28,605 AFN

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