Financial Accounting Assignment 1 PDF

Financial Accounting (8501)
Assignment #1 (Problem#1.4)
Submitted To;
Sir Moazzam Ali.
Submitted By;
Imtiaz Ahmad
Autumn Semester,
MBA Executive
AIOU Islamabad.
Problem.1-4:
Hussain and Company started medical services enterprise and appointed
two doctors. The following transactions took place during April, 2020.
01. Hired a building on rent at monthly rent of Rs. 50,000.
02. Brought cash of Rs. 600,000 by Mr. Hussain for the establishment of professional services business.
03. Paid one month rent of the building.
04. Purchased office furniture costing Rs. 180,000 on 30 A1:E26days credit.
06. Purchased medical supplies costing Rs. 18,000 in cash.
07. Served patients charging Rs. 18,000 as consultancy fee.
08. Purchased medical supplies costing Rs. 18,000 in cash.
10. Paid utility bills amounting to Rs. 12,000.
12. Collected Rs. 22,000 from patients for the consultancy fee.
15. Medical supplies costing Rs. 8,000 were consumed during first half of the month.
18. Withdraw Rs. 20,000 by the proprietor from the company for personal use.
21. Collected Rs. 30,000 from patients for the consultancy fee.
23. Paid security staff salary amounting to Rs. 25,000.
25. Collected consultancy fee of Rs. 30,000 from patients.
27. Paid electricity bill amounting to Rs. 16,000.
28. Consumed medical supplies costing Rs. 6,000.
30. Paid salary of doctors amounting to Rs. 90,000.
30. Collected consultancy fee of Rs. 45,000 from patients.
Required
1) Prepare a general journal for the above transactions.
2) Prepare ledger accounts from the above transactions and balance it.
3) Prepare a trial balance.
4) Prepare income statement, the statement of owner’s equity, balance sheet
and the cash flow statement at the end of April, 2020.
5) Was the performance of the business organization profitable or otherwise
and should it be continued?
Page 1 of 7
Hussain & Company
General Journal
Date Particulars of Account LF Debit Credit
Cash A/C 600000
2-Apr-20 Capital A/C 600000
(Business started with Cash)
Rent A/C 50000
3-Apr-20 Cash A/C 50000
(Advance rent paid)
Furniture A/C 180000
4-Apr-20 180000
Vendor A/C
Medical Supplies A/C 18000
6-Apr-20 Cash A/C 18000
(Purchase medical Supplies)
Cash A/C 18000
7-Apr-20 Services Charges A/C 18000
(Received Consultancy Fee)
Medical Supplies A/C 18000
8-Apr-20 Cash A/C 18000
(Purchase medical Supplies)
Utility Bills A/C 12000
10-Apr-20 Cash A/C 12000
Utility Bills paid
Cash A/C 22000
Supplies Expense A/C 8000
15-Apr-20 Medical Supplies A/C 8000
(Medical supplies used)
Drawing A/C 20000
18-Apr-20 Cash A/C 20000
(Cash withdrawl for personal use)
Cash A/C 30000
Salaries A/C 25000
23-Apr-20 Cash A/C 25000
(Salaries Paid)
Cash A/C 30000
Electricity Charges 16000
27-Apr-20 Cash A/C 16000
(Elect. Bill Paid)
Supplies Expense A/C 6000
28-Apr-20 Medical Supplies A/C 6000
(Medical supplies used)
Page 2 of 7
Salaries A/C 90000
30-Apr-20 Cash A/C 90000
(Salaries Paid)
Cash A/C 45000
Rent A/C 50000
30-Apr-20 Cash A/C 50000
(Advance rent paid)
Ledger Accounts
Cash Account
Debit Credit
Date Particulars Rs Date Particulars Rs
01-Apr-20 Capital Cash 600000 03-Apr-20 Advance Rent Paid 50000
07-Apr-20 Services Charges 18000 06-Apr-20 Medial Supplies 18000
12-Apr-20 Services Charges 22000 08-Apr-20 Medial Supplies 18000
21-Apr-20 Services Charges 30000 10-Apr-20 Utility Bills 12000
25-Apr-20 Services Charges 30000 18-Apr-20 Drawings 20000
30-Apr-20 Services Charges 45000 23-Apr-20 Salaries 25000
27-Apr-20 Electricity Bills 16000
30-Apr-20 Salaries 90000
Closing Balance 496000
Total 745000 Total 745000
Capital Account
Debit Credit
30-Apr-20 Closing Balance 600000 01-Apr-20 Cash A/C 600000
Service Charges Account

Debit Credit
30-Apr-20 Closing Balance 145000 07-Apr-20 Cash A/C 18000
12-Apr-20 Cash A/C 22000
Total 145000 21-Apr-20 Cash A/C 30000
25-Apr-20 Cash A/C 30000
30-Apr-20 Cash A/C 45000
Total 145000
Advance rent Account

Debit Credit
03-Apr-20 Cash A/C 50000 30-Apr-20 Closing Balance 50000
Page 3 of 7
Furniture Account
Debit Credit
04-Apr-20 Vendor A/C 180000 30-Apr-20 Closing Balance 180000
Vendor Account
Debit Credit
30-Apr-20 Closing Balance 180000 04-Apr-20 Vendor A/C 180000
Utility Bills Account

Debit Credit
Medical Supplies Account

Debit Credit
06-Apr-20 Cash A/C 18000 15-Apr-20 Supplies Exp. A/C 8000
08-Apr-20 Cash A/C 18000 28-Apr-20 Supplies Exp. A/C 6000
Supplies Expense Account

Debit Credit
15-Apr-20 Supplies Exp. A/C 8000
28-Apr-20 Supplies Exp. A/C 6000
Drawings Account
Debit Credit
18-Apr-20 Cash A/C 20000

Page 4 of 7
Salaries Account
Debit Credit
23-Apr-20 Cash A/C 25000
30-Apr-20 Cash A/C 90000
Electricity Charges Account

Debit Credit

Debit Credit
Hussain & Company

Trial Balance as on 30th April, 2020
Particulars LF Debit Credit
Cash Account 496000
Capital Account 600000
Service Charges Account 145000
Furniture Account 18000
Vendor Account 180000
Utility Bills Account 12000
Medial Supplies Account 22000
Supplies Exp. A/C 14000
Drawings Account 20000
Salaries Account 115000
Electricity Charges Account 16000
Advance rent Account 50000
763000
Total 925000 925000
Hussain & Company
Page 5 of 7
Income Statement for the month ended on 30th April, 2020
Sales
Service Charges (Consultancy fee) 145000 145000
Less: Supplies used 14000 14000
Gross Profit 131000 131000
Operating Expenses
Utility Bills 12000
Salaries 115000
Rent 50000
193000
Net loss -62000.00
Hussain & Company

Statement of Owner's Equity as on 30th April, 2020
Capital Investmnet by Owner 600000
Drawings Less 20000
Net loss Less 62000
Balance Capital 518000
Hussain & Company

Balance Sheet as on 30th April, 2020
Assets Rs Liabilities & Equity Rs
Cash 496000 Vendor (A/C Payable) 180000
Medical Supplies 22000
Furniture 180000 Capital 518000
Page 6 of 7
Hussain & Company
Cash flow Statement for the month of April 2020.
Cash Flow from operating activities:

Cash inflows
Cash Collected from Consultancy services (inflow) Rs.145,000
Cash outflows
Purchase of medical supplies Rs. (36,000)
Rent Expenses (50,000)
Salaries Expenses (115,000)
Electricity Expenses (16000)
Utilities Bills (12000)
Net Cash inflow from operating activities; (-84,000)
Cash flow from investing activities:

Cash outflow for purchase of:
Furniture (180,000)
Net Cash outflow from investing activities (-180,000)
Cash flow from financing activities:

Cash inflow from investment by owner 600,000
Less: Cash
5. Was theoutflow for drawings
performance by ownerorganization
of the business (20,000) profitable or otherwise
The Performance of the organization is not profitable at the end of the month of April,2020. Altough it is seen that
expenses during the mentioned month were more than income, however still it should be continued for some time as
the this was the first month and had many first time investments (like furniture etc) also which would not be there in
upcoming months.
Page 7 of 7
Submitted To;
Sir Moazzam Ali.
Submitted By;
Imtiaz Ahmad
Autumn Semester,
MBA Executive
AIOU Islamabad.
Ali Automobiles
General Journal
Date Particulars of Account LF Debit Credit
Cash A/C 200000
Automobiles 150000
2-Mar-20 Capital A/C
(Business started with Cash &
Automobiles) 350000
Repair Supplies A/C 30000
4-Mar-20 Cash A/C
(Purchase of supplies)
30000
Repair Expense A/C 3800
5-Mar-20 Repair Supplies A/C
(Consumed Supplies for repair)
3800
Cash A/C 26000
6-Mar-20 Repair Charges A/C
(Cash received for repair) 26000
Auto tools A/C 30000
8-Mar-20 Cash A/C
(Purchase of auto tools) 30000
Cash A/C 23000
A/C Receivables 32000
(Billed customer for services) 32000
Cash A/C 15000
14-Mar-20 A/C Receivables
(Received Cash from creditors) 15000
Repairs Expense A/C 12000
17-Mar-20 Repairs Supplies A/C
(Medical supplies used) 12000
Cash A/C 18000
Page 1 of 7
Elect. Bill Exp A/C 21000
24-Mar-20 Cash A/C
(Monthly Elect. Bills paid) 21000
Purchase of supplies 18000
26-Mar-20 Ahmad & Company
(Purchase of supplies on credit) 18000
Salaries Exp. Account 60000
30-Mar-20 Cash A/C
(Payment of monthly salary) 60000
Drawing Account 40000
31-Mar-20 Cash A/C
(Withdrawl for personal use) 40000
Ledger Accounts
Cash Account
Debit Credit
02-Mar-20 Capital Cash 200000 04-Mar-20 Repair Supplies 30000
06-Mar-20 Repair Charges 26000 08-Mar-20 Auto Tools 30000
10-Mar-20 Repair Charges 23000 24-Mar-20 Electricity Bills 21000
14-Mar-20 A/C Receivables 15000 30-Mar-20 Salaries 60000
20-Mar-20 Repair Charges 18000 31-Mar-20 Drawings 40000
31-Mar-20 Closing Balance 101000
Capital Account
Debit Credit
31-Mar-20 Closing Balance 350000 02-Mar-20 Cash A/C 200000
02-Mar-20 Auto Tools 150000
Auto tools A/C

Debit Credit
02-Mar-20 Capital Cash 150000 31-Mar-20 Closing Balance 180000
08-Mar-20 Cash A/C 30000
Total 180000
Repair Supplies Expense Account
Page 2 of 7
Debit Credit
04-Mar-20 Cash A/C 30000 05-Mar-20 Repair Charges 3800
08-Mar-20 Ahmad Company 18000 17-Mar-20 Repair Charges 12000
Ahmad Company Account

Debit Credit
31-Mar-20 Closing Balance 18000 26-Mar-20 Repair Charges 18000
Repair Expense Account

Debit Credit
05-Mar-20 Repair Charges 3800 31-Mar-20 Closing Balance 15800
17-Mar-20 Repair Charges 12000
Repair charges Account

Debit Credit
31-Mar-20 Closing Balance 67000 06-Mar-20 Cash A/C 26000
10-Mar-20 Cash A/C 23000
20-Mar-20 Cash A/C 18000
Account Receivables
Debit Credit
12-Mar-20 repair revenue 32000 14-Mar-20 Cash A/C 15000
32000
Repair revenue Account

Debit Credit
31-Mar-20 Closing Balance 32000 12-Mar-20 A/C Receivables 32000
Drawings Account
Page 3 of 7
Debit Credit
31-Mar-20 Cash A/C 40000

Salaries Account
Debit Credit
30-Mar-20 Cash A/C 60000


Debit Credit
24-Mar-20 Cash A/C 21000 31-Mar-20 Closing Balance 21000
Ali Automobiles
Trial Balance as on 31st March, 2020
Cash Account 101000
Capital Account 350000
Auto Tools 180000
Repair Supplies 32200
Repair Expenses 15800
Repair Charges 67000
Account Receivables 17000
Revenue (Repair) 3200
Drawings Account 40000
Salaries Account 60000
Ahmad Co. 18000
Total 467000 467000
Ali Automobiles
Income Statement for the month ended on 31st March, 2020
Page 4 of 7
Revenue
Repair Charges & Revenue 67000+32000
Gross Profit 99000 99000
Operating Expenses
Supply Expenses 32200
Salaries 60000
113200
Net loss -14200.00
Ali Automobiles
Statement of Owner's Equity as on 31st March, 2020
Capital Investmnet by Owner 350000
Drawings Less 40000
Net loss Less 14200
Balance Capital 295800
Ali Automobiles
Balance Sheet as on 31st March, 2020
Assets Rs Liabilities & Equity Rs
Cash 101000 Ahmad Co (Receivables) 180000
Auto tools 180000
Repair exp. 15800 Capital 295800
Receivables 17000
Page 5 of 7
Ali Automobiles
Cash flow Statement for the month of March 2020.
Cash Flow from operating activities:

Cash inflows
Cash Collected from Repair services (inflow) Rs.99,000
Cash outflows
Purchase of supplies Rs. (32200)
Salaries Expenses (60,000)
Electricity Expenses (21000)
Net Cash inflow from operating activities; (-14,200)
Cash flow from investing activities:

Cash outflow for purchase of:0
Net Cash outflow from investing activities (0)
Cash flow from financing activities:

Cash inflow from investment by owner 350,000
Less: Cash outflow for drawings by owner (40,000)
Net cash inflow from financing activities 310,000
Net cashthe
5. Was inflow (295,800)of the business organization profitable or otherwise
performance
The Performance of the organization is not profitable at the end of the month of March,2020. Altough it is seen that
expenses during the mentioned month were more than income, however still it should be continued for some time,
being regularly monitored.
Page 6 of 7
Page 7 of 7
Submitted To;
Sir Moazzam Ali.
Submitted By;
Imtiaz Ahmad
Autumn Semester,
MBA Executive
AIOU Islamabad.
Gulzar Trading Enterprises

General Journal
Date Particulars LF Debit Credit
Cash 1,000,000
01-May-20 Furniture 100,000
Gulzar's Capital Account 1,100,000
Repair & maintenance 12,000
02-May-20
Cash 12,000
Rent 50,000
03-May-20
Cash 50,000
Inventory 650,000
05-May-20 Cash 500,000
Accounts Payable
(after 10 days) 150,000
Cash 300,000
08-May-20
Sales 300,000
Cost of goods sold 250,000
08-May-20
Inventory 250,000
Accounts Receivable 90,000
10-May-20
Sales 90,000
10-May-20
Inventory 70,000
Entertainment Expense 800
12-May-20
cash 800
inventory 250,000
14-May-20
cash 250,000
Accounts Payable 100,000
16-May-20
Cash 100,000
Cash 120,000
18-May-20
Sales 120,000
18-May-20
Inventory 75,000
Utility expense 6,500
21-May-20
cash 6,500
Accounts Receivable 25,000
24-May-20
Sales 25,000
24-May-20
Inventory 20,000
Drawings 40,000
26-May-20
Cash 40,000
Page 1 of 5
Cash 40,000
28-May-20
Sales 40,000
28-May-20
Inventory 30,000
Salary 65,000
30-May-20
Cash 65,000
LEDGER ACCOUNTS
Cash Account
Date Particulars Amount Date Particulars Amount
1-May-20 Gulzar's Capital Account 1,000,000 2-May-20 Repair & Maintenance 12,000
8-May-20 Sales A/c 300,000 3-May-20 Rent 50,000
18-May-20 Sales A/c 120,000 5-May-20 Inventory 500,000
16-May-20 Accounts Payable 100,000
12-May-20 Entertainment expense 800
21-May-20 Utility expense 6,500
26-May-20 Drawings 40,000
30-May-20 Salary 65,000
31-May-20 Closing Balanace 435,700
Total 1,460,000 Total 1,460,000
Gulzar's Capital Account

31-May-20 Closing Balance 1,100,000 1-May-20 Cash 1,000,000
Total 1,100,000 Total 1,100,000
Sales Account
8-May-20 Cash 300,000
10-May-20 Accounts Receivable 90,000
18-May-20 Cash 120,000
31-May-20 Closing Balance 575,000 24-May-20 Accounts Receivable 25,000
28-May-20 Cash 40,000
Total 575,000 Total 575,000
Rent Account
3-May-20 Cash 50,000 31-May-20 Closing Balance 50,000
Total 50,000 Total 50,000
Repair & Maintenance Account

Page 2 of 5
Inventory Account
5-May-20 Cash 500,000 8-May-20 Cost of goods Sold 250,000
5-May-20 Accounts Payable 150,000 10-May-20 Cost of goods Sold 70,000
24-May-20 Cost of goods Sold 20,000
31-May-20 Closing Balance 455,000
Total 900,000 Total 445,000
Entertainment Expense Account

12-May-20 Cash 800 31-May-20 Closing Balance 800
Total 800 Total 800
Utiltiy expense
Drawings
Salary
Accounts Payable
16-May-20 Cash 100,000 5-May-20 inventory 150,000
Total 150,000 Total 150,000
Cost of Goods Sold

8-May-20 Inventory 250,000
31-May-20 Closing Balaance 445,000
Total 445,000 Total 445,000
Page 3 of 5
Accounts Receivable
10-May-20 Sales 90,000 31-May-20 Closing Balance 115,000
24-May-20 Sales 25,000
Total 115,000 Total 115,000

Trial Balance as on 31st May, 2020
Cash A/C 435,700
Sales A/C 575,000
Inventory A/C 455,000
Rent 50,000
Repair & Maintenance 12,000
Utility bill 6,500
Accounts Receivables 115,000
Entertainment expense 800
Salary 65,000
Drawings 40,000
Cost of Goods sold 445,000
Furniture 100,000
Total 1,725,000 1,725,000

Income Statement for the month ended on 31st May, 2020
Rs.
Sales 575,000
C.G.S 445,000
Gross income 130,000
Operating Expenses
Rent 50,000
Repair & expenses 12,000
Salary 65,000
Entertainment 800
Utility 6,500
Net income/loss 130,000
Page 4 of 5
Statement of Owner's Equity as on 31st May, 2020
Rs.
Capital investment by owner 1,100,000
Net income/loss -
Total equity 1,100,000
Drawings Less 40,000
Closing Balance of Equity 1,060,000

Balance Sheet as on 31st May, 2020
Assets Liabilities
Particulars Amount Particulars Amount
Cash 535,700 Accounts Payable 50,000
Accounts Receivable 115,000 Equity -
Inventory 455,000
Page 5 of 5
LEDGER ACCOUNTS
Cash Account
1-May-20 Gulzar's Capital Account 1,000,000 2-May-20 Repair & Maintenance 12,000
8-May-20 Sales A/c 300,000 3-May-20 Rent 50,000
16-May-20 Accounts Payable 100,000
12-May-20 Entertainment expense 800
21-May-20 Utility expense 6,500
26-May-20 Drawings 40,000
30-May-20 Salary 65,000
31-May-20 Closing Balanace 435,700
Total 1,460,000 Total 1,460,000
Gulzar's Capital Account

31-May-20 Closing Balance 1,100,000 1-May-20 Cash 1,000,000
Total 1,100,000 Total 1,100,000
Sales Account
8-May-20 Cash 300,000
10-May-20 Accounts Receivable 90,000
18-May-20 Cash 120,000
31-May-20 Closing Balance 575,000 24-May-20 Accounts Receivable 25,000
28-May-20 Cash 40,000
Total 575,000 Total 575,000
Rent Account
Repair & Maintenance Account

Inventory Account
5-May-20 Accounts Payable 150,000 10-May-20 Cost of goods Sold 70,000
Total 900,000 Total 445,000
Entertainment Expense Account

12-May-20 Cash 800 31-May-20 Closing Balance 800
Total 800 Total 800
Utiltiy expense
Drawings
Salary
Accounts Payable
16-May-20 Cash 100,000 5-May-20 inventory 150,000
Total 150,000 Total 150,000
Cost of Goods Sold

31-May-20 Closing Balaance 445,000
Total 445,000 Total 445,000
Accounts Receivable
10-May-20 Sales 90,000 31-May-20 Closing Balance 115,000
24-May-20 Sales 25,000
Total 115,000 Total 115,000
Trial Balance as on 31st May, 2020
Cash A/C 435,700
Sales A/C 575,000
Inventory A/C 455,000
Rent 50,000
Repair & Maintenance 12,000
Utility bill 6,500
Accounts Receivables 115,000
Entertainment expense 800
Salary 65,000
Drawings 40,000
Cost of Goods sold 445,000
Furniture 100,000
Total 1,725,000 1,725,000
Income Statement for the month ended May 2020
Rs.
Sales 575,000
less: C.G.S 445,000
Gross income 130,000
less: Operating Expenses
Rent 50,000
Repair & expenses 12,000
Salary 65,000
Entertainment 800
Utility 6,500
Net income/loss (4,300)

Statement of Owners' Equity as at May 2020
Rs.
Capital investment by owner 1,100,000
Net income/loss (4,300)
Total equity 1,095,700
Drawings 40,000
Closing Balance of Equity 1,055,700
Sbalance Sheet as at May 2020
Assets Liabilities
Particulars Amount Particulars Amount
Cash 535,700 Accounts Payable 50,000
Accounts Receivable 115,000 Equity 1,055,700
Inventory 455,000
Total 1,105,700 Total 1,105,700
Cash Flow Statement for the month ended May 2020
Cash Flow from operating activities
Cash Inflows
Cash from sales 460,000
Cash Outflows
Paid to ahsan company 100,000
Purchased goods 250,000
Entertainment 800
Purchased goods 500,000
Repair & maintenance 12,000
Rent 50,000
Utility bill 6,500
Salary paid 65,000
984,300
Net Cash Flow from operating activities (524,300)
Cash flow from investing activities

Nil
Cash flow from Financing activities

Cash inflow from investment by owner 1,000,000
less: Cash outflow for drawings 40,000
Net Cash flow from from financing activities 960,000
Net Cash flow 435,700
Add opening Balance 0
Cash Balance as on May 2020 435,700

Financial Accounting Assignment 1 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Financial Accounting Assignment 1 PDF

Uploaded by

Copyright:

Available Formats

Financial Accounting (8501)

Total 600000 Total 600000

Service Charges Account

Advance rent Account

Total 50000 Total 50000

Total 180000 Total 180000

Total 180000 Total 180000

Utility Bills Account

Total 12000 Total 12000

Medical Supplies Account

Supplies Expense Account

Closing Balance 20000

Electricity Charges Account

Total 16000 Total 16000

Electricity Charges Account

Total 16000 Total 16000

Hussain & Company

Hussain & Company

Net loss -62000.00

Hussain & Company

Hussain & Company

Total 698000 Total 698000

Cash Flow from operating activities:

Cash flow from investing activities:

Cash flow from financing activities:

Total 282000 Total 282000

Auto tools A/C

Total 180000 Total 180000

Repair Supplies Expense Account

Ahmad Company Account

Total 18000 Total 180000

Repair Expense Account

Repair charges Account

Repair revenue Account

Total 32000 Total 32000

31-Mar-20 Closing Balance 40000

31-Mar-20 Closing Balance 60000

Electricity Charges Account

Total 21000 Total 21000

Gross Profit 99000 99000

Net loss -14200.00

Total 313800 Total 313800

Cash Flow from operating activities:

Net Cash inflow from operating activities; (-14,200)

Cash flow from investing activities:

Cash flow from financing activities:

Gulzar Trading Enterprises

Gulzar's Capital Account

Repair & Maintenance Account

Entertainment Expense Account

Total 150,000 Total 150,000

Cost of Goods Sold

Gulzar Trading Enterprises

Gulzar Trading Enterprises

Net income/loss 130,000

Gulzar Trading Enterprises

Gulzar Trading Enterprises

Gulzar's Capital Account

Repair & Maintenance Account

Entertainment Expense Account

Total 150,000 Total 150,000

Cost of Goods Sold

Net income/loss (4,300)