Transaction Analysis

Question :1 The following transactions are extracted from the books of accounts of Mr.Gonzalo Higuain: 1) Mr. Higuain started his business with Tk500,000 cash, Tk400,000 supplies and Tk200,000 personal loan. 2) Cash paid for advertising expense Tk30,000 3) Goods purchased amounting Tk80,000 of which 30% paid in cash. 4) The payable of 3 above is paid. 5) Services provided Tk35,000 in cash and Tk30,000 on credit. 6) 3/4th of the receivable of 6 above has been received in cash. Requirement: a. Show the effect of above transactions using the following format. Assets = Cash + A/R + Supplies + Equipment A/P Liabilities+ Owners Equity + Loan + Capital+ Revenue-Expenses - Drawings

b. Based on the above information prepare an Income Statement, and a Balance Sheet. Question 2 The following transactions are extracted from the books of accounts of
Mesut Ojil Auto Parts Company Ltd.: 1) 2) 3) 4) Mr. Ojil started his business with Tk300,000 cash, Tk200,000 supplies. Advertising expense Tk10,000 of which Tk 5000 is paid in cash. Cash Tk 40,000 received for the services provided to Mancini Repairments Co.. The payable of transaction 2 is paid. 5) Mr. Ojil celebrated his 27th birthday by withdrawing Tk 70,000 from the business. 6) A contract is made with Mr. Farguson that he will run the stationary shop which is belongs to Mesut Ojil Auto Parts Company Ltd. and that he(Farguson) will provide 40% of the monthly revenue he earns from the shop. 7) Farguson earned Tk 40,000 from the shop in the whole month and Tk 16,000 (4000*40%), is sent to Mesut Ojil Auto Parts Company Ltd.

Requirement: a. Show the effect of above transactions using the following format. (Use + or for indicating increase or decrease) SL Cash + Assets = A/R +Supplies+Equipment A/P Liabilities+ Owners Equity + Loan +Capital + Revenue-Drawings -Expenses

b. Based on the above information prepare an Income Statement, and a Balance Sheet. (Use the following format) 1

Question 3 The following transactions are extracted from the books of accounts of
Mesut Ojil Auto Parts Company Ltd.: 1) Mr. Ojil started his business with Tk300,000 cash, Tk200,000 supplies and Tk200,000 bank loans. 2) Cash paid for advertising expense Tk10,000 3) Goods purchased amounting Tk30,000 of which Tk 10000 paid in cash. 4) The payable of 3 above is paid. 5) Mr. Ojil celebrated his 27th birthday by withdrawing Tk 70,000 from the business. 6) Goods sold Tk 175,000 in cash and Tk30,000 on credit. 7) The receivable of 6 above became bankrupt and hence only 60% of his credit received in cash and the balance will remain uncollectible.

Requirement: c. Show the effect of above transactions using the following format. (Use + or for indicating increase or decrease) SL Cash + Assets = A/R +Supplies+Equipment A/P Liabilities+ Owners Equity + Loan +Capital + Revenue-Drawings -Expenses

Question 2: The following transactions are extracted from the books of accounts of Mr.D. Maria:

8)

Mr.D. Maria started his business with Tk300,000 cash, Tk200,000 supplies and Tk300,000 bank loans and Tk 200,000 equipments. 9) Cash paid for advertising expense Tk80,000 10) Goods purchased amounting Tk50,000 of which 30% paid in cash and 50% on cheque. 11) The payable of 3 above is paid less 10% cash discount. 12) Mr.D. Maria celebrated his 27th birthday by withdrawing Tk 200,000 from the business. 13) Goods sold Tk35,000 in cash and Tk30,000 on credit. 14) The receivable of 6 above has been proved bankrupt and hence only 70% of his debt is received in cash and the remaining portion is uncollectible. Requirement: Show the effect of above transactions using the following format. Assets Cash + A/R +Supplies + = Equipment Liabilities+ Owners Equity A/P + Loan + Capital + Revenue-Drawings-Expenses

Question 3:

The following transactions are extracted from the books of accounts of Mr.Gonzalo Higuain : 15) Mr. Higuain started his business with Tk300,000 cash, Tk200,000 supplies and Tk200,000 bank loans. 16) Cash paid for advertising expense Tk50,000 17) Goods purchased amounting Tk70,000 of which 30% paid in cash and 30% on cheque. 18) The payable of 3 above is paid less 10% cash discount. 19) Mr. Higuain celebrated his 27th birthday by withdrawing Tk 100,000 from the business. 20) Goods sold Tk35,000 in cash and Tk30,000 on credit. 21) The receivable of 6 above has been proved bankrupt and hence only 70% of his debt is received in cash and the remaining portion is uncollectible. Requirement: Show the effect of above transactions using the following format.
Assets Cash + A/R + Supplies + Equipment = A/P Liabilities+ Owners Equity + Loan + Capital+ Revenue-Expenses - Drawings

Journalization
Question 1: Paulo Maldini is the owner of Maldini Consultancy Firm and started their operation on 1st June 2010. The following information is related with the operations of June, 2010: June 1: Mr. Maldini Invested Tk 180,000 cash, and supplies of Tk 500,000 and Tk 600,000 bank loan June 7: Salary expenses incurred Tk 50,000 and 80% paid in cash. June10: Tax services provided to Cahil Footware Company for Tk 50,000 on credit but the transaction is not recorded. June 12: Cash Tk 80,000 received in advance from Diego Automobile for providing consultancy service. June 15: Advisory services provided and billed to Palermo Repairment Co. for Tk 80,000 June 25: Consultancy service amounting Tk 60,000 provided to Diego Automobile for the advance received. June 30: Maldini Consultancy Firm borrowed Tk 60,000 from NCC Bank Ltd. Requirement:

1. Journalize the above transactions showing a brief explanation for each. 2. Prepare a cash account and a revenue account (include all types of revenue) from the above transactions.
Questio2: Robarto Mancini is the owner of Mancini Accounting Firm. and started their operation on 1st May 2010. The following information is related with the operations of June, 2010: June 1: Mr. Mancini Invested Tk 100,000 cash, equipment of Tk 100,000 and took a loan of Tk 50,0000 to start the business. June 3: Advertising expenses uncured for Tk 50,000 and 70% paid in cash. June 6: The remaining balance payable for June 3 transaction is paid. June 12: Cash Tk 50,000 received in advance from Tevez Automobile for providing Tax service. June 15: Tax services provided to Messi Equipment Co. for Tk 20,000 but no cash is received yet. June 18: Mr. Mancini borrowed Tk 70,000 from Brac Bank Ltd. June 30: Mr. Mancini signed a 5-year insurance contract with General Insurance Co. and Tk 50,000 paid in advance for the first two years. (The portion of the cost related to June 2008 is an expense for the month) Requirement:

Journalize the above transactions showing a brief explanation for each. (Use the following format)

Question 3: The following transactions are related with the last month operation of Mr.Traut & Brothers: June 1: Mr.John Traut started their operation in 1st June 2008. The following information is related with the operations of June, 2008: June 2: Purchase of goods amounting Tk.70,000 of which 40% paid in cash and 30% paid in cheque. June 6: The remaining balance payable for June 2 transaction is paid less 10% cash discount. June 12: Goods purchased from Mr.Perera Tk.40,000 June 15: Goods amounting Tk.7000 became scrap and hence returned to Mr.Perera. June 18: Mr. Traut signed a contract with Mr. Shakil that they will sell goods amounting Tk 20,000 to Mr. Shakil at next month. June 30: Signed a 5-year insurance contract with General Insurance Co. and Tk 25,000 paid in advance for the first two years. (The portion of the cost related to June 2008 is an expense for the month) Requirement: Journalize the above transactions showing a brief explanation for each. Question 4
Robarto Mancini is the owner of Mancini Accounting Firm and started their operation on 1st June 2010. The following information is related with the operations of June, 2010: June 1: Mr. Mancini Invested Tk 100,000 cash, and equipment of Tk 100,000. June 3: Advertising expenses incurred for Tk 50,000 and 70% paid in cash. June 6: The remaining balance payable for June 3 transaction is paid. June 12: Cash Tk 50,000 received in advance from Tevez Automobile for providing Tax service. June 15: Tax services provided to Messi Equipment Co. for Tk 20,000 but no cash is received yet. June 30: Mr. Mancini borrowed Tk 70,000 from Brac Bank Ltd. Requirement:

1) Journalize the above transactions showing a brief explanation for each.

2) Post the journals into the ledger accounts. 3) Prepare a trial balance from the ledger accounts of Mancini Accounting Firm

Adjusting Entries
Question 1: Mr.Luca Toni started his consultancy firm, Toni Consultancy Firm, on May1, 2010. The trial balance at 31st May, 2010 is as follows: Toni Consultancy Firm Trial Balance March 31, 2010 Account Debit Credit Details Number (Tk) (Tk) 101 105 109 115 121 129 189 222 229 247 293 300 Bank Accounts Receivable Prepaid Insurance Supplies Office furniture Accounts Payable Unearned Service Revenue Victor, Capital Notes Payable Service Revenue Salaries expense Rent Expense 58,000 8,000 2,400 1,500 72,000 56,400 7,000 54,100 5,000 36,000 1,48,500

3,000 3,600 1,48,900

Other data: 1. Insurance policy is purchased for 20 years. 2. 6/7th of unearned revenue is earned. 3. Supplies of Tk 1100 are used during the whole month. 4. Service revenue earned Tk 5,000 is not recorded yet. 5. The office furniture is to be depreciated @ 10% per year. 6. Cash TK 2000 invested by the owner. 7. The note payable is payable after 9 months with 10% interest per annum. The note payable was signed at 1st March, 2010. 8. Salaries are paid at every Saturday and 31st March is Wednesday. Toni Consultancy Firm has 5 workers, each paid TK 2,400 per week of a six day work-week (Monday through Saturday). Requirement: Prepare adjusting entries for the month. (Use the space of the next page)

Question 2: Mr.Mascherano started his advertising business, Mascherano Advertising Ltd, on May1, 2010. The trial balance at 31st May, 2010 is as follows: Mascheano Advertising Trial Balance March 31, 2010 Account Number 101 105 109 115 121 129 189 222 229 247 293 Details Bank Accounts Receivable Prepaid Insurance Supplies Office furniture Accounts Payable Unearned Service Revenue Victor, Capital Service Revenue Salaries expense Rent Expense Debit (Tk) 8000 8000 2400 1500 12000 Credit (Tk)

3000 4000

6800 7000 19,100 6000

Other data: 9. Insurance policy is purchased for 4 years 10. 1/5th of unearned revenue is earned. 11. Supplies of Tk 1000 is on hand at the end of the month. 12. Salaries is paid at every Saturday and 31st May is Wednesday. Mascherano Advertising Ltd. has 5 workers, each paid TK 1400 per week of a seven day week. 13. Service revenue earned Tk 5000 is not recorded yet. 14. The office furniture is to be depreciated @ 20% per year. 15. Cash TK 2000 invested by the owner.

Requirement: Prepare adjusting entries for the month.

1/7/2012