Description
This Project on Fundamentals of Accounting - K&N’s
Newports Institute of Communications and Economics
Project Report K&N’s
Fundamentals of Accounting
Submitted by:
Muhammad Dawar,
Zohaib Ali
Muhammad Usman
K & N’s– Final Report
Page | 2
Table of Contents
Transactions ......................................................................................................................................3
General Journal ..................................................................................................................................4
T-Accounts .........................................................................................................................................7
Cash ........................................................................................................................................................... 7
Purchases .................................................................................................................................................. 7
Sales .......................................................................................................................................................... 7
Accounts Payable ...................................................................................................................................... 8
Insurance Expense .................................................................................................................................... 8
Sales Return .............................................................................................................................................. 8
Marketing Expense.................................................................................................................................... 8
Stationary Expense .................................................................................................................................... 8
Computer Expense .................................................................................................................................... 8
Drawing Expense ....................................................................................................................................... 8
Bank........................................................................................................................................................... 9
Capital ....................................................................................................................................................... 9
Account Receivable ................................................................................................................................... 9
Building ..................................................................................................................................................... 9
Equipments ............................................................................................................................................... 9
Supplier ..................................................................................................................................................... 9
Furniture ................................................................................................................................................... 9
Rent Expense ........................................................................................................................................... 10
Wages Expense ....................................................................................................................................... 10
Rent Expense ........................................................................................................................................... 10
Transportation Expense .......................................................................................................................... 10
Wages Expense ....................................................................................................................................... 10
Transportation Expense .......................................................................................................................... 10
Trial Balance .................................................................................................................................... 11
Introduction .................................................................................................................................... 12
Adjusting Entries for the Period Ended ............................................................................................. 12
Income Statement ........................................................................................................................... 13
Balance Sheet .................................................................................................................................. 14
Cash Flow Statement ....................................................................................................................... 15
K & N’s– Final Report
Page | 3
Transactions
1. K&N’s was started on 1
st
July 2013 with the investment of cash Rs.100000, shop
equipment Rs. 50000 and Building Rs. 1000000.
2. Purchased merchandise for cash to 25000 and on account 15000
3. Purchased of a supplier for cash Rs.2000
4. Purchased shop furniture on account Rs. 5000
5. Sold merchandise for cash Rs.50000
6. Paid to supplier Rs.10000
7. Sold merchandise on account Rs.15000
8. Paid rent for the month Rs.1500
9. Paid transportation exp Rs. 5000
10. Paid wages in cash 10000
11. Received cash 1500
12. The business cash deposit into the business bank account Rs.10000
13. Received cash from Mr. Shan Rs. 80000
14. Paid for salaries Rs.30000
15. Paid Insurance exp Rs.5000
16. Mr. Ali returned defective goods Rs. 10000
17. Paid to Mr.Ali Rs. 15000
18. Deposit into bank the cash received Rs.10000
19. Purchased stationary for shop Rs.10000
20. Advertisement exp for promotion of K&Ns Rs.20000
21. Sold old computers on cash Rs.50000
22. Purchased merchandise for shop on cash Rs.20000
23. Purchasing a new computer on cheque Rs.50000
24. Purchased gold ring for personal use on cash Rs.50000
25. Purchased merchandise for shop on cash Rs.10000
K & N’s– Final Report
Page | 4
General Journal
Added Particular Debit Credit
1/3/2013 Cash
100,000
Shop Equipment
50,000
Building
1,000,000
Capital
1,150,000
( To K&N’s invest cash, Equipment and building)
1/4/2013 Purchases
40,000
Cash
25,000
Account Payable
15,000
(To record brought merchandise on cash and account)
1/25/2013 Office supplier
2,000
Cash
2,000
(To record brought supplier on cash)
2/15/2013 Shop Furniture
5,000
Account Payable
5,000
(To record brought shop furniture on Account
3/26/2013 Cash
50,000
Sales
50,000
(To record sold merchandise on cash)
3/27/2013 Account Payable
10,000
Cash
10,000
(To record paid to supplier)
3/29/2013 Account Receivable
15,000
Sales
15,000
(To record sold on account)
4/1/2013 Rent Expense
1,500
Cash
1,500
(To record paid for rent)
4/15/2013 Transportation Expense
5,000
Cash
5,000
(To record paid for transportation)
4/26/2013 Wages Expense
10,000
Cash
10,000
(To record paid for wages)
K & N’s– Final Report
Page | 5
5/10/2013 Cash
1,500
Account Receivable
1,500
(To record received cash to Mr. Ali)
6/25/2013 Bank
10,000
Cash
10,000
(To record deposit to the bank)
7/9/2013 Cash
80,000
Account Receieable
80,000
(To record received cash)
8/15/2013 Salaries Expense
30,000
Cash
30,000
(To record paid for the salaries)
8/25/2013 Insurance Expense
5,000
Bank
5,000
9/5/2013 Sales Return
10,000
Cash
10,000
(To record Mr. Ali returned defective)
9/10/2013 Account Payable
15,000
Cash
15,000
(To record paid to Mr. Ali)
10/15/2013 Bank
10,000
Cash
10,000
(To record deposit into bank)
10/29/2013 Stationary Expense
10,000
Cash
10,000
(To record stationary expense)
11/5/2013 Marketing Expense
20,000
Cash
20,000
(To record Paid to Advertisement)
11/7/2013 Cash
50,000
Machinery
50,000
(To record sale old computers)
K & N’s– Final Report
Page | 6
11/25/2013 Purchases
20,000
Cash
20,000
(To record bought merchandise)
12/5/2013 Machinery
50,000
Bank
50,000
(To record buy computers)
12/12/2013 Drawing
50,000
Cash
50,000
(To record buy gold ring)
12/11/2013 Purchase
10,000
Cash
10,000
(To record bought merchandise
K & N’s– Final Report
Page | 7
T-Accounts
Cash
Debit Credit
100,000
25,000
50,000
20,000
15,000
10,000
80,000
1,500
50,000
5,000
10,000
10,000
30,000
5,000
10,000
15,000
10,000
10,000
20,000
20,000
50,000
10,000
295,000
261,500
Balance C/D 33,500
295,000
295,000
Purchases
Debit Credit
40,000
10,000
20,000
Balance C/D 70,000
70,000
70,000
Sales
Debit Credit
Balance C/D 115,000
50,000
15,000
50,000
115,000
115,000
115,000
K & N’s– Final Report
Page | 8
Accounts Payable
Debit Credit
10,000
15,000
15,000
5,000
Balance C/D 5,000
25,000
25,000
Insurance Expense
Debit Credit
5,000 Balance C/D 5,000
5,000
5,000
Sales Return
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Marketing Expense
Debit Credit
20,000 Balance C/D 20,000
20,000
20,000
Stationary Expense
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Computer Expense
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
Drawing Expense
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
K & N’s– Final Report
Page | 9
Bank
Debit Credit
10,000
50,000
10,000
Balance C/D 30,000
50,000
50,000
Capital
Debit Credit
Balance C/D 1,150,000
1,150,000
1,150,000
1,150,000
Account Receivable
Credit Debit
15,000
1,500
Balance C/D 66,500
80,000
81,500
81,500
Building
Debit Credit
1,000,000 Balance C/D 1,000,000
1,000,000
1,000,000
Equipments
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
Supplier
Debit Credit
2,000 Balance C/D 2,000
2,000
2,000
Furniture
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
K & N’s– Final Report
Page | 10
Rent Expense
Debit Credit
1,500 Balance C/D 1,500
1,500
1,500
Wages Expense
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Rent Expense
Debit Credit
1,500 Balance C/D 1,500
1,500
1,500
Transportation Expense
Debit Credit
5,000 Balance C/D 5,000
5,000
5,000
Wages Expense
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Transportation Expense
Debit Credit
30,000 Balance C/D 30,000
30,000
30,000
K & N’s– Final Report
Page | 11
Trial Balance
Particular Debit Credit
Cash
Bank
Purchase
Sales
Sales return and allowance
Capital
Drawing
Account payable
Account Receivable
Equipment
Building
Furniture
Rent Exp
Computers
Advertisement Exp
Stationary Exp
Insurance exp
Wages exp
Salaries Exp
Transportation Exp
Suppliers Exp
38000
70000
10000
50000
5000
5000
1000000
5000
1500
50000
20000
10000
5000
10000
30000
5000
2000
30000
115000
1150000
66500
Total 1361500 1361500
K & N’s– Final Report
Page | 12
Introduction
Merchandise inventory opening Rs 50000, Notes payable 43000, Sales 100000, Allowances for
depreciation on building Rs. 90000.
Adjusting entry:
(i) Merchandise inventory ending for Rs. 50000
(ii) Paid Depreciation Expense on building Rs. 10000
(iii) Paid Bad Debt exp for Rs.10000
Adjusting Entries for the Period Ended
Particular p/r Debit Credit
(i)
(ii)
(iii)
Merchandise inventory ending
Expense and revenue summary
(To record paid to merchandise inventory)
Depreciation Exp
Allowance for depreciation
(To recode paid depreciation expense)
Bad Debt Expense
Allowance for bad debt
(To record paid bad debt expense)
50000
10000
10000
50000
10000
10000
K & N’s– Final Report
Page | 13
Income Statement
Sales
Sales return and allowances
Net Sales
Cost of Goods Sold:
Merchandise inventory opening
Purchase
Net Purchase
Less: Merchandise inventory Ending
Total cost of good sold available for sales:
Less: Operating Expenses:
Rent Expense
Advertisement Expense
Stationary Expense
Insurance Expense
Wages Expense
Salaries Expense
Transportation Expense
Supplier Expense
Bad debt Expense
Depreciation expense
Net Profit:
50000
70000
1500
20000
10000
5000
10000
30000
5000
2000
10000
10000
215000
(10000)
120000
(50000)
205000
(70000)
135000
(103500)
31500
K & N’s– Final Report
Page | 14
Balance Sheet
Assets:
Cash
Bank
Account Receivable
Allowances for Bad Debt
Equipment
Computers
Merchandise Inventory ending
Total Current Assets:
Fixed Assets:
Building
Allowances for depreciation
Furniture
Total Fixed Assets:
Balance Amount:
Liabilities:
Account Payable
Notes Payable
Total Liabilities:
Owner Equity:
Capital
Drawing
Profit
Total Equity:
Balance Amount:
66500
(10000)
38000
30000
56500
50000
50000
50000
274500
905000
1000000
(10000)
900000
5000
1150000
(50000)
5000
43000
1179500
48000
1131500
1100000
31500
1179500
K & N’s– Final Report
Page | 15
Cash Flow Statement
Operations
Cash receipts from customers 693,200
Cash Paid For
Inventry Purchases 50,000
Wage Expense 10,000
Income Tax 32,000
Net Cash Flow from Operations 601,200
Investing Activities
Cash receipts from
Sale of Machinery 50,000
Collection of Principal on loans
Sale of investment activity
Cash Paid for
Purchase of Property and Equipment 1,050,000
Net Cash Flow from Investing (1,000,000)
doc_695882269.docx
This Project on Fundamentals of Accounting - K&N’s
Newports Institute of Communications and Economics
Project Report K&N’s
Fundamentals of Accounting
Submitted by:
Muhammad Dawar,
Zohaib Ali
Muhammad Usman
K & N’s– Final Report
Page | 2
Table of Contents
Transactions ......................................................................................................................................3
General Journal ..................................................................................................................................4
T-Accounts .........................................................................................................................................7
Cash ........................................................................................................................................................... 7
Purchases .................................................................................................................................................. 7
Sales .......................................................................................................................................................... 7
Accounts Payable ...................................................................................................................................... 8
Insurance Expense .................................................................................................................................... 8
Sales Return .............................................................................................................................................. 8
Marketing Expense.................................................................................................................................... 8
Stationary Expense .................................................................................................................................... 8
Computer Expense .................................................................................................................................... 8
Drawing Expense ....................................................................................................................................... 8
Bank........................................................................................................................................................... 9
Capital ....................................................................................................................................................... 9
Account Receivable ................................................................................................................................... 9
Building ..................................................................................................................................................... 9
Equipments ............................................................................................................................................... 9
Supplier ..................................................................................................................................................... 9
Furniture ................................................................................................................................................... 9
Rent Expense ........................................................................................................................................... 10
Wages Expense ....................................................................................................................................... 10
Rent Expense ........................................................................................................................................... 10
Transportation Expense .......................................................................................................................... 10
Wages Expense ....................................................................................................................................... 10
Transportation Expense .......................................................................................................................... 10
Trial Balance .................................................................................................................................... 11
Introduction .................................................................................................................................... 12
Adjusting Entries for the Period Ended ............................................................................................. 12
Income Statement ........................................................................................................................... 13
Balance Sheet .................................................................................................................................. 14
Cash Flow Statement ....................................................................................................................... 15
K & N’s– Final Report
Page | 3
Transactions
1. K&N’s was started on 1
st
July 2013 with the investment of cash Rs.100000, shop
equipment Rs. 50000 and Building Rs. 1000000.
2. Purchased merchandise for cash to 25000 and on account 15000
3. Purchased of a supplier for cash Rs.2000
4. Purchased shop furniture on account Rs. 5000
5. Sold merchandise for cash Rs.50000
6. Paid to supplier Rs.10000
7. Sold merchandise on account Rs.15000
8. Paid rent for the month Rs.1500
9. Paid transportation exp Rs. 5000
10. Paid wages in cash 10000
11. Received cash 1500
12. The business cash deposit into the business bank account Rs.10000
13. Received cash from Mr. Shan Rs. 80000
14. Paid for salaries Rs.30000
15. Paid Insurance exp Rs.5000
16. Mr. Ali returned defective goods Rs. 10000
17. Paid to Mr.Ali Rs. 15000
18. Deposit into bank the cash received Rs.10000
19. Purchased stationary for shop Rs.10000
20. Advertisement exp for promotion of K&Ns Rs.20000
21. Sold old computers on cash Rs.50000
22. Purchased merchandise for shop on cash Rs.20000
23. Purchasing a new computer on cheque Rs.50000
24. Purchased gold ring for personal use on cash Rs.50000
25. Purchased merchandise for shop on cash Rs.10000
K & N’s– Final Report
Page | 4
General Journal
Added Particular Debit Credit
1/3/2013 Cash
100,000
Shop Equipment
50,000
Building
1,000,000
Capital
1,150,000
( To K&N’s invest cash, Equipment and building)
1/4/2013 Purchases
40,000
Cash
25,000
Account Payable
15,000
(To record brought merchandise on cash and account)
1/25/2013 Office supplier
2,000
Cash
2,000
(To record brought supplier on cash)
2/15/2013 Shop Furniture
5,000
Account Payable
5,000
(To record brought shop furniture on Account
3/26/2013 Cash
50,000
Sales
50,000
(To record sold merchandise on cash)
3/27/2013 Account Payable
10,000
Cash
10,000
(To record paid to supplier)
3/29/2013 Account Receivable
15,000
Sales
15,000
(To record sold on account)
4/1/2013 Rent Expense
1,500
Cash
1,500
(To record paid for rent)
4/15/2013 Transportation Expense
5,000
Cash
5,000
(To record paid for transportation)
4/26/2013 Wages Expense
10,000
Cash
10,000
(To record paid for wages)
K & N’s– Final Report
Page | 5
5/10/2013 Cash
1,500
Account Receivable
1,500
(To record received cash to Mr. Ali)
6/25/2013 Bank
10,000
Cash
10,000
(To record deposit to the bank)
7/9/2013 Cash
80,000
Account Receieable
80,000
(To record received cash)
8/15/2013 Salaries Expense
30,000
Cash
30,000
(To record paid for the salaries)
8/25/2013 Insurance Expense
5,000
Bank
5,000
9/5/2013 Sales Return
10,000
Cash
10,000
(To record Mr. Ali returned defective)
9/10/2013 Account Payable
15,000
Cash
15,000
(To record paid to Mr. Ali)
10/15/2013 Bank
10,000
Cash
10,000
(To record deposit into bank)
10/29/2013 Stationary Expense
10,000
Cash
10,000
(To record stationary expense)
11/5/2013 Marketing Expense
20,000
Cash
20,000
(To record Paid to Advertisement)
11/7/2013 Cash
50,000
Machinery
50,000
(To record sale old computers)
K & N’s– Final Report
Page | 6
11/25/2013 Purchases
20,000
Cash
20,000
(To record bought merchandise)
12/5/2013 Machinery
50,000
Bank
50,000
(To record buy computers)
12/12/2013 Drawing
50,000
Cash
50,000
(To record buy gold ring)
12/11/2013 Purchase
10,000
Cash
10,000
(To record bought merchandise
K & N’s– Final Report
Page | 7
T-Accounts
Cash
Debit Credit
100,000
25,000
50,000
20,000
15,000
10,000
80,000
1,500
50,000
5,000
10,000
10,000
30,000
5,000
10,000
15,000
10,000
10,000
20,000
20,000
50,000
10,000
295,000
261,500
Balance C/D 33,500
295,000
295,000
Purchases
Debit Credit
40,000
10,000
20,000
Balance C/D 70,000
70,000
70,000
Sales
Debit Credit
Balance C/D 115,000
50,000
15,000
50,000
115,000
115,000
115,000
K & N’s– Final Report
Page | 8
Accounts Payable
Debit Credit
10,000
15,000
15,000
5,000
Balance C/D 5,000
25,000
25,000
Insurance Expense
Debit Credit
5,000 Balance C/D 5,000
5,000
5,000
Sales Return
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Marketing Expense
Debit Credit
20,000 Balance C/D 20,000
20,000
20,000
Stationary Expense
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Computer Expense
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
Drawing Expense
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
K & N’s– Final Report
Page | 9
Bank
Debit Credit
10,000
50,000
10,000
Balance C/D 30,000
50,000
50,000
Capital
Debit Credit
Balance C/D 1,150,000
1,150,000
1,150,000
1,150,000
Account Receivable
Credit Debit
15,000
1,500
Balance C/D 66,500
80,000
81,500
81,500
Building
Debit Credit
1,000,000 Balance C/D 1,000,000
1,000,000
1,000,000
Equipments
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
Supplier
Debit Credit
2,000 Balance C/D 2,000
2,000
2,000
Furniture
Debit Credit
50,000 Balance C/D 50,000
50,000
50,000
K & N’s– Final Report
Page | 10
Rent Expense
Debit Credit
1,500 Balance C/D 1,500
1,500
1,500
Wages Expense
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Rent Expense
Debit Credit
1,500 Balance C/D 1,500
1,500
1,500
Transportation Expense
Debit Credit
5,000 Balance C/D 5,000
5,000
5,000
Wages Expense
Debit Credit
10,000 Balance C/D 10,000
10,000
10,000
Transportation Expense
Debit Credit
30,000 Balance C/D 30,000
30,000
30,000
K & N’s– Final Report
Page | 11
Trial Balance
Particular Debit Credit
Cash
Bank
Purchase
Sales
Sales return and allowance
Capital
Drawing
Account payable
Account Receivable
Equipment
Building
Furniture
Rent Exp
Computers
Advertisement Exp
Stationary Exp
Insurance exp
Wages exp
Salaries Exp
Transportation Exp
Suppliers Exp
38000
70000
10000
50000
5000
5000
1000000
5000
1500
50000
20000
10000
5000
10000
30000
5000
2000
30000
115000
1150000
66500
Total 1361500 1361500
K & N’s– Final Report
Page | 12
Introduction
Merchandise inventory opening Rs 50000, Notes payable 43000, Sales 100000, Allowances for
depreciation on building Rs. 90000.
Adjusting entry:
(i) Merchandise inventory ending for Rs. 50000
(ii) Paid Depreciation Expense on building Rs. 10000
(iii) Paid Bad Debt exp for Rs.10000
Adjusting Entries for the Period Ended
Particular p/r Debit Credit
(i)
(ii)
(iii)
Merchandise inventory ending
Expense and revenue summary
(To record paid to merchandise inventory)
Depreciation Exp
Allowance for depreciation
(To recode paid depreciation expense)
Bad Debt Expense
Allowance for bad debt
(To record paid bad debt expense)
50000
10000
10000
50000
10000
10000
K & N’s– Final Report
Page | 13
Income Statement
Sales
Sales return and allowances
Net Sales
Cost of Goods Sold:
Merchandise inventory opening
Purchase
Net Purchase
Less: Merchandise inventory Ending
Total cost of good sold available for sales:
Less: Operating Expenses:
Rent Expense
Advertisement Expense
Stationary Expense
Insurance Expense
Wages Expense
Salaries Expense
Transportation Expense
Supplier Expense
Bad debt Expense
Depreciation expense
Net Profit:
50000
70000
1500
20000
10000
5000
10000
30000
5000
2000
10000
10000
215000
(10000)
120000
(50000)
205000
(70000)
135000
(103500)
31500
K & N’s– Final Report
Page | 14
Balance Sheet
Assets:
Cash
Bank
Account Receivable
Allowances for Bad Debt
Equipment
Computers
Merchandise Inventory ending
Total Current Assets:
Fixed Assets:
Building
Allowances for depreciation
Furniture
Total Fixed Assets:
Balance Amount:
Liabilities:
Account Payable
Notes Payable
Total Liabilities:
Owner Equity:
Capital
Drawing
Profit
Total Equity:
Balance Amount:
66500
(10000)
38000
30000
56500
50000
50000
50000
274500
905000
1000000
(10000)
900000
5000
1150000
(50000)
5000
43000
1179500
48000
1131500
1100000
31500
1179500
K & N’s– Final Report
Page | 15
Cash Flow Statement
Operations
Cash receipts from customers 693,200
Cash Paid For
Inventry Purchases 50,000
Wage Expense 10,000
Income Tax 32,000
Net Cash Flow from Operations 601,200
Investing Activities
Cash receipts from
Sale of Machinery 50,000
Collection of Principal on loans
Sale of investment activity
Cash Paid for
Purchase of Property and Equipment 1,050,000
Net Cash Flow from Investing (1,000,000)
doc_695882269.docx