Term Paper

Course name: Principles of Accounting

Submitted to:
Dr. Samir Kumar Sheel
Associate Professor
Department of Marketing
University of Dhaka

Submitted by:
Mohammad Saaif-Al-Islam
ID no. 40713059
Dept. of Marketing (EMBA)
University of Dhaka

Submission Date: 16.08.2009

Solution: 02 –
Journalize the Transactions

Mr. Zahid Limited, Dhaka

Journal Book
For the Month of January 2003

Date Particulars Ref. Debit (Tk.) Credit (Tk.)

Jan. 01 Cash A/C Dr. 35,000/-
To Zahid's Capital A/C 35,000/-
(Cash brought in business as capital)
Jan. 05 Machinery A/C Dr. 5,000/-
To Cash A/C 5,000/-
(Machinery purchase on cash)
Jan. 08 Purchase A/C Dr. 5,000/-
To Mr.Hasan A/C 5,000/-
(Purchase of goods from Mr.Hasan)
Jan. 10 Purchase A/C Dr. 3,000/-
To Cash A/C 3,000/-
(Purchase of goods by cash from Mr.
Zaman)
Jan. 15 Mr.Hasan A/C Dr. 100/-
To Purchase Return A/C 100/-
(Purchased goods returned to
Mr.Hasan )
Jan. 20 Cash A/C Dr. 3,500/-
To Sales A/C 3,500/-
(Cash sales of goods )
Jan. 22 Mr. Shamim A/C Dr. 6,000/-
To Sales A/C 6,000/-
(Sale of goods to Mr. Shamim )
Jan. 25 Sells Return A/C Dr. 1,600/-
To Mr. Shamim A/C 1,600/-
(Sells return from debtor )
Jan. 27 Cash A/C Dr. 5,000/-
To Sonali Bank A/C 5,000/-
(Withdraw in cash from Sonali Bank )
Jan. 30 Commission A/C Dr. 1,200/-
To Cash A/C 1,200/-
(Commission received in cash)
Solution: 03 –
Ledger and Trial Balance:

Mr. Zahid Limited, Dhaka

Cash A/C / Cash Book/ Cash Ledger
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 01 Mr. Zahid's Capital 35,000
A/C Jan 05 Machinery A/C 5,000

Jan 20 Sales A/C 3,500 Jan 10 Purchase A/C 3,000

Jan 27 Sonali Bank A/C 5,000 Jan 30 Commission A/C 1,200

Jan 30 Balance c/d 34,300

43,500 43,500
====== ======
Jan 31 Balance b/d 34,300

Mr. Zahid Limited, Dhaka

Purchase A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 08 Mr.Hasan A/C 5,000

Jan 10 Cash A/C 3,000 Jan 10 Balance c/d 8,000

8,000 8,000
====== ======
Jan 31 Balance b/d 8,000
 Mr. Zahid Limited, Dhaka
Mr. Zahid’s Capital A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 01 Balance c/d 35,000 Jan 01 Cash A/C 35,000

35,000 35,000
====== ======
Jan 31 Balance b/d 35,000

Mr. Zahid Limited, Dhaka

Machinary A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 05 Cash A/C 5,000 Jan 05 Balance c/d 5,000

5,000 5,000
====== ======
Jan 31 Balance b/d 5,000

Mr. Zahid Limited, Dhaka

Mr. Hasan A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 08 Purchase A/C 5,000
Jan 15 Purchase Return A/C 100

Jan 15 Balance c/d 4,900

5,000 5,000
====== ======
Jan 31 Balance b/d 4,900
 Mr. Zahid Limited, Dhaka
Purchase Return A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 15 Balance c/d 100 Jan 15 Mr. Hasan A/C 100

100 100
====== ======
Jan 31 Balance b/d 100

Mr. Zahid Limited, Dhaka

Sales A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 20 Cash A/C 3,500
Jan 22 Balance c/d 9,500 Jan 22 Mr. Shamim A/C 6,000

9,500 9,500
====== ======
Jan 31 Balance b/d 9,500

Mr. Zahid Limited, Dhaka

Mr. Shamim A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 22 Sales A/C 6,000
Jan 25 Sales Return A/C 1,600
Jan 25 Balance c/d 4,400

6,000 6,000
====== ======
Jan 31 Balance b/d 4,400
 Mr. Zahid Limited, Dhaka
Sales return A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 25 Mr. Shamim A/C 1,600 Jan 25 Balance c/d 1,600

1,600 1,600
====== ======
Jan 31 Balance b/d 1,600

Mr. Zahid Limited, Dhaka

Sonali Bank A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 27 Balance c/d 5,000 Jan 27 Cash A/C 5,000

5,000 5,000
====== ======
Jan 31 Balance b/d 5,000

Mr. Zahid Limited, Dhaka

Commission A/C
For the Month of January 2003

Debit Credit
Date Particulars J.R. TK. Date Particulars J.R. TK.
2003 To 2003 By
Jan 30 Cash A/C 1,200 Jan 30 Balance c/d 1,200

1,200 1,200
====== ======
Jan 31 Balance b/d 1,200
 MR. Zahid Ltd. Dhaka
Trial Balance
As on 31st January 2003

SL. No. Particulars L. F. Debit TK. Credit TK.

01 Cash A/C 34,300/-

02 Purchase A/C 8,000/-

03 Capital A/C 35,000/-

04 Machinery A/C 5,000/-

05 Mr. Hasan A/C 4,900/-

06 Purchase Return A/C 100/-

07 Sales A/C 9, 500/-

08 Mr. Shamim A/C 4,400/-

09 Sales Return A/C 1,600/-

10 Sonali Bank A/C 5,000/-

11 Commission A/C 1,200/-

Total 54,500/- 54,500/-

========= =========
Solution: 04 –
Trading A/C, Profit Loss A/C, Balance Sheet of MR. Arif:

Mr. Arif Ltd. Dhaka.

Trading Account
For the year ended 31st December 2003

Debit Credit
Particulars Tk Amount Particulars Tk Amount
(Tk.) (Tk.)
To By

Opening Stock 26,420/- Sales : 97,700/-

Less : return inwards 1,760/- 95,940/-
Purchase : 42,230/-

Closing Stock 21,000/-

Carriage inwards 3,290/-

Import duty/ Tax 2,000/-

Wages : 18,720/-

Gross Profit 24,280/-

(Transferred to P/L A/C)
________ ________
1,34,690/- 1,34,690/-
 Mr. Arif Ltd. Dhaka.
Profit & Loss Account
For the year ended 31st December 2003

Debit Credit
Particulars Tk Amount Particulars Tk Amount
(Tk.) (Tk.)
To By
2,500/
Salary : - Gross profit 24,280/-
Add : outstanding 2,100/- (Transferred from
Less : paid in advance 4,600/- Trading A/C)

Advertising 4,000/-

Insurance prem. 240/-

Less: prepaid 105/-
135/-
Bad debts : 740/-
Add : new bad debts 1,890/-
Less : reserve for bad 2,000/-
debts
630/-
Depreciation on Assets
Building & Land : 1,500/-
Machinery & Plant : 150/-

1,650/-

Net Profit 13,265/

(Transferred to Balance
Sheet) ________ ________
24,280/- 24,280/-
 Mr. Arif Ltd. Dhaka.
Balance Sheet
As at 31st December 2003

Liabilities Tk Amount Assets Tk Amount

(Tk.) (Tk.)
Bills payable 1,500/- Cash in hand 270/-

Sundry creditors 12,790/- Balance at bank 30,000/-

Due liabilities for Investment 15,000/-

expenses : Add : Due interest
Wages
Salaries 2,100/-
Rent Bills receivable 18,460/-
Interest on loan
Sundry debtors 37,800/-
Less : reserve for bad 1,890/- 35,910/-
debts

Capital 90,000/-
Add : New capital Closing stock 21,000/-
Less : Drawings 12,480/-
Add : Net profit 13,265/- Expenses paid in
90,785/- advance :
Wages
Suspense 33,920/- Rent
Interest on loan
Prepaid on insurance 105/-

Fixed Assets :
Land & buildings 20,000/-
Less : Deprecations - 1,500/- 18,500/-
Machinery
Less : Deprecations
Furniture 2,000/-
Less : Deprecations 150/- 1,850/-

_________ _________
Total : 1,41,095/- 1,41,095/-
Solution: 06 –
Trading A/C, Profit loss A/C, Balance Sheet of Tridhara
trading:

Tridhara Trading Ltd. Dhaka.

Trading Account
For the year ended 31st December 2004

Debit Credit
Particulars Tk Amount Particulars Tk Amount
(TK.) (TK.)
To By
Opening Stock 50,000/- Sales : 260000/-
Less : return inwards 2,000/- 2,58,000/-
Purchase : 125000/-
Less : returns outwards 1200/-
Less: Furniture 2000/- Closing Stock 62,000/-
1,21,800/-

Freight & Duty 1500/-

Income tax 900/-

Wages :
Add : due/ outstanding 15,000/-
Less : advance 3.000/-
18,000/-

Gross Profit
(Transferred to P/L A/C)
1,27,800/-
________ ________
3,20,000/- 3,20,000/-
 Tridhara Trading Dhaka.
Profit & Loss Account
For the year ended 31st December 2004

Debit Credit
Particulars Tk Amount( Particulars Tk Amount
TK.) (TK.)
To 10,000/ By
Salary : - Gross profit
Add : outstanding 2,000/- (Transferred from 1,27,800/-
Less : paid in advance 12,000/- Trading A/C)

Carriage outwards 500/- Commission/ 250/-

Discount received
Rent 3,000/-

Discount 300/-

Insurance prem. 1200/-

Less: Owner’s Prem 900/-
300/-

Bad debts : 2000/-

Add : new bad debts 3200/-
Less : reserve for bad 1750/-
debts 3,450/-

Commission 5425/-

Net Profit 1,03,075/-

(Transferred to Balance
Sheet)
________ _________
Total: 1,28,050/- 1,28,050/-
 Tridhara Trading Dhaka.
Balance Sheet
As at 31st December 2003

Liabilities Tk Amount Assets Tk Amount

(TK.) (TK.)

Sundry creditors 30,000/- Cash in hand 5,000/-

Due liabilities for

expenses : Bills receivable 13,200/-
Wages 3000/- 45000/-
Salaries 2000/- Sundry debtors 3,200/-
5000/- Less : reserve for bad
debts 41,800/-

Incomes received in Closing stock 62,000/-

advance
Plant & Machinery
Commission payable 5425/-
Furniture

Capital Fixed Assets : 80,000/-

Add : New capital 71400/- Plant & Machinery
Less : Drawings 5000/- Furniture & fittings 5,000/-
Add : Net profit 103075/- Add: new purchase 2000/-
1,69,475/-
Total : 87,000/-

_________ _________
Total : 2,09,900/- 2,09,900/-