Project report k&n’s

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This is report prepared by me and my friends. This not an official report..

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Project report k&n’s

  1. 1. Newports Institute of Communications and Economics Project Report K&N’s Fundamentals of Accounting Submitted by: Muhammad Dawar, Zohaib Ali Muhammad Usman
  2. 2. K & N’s– Final Report 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 Page | 2
  3. 3. K & N’s– Final Report Transactions 1. K&N’s was started on 1st 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 Page | 3
  4. 4. K & N’s– Final Report General Journal Added 1/3/2013 Cash Shop Equipment Building Particular Debit 100,000 50,000 1,000,000 Capital ( To K&N’s invest cash, Equipment and building) 1/4/2013 Purchases Credit 1,150,000 40,000 Cash Account Payable (To record brought merchandise on cash and account) 1/25/2013 Office supplier 25,000 15,000 2,000 Cash (To record brought supplier on cash) 2/15/2013 Shop Furniture 2,000 5,000 Account Payable (To record brought shop furniture on Account 3/26/2013 Cash 5,000 50,000 Sales (To record sold merchandise on cash) 3/27/2013 Account Payable 50,000 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 (To record paid for transportation) 4/26/2013 Wages Expense 5,000 10,000 Cash (To record paid for wages) Page | 4 10,000
  5. 5. K & N’s– Final Report 5/10/2013 Cash 1,500 Account Receivable (To record received cash to Mr. Ali) 6/25/2013 Bank 1,500 10,000 Cash (To record deposit to the bank) 7/9/2013 Cash 10,000 80,000 Account Receieable 80,000 (To record received cash) 8/15/2013 Salaries Expense 30,000 Cash (To record paid for the salaries) 8/25/2013 Insurance Expense 30,000 5,000 Bank 9/5/2013 Sales Return 5,000 10,000 Cash (To record Mr. Ali returned defective) 9/10/2013 Account Payable 10,000 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 (To record Paid to Advertisement) 11/7/2013 Cash 20,000 50,000 Machinery (To record sale old computers) Page | 5 50,000
  6. 6. K & N’s– Final Report 11/25/2013 Purchases 20,000 Cash (To record bought merchandise) 12/5/2013 Machinery 20,000 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 (To record bought merchandise Page | 6 10,000
  7. 7. K & N’s– Final Report T-Accounts Cash Debit Credit 100,000 50,000 15,000 80,000 50,000 25,000 20,000 10,000 1,500 5,000 10,000 10,000 30,000 5,000 10,000 15,000 10,000 10,000 20,000 20,000 50,000 10,000 261,500 33,500 295,000 295,000 Balance C/D 295,000 Purchases Debit Credit 40,000 10,000 20,000 Balance C/D 70,000 70,000 70,000 Sales Debit Balance C/D Credit 50,000 15,000 50,000 115,000 115,000 115,000 115,000 Page | 7
  8. 8. K & N’s– Final Report Accounts Payable Debit Credit 10,000 15,000 15,000 5,000 Balance C/D 25,000 5,000 25,000 Insurance Expense Debit 5,000 5,000 Credit Balance C/D 5,000 5,000 Sales Return Debit 10,000 10,000 Credit Balance C/D 10,000 10,000 Marketing Expense Debit 20,000 20,000 Credit Balance C/D 20,000 20,000 Stationary Expense Debit 10,000 10,000 Credit Balance C/D 10,000 10,000 Computer Expense Debit 50,000 50,000 Credit Balance C/D 50,000 50,000 Drawing Expense Debit 50,000 50,000 Credit Balance C/D Page | 8 50,000 50,000
  9. 9. K & N’s– Final Report Bank Debit Credit 50,000 10,000 10,000 30,000 50,000 Balance C/D 50,000 Capital Debit Balance C/D Credit 1,150,000 1,150,000 1,150,000 1,150,000 Account Receivable Credit Debit 1,500 80,000 81,500 15,000 66,500 81,500 Balance C/D Building Debit Credit 1,000,000 1,000,000 Balance C/D 1,000,000 1,000,000 Equipments Debit 50,000 50,000 Credit Balance C/D 50,000 50,000 Supplier Debit 2,000 2,000 Credit Balance C/D 2,000 2,000 Furniture Debit 50,000 50,000 Credit Balance C/D Page | 9 50,000 50,000
  10. 10. K & N’s– Final Report Rent Expense Debit 1,500 1,500 Credit Balance C/D 1,500 1,500 Wages Expense Debit 10,000 10,000 Credit Balance C/D 10,000 10,000 Rent Expense Debit 1,500 1,500 Credit Balance C/D 1,500 1,500 Transportation Expense Debit 5,000 5,000 Credit Balance C/D 5,000 5,000 Wages Expense Debit 10,000 10,000 Credit Balance C/D 10,000 10,000 Transportation Expense Debit 30,000 30,000 Credit Balance C/D Page | 10 30,000 30,000
  11. 11. K & N’s– Final Report Trial Balance Particular Debit Cash 38000 Bank Credit 30000 Purchase 70000 Sales 115000 Sales return and allowance 10000 Capital 1150000 Drawing 50000 Account payable 5000 Account Receivable 66500 Equipment 5000 Building 1000000 Furniture 5000 Rent Exp 1500 Computers 50000 Advertisement Exp 20000 Stationary Exp 10000 Insurance exp 5000 Wages exp 10000 Salaries Exp 30000 Transportation Exp 5000 Suppliers Exp 2000 Total 1361500 Page | 11 1361500
  12. 12. K & N’s– Final Report Introduction Merchandise inventory opening Rs 50000, Notes payable 43000, Sales 100000, Allowances for depreciation on building Rs. 90000. Adjusting entry: (i) (ii) (iii) Merchandise inventory ending for Rs. 50000 Paid Depreciation Expense on building Rs. 10000 Paid Bad Debt exp for Rs.10000 Adjusting Entries for the Period Ended Particular (i) p/r Merchandise inventory ending Debit Credit 50000 Expense and revenue summary 50000 (To record paid to merchandise inventory) (ii) Depreciation Exp 10000 Allowance for depreciation 10000 (To recode paid depreciation expense) (iii) Bad Debt Expense 10000 Allowance for bad debt 10000 (To record paid bad debt expense) Page | 12
  13. 13. K & N’s– Final Report Income Statement Sales 215000 Sales return and allowances (10000) Net Sales 205000 Cost of Goods Sold: Merchandise inventory opening 50000 Purchase 70000 Net Purchase 120000 Less: Merchandise inventory Ending (50000) Total cost of good sold available for sales: (70000) 135000 Less: Operating Expenses: Rent Expense 1500 Advertisement Expense 20000 Stationary Expense 10000 Insurance Expense 5000 Wages Expense 10000 Salaries Expense 30000 Transportation Expense 5000 Supplier Expense 2000 Bad debt Expense 10000 Depreciation expense 10000 Net Profit: (103500) 31500 Page | 13
  14. 14. K & N’s– Final Report Balance Sheet Assets: Cash Bank Account Receivable Allowances for Bad Debt Equipment Computers Merchandise Inventory ending Total Current Assets: 38000 30000 66500 (10000) 56500 50000 50000 50000 274500 Fixed Assets: Building Allowances for depreciation Furniture Total Fixed Assets: 1000000 (10000) 900000 5000 905000 Balance Amount: 1179500 Liabilities: Account Payable Notes Payable Total Liabilities: 5000 43000 Owner Equity: Capital Drawing Profit Total Equity: 1150000 (50000) 48000 1100000 31500 1131500 Balance Amount: 1179500 Page | 14
  15. 15. K & N’s– Final Report 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 Net Cash Flow from Investing 1,050,000 (1,000,000) Page | 15

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