3. Serial
No
Roll No Name
01 20-011 MD. RAKIBUL ISLAM
02 20-019 AL-AMIN KHANDAKAR
03 20-063 RAZIA SULTANA ETY
04 20-065 RAIHANUL HAQUE KAYES
05 20-075 MD.GULAM KIBRIA
06 20-131 ARPITA DAS
9. Jan 1: Mr. ShihabHasan started a furniture business with BDT 5,00,000, Land
of BDT 7,50,000,Equipment BDT 2,00,000 and Office supplies of BDT 70,000
and merchandise of BDT 3,00,000.
Jan 5: Sold Merchandise for BDT 25,000 to Mr. Rahim, granting the customer
terms of 2/10, EOM.The cost of the merchandise was BDT 18000.
Jan 9: Purchased merchandise from Mr.Karim for cash BDT 50,000
Jan 15: Paid freight charge BDT 2,000 in cash for the merchandise purchased
in Jan 9
Jan 18: Brought a truck for the transportation of Furniture BDT 1,00,000 in
cash
Jan 30: Paid salaries of employee BDT 40,000 in cash
11. Journal Entries: After analyzing
transactions, accountants classify and record
the events having economic effect via journal
entries according to debit-credit rules.
12. 1. Purchased merchandise costs $ 12000 from B.J inc.
Merchandise Inventory Dr $ 12000
Accounts payable B.J inc Cr $ 12000
2.Sold merchandise to Bobson inc costs $ 20000
Account Receivable Bobson Dr $ 20000
Sales Cr $ 20000
13. 3.Unpaid salaries costs $7000
Salaries expense Dr $7000
Salaries payable Cr $7000
4. The Company prepaid insurance premium of
$60000
Prepaid insurance Dr $60000
Insurance expense Cr $60000
15. Ledger Accounts: The debit and credit
values of journal entries are transferred to
ledger accounts one by one in such a way that
debit amount of a journal entry is transferred to
the debit side of the relevant ledger account
and the credit amount is transferred to the
credit side of the relevant ledger account
16. Dr. Cash Cr.
Date Description J/P Amount
(Tk.)
Date Description J/P Amount
(Tk.)
2011 2011
Jan-1 Cash
500,000
Land
750,000
Equipment
200,000
Office Supplies
70,000
Merchandise
Inventory
300,000
Dec-31 Balance c/d 1,820,000
1,820,000 1,820,000
2012
Jan-1 Balance b/d 1,820,000
21. Adjusting Entries: Adjusting entries are
journal entries recorded at the end of an
accounting period to adjust income and
expense accounts so that they comply with the
accrual concept of accounting. Their main
purpose is to match incomes and expenses to
appropriate accounting periods.
22. Adjusting entries
1. Annual depreciation on the equipment is Tk. 8,500.
2. The supplies on hand at the end of the year had a cost of
Tk.53,000.
3. Advance apprenticeship premium earned Tk. 40,000 for
5 years.
4. Annual depreciation on truck is Tk. 10,000.
5. Unpaid salaries expense was Tk.20,000.
6. Accrued rent expense was Tk.500.
7. Accrued utility expense was Tk.800.
8. Accrued interest earned was Tk.1,000.
24. Financial statements: A set of financial
statements is a structured representation of
the financial performance and financial
position of a business and how its financial
position changed over time.
25. Net Sales
(-) COGS
Net purchase
(+) Beginning Inventory
(-) Ending Inventory
Gross profit from sale
Other revenue
Total revenue
(-) Total cost
Net Income
653400
300000
142400
-----------------------
1070300
813000
-----------------------
247800
84000
-----------------------
331800
218800
-----------------------
113000
----------------------
------------------------
26. Assets:
Cash
Bank
Prepaid Insurance
Office Supplies
Accounts Receivables
Short-term Investment
Ending Merchandise Inventory
Long term Asset:
Land
Furniture
Truck
Equipment
346600
10500
3500
53000
30000
240000
142400
750000
45000
100000
250000
-------------
----
206280
0-----------
-------------
----------
Liabilities:
Sales Salary Payable
Accounts Payable
Accrued rent
Accrued utilities
Accrued Apprenticeship
Accumulated dep.(equipment)
Accumulated dep.(Truck)
Stock Holders Equity:
Paid In Capital
Net income
20000
50000
500
800
40000
8500
10000
48143
1820000
113000
-----------------
2062800
-----------------
-----------------
Assets:
Cash
Bank
Prepaid Insurance
Office Supplies
Accounts Receivables
Short-term Investment
Ending Merchandise Inventory
Long term Asset:
Land
Furniture
Truck
Equipment
346600
10500
3500
53000
30000
240000
142400
750000
45000
100000
250000
-------------
----
206280
0-----------
-------------
----------
Liabilities:
Sales Salary Payable
Accounts Payable
Accrued rent
Accrued utilities
Accrued Apprenticeship
Accumulated dep.(equipment)
Accumulated dep.(Truck)
Stock Holders Equity:
Paid In Capital
Net income
20000
50000
500
800
40000
8500
10000
48143
1820000
113000
-----------------
2062800
-----------------
-----------------
28. A way of expressing the relationship between one
accounting result and another, which is intended to
provide a useful comparison. Financial ratio assist in
measuring the efficiency and profitability of a company
based on it’s financial reports. Some important financial
ratios are given below:
Cash ratio
Liquidity ratio
Turn over ratio
Accounts receivable ratio
29. Liquidity Ratio
Current ratio = Current asset / Current liabilities
=9,17,800 / 1,11,300
= 8.25
Acid Test = Current Asset – Inventory / Current
Liabilities
= 9,17,800 -1,42,400 /1,11,300
= 6.97
Cash ratio = Cash / Current Liabilities
=3,46,400 /1,11,300
= 3.11
30. Activity Ratio :
Receivable Turnover = Net Sales / Average of accounts receivable.
=10,60,800 / 30,000
= 35.36
Payable Turnover = Purchase / Average Trade payable
= 6,85,000 / 50,000
= 13.70
Profitability ratio :
Net Profit = Net Income / Revenue * 100
= 1,13,000 / 3,31,800 * 100
= 34%
