It is the financial accounting project all basis transactions end to closing trial balance of an accounting cycle is provided.
it is a project of a software house.
2. Transaction in words
1. Jan 1,2015:
“Zee” opens an account in ‘Meezan Bank’ in the name of “Zee Production” paying
$4,000,000 cash.
2. Jan 5,2015:
Paid $200,000 to the insurance company in cash.
3. Jan 8,2015:
Purchase land for business paying $140,000 cash.
4. Jan 10,2015:
Purchase building for business paying $200,000 cash.
5. Jan 12,2015:
Purchase office equipment for business paying $150,000 cash.
6. Jan 15,2015:
Purchase internet equipment (e.g. router, hub, switches, wires etc) paying $365,000 in
cash.
7. Jan 25,2015:
Paid $20,000 cash to the ABC transport company.
3. General Journal
For month of January 2015
Date Particulars Debit (Dr) Credit (Cr)
Jan 1 Cash 4000,000
Capital 4000,000
Jan 5 Premium Insurance
Expense
200,000
Cash 200,000
Jan 8 Land 140,000
Cash 140,000
Jan 10 Building 200,000
Cash 200,000
Jan 12 Office Equipment 150,000
Cash 150,000
Jan 15 Internet Equipment 365,000
Cash 365,000
Jan 25 Transportation Expense 20,000
Cash 20,000
4. Transaction in words
1. Feb 1,2015:
Paid $25,000 cash to the BCD advertising company for the advertising of business.
2. Feb 3,2015:
Paid $100,000 cash for the salaries of the employees.
3. Feb 7,2015:
Purchase medical equipment for business in $20,000 cash.
4. Feb 15,2015:
Purchase computer equipment for business and office use $150,000 paying $90,000
cash and sign accounts payable for remaining balance.
5. Feb 18,2015:
Purchase software’s for different projects paying $20,000 cash.
6. Feb 25,2015:
Sell the spare office equipment for $30,000.
7. Feb 27,2015:
Paid $10,000 for the bill of month of February.
5. General Journal
For month of February 2015
Date Particulars Debit (Dr) Credit (Cr)
Feb 1 Advertising Expense 25,000
Cash 25,000
Feb 3 Salary Expense 100,000
Cash 100,000
Feb 7 Medical Equipment 20,000
Cash 20,000
Feb 15 Computer Equipment 150,000
Cash 90,000
Accounts Payable 60,000
Feb 18 Software Expense 20,000
Cash 20,000
Feb 25 Accounts Receivable 30,000
Office equipment 30,000
Feb 27 Utility Expense 10,000
Cash 10,000
6. Transaction in words
1. Mar 1,2015:
Paid $10,000 cash to the add company.
2. Mar 3,2015:
Generated revenue of $95,000 cash.
3. Mar 10,2015:
Paid $10,000 for maintenance.
4. Mar 15,2015:
Paid the salaries of employee’s $100,000 cash.
5. Mar 30,2015:
Paid $8,000 for the bill.
7. General Journal
For month of March 2015
Date Particulars Debit (Dr) Credit (Cr)
Mar 1 Advertising Expense 10,000
Cash 10,000
Mar 3 Cash 95,000
Revenue 95,000
Mar 10 Maintenance Expense 10,000
Cash 10,000
Mar 15 Salary Expense 100,000
Cash 100,000
Mar 30 Utility Expense 8,000
Cash 8,000
8. Transaction in words
1. Apr 3,2015:
Paid the salaries of employee’s $100,000 cash.
2. Apr 9,2015:
Generated revenue of $210,000 cash.
3. Apr 15,2015:
Paid $30,000 for bonus to employees in cash for better results in business.
4. Apr 25,2015:
Purchase internet equipment for $100,000 paying $75,000 cash and sign accounts
payable of $25,000.
5. Apr 27,2015:
Paid $2,700 to the ABC transport company for transportation.
6. Apr 30,2015:
Paid $8,000 for the bill.
9. General Journal
For month of April 2015
Date Particulars Debit (Dr) Credit (Cr)
Apr 3 Salary Expense 100,000
Cash 100,000
Apr 9 Cash 210,000
Revenue 210,000
Apr 15 Bonus Expense 30,000
Cash 30,000
Apr 25 Internet Equipment 100,000
Cash 75,000
Accounts Payable 25,000
Apr 27 Transportation Expense 2,700
Cash 2,700
Apr 30 Utility Expense 8,000
Cash 8,000
10. Transaction in words
1. May 3,2015:
Paid the salaries of employee’s $100,000 cash.
2. May 8,2015:
“Zee” withdraws $400,000 for personal use.
3. May 18,2015:
$160,000 worth of services was given to customers. Received cash amount of $60,000.
Customers promised to pay remaining amount of $100,000.
4. May 27,2015:
Paid $9,000 for the bill.
11. General Journal
For month of May 2015
Date Particulars Debit (Dr) Credit (Cr)
May 3 Salary Expense 100,000
Cash 100,000
May 8 Drawing 400,000
Cash 400,000
May 18 Accounts Receivable 100,000
Cash 60,000
Revenue 160,000
May 27 Utility Expense 9,000
Cash 9,000
12. Transaction in words
1. June 3,2015:
Paid the salaries of employee’s $100,000 cash.
2. June 10,2015:
Paid $17,000 cash to the add company.
3. June 20,2015:
Generated revenue of $187,000 cash.
4. June 27, 2015:
Paid $7,580 for the bill.
13. General Journal
For month of June 2015
Date Particulars Debit (Dr) Credit (Cr)
June 3 Salary Expense 100,000
Cash 100,000
Jun 10 Advertising Expense 17,000
Cash 17,000
May 18 Cash 187,000
Revenue 187,000
May 27 Utility Expense 7,580
Cash 7,580
14. Transaction in words
1. July 1,2015:
Paid the salaries of employee’s $100,000 cash.
2. July 12,2015:
Purchase internet equipment for $85,000 cash.
3. July 16,2015:
Paid $1,800 to the ABC transport company for transportation.
4. July 21, 2015:
Paid $30,000 for bonus to employees in cash for better results in business.
5. July 28, 2015:
Paid $12,000 for the bill.
15. General Journal
For month of July 2015
Date Particulars Debit (Dr) Credit (Cr)
Jul 1 Salary Expense 100,000
Cash 100,000
Jul 12 Internet Equipment 85,000
Cash 85,000
Jul 16 Transportation Expense 1,800
Cash 1,800
Jul 21 Bonus Expense 30,000
Cash 30,000
Jul 28 Utility Expense 12,000
Cash 12,000
16. Transaction in words
1. Aug 2,2015:
Paid the salaries of employee’s $100,000 cash.
2. Aug 8,2015:
Generated revenue of $400,000 cash.
3. Aug 15,2015:
Receive the amount $100,000 from the client for services generated in May 18.
4. Aug 20, 2015:
Purchase car for organization needs from $200,000 paying $80,000 cash and sign an
accounts payable for remaining balance of 60 days.
5. Aug 28, 2015:
Paid $9,754 for the bill.
17. General Journal
For month of August 2015
Date Particulars Debit (Dr) Credit (Cr)
Aug 2 Salary Expense 100,000
Cash 100,000
Aug 8 Cash 400,000
Revenue 400,000
Aug 15 Cash 100,000
Accounts Receivable 100,000
Aug 20 Car 200,000
Cash 80,000
Accounts Payable 120,000
Aug 28 Utility Expense 9,754
Cash 9,754
18. Transaction in words
1. Sep 3,2015:
Paid the salaries of employee’s $100,000 cash.
2. Sep 10,2015:
$185,000 worth of services was given to customers. Received cash amount of $75,000.
Customers promised to pay remaining amount of $110,000.
3. Sep 18, 2015:
Paid $10,000 for the bill.
General Journal
For month of September 2015
Date Particulars Debit (Dr) Credit (Cr)
Sep 3 Salary Expense 100,000
Cash 100,000
Sep 10 Accounts Receivable 110,000
Cash 75,000
Revenue 185,000
Accounts Receivable 100,000
Sep 18 Utility Expense 10,000
Cash 10,000
19. Transaction in words
1. Oct 3,2015:
Paid the salaries of employee’s $100,000 cash.
2. Oct 10,2015:
Purchase internet equipment for $80,000 from accounts payable.
3. Oct 15,2015:
Buy fuel for car from $1,500.
4. Oct 20, 2015:
Generated revenue of $205,000 cash.
5. Oct 28, 2015:
Paid $14,000 for the bill.
20. General Journal
For month of October 2015
Date Particulars Debit (Dr) Credit (Cr)
Oct 3 Salary Expense 100,000
Cash 100,000
Oct 10 Internet Equipment 80,000
Accounts Payable 80,000
Oct 15 Fuel Expense 1,500
Cash 1,500
Oct 20 Cash 205,000
Revenue 205,000
Oct 28 Utility Expense 14,000
Cash 14,000
21. Transaction in words
1. Nov 4,2015:
Paid the salaries of employee’s $100,000 cash.
2. Nov 9,2015:
“Zee” found that he did not need all of $400,000 withdraw on May 8, and he
redeposited the $50,000 in company’s bank account in Meezan bank.
3. Nov 15,2015:
Generated revenue of $145,000 cash.
4. Nov 20, 2015:
Receive the amount $110,000 from the client for services generated in Sep 10.
5. Nov 28, 2015:
Paid $10,000 for the bill.
22. General Journal
For month of November 2015
Date Particulars Debit (Dr) Credit (Cr)
Nov 4 Salary Expense 100,000
Cash 100,000
Nov 9 Cash 50,000
Capital 50,000
Nov 15 Cash 145,000
Revenue 145,000
Nov 20 Cash 110,000
Accounts Receivable 110,000
Nov 28 Utility Expense 10,000
Cash 10,000
23. Transaction in words
1. Dec 3,2015:
Paid the salaries of employee’s $100,000 cash.
2. Dec 7,2015:
Generated revenue of $250,000 cash..
3. Dec 29,2015:
The depreciation of building is $13,333.
4. Dec 31, 2015:
The depreciation of car is $16,666.
General Journal
For month of December 2015
Date Particulars Debit (Dr) Credit (Cr)
Dec 3 Salary Expense 100,000
Cash 100,000
Dec 7 Cash 250,000
Revenue 250,000
Dec 29 Depreciation Exp:Building 13,333
Acc Depreciation: Building 13,333
Dec 31 Depreciation Exp:Car 16,666
Acc Depreciation: Car 16,666
27. Ledger Accounts
Accounts Receivable
Dr Cr
30,000
100,000
100,000
110,000
110,000
240,000 210,000
Total Debit (Acc Rece) 30,000
Ledger Accounts
Building
Dr Cr
200,000
Total Debit (Building) 200,000
28. Ledger Accounts
Land
Dr Cr
140,000
Total Debit (Land) 140,000
Ledger Accounts
Depreciation Exp: Building
Dr Cr
13,333
Total Debit (Dep
Exp:Building)
13,333
Ledger Accounts
Accumulated Depreciation Building
Dr Cr
13,333
Total Credit ( Acc Dep
Building)
13,333
29. Ledger Accounts
Depreciation Exp: Car
Dr Cr
16,666
Total Debit (Dep
Exp:Car)
16,666
Ledger Accounts
Accumulated Depreciation Car
Dr Cr
16,666
Total Credit ( Acc Dep
Car)
16,666
30. Ledger Accounts
Car
Dr Cr
200,000
Total Debit (Car) 200,000
Ledger Accounts
Office Equipment
Dr Cr
150,000
30,000
Total Debit (Off Equ) 120,000
Ledger Accounts
Internet Equipment
Dr Cr
100,000
85,000
80,000
365,000
Total Debit (Int Equ) 630,000
31. Ledger Accounts
Computer Equipment
Dr Cr
150,000
Total Debit (Comp Equ) 150,000
Ledger Accounts
Advertising Expense
Dr Cr
25,000
10,000
17,000
Total Debit (Adv
Expense)
52,000
Ledger Accounts
Fuel Expense
Dr Cr
1,500
Total Debit (Fuel
Expense)
1,500
32. Ledger Accounts
Drawing
Dr Cr
400,000
Total Debit (Drawing) 400,000
Ledger Accounts
Revenue
Dr Cr
95,000
210,000
160,000
187,000
400,000
185,000
205,000
145,000
250,000
Total Credit (Revenue) 1,837,000
33. Ledger Accounts
Software Expense
Dr Cr
20,000
Total Debit (Soft
Expense)
20,000
Ledger Accounts
Medical Equipment
Dr Cr
20,000
Total Debit (Med Equ) 20,000
Ledger Accounts
Salary Expense
Dr Cr
100,000
100,000
100,000
100,000
100,000
100,000
100,000
35. Ledger Accounts
Bonus Expense
Dr Cr
30,000
30,000
Total Debit (Bon Exp) 60,000
Ledger Accounts
Premium Insurance Expense
Dr Cr
200,000
Total Debit (Ins Exp) 200,000
36. Ledger Accounts
Transportation Expense
Dr Cr
20,000
2,700
1,800
Total Debit (Tran Exp) 24,500
Ledger Accounts
Maintenance Expense
Dr Cr
10,000
Total Debit (Main Exp) 10,000
37. Adjusted Trial Balance
Particulars Dr Cr
Cash 2,815,666
Accounts Receivable 30,000
Building 200,000
Land 140,000
Car 200,000
Acc Dep:Building 13,333
Acc Dep:Car 16,666
Office Equipment 120,000
Internet Equipment 630,000
Medical Equipment 20,000
Computer Equipment 150,000
Accounts Payable 385,000
Capital 4,050,000
Revenue 1,837,000
Drawing 400,000
Advertising Expense 52,000
Salary Expense 1,100,000
Utility Expense 98,334
Dep Expense: Building 13,333
Dep Expense: Car 16,666
Maintenance Expense 10,000
Premium Insurance Expense 200,000
Bonus Expense 60,000
Transportation Expense 24,500
Fuel Expense 1,500
38. Software Expense 20,000
6,301,999 6,301,999
Income Statement
For the Year Ended on Dec 31st
Sales:
Revenue………………………………………….......1,837,000
Expenses:
Advertising Expense……….52,000
Salary Expense…………….1,100,000
Utility Expense……………..98,334
Dep Exp:Building………….13,333
Dep Exp:Car……………….16,666
Maintenance Expense……..10,000
Insurance Expense………...200,000
Bonus Expense…………….60,000
Transportation Expense….24,500
Fuel Expense………………1,500
Software Expense…………20,000
(1,596,333)
Net Income(Profit)………………………240,667
39. Statement of Owner’s Equity
For the Year Ended on Dec 31st
Zee,Capital,Jan 1,2015……………………………………4,000,000
Add: Net Income for December…………………………..240,667
Additional Investment by owner……………………....50,000
Sub Total…………………………………………………..4,290,667
Less: Withdrawals by owner…………………………….400,000
Zee, Capital, Dec 31st
2015………………………………..3,890,667
40. Balance Sheet
Dec 31st
2015
Assets
Cash…………………………………………………………2,815,666
Accounts Receivable……………………………………….30,000
Land…………………………………………………………140,000
Internet Equipment………………………………………...630,000
Computer Equipment……………………………………....150,000
Office Equipment…………………………………………...120,000
Medical Equipment…………………………………………20,000
Building…………………………………………200,000
Less: Accumulated Depreciation……………..13,333 186,667
Car………………………………………………200,000
Less: Accumulated Depreciation……………..16,666 183,334
Total Assets………………………………………………...4,275,667
Liabilities & Owner’s Equity
Liabilities:
Accounts Payable…………………………………………..385,000
Owner’s Equity:
Zee, Capital, Dec 31st
….…………………………………...3,890,667
Total Liabilities & Owner’s Equity……………………….4,275,667
41. Closing General Journal
Date Particulars Debit (Dr) Credit (Cr)
Revenue 1,837,000
Income Summary 1,837,000
Income Summary 1,596,333
Advertising Expense 52,000
Salary Expense 1,100,000
Utility Expense 98,334
Dep Expense: Building 13,333
Dep Expense: Car 16,666
Maintenance Expense 10,000
Premium Insurance
Expense
200,000
Bonus Expense 60,000
Transportation Expense 24,500
Fuel Expense 1,500
Software Expense 20,000
Income Summary 240,667
Capital 240,667
Capital 400,000
Drawing 400,000
42. Closing Ledger Accounts
Income Summary
Dr Cr
1,596,333
240,667
1,837,000
1,837,000 1,837,000
Closing Ledger Accounts
Owner’s Equity
Dr Cr
400,000
4,000,000
240,667
4,240,667
Total Credit (OE) 3,840,667
Note:
All other accounts become zero, so I will not discuss them.