project report k&n’s

Submitted by: Muhammad Dawar, Zohaib AliMuhammad Usman

K & N’s– Final Report

Table of ContentsTransactions.........................................................................................................................................3

General Journal....................................................................................................................................4

T-Accounts...........................................................................................................................................7

Cash.........................................................................................................................................................7Purchases.................................................................................................................................................7Sales.........................................................................................................................................................7Accounts Payable.....................................................................................................................................8Insurance Expense...................................................................................................................................8Sales Return.............................................................................................................................................8Marketing Expense..................................................................................................................................8Stationary Expense..................................................................................................................................8Computer Expense..................................................................................................................................8Drawing Expense.....................................................................................................................................8Bank.........................................................................................................................................................9Capital......................................................................................................................................................9Account Receivable.................................................................................................................................9Building....................................................................................................................................................9Equipments..............................................................................................................................................9Supplier...................................................................................................................................................9Furniture..................................................................................................................................................9Rent Expense.........................................................................................................................................10Wages Expense......................................................................................................................................10Rent Expense.........................................................................................................................................10Transportation Expense.........................................................................................................................10Wages Expense......................................................................................................................................10Transportation Expense.........................................................................................................................10

Trial Balance......................................................................................................................................11

Introduction.......................................................................................................................................12

Adjusting Entries for the Period Ended...............................................................................................12

Income Statement..............................................................................................................................13

Balance Sheet....................................................................................................................................14

Cash Flow Statement..........................................................................................................................15

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Transactions1. 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


General JournalAdded 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

Page | 4


Cash 10,000 (To record paid for wages)

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

Page | 5


(To record sale old computers)

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

Page | 6


T-Accounts

CashDebit 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

PurchasesDebit Credit

40,000 10,000 20,000

Balance C/D 70,000 70,000 70,000

SalesDebit Credit

Balance C/D 115,000 50,000 15,000 50,000 115,000

115,000 115,000

Page | 7


Accounts PayableDebit Credit

10,000 15,000 15,000 5,000

Balance C/D 5,000 25,000 25,000

Insurance ExpenseDebit Credit

5,000 Balance C/D 5,000 5,000 5,000

Sales ReturnDebit Credit 10,000 Balance C/D 10,000 10,000 10,000

Marketing ExpenseDebit Credit 20,000 Balance C/D 20,000 20,000 20,000

Stationary ExpenseDebit Credit 10,000 Balance C/D 10,000 10,000 10,000

Computer ExpenseDebit Credit 50,000 Balance C/D 50,000 50,000 50,000

Drawing ExpenseDebit Credit 50,000 Balance C/D 50,000 50,000 50,000

Page | 8


BankDebit Credit

10,000 50,000 10,000

Balance C/D 30,000 50,000 50,000

CapitalDebit Credit

Balance C/D 1,150,000 1,150,000 1,150,000 1,150,000

Account ReceivableCredit Debit

15,000 1,500 Balance C/D 66,500 80,000

81,500 81,500

BuildingDebit Credit

1,000,000 Balance C/D 1,000,000 1,000,000 1,000,000

EquipmentsDebit Credit

50,000 Balance C/D 50,000 50,000 50,000

SupplierDebit Credit

2,000 Balance C/D 2,000 2,000 2,000

FurnitureDebit Credit

50,000 Balance C/D 50,000 50,000 50,000

Page | 9


Rent ExpenseDebit Credit

1,500 Balance C/D 1,500 1,500 1,500

Wages ExpenseDebit Credit

10,000 Balance C/D 10,000 10,000 10,000

Rent ExpenseDebit Credit

1,500 Balance C/D 1,500 1,500 1,500

Transportation ExpenseDebit Credit

5,000 Balance C/D 5,000 5,000 5,000

Wages ExpenseDebit Credit

10,000 Balance C/D 10,000 10,000 10,000

Transportation ExpenseDebit Credit

30,000 Balance C/D 30,000 30,000 30,000

Page | 10


Trial BalanceParticular 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

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Page | 12


IntroductionMerchandise 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 EndedParticular 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

Page | 13


Income StatementSales

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

50000

70000

1500

20000

10000

5000

10000

30000

5000

2000

10000

10000

215000

(10000)

120000

(50000)

205000

(70000)

135000

(103500)

31500

Page | 14


Net Profit:

Balance SheetAssets:CashBankAccount ReceivableAllowances for Bad DebtEquipmentComputersMerchandise Inventory endingTotal Current Assets:

Fixed Assets:BuildingAllowances for depreciationFurnitureTotal Fixed Assets:

Balance Amount:

Liabilities:Account PayableNotes PayableTotal Liabilities:

Owner Equity:CapitalDrawingProfitTotal Equity:

Balance Amount:

66500(10000)

3800030000

56500500005000050000

274500

905000

1000000(10000) 900000

5000

1150000(50000)

500043000

1179500

48000

1131500

110000031500

1179500

Page | 15


Cash Flow StatementOperations

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)

Page | 16

project report k&n’s

Economy & Finance