ABC Auto Shop

Balance Sheet
As on 01-Jan 2014

Followings are the transaction incurred during the year:

January:
01Jan. Sold goods to Saleem Rs 60,000
05Jan. Cash deposited with Bank Rs 9,000
10Jan. Paid wages in cash Rs 4,200
15Jan. Paid salaries in cash Rs 5,000
20Jan. Paid carriage expense by Cheque Rs 7,200
22Jan. Sold goods to Arslan Rs 125,000
24Jan. Sold goods to Imran Rs 31,000
30Jan. Goods returned by Saleem Rs 5,000
Feburary:
1Feb. Bought goods from sarfaraz Motors Rs 15,000
05Feb. Paid wages by cheque Rs 5,200
10Feb. Paid salaries in cash Rs 4,200
1

15Feb. Bought office stationary for cash Rs 9,200

20Feb. Bought goods from Shahnawaz Motors Rs 7,500
22Feb. Bought goods from Royal Motors Rs 9,200
24Feb. Owner took some cash from business Rs 25,000
28Feb. Received Cheque from Arslan Rs 75,000
March:
01Mar. Paid wages in cash Rs 700
05Mar. Received cash from Saleem Rs 45,000
10Mar. Bought office stationary by cash Rs 9,000
15Mar. Owner introduced additional capital in cash Rs 82,000
20Mar. Paid salaries in cash Rs 850
22Mar. Goods returned to Royal Motors Rs 1,500
24Mar. Goods returned to Shahnawaz Motors Rs 1,500
30Mar. Owner withdraw cash from business Rs 3,200
April:
01Apr. Take loan from HBL bank Rs 500,000
05Apr. Paid wages in cash Rs 1,200
10 Apr. Paid carriage expense by cheque Rs 2,400
15Apr. Paid salaries in cash Rs 2,000
20Apr. Bought goods from Royal Motors Rs 7,000
22Apr. Goods returned by Saleem Rs 1,200
24Apr. Sold goods in cash to Saleem Rs 15,000 on 2% cash discount
30Apr. Sold goods to Arslan Rs 75,000
May:
01May. Received cash from Imran Rs 20,000
05May. Received cash from Arslan Rs 70,000
10May. Paid carriage expense by cheque Rs 1,200
2

15May. Paid salaries in cash Rs 1,700

20May. Bought goods from Sarfaraz Motors Rs 15,000
22May. Paid to Sarfaraz Motors cash Rs 13,000
24May. Bought goods from Royal Motors Rs 20,000 less 25% trade discount
30May. Sold goods against cheque Rs 100,000
June:
01Jun. Bought goods from Royal Motors Rs 8,200
05Jun. Sold goods to Saleem Rs 18,000
10Jun. Paid wages in cash Rs 1,600
15Jun. Paid carriage expense by cheque Rs 2,000
20Jun. Paid salaries in cash Rs 1,500
22Jun. Sold goods to Abdul Hadi Rs 5,000
24Jun. Bought goods from Royal Motors Rs 15,000
30Jun. Paid Royal Motors by cheque Rs 13,000
July:
01Jul. Bought Motor vehicle for cash Rs 150,000
05Jul. Cash deposited with bank Rs 5,000
10Jul. Bought office stationary in cash Rs 6,500
15Jul. Paid wages by cheque Rs 3,600
20Jul. Sold goods to Arslan Rs 45,000
25Jul. Bad debts written off Rs 5,000 from Abdul Hadi
30Jul. Received Cheque from Arslan Rs 40,000
August:
01Aug. Sold goods against cash Rs 200,000
05Aug. Sold goods to Imran Rs 25,000
15Aug. Bought office stationary by cheque Rs 9,000
20Aug. Paid wages in cash Rs 5,000
3

25Aug. Owner introduced capital in cash Rs 50,000

30Aug. Paid salaries in cash Rs 3,200
31Aug. Bought goods from shahnawaz Motors Rs 15,000 less 33.33% trade
discount
September:
01Sep. Sold goods to Saleem in cash Rs 10,000 less 2% cash discount
05Sep. Bought goods from Royal Motors in cash Rs 15,000 less 2.5% cash
discount
10Sep. Goods returned to Sarfaraz Motors Rs 2,000
15Sep. Paid wages in cash Rs 3,300
20Sep. Paid salaries by cheque Rs 5,000
25Sep. Bought goods from Shahnawaz Motors Rs 50,000
30Sep. Sold goods in cash Rs 50,000
October:
01Oct. Bought goods from Royal Motors Rs 60,000
05Oct. Sold goods to Imran Rs 90,000
10Oct. Sold goods to Arslan Rs 40,000
15Oct. Bought office stationary in cash Rs 9,200
20Oct. Paid wages in cash Rs 2,600
25Oct. Received cheque from Arslan Rs 25,000
30Oct. received cash from Imran Rs 70,000
November:
01Nov. Paid cash to Royal Motors Rs 50,000
05Nov. Sold goods against cash Rs 72,000
10Nov. Bought office stationary in cash Rs 1,100
15Nov. Paid wages in cash Rs 1,500
20Nov. Paid salaries by cheque Rs 2,300
25Nov. Received cheque from Arslan Rs 200,000
4

30Nov. Sold goods to Saleem Rs 30,000

December:
01Dec. Paid cheque to Shahnawaz Motors Rs 25,000
05Dec. Received cheque from Saleem Rs 25,000
10Dec. Sold goods to Arslan Rs 150,000
15Dec. Bought goods from Sheikh Motors Rs 50,000 and paid only Rs 25,000
20Dec. Paid wages in cash Rs 2,000
25Dec. Paid salaries by cheque Rs 1,500
30Dec. Sold goods against cash Rs 200,000

Subsidiary Books:
5

Sales Book

Return Inward Book

Return Outward Book

Purchases Book

General Journal

 Accounts:
Capital Account

Building Account

Furniture Account

Equipments Account

Motor Vehicle Account

Loose Tools Account

Stock Account

Discount Allowed Account

Discount Received Account

Return Inward Account

Return Outward Account

Abdul Hadi Account

Bad Debts Account

Sheikh Motors Account

HBL Account

10

Wages Account

Salaries Account

Carriage Expense Account

11

Saleem Account

Arslan Account

Imran Account

Sarfaraz Motors Account

12

Shahnawaz Motors Account

Drawings Account

Royal Motors Account

13

Purchases Account

Stationary Expense Account

14

Sales Account

15

ABC Auto Shop

Trial Balance
For the year ended 31-Dec 2014

16

Adjustments:
1.
2.
3.
4.
5.
6.

Closing stock valued at Rs 100,000

Provide 20% depreciation on Building (At Cost)
Loose Tools revalued at Rs 20,000
Furniture depreciated at Book value @ 10%
Interest on Bank Loan @12% are payable
Write off Rs 6,000 as bad debts expense and adjust provision for
doubtful debts at 2% on remaining debtors
7. Commission Income received in advance Rs 7,200
8. Motor vehicle that had cost Rs 100,000 is stolen and insurance
claims only Rs 50,000 in cash
9. 50% of the carriage expense incurred on purchases and rest on
sales
10. Wages of Rs 1,000 are still payable

Working of Adjustments:-

Building Account

Provision for Depreciation on Building Account

17

Loose Tools Account

Furniture Account

Provision for Depreciation on Furniture Account

Interest Expense Account

Accrued Interest Account

Depreciation Expense Account

18

Debtors Account

Bad Debt Expense Account

Provision for Doubtful Debts Account

Commission Account

Commission Income in Advance Account

Motor Vehicle Account

19

Disposal of Fixed Asset Account

Wages Account

Accrued Wages Account

20

ABC Auto Shop

Trading & Profit & Loss Account
For the year ended 31-Dec 2014

21

ABC Auto Shop

Income Statement
For the period ended 31-Dec 2014
Details

(Rs)

Sales:
Sales:
Sale Returns

(Rs)

(Rs)

1,316,000
6,200

Net Sales
Cost of Goods Sold:
Opening Stock
Purchases:
Purchases
Purchases Returns
Carriage Expenses
Net Purchases
Cost of Goods Available for Sale
Closing Stock
Cost of Goods Sold
Gross Profit
Indirect Incomes:
Discount Received
Indirect Expenses:
Carriage Expenses
Depreciation Expenses
Interest Expenses
Provision for Doubtful Debts
Bad Debts Expenses
Commission
Loss on Disposal of F.A
Wages
Discount Allowed
Bad Debts
Salaries
Stationary Expenses
Indirect Expenses
Net Profit

1,309,800
300,000
261,900
4,600
6,400
263,700
563,700
100,000
463,700
846,100
375
6,400
104,000
45,000
1,636
6,000
7,200
50,000
31,900
500
5,000
27,250
44,000
328,886

22

328,511
517,589

ABC Auto Shop

Balance Sheet
As on 31-Dec 2014

23