2019

Public Pharmacy
Transactions Detail August 2019

QC
CtrlSoft
01-Jan-19
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Final Project Spring 2020

Submitted To:

Mrs. Gul Rukh Niazi

Submitted By

Ahmad Nafees (70075251)

Ahmed (70075204)
Amir Aslam (70075399)
Husnain Altaf (70075397)

Section

Subject

Accounting 1

LAHORE BUSINESS SCHOOL

ACCOUNTING 1 SECTION B PROJECT S2020

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Table of Contents

Summary ……………………………………………………………………3

Introduction to Company ……………………………………………………4

- Mission..……………………………………………………………….5

-Vision..………………………………………………………………...5

Transaction Details …………………………………………………………6

General Journal ………………………………………………………….....8

General Ledger ……………………………………………………………..9

Trial Balance ………………………………………………………………12

Adjusting Entries ………………………………………………………….13

Adjusting General Journal ………………………………………………...14

Adjusting Ledger ………………………………………………………….15

Adjusting Trial Balance …………………………………………………..17

Income statement …………………………………………………………18

Balance sheet ……………………………………………………………..19

ACCOUNTING 1 SECTION B PROJECT S2020

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Summary

This Report contains the transactions detail which occurs during the month of August 2019.

This includes General Journal, General Ledger, Trial Balance, Income Statement and Balance
Sheet, Adjusting entries.

Income Statement and the Balance sheet represent the Profit, losses, Firm assets which can be
(Current Assets & Non-Current Assets), Firm Liabilities and other details of the firm.

The transactions occurred during the business and the purpose to record the transactions is to
maintain the record as well as to know the financial position of the company which can be useful
for the Stakeholders as well as for the public.

We publish over transactions detail at the start of every month which includes the data of the
previous month.

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Intro to Company

Public Pharmacy was established in June 2018 by the Partnership of well-known personalities
named Malik Ahmed, Ahmad Nafees & Husnain Altaf. Our Chairmen also had a several
businesses and they also want to establish the business of Pharmacies.

This Pharmacy had several branches in Lahore; its main branch is located at Main Gulberg
Market, and had branches in Raiwand, Thokar Niaz Baig, Mall Road, Packages Mall, Emporium
Mall, and Fortress Square Mall.

We Deals in Life Saving Medicine, Injections Vitamins & Minerals.

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Mission:
Create value for our customers, employees and shareholders, through effective use of available
resources, by manufacturing and marketing healthcare products in an ethical manner conforming
to international quality standards, whilst leveraging company’s brands, market standing and
image.

Vision:
Public Pharmacy vision is based on quality and professionalism. Our people and resources are
dedicated to provide quality products and ethical services to meet the needs of customers in a
responsible manner.

There is an emphasis on employee pride, meticulous quality control and optimum resource
utilization to achieve and maintain a leadership position in the healthcare industry, to grow
through aggressive but ethical marketing, and to maintain synergy in our business. We are also
conscious of our social responsibility to improve the quality of life of our customers, our staff
and the society we inhabit; and every step taken at Public Pharmacy is geared towards a better,
healthier life for all as we practice our slogan – we value life.

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Transactions Detail

1. August 1 Pharmacy issues Rs70, 000 shares of common stock for cash.
2. August 3 Pharmacy purchases medical equipment for Rs 45,000; Rs 37,500 was paid
immediately with cash, and the remaining Rs 7,500 was billed to Pharmacy with payment
due in 30 days. They decided to buy used equipment, because they were not sure if they
truly wanted to run a pharmacy. They assumed that they will replace the used equipment
with new equipment within a couple of years.
3. August 6 Pharmacy purchases supplies for Rs 100.
4. August 8 Pharmacy again purchases supplies for Rs 100.
5. August 10 Pharmacy provides Rs 2,000 in services to a hospital who asks to be billed for
the services.
6. August 13 Pharmacy pays a Rs 25 utility bill with cash.
7. August 14 Pharmacy receives Rs 3,200 cash in advance from a hospital for services not
yet rendered.
8. August 15 Pharmacy again paid a utility bill for Rs 25 cash.
9. August 16 Pharmacy distributed Rs 50 cash dividend for 2 weeks of month.
10. August 17 Pharmacy receives Rs 5,200 cash from a hospital for services rendered.
11. August 16 Pharmacy purchases supplies for Rs 100.
12. August 18 Pharmacy again paid utility bill for Rs 25 cash.
13. August 19 Pharmacy paid Rs 2,000 toward the outstanding liability from the August 3
transaction.
14. August 20 Pharmacy pays Rs 2,600 cash in salaries expense to employees for the first 15
days.
15. August 25 Pharmacy pays cash dividend Rs 50 for the 3rd week of month to stockholders.
16. August 28 the hospital from the August 10 transaction pays Rs 1,500 cash toward
hospital’s account.
17. August 30 Pharmacy pays Rs 2300 cash in salaries expense to employees for rest 15 days
of August.
18. August 31 Pharmacy Pays Rs 50 cash dividends for 4th week of month to stockholders.

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19. August 31 10 Pharmacy provides Rs 2,000 in services to a hospital who asks to be billed
for the services.

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Journal General

Date Account Details Dr CR

1 Aug Cash 70000
Common Stock 70000
3 Aug Equipment 45000
Cash 37500
Account Payable 7500
6 Aug Supplies 100
Cash 100
8 Aug Supplies 100
Cash 100
10 Aug Accounts Receivable 2000
Service Revenue 2000
13 Aug Utility Expense 25
Cash 25
14 Aug Cash 3200
Unearned Revenue 3200
15 Aug Utility Expense 25
Cash 25
16 Aug Dividends 50
Cash 50
17 Aug Cash 5200
Service Revenue 5200
18 Aug Supplies 100
Cash 100
18 Aug Utility Expense 25
Cash 25
19 Aug Account Payable 2000
Account Payable 2000
20 Aug Salaries Expense 2300
Cash 2300
25 Aug Dividends 50
Cash 50
28 Aug Cash 1500
Accounts Receivable 1500
30 Aug Salaries Expense 2300
Cash 2300
31 Aug Dividends 50
Cash 50
31 Aug Accounts Receivable 2000
Cash 2000

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General Ledger

Cash
Date DR CR Date
Aug 1 70000 37500 Aug 3
Aug 14 3200 100 Aug 6
Aug 17 5200 100 Aug 8
Aug 28 1500 25 Aug 13
25 Aug 15
50 Aug 16
25 Aug 18
2300 Aug 20
50 Aug 25
2300 Aug 30
50 Aug 31
2000 Aug 31
100 Aug 18
Balance 35,275

Accounts Payable

Aug 19 2000 7500 Aug 3

5500 Balance

Common Stock

70000 Aug 1
70000 Balance

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Accounts Receivable

Aug 10 2000 1500 Aug 28

Aug 31 2000
Balance 2500

Unearned Revenue

3200 Aug 14
3200 Balance

Dividends

Aug 16 50
Aug 25 50
Aug 31 50
Balance 150

Supplies

Aug 6 100
Aug 8 100
Aug 18 100
Balance 300

Service Revenue

4000 Aug 10
5200 Aug 17
9200 Balance

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Equipment

Aug 3 45000
Balance 45000

Salaries Expense

Aug 20 2300
Aug 30 2300
Balance 4600

Utility Expense

Aug 13 25
Aug 15 25
Aug 18 25
Balance 75

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Trial Balance

Accounts DR CR
Cash 35,275
Accounts Receivable 2,500
Supplies 300
Equipment 45,000
Accounts Payable 5,500
Unearned Revenue 3,200
Common Stock 70,000
Dividends 150
Service Revenue 9,200
Salaries Expense 4,600
Utility Expense 75
Total 87,900 87,900

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Adjusting Entries

1. Aug 31 Pharmacy took an inventory of supplies and discovered that Rs 250 of supplies
remain unused at the end of the month.
2. Aug 31 Equipment purchased on August 3 depreciated Rs 2,500 during the month of
August.
3. Aug 31 Pharmacy performed Rs 1,100 of services during August for the Hospital from
the August 14 transaction.
4. Aug 31 reviewing the company pharmacy statement, pharmacy discovers Rs 350 of
interest earned during the month of August that was previously uncollected and
unrecorded. As a new customer for the bank, the interest was paid by a bank that offered
an above-market-average interest rate.
5. Aug 31 Unpaid and previously unrecorded income taxes for the month are Rs 3,400. The
tax payment was to cover his federal quarterly estimated income taxes. He lives in a state
that does not have an individual income tax.

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Adjusted General Journal

Date Accounts Dr CR
Aug 31 Supplies Expense 50
Supplies 50
Aug 31 Depreciation Expense 2500
Accumulated Depreciation 2500
Aug 31 Unearned Revenue 1100
Service Revenue 1100
Aug 31 Interest Receivable 350
Interest Revenue 350
Aug 31 Income Tax Expense 3400
Income Tax Payable 3400

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Adjusted Ledger

Unearned Revenue

Date DR CR Date
Aug 31 1100 3200 Aug 14
2100 Balance

Interest Receivable

Aug 31 350
Balance 350

Income Tax Payable

3400 Aug 31
3400 Balance

Service Revenue

4000 Aug 10
5200 Aug 17
1100 Aug 31
10300 Balance

Supplies

Aug 6 100 50 Aug 31

Aug 8 100
Aug 18 100
Balance 250

Interest Receivable

Aug 31 350
Balance 350

Accumulated Depreciation Equipment

2500 Aug 31
2500 Balance

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Supplies Expense

Aug 31 50
Balance 50

Depreciation Expense: Equipment

Aug 31 2500
Balance 2500

Income Tax Expense

Aug 31 3400
Balance 3400

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Adjusted Trial Balance

Accounts DR CR
Cash 35275
Accounts Receivable 2500
Interest Receivable 350
Supplies 250
Equipment 45000
Accumulated Depreciation: Equipment 2500
Accounts Payable 5500
Unearned Revenue 2100
Income Tax Payable 3400
Common Stock 70000
Dividends 150
Interest Revenue 350
Service Revenue 10300
Supplies Expense 50
Depreciation Expense: Equipment 2500
Income Tax Expense 3400
Salaries Expense 4600
Utility Expense 75
Total 94150 94150

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Income Statement

Revenues
Interest Revenue 350
Service Revenue 10300
Total Revenues 10650
Expenses
Supplies Expense 50
Depreciation Expense: Equipment 2500
Salaries Expense 4600
Utility Expense 75
Income Tax Expense 3400
Total Expense 10625
Net Income 25

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Balance Sheet:

Assets
Cash 35275
Accounts Receivable 2500
Interest Receivable 350
Supplies 250
Equipment 45000
Accumulated Depreciation: 2500 42500
Equipment
Total Assets 80875
Liabilities
Accounts Payable 5500
Income Tax Payable 3400
Unearned Revenue 2100
Total Liabilities 11000
Stockholder’s Equity
Common Stock 70000
Ending Retained Earnings 125
Total Stockholder’s Equity 69875
Total Liabilities & Stockholder’s 80875
Equity

ACCOUNTING 1 SECTION B PROJECT S2020