Q-1: Journalize the following transactions in the Book of Mr.

Zakir for the month of

January, 2003:

January 01 Mr. Zakir Started a business with TK. 37,000

January 05 Purchase of Land of TK. 4,000

January 08 Purchase of goods from Mr. Hasan of TK. 12,000

January 10 Purchase of goods from Mr. Zaman for cash of TK. 13,500

January 15 Goods returned to Mr. Hasan of TK. 100

January 20 Cash sales of goods of TK. 13,500

January 22 Sale of goods of TK. 6,200 to Mr. Shamim

January 25 Goods of TK. 600 returned back from Mr. Shamim

January 27 TK. 5,000 has been taken as loan from Sonali Bank

January 29 Depriciation on land has been charged of TK. 500

January 30 A commission of TK. 1,800 has been paid

Solution:
Mr. Zakir
Journal Book
For the Month of January, 2003

Date: 2003 Particulars Ref. Debit/TK. Credit/TK.

January 01 Cash A/C Dr. 37,000
To Mr. Zakir’s Capital A/C 37,000
(Cash brought as capital to start
business)
January 05 Land A/C Dr. 4,000
To Cash A/C 4,000
(Land was purchased in cash)
January 08 Purchase A/C Dr. 12,000
To Mr. Hasan’s (Creditor) A/C 12,000
(Goods were purchased from Mr.
Hasan on Credit)
January 10 Purchase A/C Dr. 13,500
To Cash A/C 13,500
(Goods were purchased from Mr.
Zaman on cash)
January 15 Mr. Hasan’s A/C Dr. 100
To Purchase Return A/C 100
(Goods were return to Mr. Hasan)
January 20 Cash A/C Dr. 13,500
To Sales A/C 13,500
(Goods were sold in cash)
January 22 Mr. Samim’s A/C Dr. 6,200
To Sales (Credit) A/C 6,200
(Goods were sold to Mr. Shamim on
credit)
January 25 Sales return A/C Dr. 600
To Mr. Shamim’s A/C 600
(Goods were returned from Mr.
Shamim)
January 27 Cash A/C Dr. 5,000
To Sonali Bank A/C 5,000
(A loan was taken from Sonali
Bank)
January 29 Depriciation A/C Dr. 500
To Land A/C 500
(Depriciation on land has been
charged)
January 30 Commission A/C 1,800
Dr. 1,800
To Cash A/C
(Commission was paid)
Q-2: From the above transactions for the stated period, prepare necessary Ledger
Books and also a Trial Balance as on January 31st, 2003.

Solution:

Mr. Zakir
Cash Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 01 Mr. Zakir’s 37,000 Jan 05 Land A/C 4000
Capital A/C
Jan 10 Purchase A/C 13,500
Jan 20 Sales A/C 13,500
Jan 30 Commission 1,800
Jan 27 Sonali Bank 5,000 A/C
A/C
Jan 30 Balance c/d 31,200

55,500 55,500

Jan 31 Balance b/d 36,200

Mr. Zakir
Purchase Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 08 Mr. Hasan’s 12,000 Jan 10 Balance c/d 25,500
A/C

Jan 10 Cash A/C 13,500

25,500 25,500

Jan 31 Balance b/d 25,500

 Mr. Zakir
Sales Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 22 Balance c/d 19,700 Jan 20 Cash A/C 13,500

Jan 22 Mr. Shamim’s 6,200

A/C
19,700 19,700

Jan 31 Balance b/d 19,700

Mr. Zakir
Capital Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 01 Balance c/d 37,000 Jan 01 Cash A/C 37,000
37,000 37,000

Jan 31 Balance b/d 37,000

Mr. Zakir
Land Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 05 Cash A/C 4,000 Jan 29 Depreciation 500
A/C

Jan 29 Balance c/d 3,500

4,000 4,000

Jan 31 Balance b/d 3,500

 Mr. Zakir
Mr. Hasan’s Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 15 Purchase 100 Jan 08 Purchase A/C 12,000
return A/C

Jan 15 Balance c/d 11,900

12,000 12,000

Jan 31 Balance b/d 11,900

Mr. Zakir
Purchase Return Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 15 Balance c/d 100 Jan 15 Mr. Hasan’s 100
A/C
100 100

Jan 31 Balance b/d 100

Mr. Zakir
Sales Return Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 25 Mr. Shamim’s 600 Jan 25 Balance c/d 600
A/C
600 600

Jan 31 Balance b/d 600

Mr. Zakir
 Mr. Shamim’s Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 22 Sales A/C 6,200 Jan 25 Sales return 600
A/C
5,600
Jan 25 Balance c/d
6,200 6,200

Jan 31 Balance b/d 5,600

Mr. Zakir
Sonali Bank Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 27 Balance c/d 5,000 Jan 27 Loan A/C 5,000
5,000 5,000

Jan 31 Balance b/d 5,000

Mr. Zakir
Depreciation Book
For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 29 Land A/C 500 Jan 29 Balance c/d 500

500 500

Jan 31 Balance b/d 500

Mr. Zakir
Commission Book
 For the Month of January, 2003

Debit Credit
Date Particulars J.R. Amount Date Particulars J.R. Amount
2003 (TK.) 2003 (TK.)
To By
Jan 30 Cash A/C 1,800 Jan 30 Balance c/d 1,800

1,800 1,800

Jan 31 Balance b/d 1,800

Mr. Zakir
 Trial balance
As on 31st January, 2003

Sl. No. Particulars L. F. Debit/TK. Credit/TK.

01 Cash A/C 36,200

02 Purchase A/C 25,500

03 Sales A/C 19,700

04 Capital A/C 37,000

05 Land A/C 3,500

06 Mr. Hasan’s A/C 11,900

07 Purchase Return A/C 100

08 Sales Return A/C 600

09 Mr. Shamim’s A/C 5,600

10 Sonali Bank A/C 5,000

11 Depriciation A/C 500

12 Commission A/C 1,800

Total 73,700 73,700

Q-3: From the following Balances of the books of MR. PALASH, prepare Trading A/C,
Profit & Loss A/C for the year ended 2003 and also a Balance Sheet as on 31st December
2003:

Solution:

Particulars BDT.

Capital 90,000 Following adjustments are

Drawings 12,480 necessary:
Furniture 2,000
Import Duty 2,000 a) Closing stock of goods Tk.
Wages 18,720 38,750
Provision for Bad debts 2,000 b) Unpaid salary of Tk. 2,100 and
Bad debts 740 wages of Tk.1,130
Insurance premium 240 c) Insurance has been pre-paid to
Land and Buildings 20,000 the extent of Tk.75.
Carriage Inwards 3,290 d) A provision of 15% to be kept as
Salaries 2,500 Bad debts on sundry Debtors.
Sales 97,700 e) Fixed assets, if any, to be
Purchases 42,230 depreciated @ 10% p.a.
Sundry Creditors 12,790 f) Tk.50 has been lost from Cash.
Bills Payable 1,500
Bills Receivable 18,460
Sales Return 1,760
Investments 15,000
Cash in Hand 270
Advertisement 4,000
Opening Stock 26,420
Balance at Bank 30,000
Sundry Debtors 37,800

Mr. Palash, Dhaka

Trial Balance
For the year ended 31st December, 2003

S.L Particulars Dr. (BDT) Cr. (BDT)

 1. Capital 90,000
2. Drawings 12,480
3. Furniture 2,000
4. Import Duty 2,000
5. Wages 18,720
6. Provision for Bad debts 2,000
7. Insurance premium 240
8. Bad debts 740
9. Purchases 42,230
10. Sundry Creditors 12,790
11. Bills Payable 1,500
12. Bills Receivable 18,460
13. Sales Return 1,760
14. Investments 15,000
15. Cash in Hand 270
16. Advertisement 4,000
17. Land and Buildings 20,000
18. Carriage Inwards 3,290
19. Salaries 2,500
20. Sales 97,700
21. Opening Stock 26,420
22. Balance at Bank 30,000
23. Sundry Debtors 37,800
Suspense A/C 33,920
237,910 237,910

Note: Suspense A/C is Tk 33,920.

(Since the credit side of trial balance is less than debit side with Tk 33,920, a suspense has been
drawn in credit side with the same amount for the purpose of agreement between two sides.)

Mr. Palash, Dhaka

Trading Account
For the year ended 31st December, 2003

Particulars Tk BDT. Particulars Tk BDT.

To, By,

Opening Stock 26,420 Sales 97,700

(less) Return 1,76
Purchase 42,230 0 95,940

Carriage Inwards 3,290 Closing Stock 38,750

Import Duty 2,000

Wages 18,72
(add) Outstanding 0
1,13 19,850
0

Gross Profit 40,900

(Transferred to Profit
and Loss Account)
134,690 134,690
 Mr. Palash, Dhaka
Profit & Loss Account
For the year ended 31st December, 2003

Particulars Tk BDT. Particulars Tk BDT.

To, By,
Salaries 2,500 Gross Profit 40,900
(add) Outstanding 2,100 (Transferred from
4,600 Trading Account)

Advertisement 4,000

Bad Debts 740

(add) new bad 5,670
debts 50
(add) Lost Money 2,00
(less) Reserve 0 4,460

Insurance 240
(-) Advanced 75 165

Depreciation
Furniture 200
Land & Building 2,00 2,200
0
25,475
Net Profit
(Transferred to 40,900 40,900
Balance Sheet)
 Mr. Palash, Dhaka
Balance Sheet
As at 31st December, 2003

Liabilities BDT. Assets BDT.

Cash in Hand 270
Bills Payable 1,500
Balance at band 30,000
Sundry Creditors 12,790
Investment 15,000
Outstanding
Liabilities: 2,100 Bill Receivable 18,460
Salaries 1,130
Wages 3,230 Sundry Debtors 37,800
(less) Reserve 5,670
33,920 (less) Lost money 50
Suspense A/C 32,080
90,000
Capital 12,480 Closing Stock 38,750
(less) Drawing 25,475
(add) Net profit 157,410 Advance Expense
Insurance 75

Fixed Asset
Furniture and 2,000
Fittings 200
(-) Depreciation 1,800
20,000
Land & Building 2,00
(-) Depreciation 0 18,00
0

154,435
154,435
Q-4: Prepare Trading A/C, Profit & Loss A/C and Balance Sheet of TRIDHARA TRADING,
Dhaka as at 31st December, 2004 from the following Trial Balance and additional
information:

Solution:

Seq Particulars Dr. (BDT) Cr. (BDT)

1. Opening Stock 50,000

2. Purchase 125,000
3. Bills Receivables 13,200
4. Sales 260,000
5. Sales Returns 2,000
6. Purchase Returns 1,200
7. Discounts 300 250
8. Carriage Outwards 500
9. Salaries 10,000
10. Insurance 1,200
11. Rent 3,000
12. Sundry Debtors 45,000
13. Sundry Creditors 30,000
14. Income Tax 900
15. Cash in Hand 5,000
16. Furniture and Fittings 5,000
17. Bad Debts 2,000
18. Plant and Machinery 80,000
19. Freight and Duty 1,500
20. Wages 15,000
21. Provision for Bad Debts 1,750
22. Capital 71,400
23. Drawings 5,000

364,600 364,600

Additional Information:

1. Stock on 31-12-04 was valued at Tk. 75,000 (Cost value Tk. 52,000).
2. Provision for Bad debt to be maintained Tk. 3,200 on Sundry Debtors.
3. Outstanding liabilities for Salary Tk. 2,000 and for Wages Tk. 3,000.
4. The sales manager is entitled to have a commission of 5% of Net Profit before charging the
commission.
5. An amount of Tk. 1,800 was outstanding for Audit fee.
6. Purchase includes a purchase of furniture of Tk. 2,000 which was wrongly debited to
Purchase Account.
 Tridhara Trading, Dhaka
Trading Account
For the year ended 31st December, 2004

Particulars BDT. Particulars BDT.

To By

Opening Stock 50,000 Sales 260,00

(less) Return 0 258,000
Purchase 125,000 2,00
(less) Furniture 2,000 0
(less) Return 1,200 121,800 Closing Stock 52,000

Freight and Duty 1,500

Wages 15,000
(add) Outstanding 3,000 18,000

Gross Profit 118,700

(Transferred to Profit
and Loss Account)

310,000 310,000
 Tridhara Trading, Dhaka
Profit and Loss Account
For the year ended 31st December, 2004

Particulars BDT. Particulars BDT.

To By

Salaries 10,000 Gross Profit 118,700

(add) Outstanding 2,000 12,000 (Transferred from
Trading Account)
Carriage Outwards 500

Discount Allowed 300 Discount Received 250

Rent 3,000

Insurance 1,200

Income Tax 900

Outstanding Audit 1,800

Fee
2,000
Bad Debts 3,200
(add) new bad 1,750 3,450
debts
(less) Reserve

4,790
Sales manager’s
commission
91,010

Net Profit
(Transferred to
Balance Sheet) 118,95 118,950
0
 Tridhara Trading, Dhaka
Balance Sheet
As at 31st December, 2004

Liabilities BDT. Assets BDT.

Sundry Creditors 30,000

Bill Receivable 13,200
Outstanding
Liabilities: 2,000 Furniture and
Salaries 3,000 Fittings 5,000 7,000
Wages 1,800 6,800 (add) New 2,00
Audit Fees purchase 0 80,000

71,400 Plant and

Capital 5,000 Machinery 41,800
(less) Drawing 91,010 157,410 45,000
(add) Net profit Sundry Debtors 3,20
(less) Reserve 0 52,000

Closing Stock

5,000 210
Cash in hand
(less) Manager’s 4,79
Commission 0

194,210 194,210

Note: Manager’s Commission, considering cash commission, has been adjusted with cash in hand.