This is report prepared by me and my friends. This not an official report..

1. Newports Institute of Communications and Economics
Project Report K&N’s
Fundamentals of Accounting
Submitted by:
Muhammad Dawar,
Zohaib Ali
Muhammad Usman

2. K & N’s– Final Report
Table of Contents
Transactions ......................................................................................................................................3
General Journal..................................................................................................................................4
T-Accounts.........................................................................................................................................7
Cash ........................................................................................................................................................... 7
Purchases .................................................................................................................................................. 7
Sales .......................................................................................................................................................... 7
Accounts Payable ...................................................................................................................................... 8
Insurance Expense .................................................................................................................................... 8
Sales Return .............................................................................................................................................. 8
Marketing Expense.................................................................................................................................... 8
Stationary Expense.................................................................................................................................... 8
Computer Expense .................................................................................................................................... 8
Drawing Expense ....................................................................................................................................... 8
Bank........................................................................................................................................................... 9
Capital ....................................................................................................................................................... 9
Account Receivable ................................................................................................................................... 9
Building ..................................................................................................................................................... 9
Equipments ............................................................................................................................................... 9
Supplier ..................................................................................................................................................... 9
Furniture ................................................................................................................................................... 9
Rent Expense........................................................................................................................................... 10
Wages Expense ....................................................................................................................................... 10
Rent Expense........................................................................................................................................... 10
Transportation Expense .......................................................................................................................... 10
Wages Expense ....................................................................................................................................... 10
Transportation Expense .......................................................................................................................... 10
Trial Balance .................................................................................................................................... 11
Introduction .................................................................................................................................... 12
Adjusting Entries for the Period Ended ............................................................................................. 12
Income Statement ........................................................................................................................... 13
Balance Sheet .................................................................................................................................. 14
Cash Flow Statement ....................................................................................................................... 15
Page | 2

3. K & N’s– Final Report
Transactions
1. 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

4. K & N’s– Final Report
General Journal
Added
1/3/2013 Cash
Shop Equipment
Building
Particular
Debit
100,000
50,000
1,000,000
Capital
( To K&N’s invest cash, Equipment and building)
1/4/2013 Purchases
Credit
1,150,000
40,000
Cash
Account Payable
(To record brought merchandise on cash and account)
1/25/2013 Office supplier
25,000
15,000
2,000
Cash
(To record brought supplier on cash)
2/15/2013 Shop Furniture
2,000
5,000
Account Payable
(To record brought shop furniture on Account
3/26/2013 Cash
5,000
50,000
Sales
(To record sold merchandise on cash)
3/27/2013 Account Payable
50,000
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
(To record paid for transportation)
4/26/2013 Wages Expense
5,000
10,000
Cash
(To record paid for wages)
Page | 4
10,000

5. K & N’s– Final Report
5/10/2013 Cash
1,500
Account Receivable
(To record received cash to Mr. Ali)
6/25/2013 Bank
1,500
10,000
Cash
(To record deposit to the bank)
7/9/2013 Cash
10,000
80,000
Account Receieable
80,000
(To record received cash)
8/15/2013 Salaries Expense
30,000
Cash
(To record paid for the salaries)
8/25/2013 Insurance Expense
30,000
5,000
Bank
9/5/2013 Sales Return
5,000
10,000
Cash
(To record Mr. Ali returned defective)
9/10/2013 Account Payable
10,000
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
(To record Paid to Advertisement)
11/7/2013 Cash
20,000
50,000
Machinery
(To record sale old computers)
Page | 5
50,000

6. K & N’s– Final Report
11/25/2013 Purchases
20,000
Cash
(To record bought merchandise)
12/5/2013 Machinery
20,000
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
(To record bought merchandise
Page | 6
10,000

7. K & N’s– Final Report
T-Accounts
Cash
Debit
Credit
100,000
50,000
15,000
80,000
50,000
25,000
20,000
10,000
1,500
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
261,500
33,500
295,000
295,000
Balance C/D
295,000
Purchases
Debit
Credit
40,000
10,000
20,000
Balance C/D
70,000
70,000
70,000
Sales
Debit
Balance C/D
Credit
50,000
15,000
50,000
115,000
115,000
115,000
115,000
Page | 7

8. K & N’s– Final Report
Accounts Payable
Debit
Credit
10,000
15,000
15,000
5,000
Balance C/D
25,000
5,000
25,000
Insurance Expense
Debit
5,000
5,000
Credit
Balance C/D
5,000
5,000
Sales Return
Debit
10,000
10,000
Credit
Balance C/D
10,000
10,000
Marketing Expense
Debit
20,000
20,000
Credit
Balance C/D
20,000
20,000
Stationary Expense
Debit
10,000
10,000
Credit
Balance C/D
10,000
10,000
Computer Expense
Debit
50,000
50,000
Credit
Balance C/D
50,000
50,000
Drawing Expense
Debit
50,000
50,000
Credit
Balance C/D
Page | 8
50,000
50,000

9. K & N’s– Final Report
Bank
Debit
Credit
50,000
10,000
10,000
30,000
50,000
Balance C/D
50,000
Capital
Debit
Balance C/D
Credit
1,150,000
1,150,000
1,150,000
1,150,000
Account Receivable
Credit
Debit
1,500
80,000
81,500
15,000
66,500
81,500
Balance C/D
Building
Debit
Credit
1,000,000
1,000,000
Balance C/D
1,000,000
1,000,000
Equipments
Debit
50,000
50,000
Credit
Balance C/D
50,000
50,000
Supplier
Debit
2,000
2,000
Credit
Balance C/D
2,000
2,000
Furniture
Debit
50,000
50,000
Credit
Balance C/D
Page | 9
50,000
50,000

10. K & N’s– Final Report
Rent Expense
Debit
1,500
1,500
Credit
Balance C/D
1,500
1,500
Wages Expense
Debit
10,000
10,000
Credit
Balance C/D
10,000
10,000
Rent Expense
Debit
1,500
1,500
Credit
Balance C/D
1,500
1,500
Transportation Expense
Debit
5,000
5,000
Credit
Balance C/D
5,000
5,000
Wages Expense
Debit
10,000
10,000
Credit
Balance C/D
10,000
10,000
Transportation Expense
Debit
30,000
30,000
Credit
Balance C/D
Page | 10
30,000
30,000

11. K & N’s– Final Report
Trial Balance
Particular
Debit
Cash
38000
Bank
Credit
30000
Purchase
70000
Sales
115000
Sales return and allowance
10000
Capital
1150000
Drawing
50000
Account payable
5000
Account Receivable
66500
Equipment
5000
Building
1000000
Furniture
5000
Rent Exp
1500
Computers
50000
Advertisement Exp
20000
Stationary Exp
10000
Insurance exp
5000
Wages exp
10000
Salaries Exp
30000
Transportation Exp
5000
Suppliers Exp
2000
Total
1361500
Page | 11
1361500

12. K & N’s– Final Report
Introduction
Merchandise inventory opening Rs 50000, Notes payable 43000, Sales 100000, Allowances for
depreciation on building Rs. 90000.
Adjusting entry:
(i)
(ii)
(iii)
Merchandise inventory ending for Rs. 50000
Paid Depreciation Expense on building Rs. 10000
Paid Bad Debt exp for Rs.10000
Adjusting Entries for the Period Ended
Particular
(i)
p/r
Merchandise inventory ending
Debit
Credit
50000
Expense and revenue summary
50000
(To record paid to merchandise inventory)
(ii)
Depreciation Exp
10000
Allowance for depreciation
10000
(To recode paid depreciation expense)
(iii)
Bad Debt Expense
10000
Allowance for bad debt
10000
(To record paid bad debt expense)
Page | 12

13. K & N’s– Final Report
Income Statement
Sales
215000
Sales return and allowances
(10000)
Net Sales
205000
Cost of Goods Sold:
Merchandise inventory opening
50000
Purchase
70000
Net Purchase
120000
Less: Merchandise inventory Ending
(50000)
Total cost of good sold available for sales:
(70000)
135000
Less: Operating Expenses:
Rent Expense
1500
Advertisement Expense
20000
Stationary Expense
10000
Insurance Expense
5000
Wages Expense
10000
Salaries Expense
30000
Transportation Expense
5000
Supplier Expense
2000
Bad debt Expense
10000
Depreciation expense
10000
Net Profit:
(103500)
31500
Page | 13

14. K & N’s– Final Report
Balance Sheet
Assets:
Cash
Bank
Account Receivable
Allowances for Bad Debt
Equipment
Computers
Merchandise Inventory ending
Total Current Assets:
38000
30000
66500
(10000)
56500
50000
50000
50000
274500
Fixed Assets:
Building
Allowances for depreciation
Furniture
Total Fixed Assets:
1000000
(10000)
900000
5000
905000
Balance Amount:
1179500
Liabilities:
Account Payable
Notes Payable
Total Liabilities:
5000
43000
Owner Equity:
Capital
Drawing
Profit
Total Equity:
1150000
(50000)
48000
1100000
31500
1131500
Balance Amount:
1179500
Page | 14

15. K & N’s– Final Report
Cash Flow Statement
Operations
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
Net Cash Flow from Investing
1,050,000
(1,000,000)
Page | 15