UNIVERSITY OF

DHAKA

Report on

Final Account of Three Companies

Course Name: Fundamental of Accounting
Course Code: FB-503

Prepared For

Prof. Md. Abu Taleb

Professor
Department of Banking and Insurance
EMBA Program
Faculty of Business Studies
University of Dhaka

Prepared By
Md. Ahsanul Karim
ID: 51324053
Department of Banking and Insurance
EMBA Program
Faculty of Business Studies
University of Dhaka

Date of Submission: 9th January, 2014

Letter of Transmittal
1 | Page

January 9, 2014

Prof. Md. Abu Taleb

Professor
Department of Banking and Insurance
EMBA Program
Faculty of Business Studies
University of Dhaka

Subject: Submission report on Final Account of Three Companies

Dear Sir,
With due respect it is my pleasure to present the term paper entitled Final

Account of Three Companies. While preparing the report I have tried my level
best to focus closely on the topic and present all the data that is required for the
assignment.
To prepare this term paper, I have given the best effort to accumulate needed
information. I will be available to answer any question for clarification. Thank you
for your sincere support.

Sincerely Yours
Md. Ahsanul Karim
ID: 51324053

2 | Page

Acknowledgement

First of all I would like to thank the Almighty Allah for giving me the
strength and the aptitude to complete this report within due time. I
am deeply indebted to my

course instructor Prof. Md. Abu Taleb for

assigning me such an interesting topic named " Final Account of

Three Companies ".

I also express the depth of my

appreciation to my honorable course

teacher

and guidelines,

for

his

suggestions

completing this report.

3 | Page

which helped me in

Table of Contents
Acknowledgement.....................................................................3
1.1 Trial Balance of A. K Company Ltd.......................................5
1.2 Income Statement of A. K Company Ltd..............................7
1.3 Balance Sheet of A. K Company Ltd.....................................8
2.1 Trial Balance of Hossain Company Ltd.................................9
2.2 Income Statement of Hossain Company Ltd......................11
2.3 Balance Sheet of Hossain Company Ltd.............................12
3.1 Trial Balance of R & T Corporation.....................................13
3.2 Income Statement of R & T Corporation............................15
3.3 Balance Sheet of R & T Corporation...................................16

4 | Page

A. K Company Ltd.
1. Here given a trial balance of A.K Company Ltd. and some additional
data for adjusting the trial balance for the year ended on December 31,
2012.

1.1 Trial Balance of A. K Company Ltd.

A.K Company Ltd
Trial Balance
December 31, 2012
Debit
(Tk)

Particulars
Cash

32,000

Accounts Receivable

67,200

Merchandise Inventory- January 2012

64,800

Land

69,600

Buildings

72,000

Long Term Investment

12,600

Insurance Expense

Credit
(Tk)

1,440

Accumulated Depreciation Buildings

19,800

Accounts Payable

44,000

Note Payable- short Term

15,000

Retained Earnings

14,020

Mortgage Payable

48,000

Capital

180,000

Drawing

14,400

Sales Revenue

246,000

Sales Return & Allowance

8,760

Interest Revenue

660

Purchase

138,480

Purchase Return & Allowance

1,140

Allowance for Doubtful Accounts

1,380

Freight in

3,600

Advertising Expense

4,800

Selling Expense

49,420

Supplies

4,200

Office Expense

16,080

Interest Expense
5 | P aDoubtful
ge
Accounts Expense

2,640
7,980
Total

570,000

570,000

Additional Data:
1. The building is to be depreciated annually at the rate of 10 percent
on cost.
2. The allowance for doubtful account is to be increased to tk. 3,000.
3. Interest on long term investment is earned but not yet been
received amounting to tk. 240.
4. Interest expense of tk. 480 has not yet been paid.
5. Selling expenses of tk. 3,840. remains unpaid.
6. Cost of merchandise inventory on December 31, 2012 estimated at
tk. 90,720.
7. Supplies consumed during the year amounting to tk. 3.420.
8. Insurance expense still un-expired amounting to tk.720.

1.2 Income Statement of A. K Company Ltd.

A.K Company Ltd
Income Statement
Year Ended December 31, 2012
Particulars
Sales Revenue

Tk

Tk
246000

Less- Sales Return

-8760
Net Sales Revenue

237240

Cost of Goods Sold:

Beginning Inventory
6 | Page

Tk

64800

Add
Purchase

138480

Less- Purchase Return & Allowance

Add- Freight in

-1140
3600

Net Purchase

140940

Cost of Goods Available for Sale

205740

Less- Ending Inventory

-90720

Cost of Goods Sold

115020
Gross Profit

122220

Operating Expense:
Insurance Expense

720

Advertising Expense

4800

Selling Expense

53260

Office Expense

16080

Doubtful Expense

9600

Depreciation Expense

7200

Supplies Expense

3420

Total Operating Expense

95080

Income from Operation

27140

Other Income & Expense:

Interest Revenue

900

Less- Interest Expense

-3120

Total Other Income & Expense

-2220

Net Income

24920

1.3 Balance Sheet of A. K Company Ltd.

A.K Company Ltd
Balance Sheet
December 31, 2012
Particulars

Tk

Tk

Tk

Particulars

Asset

Liabilities

Current Asset:

Current Liabilities:

Cash
Accounts
Receivable
Supplies
7 | Page

32000

Accounts Payable

67200
780

Note Payable
Retained Earnings

Tk

4400
0
1500
0
1402

Tk

0
Inventory

Allowance for
Doubtful Accounts

90720

Interest Receivable

240

Prepaid Insurance

720

Interest Payable
1916
60

Total Current Asset

Long Term Asset:
69600

Less- Accumulated
Depreciation
Long Term
Investment
Total Long Term
Asset

7200
0
2700
0

Mortgage Payable
Total Long Term
Liability

45000

Owner's Equity:

12600

Capital
1272
00

Add- Net Profit

Less- Drawing

Total Asset

480
3840
8034
0

Long Term Liability:

Land
Building

Selling Payable
Total Current
Liabilities

3000

4800
0
4800
0

1800
00
2492
0
1440
0

Total Owner's Equity

3188 Total Liability & Owner's
60 Equity

1905
20
3188
60

Hossain Company Ltd.

2. Here given a trial balance of Hossain Company Ltd. and some additional
data for adjusting the trial balance for the year ended on December 31,
2012.

8 | Page

2.1 Trial Balance of Hossain Company Ltd.

Hossain Company Ltd
Trial Balance
December 31, 2012
Particulars
Cash
Accounts Receivable
Merchandise Inventory- January 2012
Supplies
Property, Land & Equipment
Note Receivable
Accounts Payable
Note Payable
Capital
Drawing
Accumulated Depreciation Property, Land &
Equipment
Allowance for Doubtful Accounts
Sales
Sales Return & Allowance
Purchase
Purchase Return & Allowance
Transportation in
Insurance Expense
Salaries Expense
Rent Expense
Prepaid Advertising
Transportation Out
Interest Expense
Rent Revenue
Consulting Revenue
Total

Debit
(Tk)
18,600
41,250
20,800
5,000
107,800
3,750

Credit
(Tk)

28,950
25,000
75,090
1,100
22060
850
271,050
2,850
156,450
2,000
3,650
1,450
32,000
37,000
6,000
2,300
1,000

441,000

6000
10000
441,000

Additional Data:
1. The company has a 6 days worksheet from Saturday through
Thursday and weekly payroll is Tk. 3600. Employees are paid every
Thursday and December 31st is a Tuesday.
9 | Page

2. Insurance expense represents a payment of insurance premium of

Tk. 1200 for 2 years coverage. The payment was made on 1 August
2012.
3. Prepaid advertising includes expired advertising expenses of Tk.
4500.
4. Merchandise inventory valued t Tk. 28000.
5. The supplies of inventory reveal that Tk 1000 of supplies are on
hand.
6. Consulting fees are credited when received. Consulting fees of Tk
1500 are still unearned.
7. Rent revenue earned but unrecorded amounting to Tk 2000.
8. Property, plant and equipment is to depreciated @ 7.5% on cost. It
is a policy of the company not to charge any depreciation for the
asset sold at any time during an accounting year and to charge full
year depreciation.
9. The allowance for doubtful expense is to be raised to 10% on
account receivable.

2.2 Income Statement of Hossain Company Ltd.

Hossain Company Ltd
Income Statement
Year Ended December 31, 2012
Particulars
Tk
Tk
Sales Revenue
27105
10 | P a g e

Tk

0
-2,850

Less- Sales Return

26820
0

Net Sales Revenue

Cost of Goods Sold:
Beginning Inventory
Add
Purchase
Less- Purchase Return & Allowance
Add- Freight in

20,800
156,45
0
-2000
3650
15810
0
17890
0
28000

Net Purchase
Cost of Goods Available for Sale
Less- Ending Inventory

15090
0
11730
0

Cost of Goods Sold

Gross Profit
Operating Expense:
Insurance Expense
Salaries Expense
Rent Expense
Transportation In
Doubtful Expense
Advertising Expense
Depreciation Expense
Supplies Expense
Total Operating Expense
Income from Operation
Other Income & Expense:
Rent Revenue
Consulting Revenue
Less- Interest Expense
Total Other Income & Expense
Net Income

250
34,400
37,000
2,300
3,275
4,500
8,085
4000
93810
23490
8000
8500
-1000
15500
38990

2.3 Balance Sheet of Hossain Company Ltd.

11 | P a g e

Hossain Company Ltd

Balance Sheet
December 31, 2012

12 | P a g e

Particulars

Tk

Tk

Tk

Asset
Current Asset:
Cash

1860
0

Accounts Receivable

4125
0

Supplies
Inventory

1000
2800
0

Rent Receivable

2000

Prepaid Insurance

1200

Prepaid Advertising

1500

Total Current Asset

Long Term Asset:
Note Receivable
Property, Land &
Equipment
Less- Accumulated
Depreciation Property, Land
& Equipment

9355
0
3750

Total Long Term Asset

Total Asset

R & T Corporation
13 | P a g e

Tk

3697
5

2500
0

Owner's Equity:

107,8
00
30145

Particulars
Tk
Liabilities
Current Liabilities:
Accounts
289
Payable
50
Allowance for
Doubtful
412
Accounts
5
Salary
240
Payable
0
Unearned
150
Revenue
0
Total Current
Liabilities
Long Term
Liability:
250
Note Payable
00
Total Long
Term Liability

Capital
77,6
55

Add- Net
Profit
Less- Drawing
Total Owner's
Equity
Total Liability
1749 & Owner's
55 Equity
8140
5

750
90
389
90
110
0
1129
80
1749
55

3. Here given a trial balance of R & T Corporation and some additional

data for adjusting the trial balance for the year ended on December 31,
2012.

3.1 Trial Balance of R & T Corporation

R & T Corporation
Trial Balance
December 31, 2012
Debit
(Tk)
42,000
50,000
64,800
69,600
72,000
12,600
1,440

Particulars
Cash
Accounts Receivable
Merchandise Inventory- January 2012
Land
Buildings
Long Term Investment
Insurance Expense
Accumulated Depreciation Buildings
Accounts Payable
Note Payable- short Term
Retained Earnings
Mortgage Payable
Capital
Drawing
Sales Revenue
Sales Return & Allowance
Interest Revenue
Purchase
Purchase Return & Allowance
Allowance for Doubtful Accounts
Freight in
Advertising Expense
Selling Expense
Supplies
Office Expense
Interest Expense
Doubtful Accounts Expense

19,800
28,000
23,000
14,020
48,800
180,000
50,400
284,000
8,760
660
138,480
1,140
1,380

Total

Additional Data:
14 | P a g e

Credit
(Tk)

5,600
4,800
49,420
4,200
16,080
2,640
7,980
600,800

600,800

1.
2.
3.
4.
5.

A part of selling expenses of tk. 3,840 hang about due.

Tk. 90,720.is estimated as ending inventory.
Enthusiastic supplies during the year amounting to tk. 3,420.
Un-expired insurance amounting to tk.720.
Interest on long term investment is earned but not yet been

received amounting to tk. 240.

6. Interest expense of tk. 480 has not yet been paid.
7. The building is to be depreciated annually at the rate of 10 percent
on cost.
8. The allowance for doubtful account is to be increased to tk. 3,000.

3.2 Income Statement of R & T Corporation

R & T Corporation
Income Statement
Year Ended December 31, 2012
Particulars
15 | P a g e

Tk

Tk

Tk

Sales Revenue

284000

Less- Sales Return

-8760
Net Sales Revenue

275240

Cost of Goods Sold:

Beginning Inventory

64800

Add
Purchase

138480

Less- Purchase Return & Allowance

-1140

Add- Freight in

5600
Net Purchase

142940

Cost of Goods Available for Sale

207740

Less- Ending Inventory

-90720

Cost of Goods Sold

117020
Gross Profit

158220

Operating Expense:
Insurance Expense

720

Advertising Expense

4800

Selling Expense

53,260

Office Expense

16080

Doubtful Expense

9600

Depreciation Expense

7200

Supplies Expense

3420

Total Operating Expense

95080

Income from Operation

63140

Other Income & Expense:

Interest Revenue

900

Less- Interest Expense

-3120

Total Other Income & Expense

-2220

Net Income

60920

3.3 Balance Sheet of R & T Corporation

R & T Corporation
Balance Sheet
December 31, 2012
Particulars

Tk

Tk

Tk

Particulars

Asset

Liabilities

Current Asset:

Current Liabilities:

16 | P a g e

Tk

Tk

4200
0
5000
0

Cash
Accounts Receivable
Supplies

Accounts Payable
Note Payable

780
9072
0

Inventory
Interest Receivable

240

Prepaid Insurance

720

Retained Earnings
Allowance for Doubtful
Accounts
Interest Payable
1844
60

Total Current Asset

Long Term Asset:
Land

Less- Accumulated
Depreciation
Long Term
Investment
Total Long Term Asset

7200
0
2700
0

Mortgage Payable
Total Long Term
Liability

4500
0
1260
0

17 | P a g e

480
3840
7234
0
4880
0
4880
0

Owner's Equity:
Capital
1272
00

Add- Net Profit

Less- Drawing

Total Asset

3000

Long Term Liability:

6960
0

Building

Selling Payable
Total Current
Liabilities

2800
0
2300
0
1402
0

3116
60

Total Owner's Equity

Total Liability &
Owner's Equity

1800
00
6092
0
50,40
0
1905
20
3116
60