Debit and Credit Rule Normal Balance

Debit Credit
Assets + - Dr

Liabilities - + Cr

Equity/capital - + Cr

Revenue - + Cr

Expense + - Dr

1-Jan-20 Mr. Abdullah has invested Rs 500,000 in the

2-Jan-20 Business paid an advance rent of Rs 120000
4-Jan-20 Purchased office furniture and fixture for Rs
6-Jan-20 Purchased Photocopying Machine for Rs 350
balance willl be paid later on as a credit
8-Jan-20 Purchased stationary for Rs 35,000 in cash.
9-Jan-20 store suppiles were puchased for Rs 1,500 in
10-Jan-20 Paid Rs. 50,000 for the purchase of Furnitur
12-Jan-20 Performed Photocopying service of Rs 3,500
17-Jan-20 Peformed photocopying service of Rs 15,000
20-Jan-20 Received cash from Alif School for the servic
Mr. Abdullah has good terms with Danish Sc
23-Jan-20
services that will be performed during the a
25-Jan-20 Received Electricity bill of Rs 3,500 for the m
27-Jan-20 Performed photocopying service for Bilal sch
29-Jan-20 Paid wages to employee of Rs. 4500
31-Jan-20 other adjusting information
The Pysical count of stationary shows that o
a

Assessment of Store supplies reviled that su

b
The prepaid Rent include 6 months advance
c made for the month of January

The business has assessed that photocopyin

Rs.30,000, and decided to use straight line d
Full month depreciation is to be charged on
d
The Furniture & Fixture is estimated to rema
e method of depreciation will be used for dep
January
 Mr. Abdullah has also appointed Janitor who
f first working day of next month. The daily lo
but not yet paid for the month of January.

In the last week of the month photocopying

their advance payment.
g

In addition to Danish School, Abdullah photo

provide them photocopying service. The bill
g
first week of next month for payment. Durin
made for Iqra School but has not yet been b
 invested Rs 500,000 in the name of his business A Photocopying service
advance rent of Rs 120000 for six months.
furniture and fixture for Rs. 100,000 on Credit
copying Machine for Rs 350,000, while paying Rs 300,000 in Cash and the remaining
aid later on as a credit
nary for Rs 35,000 in cash.
re puchased for Rs 1,500 in cash
or the purchase of Furniture Fixture as of 4-jan-2020
copying service of Rs 3,500 in cash
copying service of Rs 15,000 for Alif School and bill was sent.
om Alif School for the services that were perfomed on 17 jan.
good terms with Danish School, and thus received Rs. 10,000 in advance for photocopying
be performed during the assesments of schools from 24th Jan till 15th Feb 2020. cash
ity bill of Rs 3,500 for the month of Januery, with the due date of 5th Feb, 2020. liab/unear
copying service for Bilal school of Rs. 7500 in cash
mployee of Rs. 4500
nformation
of stationary shows that out of total only Rs. 18500 still available on hand

ore supplies reviled that supplies of Rs. 950 have been consumed during the month

include 6 months advance rent, made at the beginning of January. A full month charged is to be
nth of January

assessed that photocopying machine will remain usufull for 8 year with salvage value of
ecided to use straight line depreciation method for allocation of cost over usufull life time period.
ciation is to be charged on photocopying machine.

Fixture is estimated to remain usufull for 10 year with Residual value of Rs. 5,000. Straight line
ciation will be used for depreciation charge. Depreciation is to be charged for full month of
9500 791.6667
also appointed Janitor who is working in the market on daily wages, and agreed to pay wages on
of next month. The daily log book of Janitorial service shows total of 11 days @ Rs.100/day is due
or the month of January.

of the month photocopying services of Rs 4,500 have been performed for Danish School againest
yment.

nish School, Abdullah photocopying services has also entered a contract with Iqra school to
otocopying service. The bills of photocopying services of any month must be present during the
month for payment. During last week of January photocopying services of Rs. 1,200 have been
hool but has not yet been billed.
increase Dr.
increase cr.
 Abdullah Photocopying Services
Genral Journal
Date Particulars Dr. Cr.
1-Jan-20 Cash A/c 500000 posted
Abdullah's Capital 500000 posted
investment made by owner
2-Jan-20 Prepaid Rent 120000 Posted
Cash A/c 120000 Posted
paid 6 months advance rent
4-Jan-20 Furniture & Fixture 100000 Posted
Trade Creditor (Accounts Payables) 100000 Posted
Purchase Furniture & Fixture on Credit
6-Jan-20 Equipments 350000 Posted
Cash A/c 300000 Posted
Trade Creditor (Accounts Payables) 50000 posted
purchased photocopier on partial payment
8-Jan-20 Stationary A/c 35000 Posted
Cash A/c 35000 Posted
purchased stationary on cash
9-Jan-20 Store Supplies 1500 Posted
Cash A/c 1500 Posted
purchase store supplies on cash
10-Jan-20 Trade Creditor (Accounts Payables) 50000 Posted
Cash A/c 50000 Posted
partial payment made for paying liabilities
12-Jan-20 Cash A/c 3500 posted
Service Revenue 3500 Posted
To recorde cash revenue
17-Jan-20 Trade Debtors (Accounts Receivables) 15,000 Posted
Service Revenue 15,000 Posted
performed services on credit
20-Jan-20 Cash A/c 15,000 Posted
Trade Debtors (Accounts Receivables) 15,000 Posted
Received cash from trade debtor
23-Jan-20 Cash A/c 10000 Posted
Unearned Revenue A/C 10000 Posted
Received cash in advance from Danish School
25-Jan-20 Utility Expense 3500 Posted
Utility bill payable 3500 Posted
27-Jan-20 Cash A/c 7500 Posted
Service Revenue 7500 Posted
29-Jan-20 Wages Expense 4500 Posted
Cash A/c 4500 Posted
Adjusting Entrees
31-Jan-20 Stationary Expense 16500 Posted
 Stationary A/c 16500 Posted
to adjust stationary
31-Jan-20 Store Supplies Expense 950 Posted
Store Supplies A/c 950 Posted
Rent Expense 20000 Posted
Prepaid Rent 20000 Posted
Depreciation Expense Equipment 3333 Posted
Accumulatd Depreciation A/c Equipment 3333 Posted
Depreciation Expense Furniture 792 Posted
Accumulated Depreciation A/C Furniture 792 Posted
Janitorial Charges 1100 Posted
Accrude Expense payable 1100 Posted
g Unearned Revenue A/C 4500 Posted
Service Revenue 4500 Posted
Trade Debtors (Iqra School) 1200 Posted
Service Revenue 1200 Posted
 Assets
Cash A/C
Date Cross Account Amount Date Cross Account Amount
1-Jan-20 Abdullah's Capital 500000 2-Jan-20 Prepaid Rent 120000
12-Jan-20 Service Revenue 3500 6-Jan-20 Equipment 300000
20-Jan-20 Trade Debtor 15000 8-Jan-20 Stationary 35000
27-Jan-20 Service Revenue 7500 9-Jan-20 Store Supplies 1500
23-Jan-20 Unearned Revenue 10000 10-Jan-20 Trade Creditor 50000
29-Jan-20 Wages Expense 4500
Total 536000 Total 511000
Less Credits -511000
Balance C/F 25000

Prepaid Rent A/C

2-Jan-20 Cash 120000
Balance C/F 120000 31-Jan-20 Rent expnse 20,000
total 120000 20,000
Less Credit total -20,000
Balance C/F 100,000

Trade Debtor
17-Jan-20 Service Revenue 15000 20-Jan-20 Cash A/C 15000
Total 15000 Total 15000
Less Credit -15000
Balance C/F Nill
31-Jan-20 Service Revenue 1200
Balance C/F 1200

Stationary
8-Jan-20 Cash A/C 35000
Balance C/F 35000 31-Jan-20 Stationary Expense 16500
Total 35000 Total 16500
Less Credit total -16500
 Balance C/F 18500

Store Supplies
9-Jan-20 Cash A/C 1500
Balance C/F 1500 31-Jan-20 Store Supplies Expense 950
Total 1500 Total 950
Less Total Credit -950
Balance C/F 550

Equipment
6-Jan-20 Cash A/C 300000
6-Jan-20 Trade Creditor 50000
Total Balance C/F 350000

Accumulated Depreciation Equipment

43861 3333

Furniture & Fixture A/C

4-Jan-20 Trade Crditor 100000
Balance C/F 100000

Accumulated Depreciation Furniture

43861 792
 Expenses
10-Jan-20

Rent Expense
31-Jan-20 Prepaid Rent 20000

Stationary Expens
31-Jan-20 Stationary 16500
 Store Supply Expense
31-Jan-20 Store Supply 950

Depreciation Expense Equipment

31-Jan-20 Acc Dep Eqp 3333

Depreciation Expense Furniture

31-Jan-20 Acc Dep Fur 792
 Utility Expense
25-Jan-20 Utility bill paya 3500
Balance C/F 3500

Wages Expense
29-Jan-20 Cash A/c 4500
Balance C/F 4500

Janitorial Expense Acc

31-Jan-20 Acrude Exp Pay 1100

Un
31-Jan-20
 Liabilities
Trade Creditor
Cash A/C 50000 4-Jan-20 Furniture & Fixture 100000
6-Jan-20 Equipment 50000 Ab
Total 50000 Total 150000
Less Debits -50000
Balance C/F 100000
 utility bill payable
25-Jan-20 Utility Expnese 3500
Balance C/F 3500

Accrude Expense Payable

43861 Janitorial Expense 1100

Unearned Revenue A/C

Service Revenue 4500 23-Jan-20 Cash A/C 10000
Total 4500 Total 10000
Less Debit Total -4500
Balance C/F 5500
 Equity Revenue
Service Revenu

Abdullah's Capital
1-Jan-20 Cash A/C 500000
Balance C/F 500000
Revenue
Service Revenue
12-Jan-20 Cash A/C 3500
17-Jan-20 Trade Debtors 15000
27-Jan-20 Cash A/C 7500
Total (Balance C/F) 26000
31-Jan-20 Unearned Revenue 4500
31-Jan-20 Trade Debtors 1200
Balance C/F 31700
 Abdullah Photocopying Services Work Sheet
Trial Balance Adjusting Adjusted
As on 31st Jan 2020 Entrée Trial Balance
Accounts Dr. Cr. Dr. Cr. Dr. Cr.
Cash A/c 25000 25000
Trade Debt 0 1200 1200
Stationary 35000 16500 18500
Store Suppl 1500 950 550
Prepaid R 120000 20000 100000
Equipment 350000 350000
Furniture & 100000 100000
Trade Creditor 100000 100000
Unearned Revenue 10000 4500 5500
Utility Bill Payable 3500 3500
Abdullah's Capital 500000 500000
Service Revenue 26000 5700 31700
Utility Exp 3500 3500
Wages Exp 4500 4500
Total 639500 639500
Stationary Expense 16500 16500
Store Supplies Expense 950 950
Rent Expense 20000 20000
Depreciation Expense Eq 3333 3333
Acc Dep Equipment 3333 3333
Depreciation Expense Furniture 792 792
Acc Dep Furniture 792 792
Janitorial Expense 1100 1100
Accrude Exp Payable 1100 1100
Total 48375 48375 645925 645925
Net Loss
Total
Work Sheet
Profit & Loss A/C Balance Sheet

Dr. Cr. Dr. Cr.

25000
1200
18500
550
100000
350000
100000
100000
5500
3500
500000
31700
3500
4500

16500
950
20000
3333
3333
792
792
1100
1100
50675 31700
18975 18975
50675 50675 614225 614225
 Abdullah Photocopying Services
Income Statement
for the month ended, 31 Jan 2020
Service Revenue Rs 31,700
Less Operating Expenses
Utility Expense 3500
Wages Expense 4500
Stationary Expense 16500
Store Supplies Expense 950
Rent Expense 20000
Depreciation Expense Eq 3333
Depreciation Expense Furniture 792
Janitorial Expense 1100
Total Expenses -Rs 50,675
Net Profit/(Loss) -Rs 18,975

Abdullah Photocopying Services

Statement of Changes in Equity
for the month ended, 31 Jan 2020
Beginning balance of Equity, as of 1st Jan 2020 Rs 500,000
Add/(Less) Net Profit/(Loss) -Rs 18,975
Change brought to equity due to operation Rs 481,025
Add additional investment of owner during the period -
Less Withdrawals made by the owner -
Ending balance of Equity Rs 481,025

Abdullah Photocopying Services

Balance Sheet
As on 31st January 2020
Assets
Current Assets
Cash A/c Rs 25,000
Trade Debtor Rs 1,200
Stationary Rs 18,500
Store Supplies Rs 550
Prepaid Rent A/C Rs 100,000
Total Current Assets Rs 145,250
Non-Current Assets
Equipment Rs 350,000
Less Acc Dep Equipment -Rs 3,333
Equipment Net Rs 346,667
Furniture & Fixture Rs 100,000
Less Acc Dep Furniture & Fixture -Rs 792
Furniture & Fixture, Net Rs 99,208
Total Non-Current Assets Rs 445,875
Total Asssets Rs 591,125
Liabilities and Equity
Current Liabilities
Trade Creditor Rs 100,000
Unearned Revenue Rs 5,500
Utility Bill Payable Rs 3,500
Accrude Expense Payable Rs 1,100
Total Current Liabilities Rs 110,100
Long Term Liabilities -
Total Liability Rs 110,100
Equity
Abdullah's Capital Rs 500,000
Net Loss -Rs 18,975
Withdrawals -
Total Equity Rs 481,025
Total Liabilities Plus Equity Rs 591,125

Abdullah Photocopying Services

Statement of Cash Flow
for the month ended, 31 Jan 2020
Operating Activities
Net Profit/(Loss) -Rs 18,975
Add back Depreciation (non-cash expenses) Rs 4,125
-Rs 14,850
Changes in Working Capital
Add/(Less) Decrease/(increase) in Trade Debtors -Rs 1,200
Add/(Less) Decrease/(increase) in Stationary -Rs 18,500
Add/(Less) Decrease/(increase) in Supplies -Rs 550
Add/(Less) Decrease/(increase) in Prepayment -Rs 100,000
Add/(Less) Increase/(Decrease) in Trade Creditor Rs 100,000
Add/(Less) Increase/(Decrease) in Unearned Revenue Rs 5,500
Add/(Less) Increase/(Decrease) in Utility Bills Payable Rs 3,500
Add/(Less) Increase/(Decrease) in Accrude Expense Payable Rs 1,100
Net Change in working capital -Rs 10,150
Net cash provided/(used) in operations -Rs 25,000
Investing Activities
Cash (used) in purchase of Equipment -Rs 350,000
Cash (used) in purchase of Furniture & Fixture -Rs 100,000
Net Cash provided/(used) by/(in) Investments -Rs 450,000
Financing Activities
Cash Provided/(withdrawn) by Owner Rs 500,000
Net Cash provided/(used) by/(in) Financing Rs 500,000
Net Change in Cash Rs 25,000
Add Beginning Cash Balance, as of 1st Jan 2020 -
Ending Cash Balance Rs 25,000