FINANCIAL REPORT OF THAPA

FIRM IN NEPAL WITH REFRENCE

TO MR. THAPA TEXTILE COMPANY
A Report about the partial fulfillment of the
requirements of the internal evaluation of Grade XI
in Principles of Accounting-I

Name of the student: Niraj Chaudhary

Section: J1
Student ID: 28282

Trinity International SS & College

Dillibazar Height, Kathmandu, Nepal
Date: 2079-08-25
 Declaration

I hereby declare that the work presented in this

project report has been done by myself under
the supervision of Mr. Pushpa Sir (lecturer of
accounting) and has not been submitted
elsewhere for any examination.

All sources of information have been

specifically acknowledged by references to
authors or institutions.
Date: 2079-08-25
Name of the student:
Niraj Chaudhary
 LETTER OF APPROVAL
The Project Work Submitted to Trinity
International SS College, by Niraj Chaudhary,
entitled “Mr. Thapa Textile Company” has been
approved as the partial fulfillment of the
requirements of the internal evaluation.

Date: 2079-08-25
Name of supervisor:
Mr. Pushpa Chaulagain
INTRODUCTION

Background of the study:

Financial report of any organization shows the
operating result and financial position of any
organization. It helps to check the health of the
business which helps to detect that the business
is running properly or not. It shows the position
of profit or loss and condition of assets and
liabilities.

In Nepal, the private firm was established by

single person can be registered under private
firm registration Act,2014.
 Objectives of the study
The main objective of this report is to acquire a
sound understanding of an organization, and to
know about preparation of financial
reports……………… Major objectives of this
report are mentioned below:
 To know operating result.
 To know the financial position at given
period.
 To communicate the financial position

Limitations of the study

Since the report is prepare based on Trial
balance provided by the business or
organization based on the past year’s
performance so it shows the operating result and
financial position of last year only. It does not
maintain any type of secrecy.
Methods and materials

We have used imaginary methods of data

collection for the purpose of this report. For
the collection of financial and non- financial
data we have not visited any company or
organization. We took this data by group
discussion based on imagination.
 TRANSACTION
a. Started business with cash Rs.600000 and
bank Rs. 300000.
b. Purchased goods on cash Rs. 150000 and
received discount of Rs. 5000.
c. Purchased goods costing Rs. 60000 from
Kriti.
d. Purchased goods from Priya for
Rs.200000 and payment of Rs.50000 made
by cheque and Rs. 50000 on cash and
remaining on credit.
e. Goods returned to Kriti for Rs.5000
f. Goods sold to Santoshi for Rs. 100000 and
received Rs. 85000 in cash and Rs. 5000
in cheque and remaining was on credit.
g. Sharmila returned goods worth Rs.5000.
h. Purchased furniture of Rs.50000 for cash.
i. Bought vehicle costing Rs.150000.
j. Rs.10000 invested in shares of Nepal Bank
Limited.
k. Paid salary of Rs.15000 by cheque.
l. Wages outstanding Rs.2000.
m. Commission earned but not received by
Rs.5000.
n. Rent of the month of Rs. 30000 was due.
o. Ramesh, a debtor of Rs.10000 was
declared insolvent and only 25% of her
debt received)
p. Depreciation @10% charged on Furniture
of Rs. 50000.
q. Interest on investment received @10%.
r. Withdrawn cheque of Rs. 20000 for
personal use.
s. Goods worth Rs.5000 distributed as
sample.
t. Goods worth Rs.1000 destroyed by fire,
but Insurance Company admitted only half
of the amount claimed.
u. Goods worth Rs.1000 given as charity.
v. Borrowed 10% bank loan of Rs.50000.
 Journal Entries
Date Particulars L/F Debit Rs. Credit
Rs.
Cash a/c 600000
a Dr. 300000
Bank a/c 900000
Dr.
To Capital a/c
Cr.
(Being Business Started
With cash and bank)
Purchase a/c 150000
b Dr. 150000
To cash a/c Cr.
(Being goods purchased
and received discount)
Purchase a/c 60000
c Dr. 60000
To Kriti a/c Cr.
(Being goods purchased
from Kriti on credit)
 Purchase a/c 200000
d Dr. 50000
To Bank a/c 50000
Cr. 100000
To Cash a/c Cr.
To Priya a/c
Cr. 5000
(Being goods pur. from 5000
e Priya & made payment)
Kriti’s a/c
Dr.
To Purchase. Return a/c
Cr.
(Being goods returned
to
Kriti)
Cash a/c 85000
Dr. 5000
Bank a/c 10000
f
Dr. 100000
Santoshi’s a/c
Dr.
To sales a/c
 Cr.
(Being goods sold to
Santoshi and received
partially)
Sales Return a/c Dr. 5000
To Sharmila's a/c 5000
g Cr.
(Being goods returned
by Sharmila)

Furniture a/c 50000

h Dr. 50000
To cash a/c Cr.
(Being furniture
purchased)
Vehicles a/c 150000
Dr. 150000
i To cash a/c Cr.
(Being vehicle
purchased)
Investment a/c 10000
j Dr. 10000
To cash a/c Cr.
 (Being investment made
in shares of Nepal Bank
Limited)
Salary a/c Dr. 15000
k To bank a/c Cr. 15000
(Being salary paid)

Wages a/c 2000

l Dr. 2000
To o/s wages Cr.
(Being rent due
recorded)
Comm. Receivable 5000
m Dr. 5000
To comm. a/c Cr.
(Being commission
earned but not received)
Rent a/c 30000
n Dr. 30000
To o/s rent a/c Cr.
(Being rent due
recorded)
 Cash a/c 2500
Dr. 7500
Bad debts a/c 10000
o
Dr.
To Ramesh’s a/c
Cr.
(Being cash received From
Ramesh at 25 paisa as final
dividend from his estate and
the amount due from her
written off as bad debt)

Depreciation a/c 5000

p Dr. 5000
To furniture a/c Cr.
(Being depreciation
charged on furniture)
Interest on
q Investment a/c 1000
Dr. 1000
To Invest. a/c Cr.
(Being interest on
investment received)
 Drawing a/c Dr. 20000
To bank a/c Cr. 20000
r
(Being cheque drawn
for personal use)
Advertisement a/c 5000
Dr. 5000
s
To purchase a/c
Cr.
(Being goods
distributed as sample
for adver.)
Insurance Co
Claim a/c Dr. 500
Goods lost by
fire a/c Dr. 500
t To purchase a/c Cr.
1000
(Being goods destroyed
by fire and half of the
claim admitted by
Insurance company)

Charity a/c Dr. 1000

u
To Purchase a/c 1000
 Cr.
(Being goods given as
charity)
Bank a/c Dr. 50000
v
To 10%
bank loan a/c 50000
Cr.
(Being loan taken from
bank at 10% interest)
TOTAL 1775000 1775000

Ledger Account
Cash’s A/C
Dat J/ Amoun Dat J/ Amoun
e Particulars F t e Particulars F t
To capital By purchase
a a/c 600000 b a/c 150000
To Ramesh By purchase
o a/c 2500 d a/c 50000
By furniture
f To sales a/c 85000 h a/c 50000
i By vehicle a/c 150000
j By investment 10000
 a/c
Z By balance c/d 277500
687500 687500
To balance
a1 b/d 277500

Capital A/C
Date Particulars JF Amount Date Particulars JF Amount
z To balance c/d 900000 A By cash a/c 600000
By bank a/c 300000
900000 900000

a1 By balance c/d 900000

Bank A/C
J/
Date Particulars F Amount Date Particulars J/F Amount

A To capital a/c 300000 D By purchase a/c 50000

F To sales a/c 5000 K By salary a/c 15000

V To loan a/c 50000 R By drawing a/c 20000

Z By balance c/d 270000

355000 355000

A1 To balance b/d 270000

 Purchase A/C
Date Particulars J/F Amount Date Particulars J/F Amount
By Ins. Co.
T
B To cash 150000 Claim 500
C To Kriti 60000 By goods lost 500
D To bank 50000 V By charity 1000
To cash 50000 S By advertisement 5000
To Priya 100000 Z By balance c/d 403000
410000 410000
A1 By balance b/d 403000
Karan's A/C
J/
Date Particulars F Amount Date Particulars J/F Amount
By purchase By purchase
C
E return 5000 a/c 60000
Z By balance c/d 55000
60000 60000
A1 By balance b/d 55000

Priya’s A/C
Date Particulars JF Amount Date Particulars JF Amount

Z To balance c/d 100000 D By purchase a/c 100000

100000 100000
A1 By balance b/d 100000

J/ Amoun Dat J/
Date Particulars F t e Particulars F Amount
By balance
E
Z c/d 5000 By Kriti's a/c 5000
5000 50000
A1 By balance b/d 5000
Purchase Return A/C
Sharmila's a/c
Date Particulars J/f Amount Date Particulars J/f Amount
F To sales 10000 G By sales return 5000
Z By balance c/d 5000
10000 10000
A1 To balance c/d 5000

Date Particulars J/f Amount Date Particulars J/f Amount

Z By balance c/d 100000 F By cash a/c 85000
By bank a/c 5000
by Sharmila's 10000
 a/c
100000 100000
A1 By balance b/d 100000
sales a/c

sales return a/c

Date Particulars J/f Amount Date Particulars J/f Amount
G To Sharmila a/c 5000 Z To balance c/d 5000
5000 5000
A1 To balance b/d 5000
 J/
Date Particulars F Amount Date Particulars J/F Amount
by depreciation
h to cash a/c 50000 p a/c 5000
z by balance c/d 45000
50000 50000
a1 to balance b/d 45000
Furniture a/c

vehicles a/c
Date Particulars J/f Amount Date Particulars J/f Amount
I To cash a/c 150000 Z To balance c/d 150000
150000 150000
A1 O balance b/d 150000

Date Particulars J/f Amount Date Particulars J/f Amount

K To bank a/c 15000 Z To balance c/d 15000
15000 15000
A1 To balance b/d 15000
salary a/c
investment a/c
Date Particulars J/f Amount Date Particulars J/f Amount
K To cash a/c 10000 Z To balance c/d 10000
10000 10000
A1 To balance b/d 10000
wages a/c
Date Particulars J/f Amount Date Particulars J/f Amount
To o/s wages
L a/c 2000 Z To balance c/d 2000
2000 2000
A1 To balance b/d 2000
O/s wages a/c
Date Particulars J/f Amount Date Particulars J/f Amount
Z To balance c/d 2000 L By wages a/c 2000
2000 2000
A1 By balance b/d 2000
Commission receivable a/c
Date Particulars J/f Amount Date Particulars J/f Amount
To commission
M a/c 5000 Z To balance c/d 5000
5000 5000
A1 To balance b/d 5000
Commission a/c
Date Particulars J/f Amount Date Particulars J/f Amount
By comm rec.
Z To balance c/d 5000 L A/c 5000
5000 5000
A1 By balance b/d 5000
 Date Particulars J/f Amount Date Particulars J/f Amount
M To o/s rent a/c 30000 Z To balance c/d 30000
30000 30000
A1 To balance b/d 30000
rent a/c
bad debt a/c
Date Particulars J/f Amount Date Particulars J/f Amount
O To Ramesh a/c 7500 Z To balance c/d 7500
7500 7500
A1 To balance b/d 7500
Date Particulars J/f Amount Date Particulars J/f Amount
P To furniture a/c 5000 Z To balance c/d 5000
5000 5000
A1 To balance b/d 5000
depreciation a/c
drawing a/c
Date Particulars J/f Amount Date Particulars J/f Amount
R To bank a/c 20000 Z To balance c/d 20000
20000 20000
A1 To balance b/d 20000
advertisement a/c
Date Particulars J/f Amount Date Particulars J/f Amount
S To purchase a/c 5000 Z To balance c/d 5000
5000 5000
A1 To balance b/d 5000
 Trial Balance
As on 31st Ashadh,2077
Particulars L/F Debit Rs. Credit Rs.
Cash 277500
Bank 270000
Capital 900000
Purchase 403000
Karan 55000
Priya 100000
Purchase return 5000
Sharmila 5000
Sales 100000
Sales Return 5000
Furniture 45000
Vehicles 150000
Investment 10000
Salary 15000
Wages 2000

O/S Wages 2000

Com. Receivable 5000
Commission 5000
Rent 30000
O/S Rent 30000
Bad debt 7500
Ramesh 10000
Depreciation 5000
Int. on investment 1000
Investment 1000
Drawing 20000
Advertisement 5000
Insurance Co. 500
Loss by fire 500
Charity 1000
10% bank loan 50000
Total 1258000 1258000
Conclusion
The company has no sound financial
position. Since it has negative result in
period. The company can increase its
capital to enlarge the size and operation
area of the business in order to get profit
and better financial freedom.
 Bibliography

 Textbook of Accounting
 www.google.com
 Accounting problem solver
 www.youtube.com

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