Date

1-Jan-10
1-Jan-10
1-Jan-10
1-Jan-10
31-Mar-10
31-Mar-10
30-Jun-10
30-Jun-10
30-Jun-10
30-Jun-10
30-Jun-10
31-Jul-10
31-Jul-10
31-Aug-10
30-Sep-10
31-Dec-10
 Transaction

Mr Apple invested BDT1,000,000 in cash into his IT business, A-Mac

A-Mac rents a shop and pays BDT300,000 rent in cash
A-Mac purchase office equipment for BDT120,000 in cash
A-Mac buys supplies of BDT500,000, BDT200,000 paid in cash and the balance on credit from Mr Micro
A-Mac sells goods for BDT750,000, BDT500,000 in cash and the rest on credit to Mr Sof
A-Mac pays BDT10,000 to DESCO in cash for electric & BDT50,000 in salaries
A-Mac borrows BDT1,000,000 from BRAC Bank for 5 years
A-Mac buys supplies of BDT500,000 paid in cash
A-Mac pays Mr Micro DBT200,000
Mr Sof pays A-Mac BDT250,000 in cash
A-Mac pays BDT10,000 to DESCO in cash for electric & BDT50,000 in salaries
A-Mac sells goods for BDT1,000,000, BDT500,000 in cash and the rest on credit to Mr Intel
Mr Apple takes BDT250,000 in cash from the business
A-Mac buys supplies of BDT250,000, BDT200,000 paid in cash and the balance on credit from Mr Micro
A-Mac pays BDT10,000 to DESCO in cash for electric & BDT50,000 in salaries
A-Mac sells goods for BDT250,000 to Mr Pentium
Date Accounts and details Ref

1-Jan-10 Cash a/c 001

Owners Equity a/c
Mr Apple invested BDT1,000,000 in cash into his IT business, A-Mac

1-Jan-10 Rent expense a/c 002

Cash a/c
A-Mac rents a shop and pays BDT300,000 rent in cash

1-Jan-10 Office Equipment a/c 003

Cash a/c
A-Mac purchase office equipment for BDT120,000 in cash

1-Jan-10 Supplies a/c 004

Cash a/c
Creditor - Mr Micro
A-Mac buys supplies of BDT500,000, BDT200,000 paid in cash and the
balance on credit from Mr Micro

31-Mar-10 Cash a/c 005

Debtor a/c - Mr Sof
Sales a/c
A-Mac sells goods for BDT750,000, BDT500,000 in cash and the rest on
credit to Mr Sof

31-Mar-10 Electric expense a/c 006

Salaries expense a/c
Cash a/c
A-Mac pays BDT10,000 to DESCO in cash for electric & BDT50,000 in salaries

30-Jun-10 Cash a/c 007

Loac a/c - Brac Bank
A-Mac borrows BDT1,000,000 from BRAC Bank for 5 years

30-Jun-10 Supplies a/c 008

Cash a/c
A-Mac buys supplies of BDT500,000 paid in cash

30-Jun-10 Creditor - Mr Micro 009

Cash a/c
A-Mac pays Mr Micro DBT200,000

30-Jun-10 Cash a/c 010

Debtor a/c - Mr Sof
Mr Sof pays A-Mac BDT250,000 in cash
30-Jun-10 Electric expense a/c 011
Salaries expense a/c
Cash a/c
A-Mac pays BDT10,000 to DESCO in cash for electric & BDT50,000 in salaries

31-Jul-10 Cash a/c 012

Debtor a/c - Mr Intel
Sales a/c
A-Mac sells goods for BDT1,000,000, BDT500,000 in cash and the rest on
credit to Mr Intel

7/31/2010 Drawings a/c 013

Cash a/c
Mr Apple takes BDT250,000 in cash from the business

31-Aug-10 Supplies a/c 014

Cash a/c
Creditor - Mr Micro
A-Mac buys supplies of BDT250,000, BDT200,000 paid in cash and the
balance on credit from Mr Micro

30-Sep-10 Electric expense a/c 015

Salaries expense a/c
Cash a/c
A-Mac pays BDT10,000 to DESCO in cash for electric & BDT50,000 in salaries

31-Dec-10 Cash a/c 017

Sales a/c
A-Mac sells goods for BDT250,000 to Mr Pentium
Debit Credit

1,000,000
1,000,000

300,000
300,000

120,000
120,000

500,000
200,000
300,000

500,000
250,000
750,000

10,000
50,000
60,000

1,000,000
1,000,000

500,000
500,000

200,000
200,000

250,000
250,000
 10,000
50,000
60,000

500,000
500,000
1,000,000

250,000
250,000

250,000
200,000
50,000

10,000
50,000
60,000

250,000
250,000

6,550,000 6,550,000
 Cash a/c

1-Jan-10 Owners Equity a/c
31-Mar-10 Sales a/c
30-Jun-10 Loac a/c - Brac Bank
30-Jun-10 Debtor a/c - Mr Sof
31-Jul-10 Sales a/c
001 1,000,000 1-Jan-10 Rent expense a/c
Office Equipment a/c
Supplies a/c
005 500,000 31-Mar-10 Electric expense a/c
Salaries expense a/c
007 1,000,000 30-Jun-10 Supplies a/c
010 250,000 Creditor - Mr Micro
30-Jun-10 Electric expense a/c
Salaries expense a/c
012 500,000 31-Jul-10 Drawings a/c
31-Aug-10 Supplies a/c
30-Sep-10 Electric expense a/c
Salaries expense a/c

31-Dec-10 Sales a/c 017 250,000 31-Dec-10 Balance c/d

3,500,000

Office Equipment a/c

1-Jan-10 Cash a/c 003 120,000 31-Dec-10 Balance c/d

120,000

Electric expense a/c

31-Mar-10 Cash a/c 006 10,000

30-Jun-10 Cash a/c 011 10,000
30-Sep-10 Cash a/c 015 10,000

30,000

Salaries expense a/c

31-Mar-10 Cash a/c 006 50,000

30-Jun-10 Cash a/c 011 50,000
30-Sep-10 Cash a/c 015 50,000

150,000

Supplies a/c

1-Jan-10 Cash a/c 004 200,000

Creditor - Mr Micro 004 300,000
30-Jun-10 Cash a/c 008 500,000
31-Aug-10 Cash a/c 014 200,000
Creditor - Mr Micro 014 50,000
1,250,000

Sales a/c

31-Mar-10 Cash a/c

Debtor a/c - Mr Sof
31-Jul-10 Cash a/c
Debtor a/c - Mr Intel
31-Dec-10 Cash a/c
 Owners Equity a/c

002 300,000 31-Dec-10 Balance c/d 1,000,000

003 120,000
004 200,000
006 10,000
006 50,000
008 500,000
009 200,000 1,000,000
011 10,000
011 50,000
013 250,000 Drawings a/c
014 200,000
015 10,000 31-Jul-10 Cash a/c 013 250,000
015 50,000

1,550,000

3,500,000 250,000

Loac a/c - Brac Bank

120,000 31-Dec-10 Balance c/d 1,000,000

120,000 1,000,000

Rent expense a/c

1-Jan-10 Cash a/c 002 300,000

300,000

Creditor a/c - Mr Micro

30-Jun-10 Cash a/c 009 200,000

 31-Dec-10 Balance c/d 150,000

350,000

Debtor a/c - Mr Sof

31-Mar-10 Sales a/c 005 250,000

250,000

Debtor a/c - Mr Intel

005 500,000 31-Jul-10 Sales a/c 012 500,000

005 250,000
012 500,000
012 500,000
017 250,000
2,000,000 500,000
 Owners Equity a/c

1-Jan-10 Cash a/c 001 1,000,000

1,000,000

Drawings a/c

31-Dec-10 Balance c/d 250,000

250,000

Loac a/c - Brac Bank

30-Jun-10 Cash a/c 007 1,000,000

1,000,000

Rent expense a/c

Creditor a/c - Mr Micro

1-Jan-10 Supplies a/c 004 300,000

31-Aug-10 Supplies a/c 014 50,000
 350,000

Debtor a/c - Mr Sof

30-Jun-10 Cash a/c 10 250,000

250,000

Debtor a/c - Mr Intel

31-Dec-10 Balance c/d 500,000

500,000
Date Trial Balance Ref

Cash a/c
Owner's equity a/c
Drawings a/c
Loan a/c
Office equipment a/c
Electric expense a/c
Rent expense a/c
Salaries expense a/c
Supplies a/c
Sales a/c
Creditor a/c - Mr Micro
Debtors a/c - Mr Sof
Debtors a/c - Mr Intel

31-Dec-10 Totals
Debit Credit

1,550,000
1,000,000
250,000
1,000,000
120,000
30,000
300,000
150,000
1,250,000
2,000,000
150,000
-
500,000

4,150,000 4,150,000
Date

8
 Transaction

The rental contract was for two years, and A-Mac was required to pay 50% advance upfront for the two years, followed
by the rent due for 2010

A-Mac purchased an annual business insurance policy from Crystal Insurance on 30-Sep-10 for BDT60,000, for which the
bill had not been paid in 2010

On 01-Jan-11 A-Mac issued an invoice to Mr Sof for BDT250,000 for goods sold and delivered to him on 31-Dec-10

The goods sold to Mr Pentium were not delivered until 15-Jan-11

Salaries and electric expenses for the last quarter of 2010 remained unpaid on 31-Dec-10

Supplies in stock on 31-Dec-10 amounted to BDT250,000

Office equipment are depreciated over 3 years on a straight line basis assuming nil residual value

The loan from BRAC Bank is subject to interest at 15% p.a and is payable on an annual basis
Date Accounts and details Ref

31-Dec-10 Rental expense a/c ADJ1

Prepaid Rent a/c
The rental contract was for two years, and A-Mac was required to pay 50%
advance upfront for the two years, followed by the rent due for 2010

31-Dec-10 Insurance expense a/c ADJ2

Creditor a/c - Crystal Insurance
Insurance expense a/c
Prepaid insurance a/c
A-Mac purchased an annual business insurance policy from Crystal
Insurance on 30-Sep-10 for BDT60,000, for which the bill had not been paid
in 2010

31-Dec-10 Sales a/c ADJ3

Debtors a/c - Mr Sof
On 01-Jan-11 A-Mac issued an invoice to Mr Sof for BDT250,000 for goods
sold and delivered to him on 31-Dec-10

31-Dec-10 Sales a/c ADJ4

Creditor a/c - Mr Pentium
The goods sold to Mr Pentium were not delivered until 15-Jan-11

31-Dec-10 Electric expense a/c ADJ5

Accrued electric a/c
Salaries expense a/c
Accrued salaries a/c
Salaries and electric expenses for the last quarter of 2010 remained unpaid
on 31-Dec-10

31-Dec-10 Cost of Goods sold a/c ADJ6

Supplies a/c
Supplies in stock on 31-Dec-10 amounted to BDT250,000

31-Dec-10 Depreciation a/c ADJ7

Accumulated depreciation a/c
Office equipment are depreciated over 3 years on a straight line basis
assuming nil residual value

31-Dec-10 Interest expense a/c ADJ8

Accrued Interst a/c
The loan from BRAC Bank is subject to interest at 15% p.a and is payable on
an annual basis
Debit Credit

100,000
100,000

60,000
60,000
45,000
45,000

250,000
250,000

250,000
250,000

10,000
10,000
50,000
50,000

1,000,000
1,000,000

40,000
40,000

75,000
75,000
1,765,000 1,765,000
 Electric expense a/c

31-Mar-10 Cash a/c 006 10,000

30-Jun-10 Cash a/c 011 10,000
30-Sep-10 Cash a/c 015 10,000
31-Dec-10 Accrued electric a/c ADJ5 10,000 31-Dec-10 To P&L a/c

40,000

Accrued Electric a/c

31-Dec-10 Balance c/d 10,000 31-Dec-10 Electric expense a/c ADJ5

10,000

Salaries expense a/c

31-Mar-10 Cash a/c 006 50,000

30-Jun-10 Cash a/c 011 50,000
30-Sep-10 Cash a/c 015 50,000
31-Dec-10 Accrued salaries a/c ADJ5 50,000 31-Dec-10 To P&L a/c

200,000

Accrued Salaries a/c

31-Dec-10 Balance c/d 50,000 31-Dec-10 Salaries expense a/c ADJ5

50,000

Depreciation a/c
31-Dec-10 Accumulated depreciatio ADJ7 40,000 31-Dec-10 To P&L a/c

40,000

Accumulated Depreciation a/c

31-Dec-10 Balance c/d 40,000 31-Dec-10 Depreciation a/c ADJ7

40,000

Supplies a/c

1-Jan-10 Cash a/c 004 200,000 31-Dec-10 Cost of Goods sold a/c ADJ6
Creditor - Mr Micro 004 300,000
30-Jun-10 Cash a/c 008 500,000 31-Dec-10 To P&L a/c
31-Aug-10 Cash a/c 014 200,000
Creditor - Mr Micro 014 50,000
1,250,000

Sales a/c

31-Dec-10 Creditor a/c - Mr Pentiu ADJ4 250,000 31-Mar-10 Cash a/c 005
Debtor a/c - Mr Sof 005
31-Dec-10 To P&L a/c 2,000,000 31-Jul-10 Cash a/c 012
Debtor a/c - Mr Intel 012
31-Dec-10 Cash a/c 017
Debtors a/c - Mr Sof ADJ3

2,250,000
 Interest expense a/c

31-Dec-10 Accrued Interst a/c ADJ8 75,000 31-Dec-10 To P&L a/c

75,000
 Rent expense a/c

1-Jan-10 Cash a/c 002 300,000 31-Dec-10

31-Dec-10
40,000

40,000 300,000

Prepaid rent a/c

10,000 31-Dec-10 Rental expense a/c ADJ1 100,000 31-Dec-10

10,000 100,000

Insurance expense a/c

31-Dec-10 Creditor a/c - Crystal Ins ADJ2 60,000 31-Dec-10

31-Dec-10
200,000

200,000 60,000

Prepaid insurance a/c

50,000 31-Dec-10 Insurance expense a/c ADJ2 45,000 31-Dec-10

50,000 45,000

Cost of Goods Sold a/c

 40,000 31-Dec-10 Supplies a/c ADJ6 1,000,000 31-Dec-10

40,000 1,000,000

Creditor a/c - Crystal Insurance

40,000 31-Dec-10 Balance c/d 60,000 31-Dec-10

40,000 60,000

Debtor a/c - Mr Sof

1,000,000 31-Mar-10 Sales a/c 005 250,000 30-Jun-10

31-Dec-10 Sales a/c ADJ3 250,000 31-Dec-10
250,000

1,250,000 500,000

Creditor a/c - Mr Pentium

500,000 31-Dec-10 Balance c/d 250,000 31-Dec-10

250,000
500,000
500,000
250,000
250,000 250,000

2,250,000
 Accrued interest a/c

75,000 31-Dec-10 Balance c/d 75,000 31-Dec-10

75,000 75,000
nse a/c

Prepaid Rent a/c ADJ1 100,000

To P&L a/c 200,000

300,000

ent a/c

Balance c/d 100,000

100,000

pense a/c

Prepaid insurance a/c ADJ2 45,000

To P&L a/c 15,000

60,000

rance a/c

Balance c/d 45,000

45,000

s Sold a/c
 To P&L a/c 1,000,000

1,000,000

stal Insurance

Insurance expense a/c ADJ2 60,000

60,000

- Mr Sof

Cash a/c 10 250,000

Balance c/d 250,000

500,000

Mr Pentium

Sales a/c ADJ4 250,000

250,000
erest a/c

Interest expense a/c ADJ8 75,000

75,000
Date Trial Balance Ref Debit

Cash a/c 1,550,000

Owner's equity a/c
Drawings a/c 250,000
Loan a/c
Office equipment a/c 120,000
Electric expense a/c 40,000
Rent expense a/c 200,000
Salaries expense a/c 200,000
Supplies a/c 250,000
Sales a/c
Creditor a/c - Mr Micro
Creditor a/c - Mr Pentium
Debtors a/c - Mr Sof 250,000
Debtors a/c - Mr Intel 500,000
Accrued electric a/c
Prepaid rent a/c 100,000
Accrued salaries a/c
Insurance expense a/c 15,000
Prepaid insurance a/c 45,000
Creditor a/c - Crystal Insurance
Depreciation a/c 40,000
Accumulated depreciation a/c
Cost of Goods Sold a/c 1,000,000
Interest expense a/c 75,000
Accrued interest a/c
Retained Profit

31-Dec-10 Totals 4,635,000

Credit BS IS
DR CR DR CR
1,550,000
1,000,000 1,000,000
- 250,000
1,000,000 1,000,000
120,000
40,000
200,000
200,000
250,000
2,000,000 2,000,000
150,000 150,000
250,000 250,000
250,000
500,000
10,000 10,000
100,000
50,000 50,000
15,000
45,000
60,000 60,000
40,000
40,000 - 40,000
1,000,000
75,000
75,000 75,000
430,000

4,635,000 2,775,000 2,775,000 1,570,000 2,000,000

 Statement of Financial Position of A-Mac as at 31 December 2010
2010
BDT
ASSETS
Non-current Assets
Plant, Property & Equipment 80,000

Current Assets
Supplies 250,000
Debtors 750,000
Prepayments 145,000
Cash 1,550,000

Total Assets 2,775,000

LIABILITIES & EQUITY

Current liabilities
Creditors 460,000
Provisions 135,000

Long-term Liabilities
Loans 1,000,000

Owners Equity
Capital 750,000
Retained profit 430,000

Total Liabilities & Equity 2,775,000

 Statement of Comprehensive Income for the year ended 31 December 2010
2010
BDT

Sales 2,000,000
Cost of Sales 1,000,000
Gross Profit 1,000,000

Operating expenses
Rental expense 200,000
Depreciation expense 40,000
Salaries expense 200,000
Insurance expense 15,000
Utilities expense 40,000
495,000

Operating Profit 505,000

Interest expense 75,000

Profit before tax 430,000

Tax 0

Profit for the year 430,000

Other comprehensive income 0

Total comprehensive income for the year 430,000