An Assignment of the Subject

"Financial Accounting"

Submitted By:
Bushra Saleem

Roll Number:
mc180401455

Submitted To:
Sir Mujahid Eshai

Submission Date:
20Nov, 2018

VIRTUAL UNIVERSITY (BIIT CHICHAWATNI)

Requirements:

1 - Prepare the trial balance as on 31st January,2018

Answer:

Prince Brother
Trail Balance
As on January 31,2018
S. No. Account Names Account Debit Credit
Code No. Rs. Rs.
1 Cash in hand 1 8,78,000
2 Capital account 2 1,000,000
3 Furniture account 3 90,000
4 Purchase account 4 30,000
5 Sales account 5 40,000
6 Selling expense account 6 10,000
7 Admin expense account 7 17,000
8 Drawing account 8 15,000

Total 1,040,000 1,040,000

2- Calculate the Gross Profit.

we know that:

Sales - cost of goods sold = Gross Profit

so,

Sales 40,000

(less) COGS:

Purchases 30,000

(30,000)

Gross Profit 10,000

Req 3- calculate total Asset as on 31st January,2018

As we know that:

Assets = Capital+ Liabilities

So, first we are going to make income statement to see the profit or loss then we will add or
subtract profit or loss in the balance sheet

Prince Brothers

INCOME STATEMENT

As on January 31,2018

Sales 40,000

Cost Of Goods Sold:

Purchases 30,000

(30,000)

Gross profit 10,000

Expenses:

Selling Expense 10,000

Administration Expense 17,000 (27,000)

Net Loss (17000)

 Prince Brothers
Balance Sheet
As on January 31st, 2018

Assets Capital + liabilities

Current Assets: Liabilities: 0
Cash 878000
Capital: 1,000,000
Fixed Assets: Less: Drawing (15000)
Furniture 90000 Less: Loss (17000) _______
_______ 9,68,000
9,68,000
Total assets: 9,68,000 Total capital. 9,68,000

 Accounting Equation:

Assets = Capital + Liabilities

Assets = 9,68,000 + 0

Assets = 9,68,000

Assets = 9,68,000