Professional Documents
Culture Documents
Bought furniture for cash Recd amount due from a customer Bought a car on credit Paid amount due to a creditor Appointed office assistant Cash withdrawn by the proprietor for personal purposes Provided services on credit Recd interest on bank deposit Sold unused eqpt at purchase price Owner invested cash in the business
1
2 3 4 5 6 7 8 9 10
No efffect
No effect Creditors increase Creditors decrease No impact Decreases Increases Increases
increases
equation Prepare a profit and loss account, statement of retained earnings, balance sheet and cash flow statement
Impacts of transactions
Assets Cash January 1 Balance January 2 +30,000 30000 9000 9000 Debtors Supplies eqpt Liabilities Creditors equity +30,000 30000
Balance
30000
9000 12000
9000
30000
15000
January 5 -12000
January 7 15000 Jan 13 Jan 18 Jan 22 Jan 27 Jan 31 Balance -3700 -4000 32300 19000 9000 -5000 12000 19000
QualPhoto Company Profit &Loss account For the month of January 31 20XX
Revenues Fee revenue Expenses Rent expense Electricity exp Total exp
34000
2500 1200 3700
30300
Net profit
Total assets
Liabilities
Creditors
16000
16000
Total liabilities
Equity
Cash flow statement For the month ended January 31, 20xx
Cash flows from operating activities Cash received from customers Cash paid to suppliers and employees
15000 (8700)
6300
-12000
-12000
Cash flows from financing activities Proceeds from issuance of share capital Payment of dividends Proceeds from loan
Ram and others invest Rs. 50000 cash in RSL Ram took a loan of Rs. 20000 RSL purchased two comps for cash each costing Rs. 29000 RSL purchased stationery supplies for Rs. 6000 on credit RSL sells software to retail store and recieves a price of Rs. 12000 RSL pays Rs. 2000 to its creditors for supplies RSL pays salaries to its employees Rs. 4000 and rent of Rs. 1200 RSL delivers a software package for a shoe shop. Customer agrees to pay rs. 8000 a week later Ram withdraws Rs. 3,500 for his personal use (as profit share)
Debentures 800000 Total Long-Term Liabilities 200000 Owners Equity Share Capital 1000000 400000
1400000
Total Assets
1900000