Column6 STAR LINE Company Trial Balance November 30, 2009 Cash Bank A/R Ahmad & Co.

A/R Saleem & Co. A/R Pervaiz Traders A/R Rehman & Co. Provision for doubtful debts Merchandise Goods Discount recieved Goods Returned Transportation-in Prepaid rent Building Acc. depreciation:Buliding Machinery Acc. depreciation: Machinery A/P Shehzad & Co. A/P Abrar & Co. A/P Ali Sons Payable to Mujahid Owner's, Capital Owner's, Drawings Sales Sales returned Discount allowed Rent revenue Cost of goods sold Provision for doubtful debt expense Sales salaries expenses Advertisement expenses Misc. selling expenses Office salaries expenses Rent expenses Dep. Expense: Building Interest expenses 82,000 105,500 45,500 24,500 25,500 2,430

Column8

7,000 563,400 2,500 5,700 7,400 84,000 750,000 75,000 72,000 68,000 7,550 25,750 15,500 16,500 1,400,000 48,720

1,236,500
4,500 3,300 26,050 710,550 5,500 45,500 45,750 45,500 50,000 60,000 37,500 45,000

Dec. 1 Purchased goods on account from Shehzad & Co. Worth Rs. 22500, term FOB shipping point, and paid the transportation cost of Rs. 1500
Date Dec. 1 Account Title & explanation Merchandise goods A/P Shehzad & Co. Purchased goods on account PR Debit 22500 Credit 22500

Dec.2 Wrote off a Rs. 2430 account from Rehman & Co. as uncollectable (Bad debt).

Bad debt A/R Rehman & Co. Write off the uncollectable account

2430 2430

Dec. 5 Machine costing Rs. 72,000 with Acc. Dep. Of Rs. 68,000 on Nov. 30, 2009 is discarded on Dec. 3. Machine is dep. Over 3 yrs with no salvage value. Received cash only 4000.
5 Acc. Dep.:Machinery Cash 70000 4000

Machinery
Gain on disposal Record disposal of the machine

72000
2000

Dec.8 Received cheque from Ahmad & Co.(Discount allowed Rs.1365)

Bank Discount allowed A/R Ahmad & Co. Recieved cheque from Ahmad & Co.

44135 1365 45500

Dec.11 One of the item worth Rs. 800 returned to Shehzad & Co.
11 A/P Shehzad & Co.
Goods Returned Unsatisfactory goods were returned

800
800

Dec. 17 Paid Abrar & Co. by cheque (Discount received Rs. 1200)
17 A/P Abrar & Co. Bank Discount Recieved Paid Abrar & Co. by cheque 25750 24550 1200

Dec. 26 A written off account receivable-Rehman & Co. has been recovered.
26 A/R Rehman & Co. Bad debt Recovered receivable from Rehman 2430 2430

Dec. 31 It was estimated that 2% of the credit sales of Rs. 1281500 for the year ended December 31, 2009 would be uncollectable.

31 Provision for doubtful debt expense Provision for doubtful debt Record estimated dd for the year

25630 25630

STAR LINE Company Income Statement For the year Ended December 31, 2009 Revenue from Sales: Sales

1,281,500

Less:

Sales Returned
Discount allowed

4,500 4,665

(9,165) 1,272,335 (7,40,550) 5,31,785

Net sales Less: Gross profit Operating expenses: Selling expenses: Provision for d.d expense Cost of merchandise sold

Transportation-out
Sales salaries expense Advertisement expense Misc. selling expense Total selling expenses

31,130 2,000 45,500 45,750 45,500 1,69,880

Administrative expense Office salaries expenses

50,000 60,000 37,500 45,000 24,000 2,16,500 (3,86,380) 1,45,405

Rent expenses
Dep. Expense: Building Interest expenses Dep. Expense: Machinery Total Administrative expenses Total operating expenses Income from operation

Other Income & expenses

Gain on disposal Rent revenue

2,000 26,050 28,050 1,73,455

STAR LINE Company Balance Sheet December 31, 2009

Assets
Current Assets:

Cash Bank A/R Saleem & Co. A/R Pervaiz Traders Less: Provision for doubtful debts Merchandise Goods Add: Transportation-in Less: Discount received Goods Returned Prepaid rent Total current Assets
Capital Assets:

84,930 125,085 69,500 25,500 (32,630) 5,55,900 8,900 (3,700) (6,500) 5,54,600 84,000 62,370

9,10,985

Building Less: Acc. depreciation:Buliding Total Capital Assets

Total Assets

7,50,000
(75,000) 6,75,000 6,75,000 1,585,985

Liabilities
A/P Shehzad & Co. A/P Ali Sons

Payable to Mujahid
Total Liabilities

29,250 15,500 16,500 61,250

Owner's Equity
Owner's, Capital

1,400,000

Net income for the year

Less: Owner's, Drawings Total liabilities & Owners equity

1,73,455
(48,720) 1,524,735 1,585,985