Monday, September 3, 2012

B.B.A ACCOUNTING : EQUATION




        Allah says pray to me,I will answer to your prayer.’’
                      ACCOUNTING : EQUATION
NO 1. Presented below is the basic accounting equation determine the missing amount
         Assets        =Liabilities   +  Owners equity
      a) 90,000      =50,000        +         ?
      b)    ?            = 45,000      +  70,000
      c) 94,000      =    ?             + 65,000
   ANS. a) 40,000    b)1,15,000   c)29,000

NO 2. Presented below is the basic accounting equation determine the missing amount
         Assets        =Liabilities   +  Owners equity
     a) 80,000       = 50,000      +     ?
     b)    ?            =  45,000      + 70,000
    c) 94,000       =    ?             + 62,000
ANS. a)30,000 b) 1,15,000 c) 32,000

NO 3.Lily company had the following assets and liabilities on the date indicated.
         December 31,          Total Assets      Total Liabilities
         2009                         4,00,000               2,50,000
          2010                        4,60,000               3,00,000
          2011                        5,90,000               4,00,000
Lily began business on January 1, 2009,with an investment of tk.1,00,000
Instructions
From an analysis of the change in owners equity during the year ,compute the net income or loss for.
a) 2009,assuming lily drawings were tk.15,000 for the year.
b) 2010,assuming lily made an additional investment of tk.50,000 for the year.
c)2011,assuming lily made an additional investment of tk.15,000 and had drawing of tk.30,000 in 2011.

NO 4.Mr.Saiful established Sundarbans Travel Agence.The following transactions were completed during the month of January 2010.
1) Invested tk.80,000 cash and tk.20,000 equipment to start the agency.
2) Paid tk.4,000 cash for office rent.
3) Purchased office equipment for tk.50,000 in cash.
4) Incurred tk.3,000 of advertising costs in The Daily Ittefaq on account .
5) Paid tk.6,000 cash for office supplies .
6) Earned tk.75,000 for services rendered ,tk.10,000 cash is received from customers and the balance is due.
7) Withdraw tk.2,000 for personal use.
8) Paid  The Daily Ittefaq amount due in 4.
9)Paid salaries tk.24,000.
10) Received tk.50,000 in cash from customers who had been previously billed .
11) Service provided on account tk.6,000.
 Instruction
a)    Prepare a tabular analysis.
b)    Incomestament 
c)     Balance sheet
NO 5. June 1,2011 Amin formed a business. The following transaction occurred during the month of June.
June 1, Amin invested tk.15,000 cash in business .
June 4,A horse stable  and riding equipment were rented and paid for the month at a cost
           Of tk.1,200.
June 8, Horse feed for the month was purchased for the month on credit tk.800.
June 22,Miscelleous expenses of tk.600.
June 24,The owner withdrew tk.500 cash .
June 29, Land was purchased for use in the business by borrowing tk.40,000 by signing a
              Note.
June 30, Paid salary in June tk.700.
June 30, Riding and lessons fees were billed in the amount of tk.2,400.
June 30, Fees of tk.3,000 for the month were billed to the riding club.
Required
  Prepare a summary of the transaction use  cash, A/R, Land, A/P,N/P, Capital.
  
NO 6. AMIN TRADING CORPARATION SARTED  A NEW  BUSINESS AND COMPLETED FOLLOWING TRANSACTION
1. The owner started business with cash   tk50,000  furniture tk.20,000 and liabilities for goods tk.6,000.
2.Paid in full of account payable .
3. Earned revenue tk.80,000 of which tk.30,000 collected in cash.
4. Purchased  a equipment tk.20,000 and paid in cash tk.4,000 and the balance on account.
5. Paid salaries tk.5,000 and rent tk.8,000.
6.Cash withdraw tk.2,000 for personal use.
7.Receive tk.10,000 from AB. bank ltd for a note payable.
8. Cash receive from a receivable tk.35,000.
9.Rent expenses tk.2,000.
10.Additional invested tk.50,000 cash in business.
11.Amin hired a office clerk tk.8,000.
12.Incurred advertising cost in The daily Newspaper tk.4,000 on account.
13.Paid in transaction no 4.
14.Paid insurance expenses tk.6,000 for a years.
15. Performed service for a customer who agreed to pay tk.9,000 at a later date.
16.Telephone bill tk.500,Electric bill tk.400 receive  but not paid.
17.Sold old equipment tk.8,000 which cost tk.9,000.
18.Recognized one month insurance had expired.
19. Paid office clerk salaries.
20.Gave the old equipment and cash tk.5,000 for new equipment.
21.Earned service revenue tk.8,000.
22.Maintain allowance for bad debts at 10% on A/R.
Required  1.Tabulare analysis
                 2.Income statement
                 3.Owners equity
                 4.Balance sheet

N0 6.1   . AMIN TRADING CORPARATION SARTED  A NEW  BUSINESS AND COMPLETED FOLLOWING TRANSACTION
1. The owner started business with cash   tk.50,000  furniture tk.20,000 and liabilities for goods tk.6,000
2. .Paid t. in full of account payable .
3. Earned revenue tk.80,000 of which tk.30,000 collected in cash.
4. Purchased  a equipment tk.20,000 and paid in cash tk.4,000 and the balance on account.
5. Paid salaries tk.5,000 and rent tk.8,000.
6.Cash withdraw tk.2,000 for personal use.
7.Receive tk.10,000 from AB. bank ltd for a note payable.


Required  1.Tabulare analysis
                 2.Income statement
                 3.Owners equity
                 4.Balance sheet

      NO 7. Palash hardware store completed the following merchandise transaction in the month of  May .At beginning of may the ledger showed cash 50,000 & capital 50,000
May 1 Purchased merchandise on account from ABC ltd. tk.60,000,terms 1/10/n30
        2 Sold merchandise on account tk.50,000,terms 1/10 n/30 cost is 31,000.
        5 Receive credit for merchandise returned tk.6,000
        9 Receive collection in full on may 2.
       10 Paid ABC Ltd. In full.
        11 Rent paid in advanced tk.9,000.
        12 Purchased merchandise for cash 27,000.
        15 Received refund for poor quality merchandise from supplier on cash purchase tk                                 
             2,300.
        17 Purchased merchandise from shahid distributors tk.19,000 FOB Shipping point
             terms 2/10,n/30.
         19 Paid fright on may 17 purchase tk.2,500.
         24 Sold merchandise for cash tk.62,000 cost is tk.50,000.
         25 Purchased merchandise from Doel inc. tk.10,000, FOB destination, 
            terms2/10,n/30
        27 Paid shahid distribution in full.
        29 Made refunds to cash customers for defective merchandise tk.1,000 the returned
             merchandise had a scrap value of tk.400.
31  Sold merchandise on account tk.16,000,terms n/30 cost is 11,200.
31  Rent of tk.7,000 had been expired .
31 Maintain allowance for bad debts at 10% on A/R at the end of month.
Instruction
a)    Prepare a tabular analysis of the transaction
b)    Prove accounting equation

NO 8. Green Bangla co. ltd. Was establish on January 1,2011. the following transaction were completed during January of the year.
January 1 Deposited in cash in the name of company in exchange for
Share @ tk100 each.
             2 Paid three months rent in advanced tk.30,000.
             3 Purchased store equipment on credit tk.15,000.
             5 Purchased office supplies on cash tk.5,000 & on account tk.15,000.
             6 Service provided for cash tk.1,00,000 & on account tk50,000.
            8  Bills customers for service tk.45,000.
            10 Purchased gasoline from filling station tk.2,000.
            12 Paid for advertising expenses for opening of the company tk.2,000.
             13 Completed work for a customers for cash tk.6,000.
            15 Paid utility bill tk3,000.
            18 Received from a customers in transaction 6.less discount 1,000.
             20 Paid Meghna filling station in full.
             22 Made a payment on store equipment transaction 5.less discount 1,000.
            25 Completed the work for a client and immediately collected tk.75,000.
            28 Paid salaries tk.25,000.
            30  One month rent had expired.
           31  Dividend declared and paid tk.10 per shares.

HELP: Date, Cash, A/R, Office Supplies, Prepaid Rent , Equipment , A/P , Common Stock & Re tained Earning
 Instruction
d)    Prepare a tabular analysis.
e)     Incomestament 
f)      Balance sheet
g)    Prove accounting equation
NO 9. Children park was started on May 1 by M.Islam .The following selected events and transactions occurred during May.
May  1 M.Islam invested tk.2,00,000 cash in the business.
         4 Purchased land costing tk.60,000.
         8 Incurred advertising expense of tk.18,000 on account.
        11 Paid salaries to employer tk.2,000.
        12 Hired a park manager at a salary of tk.10,000 per month.
        13 Paid tk.3,000 cash for one year insurance policy.
        17 Withdrew tk.6,000 cash for personal use.
        20 Received tk.57,000 in cash for admission.
        25 Sold 100 coupon books for tk.50 cash each books contains 10 coupons that 
            entitle the holder to one admission to the park.
        30 Receive tk.6,000 in cash admission fees .
       31 Paid tk.9,000 on account for advertising incurred on may 8.
Required  1.Tabulare analysis
                 2.Income steatement
                 3.Owners equate
                 4.Balance

NO 10. T.R.Khan is an advocate having registration Dhaka bar council he starts a sole proprietorship law firm in the name of Khan law service.During the first month of January.
A)   Khan invested tk.2,00,000 of Bank loan to begin the business.
B)   Buys furniture paying tk.50,000 in cash .
C)   Purchases office supplies on credit at a cost of tk.1,000.
D)   Deals a case for one client and receives cash of tk.50,000.
E)   Pay tk.250 on the account payable he created in transaction  C.
F)   Pays cash expenses for electricity bill tk.500.
G)  Pays tk.2,000 from personal funds for a personal trip to Khulna.
H)  Khan withdrew cash of tk.2,000 for personal use.
I)       The firm sells office supplies to another law firm for its cost tk.500.
J)    Paid office rent tk.200.
K)   Billed patients tk.20,000 for service rendered.
L)   He bring additional investment tk.50,000.
M) Purchases office equipment tk.5,000.
N)   Paid fright for equipment tk.100.
  Required  1.Tabulare analysis

NO 11. Ali started a business at February 1,2011. The following transaction are given for the month of February.
February 1 The owner started new year business with cash tk.1,40,000 land tk.40,000
                   Merchandise tk.80,000 supplies tk.20,000 A/R tk.65,000 and
                   A/P tk.45,000.
               2 Purchased goods for tk.10,000 on accounts.
               3 Paid fright tk.10,000 on merchandise Purchased.
               7 Merchandise  sold for cash tk.90,000 cost 75,000.
              12 Paid advertisement bills for tk.20,000.
              18 Sold merchandise to Shaid & co on credit tk.50,000 cost 40,000.
              20 Purchase of merchandise from Maher & Co. tk.1,20,000.
              22 Returned merchandise sold on February 7.
              23 Returned merchandise sold to Shaid & co on account  tk,10,000  cost tk.8,000
              24 Returned merchandise tk.20,000 purchased on February 20 cost tk.13,000
              25 Cash receive from Ah. Traders for sale of merchandise on January 2011
                   tk.45,000.
              26 Payment receive on account in cash tk,28,000 in full settlement of 
                    tk.30,000.
             27 Paid Maher & co tk.1,05,000 in full settlement .
             28 Paid salaries tk.15,000 utility bill tk.700 & supplies used during the month
                  tk.8,000
             
Required  1.Tabulare analysis
NO 12  Nahid opend a veterinary business on April 30, the balance sheet  showing  cash tk.20,000 A/R tk.6,000 supplies stock tk.1,500 office equipment  tk13,500  A/P tk.5,000 and Nahid capital tk.36,000;During MAY the following transaction occurred.
May 01 Cash paid on account payable tk.3,000
        05 Collected tk.5,000 on account receivable .
        07 Purchase office supplies tk.500 and equipment tk.5,000 for cash.
        10 Earned revenue of tk.12,000 of which tk.5,000 in cash and balance is due.
         15 Withdrew tk.1,600 cash for personal use.
        20 Salaries are paid tk.8,000.
       25 Utilities incurred tk.1,500.
       29 Receive tk.12,000 from AB Bank on a note payable.
       30 On 30 may supplies shows tk.600.
Required :  a) Prepare a tabular analysis of the may transaction.
                  b) Prepare a income statement.
             c) Prepare also journal entries for the above transaction
                     Ans:53,000
NO 13 Mr. Samad started her own consulting from November 2010 The following transaction made during the month of November :
November 01 Samad invested tk.4,00,000 in the firm
                  02 Paid tk.25,000 for office rent for the month.
                  04 Purchased tk.15,000 supplies.
                  05 Paid tk.5,000 for advertising expenses .
                   08 Receive tk.1,00,000 for service provided.
                  13 Withdrew tk.25,000 for personal use.
                  16 Performed tk.50,000 provided for service on account.
                  18 Paid tk.30,000 for employees salaries .
                  20 Paid for supplies purchases on November 04.
                 24 Receive tk.75% for service provided on November 16.
                 25 Borrowed tk.1,50,000 from NBL.
                 28 Purchased office equipment for tk.1,20,000 on account.
                31 Paid tk.5,000 for utilities.
               31  Supplies used during the month of tk.10,000.
Required :  a)Arrange the transaction in Accounting equation.
              b) Prepare an income statement for the month.
             c) Prepare also journal entries for the above transaction.
                  Ans.7,25,000
NO 14 Gary black graduated  from collage in June of the current year with a degree in architecture and on July 1 began the practice of profession by investing tk.3,000 in cash in the business .He then completed these transaction
 July 1 Rented the furnished office and equipment of an architect who was retiring .Paying tk.1,500 cash for three month
            Rent in advanced.
         1 Purchased drafting supplies for cash tk.65.
         2 Purchased insurance protection for one year in advanced for cash tk.360.
        4 Completed architectural work for a client and immediately collected tk.150.
        8 Completed architectural work for valley realty on credit tk.750.
       15 Paid the salary of the draftsman tk.400.
       18 Receive payment in full for the work completed for valley realty on July 8.
       19 Completed  architectural work for western contractors on credit tk.450.
       20 Purchase additional drafting supplies on credit tk.25.
       23 Completed architectural work for dale west on credit tk.500.
       27 Purchased additional drafting supplies on credit tk.40.
       29 Receive payment in full from western contractors for the work done on July 19.
       30 Paid for the drafting supplies purchased on July 20.
       31 Paid the July telephone bill tk.25, utilities expenses tk.35 .
       31 Paid the salary tk.400.
       31 Recognized that one month rent had expired .
       31 Recognized that one month insurance tk30 had expired .
       31 Took the inventory of drafting supplies and determined that tk.60 of drafting supplies had been used and expenses.
  Required :  a)Arrange the transaction in Accounting equation
NO 15 In 2005 November 1, balance sheet of Abid Construction Company is as follows :
                                            Abid Construction Company
                                                Balance Sheet
                                                 November 1,2005
Assets
TK
Liabilities
TK
Cash
A/R
Supplies
Prepaid insurance
Interest receivable
Equipment
10,000
4,500
6,000
2,000
570
20,330
A/P
Unearned revenue
Wages payable
Notes payable
Owners equity
8,250
1,500
4,150
10,000
19,500
43,400
43,400
 During November the following transaction occurred:
November 1 Purchased  tk.6,000 of office supplies on account .
                 5 Received revenues of tk.7,150 cash. Supplies used tk.4,270.
                8 Received tk.1,450 on customer accounts .
               10 Received interest tk.60.
               16 Paid wages of tk.4,150 in November but still owe tk.2,750 in wages at the end .
              20 Paid tk.3,000 to Account payable .
              30 Accrued interest expenses on notes payable of tk.30.
             30 Recognized insurance expenses of tk.150.
            30 Owner withdrew tk.4,000 in cash for personal use.
Required: a) Prepare a tabular analysis.
                b) Prepare an income statement.

NO 16 Hanif Completed the following transaction :
1)    Sold a personal stock in ICB Bank for tk.12,500 and deposited tk.10,500 of the proceeds in a bank account
         opened for his new business NIPA TV service.
2)    Paid the rent on the shop space for three month in advanced tk.800.
3)    Purchased repair supplies for cash tk.950  tools tk.825  and used truck tk.1,800 of a TV repair shop that was going out of the business.
4)    Purchased additional tools on credit tk.350.
5)    Purchased additional repair supplies for cash tk.500.
6)    Gave the old company truck at tk.1,000 and tk.3,000 in cash for a new company truck at tk.4,000.
7)    Completed repair work and collected  tk.1,200 cash.
8)    Paid for the additional tools purchased in transaction in 4.
9)    Completed repair work for Asif on credit tk.650.
10)       Asif paid in full for the work of transaction 9.
11)       Paid for gas and oil used in the truck tk.700.
12)       Hanif wrote a cheek on the bank account of the shop to pay a personal expenses tk.100.
13)       Recognized one month rent had expired and had become an expenses.
 Required  : Show the effects of the transaction on the elements of the equation.
NO 17 Ali started a business at May 2005. The following transaction are given for the month of May..
     May 1 The owner invested tk.1,00,000 in the business.
             3 Office equipment acquired for cash tk.20,000.
             5 Bought supplies on credit tk.12,000.
            7 Purchases merchandise inventory tk.50,000.
            10 Merchandise supplies to Samir worth tk.10,000 cost tk.7,000.
            12  Merchandise inventory shipped to us by Mr. Asad tk.55,000.
           15 Sold goods to Mr. Afzal tk.25,000 cost tk.20,000.
           18 Operating expenses paid for the month tk.10,000.
           20 Rent paid for the month tk.10,000.
          21 Order placed for merchandise inventory tk.8,000.
          23 Received from Mr. Afzal in full at 5% discount.
         24 Signed a note to bank for tk.40,000.
        27 A count of supplies reveals on hand 11,000.
        30 Samir Account wrote of the uncollectibles tk.500 The company adopts perpetual inventory method of the
              inventory recording.
 Required: ) Prepare a tabular analysis
NO: 18 A tabular analyas of the transaction made by Rahman & company a certified public accounting firm for the
                 Month of August is shown below .Each increase and decrease in owner ‘s equity is explained.

    CASH
Account receivable
Supplies
Office equipment
Account payable
Owners equity
Remarks
1
+20,000




20,000
Invested
2
-2,500


+5,500
+3,000


3
-950

+950




4
+4,500
+3,500



+8,000
Fees earned
5
-1,200



-1,200


6
-2,500




-2,500
Drawings
7
-850




-850
Rent expenses
8
+500
-500





9




+1,000
-1,000
Utilities expenses
10
-2,900




-2,900
Salaries expenses
a)    Describe each transaction that occurred for the month

NO:19 Rohan enterprise completed the following transaction in July 2006;
            July 1 The owner sold his personal invested for the tk.1,50,000 and brought in
                       Business tk.1,00,000 capital.
                    3 Paid house rent tk.4,000.
                    4 Purchases of merchandise for cash tk.60,000.
                           8 Purchases merchandise form lemon tk.90,000 on account.
                          10 Borrowed tk.30,000 form AB bank and signed a note s payable.
                          15 Merchandise sold for cash tk.75,000  cost tk.60,000.
                          20 Sold merchandise to Noman on account tk.1,00,000 cost tk.80,000.
                          25 Returned merchandise sold on July 20, tk.5,000 cost tk.4,000.
                          30 Payment received on account tk.50,000.
                         31 Paid advertising bill for tk.5,000.
Instruction
a)    Show the effect of previous transaction on the accounting equation
b)     Proved the accounting  equation .
b)     Journalizing this transaction.

NO: 20 Indicate the transaction increased + decreased – or no effect on asset liabilities and owners equity.
a)    Invested cash in the business
b)    Paid rent on office space
c)     Purchased office equipment on accounting
d)    Rendered legal service to client on accounting
e)     Borrowed cash from a bank on a notes payable
f)      Rendered legal service to client for cash
g)    Paid monthly salaries expenses
h)    Withdrew of cash by owner
i)      Purchased  gasoline on accounting
j)       Incurred advertising cost on accounting

NO:21 Selected transaction for Najia Company are listed below
1)    Invested by owner to start business
2)    Purchases furniture on credit
3)    Paid monthly salaries
4)    Bill customer of service provided

5)    Received in cash from customer who have previously been billed on 4
6)    Purchases additional equipment on cash
7)    Incurred advertising expenses on accounting
8)    Borrowed from the bank on notes payable
9)    Withdrew cash for owners personal use
10)                       Received cash from customers when service was renderd

Required  List the numbers of the above transaction and describe the effect of each transaction Assets, Liabilities,
                 Owner equity.

NO 22 From the following transaction describe each transaction that has been occurred for the month.

No
Cash
A/R
Equipment
=
A/P
Owners equity
Remarks
1
-2,500

+8,000

+5,000


2
+2,000
+3,000



+5,000
Service revenue
3
-500




-500
Rent expenses
4
+1,300
-1,500



-200

5
-2,900



-3,000
+100


NO 23 Shajeeb started his own delivery  business  Sajeeb delivery on June 1,2009 the following transaction
               Occurred during the month
  June 1 Invested tk.30,000 cash in the business
         2 Purchased a used van for delivers for tk.20,000  paid tk.4,000 cash and signed a note payable
        3 Paid tk.1,000 for office rent for the month
        5 Performed tk.2,000 of service on account
        9 Withdrew tk.400  cash for personal use
        12 Purchased supplies for tk,300 on account
      15 Received a cash payment of tk.1,500 on June 5
      17 Purchased gasoline for tk.200 on account
      20 Received a cash payment of tk,3,000 for service provided
      23 Made a cash payment of tk.1,000  on the notes payable
      26 Paid for the gasoline purchased on account on June 17
     29 Paid for utilities expenses tk,500
     30 Paid tk,1,000 for salaries
     30 Paid 40% on due balance
Show the transaction using this format  Cash, A/R , Delivery  van ,N/P , A/P ,Owners equity, 

NO 24 Ali company balance sheet
December 31
Assets
Liabilities
2009
3,90,000
2,60,000
2010
4,70,000
2,90,000
2011
6,00,000

3,90,000
      Find the amount of  owners equity in every years and show the equation
NO 25 Mr. Hoque owns the Hoque repair center on December 31,2006. The center had the following ledger balance cash 2,000 Supplies 1,500 A/R 3,000 Tools 2,000 and Motor vehicle 8,000 and A/P 4,000 during the month of January 2010.the following transaction were completed.
Jan 1 Paid rent for the month of January tk.1,000
       2 Paid cash on A/P tk.2,500
      10 Purchased tools for cash tk.1,000
      15 Withdrew cash for personal use tk.500
      20 Billed for service render tk.3,000
      25 Paid tk.800 for residence rent
      30 During the month supplies worth tk.3,500 were used
Show the accounting eqution  
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                      Prepared by,
              Md. Mursalin Sardar
              Cell: 01925-425876

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