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
1) A =L+ OE m¤ú‡K© e¨vL¨v
†`I ?
Prepared by,
Md. Mursalin Sardar
Cell: 01925-425876
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