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  • FAIS Session1Transactions

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    Rehan Farhat
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    © All Rights Reserved
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    3 views13 pages

    FAIS Session1Transactions

    Uploaded by

    Rehan Farhat
    Classwork

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 13

    1 Formed and invested USD 2,500,000 in xyz entity

    2 Purchase Furniture & Fixtures on cash USD 300,000


    3 Purchase Equipments on cash USD 270,000
    4 Provided services to clients against cash USD 395,000
    5 Paid salaries for the year 2013 USD 535,000
    6 Provided services to clients on credit USD 1,595,000
    7 Received cash against services provided on credit USD 900,000
    8 Incurred and paid rent expense USD 195,000
    9 Incurred and paid Utility expense USD 85,000
    10 Obtained bank loan USD 425,000
    11 Purchased motor vehicles on credit USD 575,000
    12 Repaid 1st installment of bank loan USD 25,000
    13 Paid interest on bank loan USD 22,000
    14 Received advances from customers USD 50,000 for services to be performed in the year 2014
    15 Paid one month advance salary to an employee USD 10,000
    16 Declared and paid dividends USD 450,000
    Cash
    Date Description Debit Credit Balance
    Capital invested 2,500,000 2,500,000
    F&F payments 300,000 2,200,000
    Equipment payments 270,000 1,930,000
    2013 revenues 395,000 2,325,000
    2013 salaries 535,000 1,790,000
    2013 customer receipts 900,000 2,690,000
    2013 rentals paid 195,000 2,495,000
    2013 Utility exp paid 85,000 2,410,000
    Bank loan funds 425,000 2,835,000
    1st inst bank loan 25,000 2,810,000
    2013 interest charge 22,000 2,788,000
    Advances from customers 50,000 2,838,000
    Advance Salary 10,000 2,828,000
    2013 dividends 450,000 2,378,000

    Capital
    Date Description Debit Credit Balance
    Capital invested 2,500,000 (2,500,000)
    (2,500,000)
    (2,500,000)

    F&F
    Date Description Debit Credit Balance
    Cash purchases 300,000 300,000
    300,000
    300,000

    Equipment
    Date Description Debit Credit Balance
    Cash purchases 270,000 270,000
    270,000
    270,000

    Revenue
    Date Description Debit Credit Balance
    2013 services 395,000 (395,000)
    2013 credit services 1,595,000 (1,990,000)
    (1,990,000)

    Salary expense
    Date Description Debit Credit Balance
    2013 salaries paid 535,000 535,000
    535,000
    535,000

    Receivables
    Date Description Debit Credit Balance
    2013 credit services 1,595,000 1,595,000
    Partial cash received 900,000 695,000
    695,000

    Rent expense
    Date Description Debit Credit Balance
    2013 rentals 195,000 195,000
    195,000
    195,000

    Utility expense
    Date Description Debit Credit Balance
    2013 utility expenses paid 85,000 85,000
    85,000
    85,000

    Bank loan
    Date Description Debit Credit Balance
    2013 loan 425,000 (425,000)
    1st inst 25,000 (400,000)
    (400,000)

    Motor Vehicles
    Date Description Debit Credit Balance
    Credit purchases 575,000 575,000
    575,000
    575,000

    Payables
    Date Description Debit Credit Balance
    MV payables 575,000 (575,000)
    (575,000)
    (575,000)

    Interest expense
    Date Description Debit Credit Balance
    2013 interest charge 22,000 22,000
    22,000
    22,000
    Advances from customers
    Date Description Debit Credit Balance
    Advance from cust A 50,000 (50,000)
    (50,000)
    (50,000)

    Advance Salary
    Date Description Debit Credit Balance
    Jan salary in advance 10,000 10,000
    10,000
    10,000

    Dividends
    Date Description Debit Credit Balance
    2013 dividends 450,000 450,000
    450,000
    450,000
    Trial balance for the year ended December 31, 2013
    Debit Credit
    Cash 2,378,000
    Capital 2,500,000
    F&F 300,000
    Equipment 270,000
    Revenue 1,990,000
    Salary expense 535,000
    Receivables 695,000
    Rent expense 195,000
    Utility expense 85,000
    Bank loan 400,000
    Motor Vehicles 575,000
    Payables 575,000
    Interest expense 22,000
    Advances from customers 50,000
    Advance Salary 10,000
    Dividends 450,000
    5,515,000 5,515,000
    Cash
    Date Description Debit Credit Balance
    Capital invested 2,500,000 2,500,000
    F&F payments 300,000 2,200,000
    Equipment payments 270,000 1,930,000
    2013 revenues 395,000 2,325,000
    2013 salaries 535,000 1,790,000
    2013 customer receipts 900,000 2,690,000
    2013 rentals paid 195,000 2,495,000
    2013 Utility exp paid 85,000 2,410,000
    Bank loan funds 425,000 2,835,000
    1st inst bank loan 25,000 2,810,000
    2013 interest charge 22,000 2,788,000
    Advances from customers 50,000 2,838,000
    Advance Salary 10,000 2,828,000
    2013 dividends 450,000 2,378,000

    Capital
    Date Description Debit Credit Balance
    Capital invested 2,500,000 (2,500,000)
    (2,500,000)
    (2,500,000)

    F&F
    Date Description Debit Credit Balance
    Cash purchases 300,000 300,000
    300,000
    300,000

    Equipment
    Date Description Debit Credit Balance
    Cash purchases 270,000 270,000
    270,000
    270,000

    Revenue
    Date Description Debit Credit Balance
    2013 services 395,000 (395,000)
    2013 credit services 1,595,000 (1,990,000)
    Transfer to RE 1,990,000 -

    Salary expense
    Date Description Debit Credit Balance
    2013 salaries paid 535,000 535,000
    Transfer to RE 535,000 -
    -

    Receivables
    Date Description Debit Credit Balance
    2013 credit services 1,595,000 1,595,000
    Partial cash received 900,000 695,000
    695,000

    Rent expense
    Date Description Debit Credit Balance
    2013 rentals 195,000 195,000
    Transfer to RE 195,000 -
    -

    Utility expense
    Date Description Debit Credit Balance
    2013 utility expenses paid 85,000 85,000
    Transfer to RE 85,000 -
    -

    Bank loan
    Date Description Debit Credit Balance
    2013 loan 425,000 (425,000)
    1st inst 25,000 (400,000)
    (400,000)

    Motor Vehicles
    Date Description Debit Credit Balance
    Credit purchases 575,000 575,000
    575,000
    575,000

    Payables
    Date Description Debit Credit Balance
    MV payables 575,000 (575,000)
    (575,000)
    (575,000)

    Interest expense
    Date Description Debit Credit Balance
    2013 interest charge 22,000 22,000
    Transfer to RE 22,000 -
    -
    Advances from customers
    Date Description Debit Credit Balance
    Advance from cust A 50,000 (50,000)
    (50,000)
    (50,000)

    Advance Salary
    Date Description Debit Credit Balance
    Jan salary in advance 10,000 10,000
    10,000
    10,000

    Retained earnings
    Date Description Debit Credit Balance
    Transfer from revenue 1,990,000 (1,990,000)
    Transfer from salary 535,000 (1,455,000)
    Transfer from Rent 195,000 (1,260,000)
    Transfer from utility 85,000 (1,175,000)
    Transfer from interest 22,000 (1,153,000)
    Transfer from Dividends 450,000 (703,000)

    Dividends
    Date Description Debit Credit Balance
    2013 dividends 450,000 450,000
    Transfer to RE 450,000 -
    -
    Post closingTrial balance for the year ended December 31, 2013
    Debit Credit
    Cash 2,378,000
    Capital 2,500,000
    F&F 300,000
    Equipment 270,000
    Revenue -
    Salary expense -
    Receivables 695,000
    Rent expense -
    Utility expense -
    Bank loan 400,000
    Motor Vehicles 575,000
    Payables 575,000
    Interest expense -
    Advances from customers 50,000
    Advance Salary 10,000
    Retained earnings 31.12.2013 703,000
    Dividends -
    4,228,000 4,228,000
    Cash
    Date Description Debit Credit Balance
    Jan 1 2014 Balance b/f 2,378,000
    2014 services 525,000 2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000
    2,903,000

    Capital
    Date Description Debit Credit Balance
    Capital invested (2,500,000)
    (2,500,000)
    (2,500,000)

    F&F
    Date Description Debit Credit Balance
    Cash purchases 300,000
    300,000
    300,000

    Equipment
    Date Description Debit Credit Balance
    Cash purchases 270,000
    270,000
    270,000

    Revenue
    Date Description Debit Credit Balance
    2014 services 525,000 (525,000)
    (525,000)
    (525,000)

    Salary expense
    Date Description Debit Credit Balance
    -
    -
    -

    Receivables
    Date Description Debit Credit Balance
    695,000
    695,000
    695,000

    Rent expense
    Date Description Debit Credit Balance
    -
    -
    -

    Utility expense
    Date Description Debit Credit Balance
    -
    -
    -

    Bank loan
    Date Description Debit Credit Balance
    (400,000)
    (400,000)
    (400,000)

    Motor Vehicles
    Date Description Debit Credit Balance
    575,000
    575,000
    575,000

    Payables
    Date Description Debit Credit Balance
    (575,000)
    (575,000)
    (575,000)

    Interest expense
    Date Description Debit Credit Balance
    -
    -
    -
    Advances from customers
    Date Balance
    (50,000)
    (50,000)
    (50,000)

    Advance Salary
    Date Description Debit Credit Balance
    10,000
    10,000
    10,000

    Retained earnings
    Date Description Debit Credit Balance
    (703,000)
    (703,000)
    (703,000)
    (703,000)
    (703,000)
    (703,000)

    Dividends
    Date Description Debit Credit Balance
    -
    -
    -
    Post closingTrial balance for the year ended December 31, 2014
    Debit Credit
    Cash 2,903,000
    Capital 2,500,000
    F&F 300,000
    Equipment 270,000
    Revenue 525,000
    Salary expense -
    Receivables 695,000
    Rent expense -
    Utility expense -
    Bank loan 400,000
    Motor Vehicles 575,000
    Payables 575,000
    Interest expense -
    Advances from customers 50,000
    Advance Salary 10,000
    Retained earnings 1.1.2014 703,000
    Dividends -
    4,753,000 4,753,000

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