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Final Project FA BSAF-2.0
Final Project FA BSAF-2.0
Final Project FA BSAF-2.0
PROJECT – 02
Course: Financial Accounting
Course Code: AF-142
Submitted To:
Sir Faisal Siddiqui
Submitted From:
Sadia Mustafa (200467)
Mahnoor Raza (200476)
Zinnia Hassan (200455)
Uzair Qayyum (200468)
M. Dill Nawaz (200458)
PROJECT
Mr. Hasham was working as a senior manager in a furniture making factory, with time he
realized that he should start his own business. He resigned from his job and started his new
business, a furniture shop with his friend Mr. Wali this year in Rawalpindi on March 1. Mr.
Wali invested Rs 1,000,000 for the business. Everything was running very smoothly, the
business was doing well. Nothing was happening out of the ordinary but the first Three month
of operations has been completed and a lot has happened during these three months, he wants
to make the financial statements of his business to assess the exact financial position of his
business. His next plan is to expand his business by opening furniture shops in Karachi and
Lahore. To open the new furniture shop he needs to gather investment by taking a loan from a
bank, that is why he wants to make the financial statement of the company in order to get the
loan and assess the financial position of his business, for that he hires a CA Mr. Asim for
making a financial statement .
Following are the transactions that occurred during the first month of operation of the business
started by Mr. Hasham on March 01, 2021.
AUSOM
PROJECT
01-March-21 Started business with cash Rs 1,000,000 and through cheque Rs 2,000,000
02-March-21 Initial capital Rs 3,000,000, 60% invested by owner, 40% of long term note
payable (5-years) at interest rate is 12%.
04-March-21 Purchase furniture for Rs 50,000 on cash
05-March-21 Purchase machinery for Rs 60,000 through cheque
08-March-21 An item of furniture was defected and returned to supplier Rs 5000
10-March-21 An item of machinery costing Rs 20,000 was of wrong specification and was
returned
12-March-21 New furniture purchase on credit worth Rs 40,000
13-March-21 Machinery purchased on credit costing Rs 20,000
15-March-21 50% of cash was paid for the cheque for the purchase on 12 and 13 March.
16-March-21 Owner withdrew Rs 50,000 in cash and Rs 25,000 through Cheque for
personal use.
18-March-21 Purchase goods for cash Rs 10,000 and through cheque Rs 8000
19-March-21 Good costing Rs 18,000 were purchased on credit
21-March-21 A payment of Rs 2700 was made in cash to the supplies of good.
23-March-21 Goods returned of Rs 500 which was purchased on credit.
24-March-21 New furniture purchased worth Rs 6000 on credit.
26-March-21 Owner has taken goods of worth Rs 8000 for his personal use.
27-March-21 Purchase generator worth Rs 50,000 on cash.
28-March-21 Purchase of computer for data entry through cheque Rs 40,000.
29-March-21 An item of computer were defected and returned to supplier costing Rs
15,000.
30-March-21 An items of generator was of a wrong specification and was returned of worth
Rs 30,000.
01-April-21 New generator purchased on credit worth Rs 10,000.
02-April-21 New computer purchase on credit of worth Rs 6000.
05-April-21 30% of cost paid by cheque for purchased of April 2 and April 3.
06-April-21 Purchase goods for cash Rs 20,000 and through cheque Rs 16,000.
AUSOM
PROJECT
AUSOM
PROJECT
22-May-21 Heir some worker with salary worth Rs 10,000 through cheque.
23-May-21 Purchase goods on cash Rs 5000.
24-May-21 Accrued interest on note payable (LTNP).
25-May-21 Depreciation is charged at the rate of 20% on furniture and machinery (on
straight line method).
26-May-21 Interest is charged at the rate of 10% on loan
27-May-21 Depreciation charged on generator at the rate of 10% (on straight line method).
28-May-21 Depreciation charged on computer at the rate of 10% (on straight line method).
29-May-21 Owner withdraws Rs 10,000 in cash and Rs 5000 through Cheque for his
personal use.
30-May-21 Other income received in cash Rs 4000.
31-May-21 Paid the first installment (LTNP)
31-May-21 Remaining operating expense, all paid in cash.
AUSOM