FINANCIAL PROJECT

K-MART

PRESENTED BY

TALHA KHAN
MOHSIN ALI ZIA
AHSAN PASHA
AHMED MOHSIN NOON
 Contents

Executive Summary:........................................................................................................................................................2

Transactions....................................................................................................................................................................3

Adjusting Entries.............................................................................................................................................................5

Opening Trial Balance.....................................................................................................................................................6

General Journal...............................................................................................................................................................6

Special Journal...............................................................................................................................................................14

General Ledger..............................................................................................................................................................17

Subsidiary Ledger..........................................................................................................................................................20

Worksheet..................................................................................................................................................................... 21

Closing and Adjusting Entries........................................................................................................................................21

Closing Trial Balance......................................................................................................................................................22

Income Statement.........................................................................................................................................................23

Statement of Owners Equity.........................................................................................................................................23

Balance Sheet................................................................................................................................................................24

Suggestions and Conclusions.........................................................................................................................................24

Executive Summary:

Introduction to the Business

The business that was taken into consideration for the financial analysis is a departmental store by the name
of “K-Mart” which is located in the commercial area of Green City Barki Road, Lahore. It is a small shop in
the area which aims to provide the residents of the local area with the necessities that they need. This shop
provides customers with all the necessary things at one stop. As the commercial area nearby is not widely
developed so this is one of the main shopping hubs for the residents living nearby. They even provide the
customers with home delivery service in their society. Moreover, they also sell on account to some of their
regular and trustworthy customers.
The following are the transactions of the business which shows what they bought and sold for the whole
month of October 2022 and what their expenses and revenues were.
Transactions

October 2022
1 Sold 3 Gatorade worth Rs.315
1 Sold 4 Air Freshener costing Rs.720
1 Sold 5 Clear Shampoo worth Rs.1885
1 Sold 3 Dunhill Cigarette worth Rs.540
2 Sold Michell’s Jam of Rs.500
2 Sold 2 Dettol Surface Cleaner worth Rs.670
2 Sold 7 Lays Salt worth Rs.595
3 Sold 6 Milo Drink of Rs. 300
3 Sold 8 Slice Mango Juice of Rs.240
3 Sold 4 Handwash worth Rs.720
4 Purchased 192 Slice Mango Juices of Rs.4800
4 Sold 6 Milo Drink of Rs. 300
4 Sold 4 Olive Oil worth Rs.1464
4 Sold 2 Cheese Slices of Rs.1050
5 Sold 5 Dunhill Cigarette worth Rs.900
5 Sold 3 Redbull of Rs.960
5 Sold 3 Michell’s Jam of Rs.1500
6 Purchased 10 Michell’s Jam on account for Rs.4750
6 Sold 10 Kiran Banaspati of Rs.5150
6 Sold 7 Olpers worth Rs.903
7 Sold 9 Lays Salt worth Rs.765
7 Sold 25 Wavy B.B.Q worth Rs.500
7 Sold 17 Prince Biscuit worth Rs.680
8 Purchased 25 Lays Salt for Rs.2000
8 Sold 3 Colgate worth Rs.495
9 Sold 27 Fanta worth Rs.2160
9 Sold 4 Michell’s Jam of Rs.2000
9 Sold 11 Sabroso Samosa Family Pack worth Rs.10065
9 Purchased 150 Wavy B.B.Q for Rs.2250
10 Paid Electricity Bill worth Rs.28768
10 Sold 4 Nido Powder Milk of Rs.1080
10 Purchased 84 Fanta for Rs.6300
11 Sold 4 Apple Vinegar of Rs.860
11 Sold 15 Gillette razor for Rs.2325
11 Paid Water Bill worth Rs.2200
11 Sold 18 Lays Salt worth Rs.1530
12 Sold 5 Dawn chicken samosa worth Rs.2300
12 Sold 6 Air Freshener costing Rs.1080
12 Sold 7 7up worth Rs.525
13 Sold 7 Dunhill Cigarette worth Rs.1260
13 Sold 15 Imported Dove soap worth Rs.5700
14 Sold 24 Sabroso Samosa Family Pack on account to Aroma Grill worth Rs.21840
14 Sold 4 Langnese Forest Honey of worth Rs.1520
14 Sold 21 Mayonnaise on account to Aroma Grill worth Rs.3885
15 Purchased 54 Mayonnaise on account worth Rs.9612
15 Sold 7 Kitkat for Rs.455
15 Sold 3 Mcvities digestive chocolate worth Rs.420
15 Sold 8 Olpers worth Rs.1032
16 Sold 3 Cerelac worth Rs.555
16 Sold 7 Sabroso Samosa Family Pack worth Rs.6405
16 Sold 4 Gatorade on account to Mr. Kamran for Rs.420
17 Purchased 35 Nestle Everyday worth Rs.27300
17 Sold 5 Dunhill Cigarette worth Rs.900
17 Sold 15 Aquafina Water worth Rs.450
18 Sold 6 Langnese Forest Honey worth Rs.2280
18 Sold 15 Wavy B.B.Q worth Rs.300
19 Sold 3 Corn Flakes worth Rs.840
19 Sold 8 Everyday worth Rs.6840
19 Purchased Office Equipment from CSD worth Rs5525
20 Sold 15 Fanta worth Rs.1200
20 Sold 2 Dunhill Cigarette worth Rs.360
21 Sold 3 Colgate worth Rs.495
21 Sold 15 Wavy B.B.Q worth Rs.300
21 Sold 3 Sabroso Samosa Family Pack worth Rs.2745
22 Purchased 16 Sabroso Samosa Family Pack worth Rs. 13872
22 Sold 7 Kiran Banaspati of Rs.3605
22 Sold 4 Olpers worth Rs.516
23 Sold 5 Dawn chicken samosa worth Rs.2300
23 Sold 3 Clear Men Shampoo on account to Mr. Kamran worth Rs.855
23 Sold 4 Handwash worth Rs.720
24 Sold 12 Lays Salt worth Rs.1020
24 Received Cash from Mr. Kamran Rs.1275
24 Owner withdrew cash worth Rs.8000 from the shop
24 Sold 4 Olive Oil on account to Mr. Ahad worth Rs.1464
24 Sold 5 Olpers on account to Mr. Ahad worth Rs.645
25 Purchased 8 Dawn chicken samosa for Rs.3560
25 Sold 2 Colgate worth Rs.330 on account to Mr. Sahil
25 Sold 6 Gatorade worth Rs.630
25 Sold 7 Fanta of worth Rs.560
26 Sold 4 Navia cream of worth Rs.1000
26 Sold 8 Dunhill Cigarette worth Rs.1440
26 Sold 4 Handwash worth Rs.720
26 Sold 13 Gala Biscuit worth Rs.520
26 Sold 3 Robin Combo for Rs.1530
26 Sold 17 Aquafina Water worth Rs.510
27 Purchased 40 Dunhill Cigarette worth Rs.6400
27 Sold 14 Haleeb Lassi of worth Rs.966
28 Received Cash worth Rs.330 from Mr. Sahil
28 Sold 3 Redbull of Rs.960
28 Purchased Office Equipment from CSD worth Rs3055
29 Received Cash worth Rs.2109 from Mr. Ahad
29 Sold 11 Gillette razor for Rs.1705
29 Paid Wages of Rs.38000
29 Sold 4 Olive Oil worth Rs.1464
29 Purchased 11 Nestle Everyday worth Rs.8580
29 Sold 7 Kiran Banaspati of Rs.3605
30 Purchased 11 Kiran Banaspati worth Rs.5610
30 Sold 2 Robin Combo for Rs.1020
30 Sold 25 Wavy B.B.Q worth Rs.500
31 Sold 3 Corn Flakes worth Rs.840
31 Sold 4 Olpers worth Rs.516

Adjusting Entries

At the end of October these following Adjustment entries were assembled:

1. Insurance Expired during the month was Rs.4000
2. Rent for one month has been used Rs.10000
3. Accrued wages of workers for August Rs.6000
4. Depreciation of office equipment Rs.500
Opening Trial Balance
Opening Trial Balance:
At the beginning of the month
K-Mart
Trial Balance
As of September 30, 2022
Debit Credit
Balance Balance
Cash 38547

Accounts Receivable 11458

Accounts Payable 8755

Owner's Capital 20280

Sales 27970
Purchases 7000
57005 57005

General Journal
General Journal
Date Description P/R Debit Credit
2022
October 1 Cash 11 315
Sales 41 315
Cost of Merchandise Sold 51 294
Merchandise Inventory 13 294
1 Cash 11 720
Sales 41 720
Cost of Merchandise Sold 51 680
Merchandise Inventory 13 680
1 Cash 11 1885
Sales 41 1885
Cost of Merchandise Sold 51 1865
Merchandise Inventory 13 1865
1 Cash 11 540
Sales 41 540
Cost of Merchandise Sold 51 480
Merchandise Inventory 13 480
2 Cash 11 500
Sales 41 500
Cost of Merchandise Sold 51 475
Merchandise Inventory 13 475
2 Cash 11 670
Sales 41 670
Cost of Merchandise Sold 51 626
Merchandise Inventory 13 626
2 Cash 11 595
Sales 41 595
Cost of Merchandise Sold 51 560
Merchandise Inventory 13 560
3 Cash 11 300
Sales 41 300
Cost of Merchandise Sold 51 264
Merchandise Inventory 13 264
3 Cash 11 240
Sales 41 240
Cost of Merchandise Sold 51 200
Merchandise Inventory 13 200
3 Cash 11 720
Sales 41 720
Cost of Merchandise Sold 51 680
Merchandise Inventory 13 680
4 Merchandising Inventory 13 4800
Cash 11 4800
4 Cash 11 300
Sales 41 300
Cost of Merchandise Sold 51 264
Merchandise Inventory 13 264
4 Cash 11 1464
Sales 41 1464
Cost of Merchandise Sold 51 1432
Merchandise Inventory 13 1432
4 Cash 11 1050
Sales 41 1050
Cost of Merchandise Sold 51 1030
Merchandise Inventory 13 1030
5 Cash 11 900
Sales 41 900
Cost of Merchandise Sold 51 800
Merchandise Inventory 13 800
5 Cash 11 960
Sales 41 960
Cost of Merchandise Sold 51 930
Merchandise Inventory 13 930
5 Cash 11 1500
Sales 41 1500
Cost of Merchandise Sold 51 1425
Merchandise Inventory 13 1425
6 Merchandising Inventory 13 4750
Accounts Payable 21 4750
6 Cash 11 5150
Sales 41 5150
Cost of Merchandise Sold 51 5100
Merchandise Inventory 13 5100
6 Cash 11 903
Sales 41 903
Cost of Merchandise Sold 51 875
 Merchandise Inventory 13 875
7 Cash 11 765
Sales 41 765
Cost of Merchandise Sold 51 720
Merchandise Inventory 13 720
7 Cash 11 500
Sales 41 500
Cost of Merchandise Sold 51 375
Merchandise Inventory 13 375
7 Cash 11 680
Sales 41 680
Cost of Merchandise Sold 51 595
Merchandise Inventory 13 595
8 Merchandising Inventory 13 2000
Cash 11 2000
8 Cash 11 495
Sales 41 495
Cost of Merchandise Sold 51 450
Merchandise Inventory 13 450
9 Cash 11 2160
Sales 41 2160
Cost of Merchandise Sold 51 2025
Merchandise Inventory 13 2025
9 Cash 11 2000
Sales 41 2000
Cost of Merchandise Sold 51 1900
Merchandise Inventory 13 1900
9 Cash 11 10065
Sales 41 10065
Cost of Merchandise Sold 51 9537
Merchandise Inventory 13 9537
9 Merchandising Inventory 13 2250
Cash 11 2250
10 Electricity Expense 54 28768
Cash 11 28768
10 Cash 11 1080
Sales 41 1080
Cost of Merchandise Sold 51 980
Merchandise Inventory 13 980
10 Merchandising Inventory 13 6300
Cash 11 6300
11 Cash 11 860
Sales 41 860
Cost of Merchandise Sold 51 800
Merchandise Inventory 13 800
11 Cash 11 2325
Sales 41 2325
Cost of Merchandise Sold 51 2220
Merchandise Inventory 13 2220
11 Water Expense 55 2200
Cash 11 2200
11 Cash 11 1530
Sales 41 1530
Cost of Merchandise Sold 51 1440
Merchandise Inventory 13 1440
12 Cash 11 2300
Sales 41 2300
Cost of Merchandise Sold 51 2225
Merchandise Inventory 13 2225
12 Cash 11 1080
Sales 41 1080
Cost of Merchandise Sold 51 1020
Merchandise Inventory 13 1020
12 Cash 11 525
Sales 41 525
Cost of Merchandise Sold 51 490
Merchandise Inventory 13 490
13 Cash 11 1260
Sales 41 1260
Cost of Merchandise Sold 51 1120
Merchandise Inventory 13 1120
13 Cash 11 5700
Sales 41 5700
Cost of Merchandise Sold 51 5100
Merchandise Inventory 13 5100
14 Accounts Receivable 12 21840
Sales 41 21840
Cost of Merchandise Sold 51 20808
Merchandise Inventory 13 20808
14 Cash 11 1520
Sales 41 1520
Cost of Merchandise Sold 51 1440
Merchandise Inventory 13 1440
14 Accounts Receivable 12 3885
Sales 41 3885
Cost of Merchandise Sold 51 3738
Merchandise Inventory 13 3738
15 Merchandising Inventory 13 9612
Accounts Payable 21 9612
15 Cash 11 455
Sales 41 455
Cost of Merchandise Sold 51 406
Merchandise Inventory 13 406
15 Cash 11 420
Sales 41 420
Cost of Merchandise Sold 51 375
Merchandise Inventory 13 375
15 Cash 11 1032
Sales 41 1032
Cost of Merchandise Sold 51 1000
Merchandise Inventory 13 1000
16 Cash 11 555
 Sales 41 555
Cost of Merchandise Sold 51 525
Merchandise Inventory 13 525
16 Cash 11 6405
Sales 41 6405
Cost of Merchandise Sold 51 6069
Merchandise Inventory 13 6069
16 Accounts Receivable 12 420
Sales 41 420
Cost of Merchandise Sold 51 392
Merchandise Inventory 13 392
17 Merchandising Inventory 13 27300
Cash 11 27300
17 Cash 11 900
Sales 41 900
Cost of Merchandise Sold 51 800
Merchandise Inventory 13 800
17 Cash 11 450
Sales 41 450
Cost of Merchandise Sold 51 375
Merchandise Inventory 13 375
18 Cash 11 2280
Sales 41 2280
Cost of Merchandise Sold 51 2160
Merchandise Inventory 13 2160
18 Cash 11 300
Sales 41 300
Cost of Merchandise Sold 51 225
Merchandise Inventory 13 225
19 Cash 11 840
Sales 41 840
Cost of Merchandise Sold 51 780
Merchandise Inventory 13 780
19 Cash 11 6840
Sales 41 6840
Cost of Merchandise Sold 51 6240
Merchandise Inventory 13 6240
19 Office Equipment 12 5525
Cash 11 5525
20 Cash 11 1200
Sales 41 1200
Cost of Merchandise Sold 51 1125
Merchandise Inventory 13 1125
20 Cash 11 360
Sales 41 360
Cost of Merchandise Sold 51 320
Merchandise Inventory 13 320
21 Cash 11 495
Sales 41 495
Cost of Merchandise Sold 51 450
Merchandise Inventory 13 450
21 Cash 11 300
Sales 41 300
Cost of Merchandise Sold 51 225
Merchandise Inventory 13 225
21 Cash 11 2745
Sales 41 2745
Cost of Merchandise Sold 51 2601
Merchandise Inventory 13 2601
22 Merchandising Inventory 13 13872
Cash 11 13872
22 Cash 11 3605
Sales 41 3605
Cost of Merchandise Sold 51 3570
Merchandise Inventory 13 3570
22 Cash 11 516
Sales 41 516
Cost of Merchandise Sold 51 500
Merchandise Inventory 13 500
23 Cash 11 2300
Sales 41 2300
Cost of Merchandise Sold 51 2225
Merchandise Inventory 13 2225
23 Accounts Receivable 12 855
Sales 41 855
Cost of Merchandise Sold 51 795
Merchandise Inventory 13 795
23 Cash 11 720
Sales 41 720
Cost of Merchandise Sold 51 680
Merchandise Inventory 13 680
24 Cash 11 1020
Sales 41 1020
Cost of Merchandise Sold 51 960
Merchandise Inventory 13 960
24 Cash 11 1275
Accounts Receivable 12 1275
24 Drawing 32 8000
Cash 11 8000
24 Accounts Receivable 12 1464
Sales 41 1464
Cost of Merchandise Sold 51 1432
Merchandise Inventory 13 1432
24 Accounts Receivable 12 645
Sales 41 645
Cost of Merchandise Sold 51 625
Merchandise Inventory 13 625
25 Merchandising Inventory 13 3560
Cash 11 3560
25 Accounts Receivable 12 330
Sales 41 330
Cost of Merchandise Sold 51 300
 Merchandise Inventory 13 300
25 Cash 11 630
Sales 41 630
Cost of Merchandise Sold 51 588
Merchandise Inventory 13 588
25 Cash 11 560
Sales 41 560
Cost of Merchandise Sold 51 525
Merchandise Inventory 13 525
26 Cash 11 1000
Sales 41 1000
Cost of Merchandise Sold 51 920
Merchandise Inventory 13 920
26 Cash 11 1440
Sales 41 1440
Cost of Merchandise Sold 51 1280
Merchandise Inventory 13 1280
26 Cash 11 720
Sales 41 720
Cost of Merchandise Sold 51 680
Merchandise Inventory 13 680
26 Cash 11 520
Sales 41 520
Cost of Merchandise Sold 51 455
Merchandise Inventory 13 455
26 Cash 11 1530
Sales 41 1530
Cost of Merchandise Sold 51 1500
Merchandise Inventory 13 1500
26 Cash 11 510
Sales 41 510
Cost of Merchandise Sold 51 425
Merchandise Inventory 13 425
27 Merchandising Inventory 13 6400
Cash 11 6400
27 Cash 11 966
Sales 41 966
Cost of Merchandise Sold 51 910
Merchandise Inventory 13 910
28 Cash 11 330
Accounts Receivable 12 330
28 Cash 11 960
Sales 41 960
Cost of Merchandise Sold 51 930
Merchandise Inventory 13 930
28 Office Equipment 12 3055
Cash 11 3055
29 Cash 11 2109
Accounts Receivable 12 2109
29 Cash 11 1705
Sales 41 1705
 Cost of Merchandise Sold 51 1628
Merchandise Inventory 13 1628
29 Wages expense 22 38000
Cash 11 38000
29 Cash 11 1464
Sales 41 1464
Cost of Merchandise Sold 51 1432
Merchandise Inventory 13 1432
29 Merchandising Inventory 13 8580
Cash 11 8580
29 Cash 11 3605
Sales 41 3605
Cost of Merchandise Sold 51 3570
Merchandise Inventory 13 3570
30 Merchandising Inventory 13 5610
Cash 11 5610
30 Cash 11 1020
Sales 41 1020
Cost of Merchandise Sold 51 1000
Merchandise Inventory 13 1000
30 Cash 11 500
Sales 41 500
Cost of Merchandise Sold 51 375
Merchandise Inventory 13 375
31 Cash 11 840
Sales 41 840
Cost of Merchandise Sold 51 780
Merchandise Inventory 13 780
31 Cash 11 516
Sales 41 516
Cost of Merchandise Sold 51 500
Merchandise Inventory 13 500
447132 447132

Special Journal

Cost of Merchandise
Accounts
Sold-dr
Date Sales Journal Accounts Debited P/R Receivables-dr
Merchandise Inventory-
Sales-cr
cr
2022
October 14 Aroma Grill ü 21840 20808
14 Aroma Grill ü 3885 3738
16 Kamran ü 420 392
23 Kamran ü 855 795
24 Ahad ü 1464 1432
24 Ahad ü 645 625
25 Sahil ü 330 300
29439 28090
 Purchase Journal Accounts Credited P/R Accounts Payable Cr Merchandise Inventory Dr
Date
2022 6 Shahbaz Store ü 4750 4750
October 15 Shahbaz Store ü 9612 9612
14362 14362

Cash Payment Accounts P/ Other Accounts Accounts Payable Cash

Journal Debited R Dr Dr cr
Date
2022 4 Shahbaz Store ü 4800 - 4800
Octobe
ü 2000 - 2000
r 8 Shahbaz Store
9 Shahbaz Store ü 2250 - 2250
10 Shahbaz Store ü 6300 - 6300
Electricity
54 28768 - 28768
10 expense
11 Water expense 55 2200 - 2200
17 Shahbaz Store ü 27300 - 27300
19 CSD ü 5525 - 5525
22 Shahbaz Store ü 13872 - 13872
24 Drawings 32 8000 - 8000
25 Shahbaz Store ü 3560 - 3560
27 Shahbaz Store ü 6400 - 6400
28 CSD 22 3055 - 3055
29 Wages expense 38000 - 38000
29 Shahbaz Store ü 8580 - 8580
30 Shahbaz Store ü 5610 - 5610

166220 0 166220

Cash Receipt Journal

Accounts Credited P/R Cash-Dr Accounts Recivable-Cr Sales-Cr Other Accounts Cr
Date
2022 1 Sales 41 315 - 315 -
October 1 Sales 41 720 - 720 -
1 Sales 41 1885 - 1885 -
1 Sales 41 540 - 540 -
2 Sales 41 500 - 500 -
2 Sales 41 670 - 670 -
2 Sales 41 595 - 595 -
3 Sales 41 300 - 300 -
 3 Sales 41 240 - 240 -
3 Sales 41 720 - 720 -
4 Sales 41 300 - 300 -
4 Sales 41 1464 - 1464 -
4 Sales 41 1050 - 1050 -
5 Sales 41 900 - 900 -
5 Sales 41 960 - 960 -
5 Sales 41 1500 - 1500 -
6 Sales 41 5150 - 5150 -
6 Sales 41 903 - 903 -
7 Sales 41 765 - 765 -
7 Sales 41 500 - 500 -
7 Sales 41 680 - 680 -
8 Sales 41 495 - 495 -
9 Sales 41 2160 - 2160 -
9 Sales 41 2000 - 2000 -
9 Sales 41 10065 - 10065 -
10 Sales 41 1080 - 1080 -
11 Sales 41 860 - 860 -
11 Sales 41 2325 - 2325 -
11 Sales 41 1530 - 1530 -
12 Sales 41 2300 - 2300 -
12 Sales 41 1080 - 1080 -
12 Sales 41 525 - 525 -
13 Sales 41 1260 - 1260 -
13 Sales 41 5700 - 5700 -
14 Kamran ü 1275 1275 -
14 Sales 41 1520 - 1520 -
15 Sales 41 455 - 455 -
15 Sales 41 420 - 420 -
15 Sales 41 1032 - 1032 -
16 Sales 41 555 - 555 -
16 Sales 41 6405 - 6405 -
16 Sales 41 420 - 420 -
17 Sales 41 900 - 900 -
17 Sales 41 450 - 450 -
18 Sales 41 2280 - 2280 -
18 Sales 41 300 - 300 -
19 Sales 41 840 - 840 -
19 Sales 41 6840 - 6840 -
20 Sales 41 1200 - 1200 -
20 Sales 41 360 - 360 -
21 Sales 41 495 - 495 -
21 Sales 41 300 - 300 -
21 Sales 41 2745 - 2745 -
22 Sales 41 3605 - 3605 -
22 Sales 41 516 - 516 -
23 Sales 41 2300 - 2300 -
 23 Sales 41 720 - 720 -
24 Sales 41 1020 - 1020 -
25 Sales 41 630 - 630 -
25 Sales 41 560 - 560 -
26 Sales 41 1000 - 1000 -
26 Sales 41 1440 - 1440 -
26 Sales 41 720 - 720 -
26 Sales 41 520 - 520 -
26 Sales 41 1530 - 1530 -
26 Sales 41 510 - 510 -
27 Sales 41 966 - 966 -
28 Sahil ü 330 330 -
28 Sales 41 960 - 960 -
29 Ahad ü 2109 2109 -
29 Sales 41 1705 - 1705 -
29 Sales 41 1464 - 1464 -
29 Sales 41 3605 - 3605 -
30 Sales 41 1020 - 1020 -
30 Sales 41 500 - 500 -
31 Sales 41 840 - 840 -
31 Sales 41 516 - 516 -

109915 3714 106201

General Ledger

Cash A/c No. 11

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 1 Balance 38547 -
31 CRJ 1 109915 148462 -
31 CPJ 1 166220 - 17758

Accounts Receivable A/C No. 12

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 1 Balance 11458 -
31 SJ 1 29439 40897 -
31 CRJ 1 3714 37183 -

Merchandise Inventory A/c No. 13

Date Particular P/R Debit Credit Balance
Debit Credit
 2022
October 1 Balance 9450 -
31 SJ 1 28090 37540 -
31 PJ 1 14362 51902 -

Sales A/c No. 41

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 1 Balance - 27970
31 SJ 1 29439 - 57409
31 CRJ 1 108310 - 165719

Accounts Payable A/c No. 21

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 1 Balance - 8755
31 PJ 1 14362 - 23117
31 CPJ 1 0 - 23117

Owner's Capital A/c No. 31

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 1 Balance - 20280
31 Closing 2169657 - 2189937

Income Summary A/c No. 311

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 31 Closing 165719 165719
Closing 105558 60161 -
Closing 8000 68161 -

Cost of Merchandise sold A/c No. 51

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 31 SJ 1 28090 28090 -
 Electricity Expense A/c No. 54
Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 10 CPJ1 28768 28768 -
31 closing 28768

Water Expense A/c No. 55

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 11 CPJ1 2200 2200 -
31 closing 2200

Office Equipment A/c No. 12

Date Particular P/R Debit Credit Balance
Debit Credit
2022 19 CPJ1 5525 5525 -
October 28 CPJ1 3055 8580 -

Wages Payable A/c No. 22

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 29 CPJ1 38000 38000 -
Adjusting 6000 - 32000

Insurance Expense A/c No. 57

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 31 Adjusting 4000 4000 -
31 closing 4000 - -

Depreciation A/c No. 56

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 31 Adjusting 500 - 500
 Rent Expense A/c No. 58
Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 31 Adjusting 10000 10000 -
31 closing 10000 - -

Drawings A/c No. 32

Date Particular P/R Debit Credit Balance
Debit Credit
2022
October 24 CPJ1 8000 8000 -

Subsidiary Ledger
Aroma Grill
Date Post Ref. Dr. Cr. Balance
Item Dr. Cr.
2022
October 14 SJ 21840 21840
14 SJ 3885 25725 -

Sahil
Date Balance
Post Ref. Dr. Cr.
Item Dr. Cr.
2022
October 25 SJ 330 330 -

Hamza
Date Balance
Post Ref. Dr. Cr.
Item Dr. Cr.
2022
October 16 SJ 420 420
23 SJ 855 1275 -

Shahbaz Store
Date Balance
Post Ref. Dr. Cr.
Item Dr. Cr.
2022
October 30 PJ1 14362 - 14362

Ahad
 Date Post Ref. Dr. Cr. Balance
Item Dr. Cr.
2022
October 24 SJ 1464 1464
24 SJ 645 2109 -

Worksheet
K-Mart
End of Period Spreadsheet (worksheet)
For the month ended October 31,2022
Adjusted Income
Unadjusted Adjustm Trial Statemen Balance
Account Tittle Trial Balance ents Balance t Sheet
Cr C Cr
Dr. . Dr. r. Dr. . Dr Cr Dr Cr
Cash 17758 17758 17758
Accounts Receivable 37183 37183 37183
Merchandise Inventory 51902 51902 51902
Office Equipment 8580 8580 8580
Accumulated
25
Depreciation-Office - -
0
Equipment 250 250
231 231 231
Accounts Payable 17 17 17
60 600 600
Wages Payable 00 0 0
202 202 202
Owner's Capital 80 80 80
165 165 165
Sales 719 719 719
Cost of Merchandise
28090
Sold 28090 28090
Electricity Expense 28768 28768 28768
Water Expense 2200 2200 2200
Rent Expense - 10000 10000 10000
Wages Expense 38000 32000 32000
Depreciation Expense-
- 250
office Equipment 250 250
Insurance Expense - 4000 4000 4000
209 62 215 496
212481 14250
116 50 220731 366 105308 47
604
Net Income 60411 11
 430 165 110
441462 732 165719 719 115423 058

Closing and Adjusting Entries

Date Description Post Ref. Dr. Cr.
2022
October Adjusting
31 Insurance Expense 55 4000
Prepaid Insurance 14 4000
31 Wages Expense 54 6000
Wages Payable 22 6000
31 Rent Expense 56 10000
Prepaid Rent 17 10000
31 Depreciation Expense 56 500
Accumulated Depreciation- 19 500
Office Equipment

Closing Entries
31 Sales 41 165719
Income Summary 311 165719
31 Income Summary 311 105558
Wages Expense 57 32000
Cost of Merchandise sold 52 28090
Water Expense 55 2200
Electricity Expense 54 28768
Insurance Expense 58 4000
Rent Expense 58 10000
Depreciation Expense 56 500
31 Owner's Capital 31 2189937
Income Summary 311 2189937
31 Owner's Capital 31 8000
Owner's Drawings 32 8000

Closing Trial Balance

Closing Trial Balance:

At the end of the month
K-Mart
Trial Balance
October 31,2022

Debit Credit
Balance Balance
Cash 17758

Accounts Receivable 37183

 Merchandise Inventory 51902
Office equipment 8580

Accumulated Depreciation 500

Accounts Payable 23117
Wages Payable 6000
Owner's Capital 72,691
Electricity expense 28768
Water expense 2200
Rent expense 10000
Insurance expense 4000
160391 102308

Income Statement
K-Mart
Income Statement
For the Month Ended Oct 31, 2022
Revenue from sales:
Sales 165719
Net Sales Rs 165,719.00
Cost of merchandise sold Rs 28,090.00
Gross profit Rs 137,629.00
Operating expenses:
Selling expenses:
Wages Expense 32000
Total Selling Expense 32000
Administrative expenses:
Electricity Expense 28768
Rent Expense 10000
Insurance Expense 4000
Water Expense 2200
Depreciation Expense-Office Equipment 250
Total administrative expenses 45218
Total operating expenses Rs 77,218.00
Net income Rs 60,411.00

Statement of Owners Equity

K-Mart
Statement of Owners Equity
For the month ended Oct 31,2022
Owner's Capital Aug 1,2022 20280
Add Net Income Rs 60,411.00
Less Drawings Rs 8,000.00
Owner's Capital Aug 31,2022 Rs 72,691.00
Balance Sheet
K-Mart
Balance Sheet
As of October 31, 2022
Assets
Current assets:
Cash Rs 17,758.00
Accounts receivable Rs 37,183.00
Merchandise inventory Rs 51,902.00
Total current assets Rs 106,843.00
Property, plant, and equipment:
Office equipment Rs 8,580.00
Less Accumulated Depreciation Office equipment Rs 250.00
Total property, plant, and equipment Rs 8,330.00
Total assets Rs 115,173.00
Liabilities
Current liabilities:
Accounts Payable Rs 23,117.00
Wages Payable Rs 6,000.00
Total current liabilities Rs 29,117.00
Total liabilities
Owner's Equity
Owner's capital Rs 72,691.00
Total liabilities and owner's equity Rs 101,808.00

Suggestions and Conclusions

The business could improve its performances and financial outcomes if they prepared their accounts in a
proper way. Just because their store is not large enough, there was no proper accounting system. The
checkout counter just consisted of details of transactions; A sufficient amount of time had to be taken by us
in order to get the data that we needed in order to study the business.
To conclude, the business is in a tight spot, where even though its financial statements show that the
business is doing well, a better accounting system is needed because it is unclear whether all accounting data
for the month of October 2022 is actually present or not.