Financial Accounting I

Category Archive Financial Accounting I

Source Documents

Source Documents:

A piece of paper that is used as evidence to record a transactions.A source document, often called business paper, is the document produced with each business event and used to record every business transaction. In other words, it’s a physical or electronic document that lists the details of a transaction and is used by the accounting department tojournalize accounting information.

Some common examples of source documents include sales receipts,checks, purchase orders, invoices,bank statements, and payroll reports. These are all original documents that were created from a transaction and the first component in an accounting system.

Source documents are used to record transactions because they are original and show an objective report of the economic activities of each transaction. For example, when a company purchases goods from a vendor, the vendor creates a receipt or invoice that shows the goods that were purchases, the purchase price, date of transaction, seller’s name, and the method of payment. This document gives the buyer’s accounting department an objective and reliable record of the purchase transaction. It also gives the vendor a document that can used to record the sale of goods.

Source documents are also used for internal control purposes as well. For example, the manufacturing department issues a purchase requisition for the goods it needs to complete its upcoming jobs. The purchase requisition is sent to the purchasing department for approval. Once it is approved, a purchase order is issued and sent to the receiving department when the goods received are compared with the purchase order. A receiving report is issued and all three of these documents are sent to the accounting department to approve the invoice from the vendor. If all of these documents agree, the invoice is approved and the cashier issues a check for the goods.

As you can see, all of the source documents are used to ensure that only proper goods are ordered, received, and paid for.

 

Examples are:

  • Cash Memo:
    This is used for cash transactions. A Cash Memo is received or given when goods are purchased or sold for cash. Hence, all cash transactions are recorded in the books of accounts on the basis of these cash memos. The cash memo is different from Cash Receipt in the sense that it is normally issued for cash received subsequent to the sale of goods but Cash Memo is used for money received instantly.
  • Invoice or Credit Bill:An Invoice or Credit Bill is used for business transactions carried out on credit. A sales invoice is prepared to record the credit sale of goods or provision of services. The original copy of the sales invoice is sent to the purchaser and the seller keeps a duplicate copy as the proof of sale.
  • Receipts:A firm issues a receipt when it receives cash or cheques. It is an acknowledgement of receipt of cash or chequeand acts as a documentary proof for receiving the cash.
  • Deposit Slip:It is a form available from the bank for depositing money or chequein a bank account. It has a counterfoil or a carbon copy, which is returned to the depositor with signature of the cashier, as receipt. The counterfoil or a carbon copy of the deposit slip gives the details regarding the date, the amount (in cash or chequedeposited) etc.
  • Cheque:A chequeis a form made available by a Banker to its account holder. Each chequehas a counterfoil to record the same information written on the chequethat remains with the account holder for his future reference. The counterfoil is taken as a source document to make entries about payments in the books of accounts.
  • Debit Note:Debit note is a note sent to a supplier informing him that his account has been debited to the extent of goods returned to him. It is also used to send to a customer informing him that an additional amount is recoverable from him for difference in price etc.
  • Credit Note: Credit note is a note sent to a customer informing him that his account has been credited to the extent of goods returned by him or sent to a supplier informing him about the difference in price etc.
  • Bank Statement:It is a statement sent by the Bank on a regular basis, say monthly. It shows the running balance of the bank account for the period with details of deposits and payments out of the Bank Account.

Role of Source Documents in Accounting:

  • Recording basis:The source documents are the basis for recording and accounting, without which recording would be virtually meaningless.
  • Authenticates the amount paid or received:The source document establishes the amount paid or received.
  • Evidence in the court of law:The source documents can be produced in the court of law as documentary proof in the event of any dispute involving the accounting entity.
  • Basis for taxation:The tax authorities use the source documents to establish the amount of tax to be paid by the accounting entity extensively.
  • Information about make, quantity, and values:Source documents provide, in brief, the information about the model, make, quantity, amount of tax collected or payable, and the value of transactions.
  • Proof of payment or receipt:The source documents are the proof of payment made and amount received along with their purposes. For e.g., issue of account payee chequesand their record in the Bank Statement is a proof of payment.

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Annual Report

Annual Report:

An annual report is a comprehensive report on a company’s activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company’s activities and financial performance.
The annual report is a financial document published by most private and public companies to summarize the major transactions of the year. The report usually begins with a letter from the Chairman of the Board and/or the Chief Executive Officer. It also includes the balance sheet, income statement and the cash flow statement as well as a discussion of company affairs and notes to the financial statements.
The joint stock companies publicly owned and listed on a stock exchange are required to prepare and publish an annual report for its shareholders. In Nepal, the privately owned companies are also required by the Companies Act, 2053 BS to prepare an annual report and submit it to the Office of the Registrar of Companies.

Components of annual report:

  1. Financial Statements:

    The financial statements consist of four statements prepared by the companies as a form of communication with its shareholders and other user groups. They include income statement, the balance sheet, statement of cash flows, and statement of changes in stockholder’s equity. The information provided in the financial statements is the responsibility of the management and subject to verification as part of the external audit.

  2. Chairperson’s Report:

    This report is an address by the Chairperson of the company’s Board of Directors to its shareholders at the Annual General Meeting (AGM). It comprises the summary of the results of financial affairs, composition of the BOD and discussion about the external environment, especially the economic and financial situation of the country and place of operation of the business. The chairperson might take this opportunity to thank and acknowledge the support and co-operation of the company’s BOD, shareholders and staff and employees.

  3. Management Discussion and Analysis:

    The management team discusses the financial statements and provides vital explanations for the amounts reported in the financial statements. Some companies report this section as financial review. The section is directed at not only simplifying the information contained in the financial statement and any back-up information requiring clarification but also providing crucial information about the company’s business plan or strategy.

  4. Management’s responsibility for financial reporting:

    It is a written statement in the annual report indicating the responsibility of management for the financial statements.

  5. Notes to Financial Statements:

    The notes to financial statements provide crucial information regarding the accounting policies and procedures adopted, the basis of taxation, the employee benefit schemes, the commitments and contingencies, the inventories, the account receivables, account payables and other details of items clubbed together to make the financial statements brief.

  6. Financial Summary:

    Another regular feature in any annual report is the summary of financial information, especially of the revenue, net income, and total assets. Many reports call it financial highlights. This section is primarily a pictorial representation using colourful pie charts, bar diagrams, or graphical curves.

  7. Report of the Independent Auditor:

    Before the annual report is presented to the company’s shareholders at the AGM and submitted to the concerned government office, the books of accounts and the financial statements of the company are subject to an external audit from an independent auditor. After such an audit, the auditor issues a report addressing to the company’s shareholders.(According to accounting standard)

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Accounting Equation

Accounting Equation,Financial Accounting I,BBA first semester,BBA-BI second semester

Accounting Equation:

The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company’s shareholders. Thus, the accounting equation is: Assets = Liabilities +Shareholder Equity. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity. Any purchase or sale by an accounting equity has an equal effect on both sides of the equation, or offsetting effects on the same side of the equation. The accounting equation is also written as Liabilities = Assets – Shareholder Equity and Shareholder Equity = Assets – Liabilities.

Example:

                                                    Accounting Equation for the month of march

                                                     Expert Counselling Service Incorporation

Assets = Liabilities and Owners Equity
Date Cash A/R Supplies Equipment     A/P N/P Capital Stock R/E
2-Mar 40000               40000  
7-Mar 15000             15000    
bal 55000             15000 40000  
12-Mar     700       700      
bal 55000   700       700 15000 40000  
19-Mar   4000               4000
bal 55000 4000 700       700 15000 40000 4000
20-Mar (1,300)                 (1300)
bal 53,700 4000 700       700 15000 40000 2700
22-Mar 1000 (1000)                
bal 54,700 3000 700       700 15000 40000 2700
26-Mar 2800                 2800
bal 57,500 3000 700       700 15000 40000 5500
29-Mar (8000)     8000            
bal 49,500 3000 700 8000     700 15000 40000 5500
30-Mar (3300)                 (3300)
bal 46,200 3000 700 8000     700 15000 40000 2200
31-Mar (1400)                 (1400)
  44,800 3000 700 8000     700 15000 40000  800
Total Assets=56500     Total liabilities +O/E=56500

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Worksheet

Worksheet: 

An accounting worksheet is a spreadsheet used to prepare accounting information and reports. Accounting worksheets are most often used in the accounting cycle process to draft an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and financial statements.

Worksheets are prepared at the end of an accounting period and usually include a list of accounts, account balances, adjustments to each account, and each account’s adjusted balance all sorted in financial statement order. As you can imagine, after a worksheet is completely filled out, preparing financial statements manually is quite simple. Most of the preparation work goes into drafting the worksheets.

As with most working papers, accounting worksheets are designed for internal purposes only. External users like investors and creditors rarely if ever get to see a company’s accounting worksheet. This means that the worksheet format can be flexible. Companies can customize the format of their worksheets to fit their internal demands and work flow needs.

Bookkeepers and accountants use accounting worksheets for a variety of reasons. Worksheets make transferring t-accounts into an adjusted trial balance much easier. Worksheets also reduce the risk of errors making errors when producing financial statements.

Worksheets can also be used for planning purposes. Since the worksheets are used to make adjusting journal entries, managers can examine the worksheets before the adjustments are posted to see their effect on the overall financial statements. Worksheets can also be helpful in preparing interim financial statements.

Example:

 

                                     Forever Green Land Scaping

                                            August 31,2012            

 

Accounting Heads Unadjusted TB Adjustment Adjusted TB Income Statement Balance Sheet
  Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 6460       6460       6460  
Accounts Receivable 23400       23400       23400  
Supplies on hand 1260     530 730       730  
Prepaid Insurance 3675     175 3500       3500  
Equipment 28800       28800       28800  
Acc. Depn Equipmnt   9200   600   9800   Foreve   9800
Buildings 72000       72000       72000  
Acc. Depn Building   16800   200   17000       17000
Accounts Payable   10500       10500       10500
Notes Payable   10000       10000       10000
Capital Stock   40000       40000       40000
Retained Earnings   42100       42100       42100
Service Revenue   14200       14200   14200    
Advertising Expenses 1200       1200   1200      
Gasoline and Oil Expenses 1775       1775   1775      
Wages and salary Expenses 4230   3320   7550   7550      
Adjustments                    
Supplies expenses     530   530   530      
Insurance expenses     175   175   175      
Depreciation exp Equipmnt     600   600   600      
Depreciation exp Buildings     200   200   200      
Rent Receivable     700   700       700  
Rent Revenue       700   700   700    
Wages and salary payable       3320   3320       3320
Interest expenses     100   100   100      
Interest Payable       100   100       100
              2770     2770
  142800 142800 5625 5625 147720 147720 14900 14900 135590 135590

 

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Bank Reconciliation Statement

Bank Reconciliation Statement questions,Financial Accounting I

Question 1:

a)The balance on the March 31,2010 ,bank statement is rs. 6506.10.

b)Not included on the bank statement is a rs.423 deposit made by Karen’s late on March 31.

c)A comparison between the cancelled checks listed on the bank statement and the company records indicated that the following checks are outstanding at march 31: No.112               rs. 42.92 No.117               rs. 307.00 N0.120               rs. 10.58 No.122               rs. 75.67

d)The bank acts as an collection agency for check returned for insufficient funds.The march bank statement indicates that one such check amount of rs. 45.00 was collected and deposited and a collection fee of rs. 4.50 was charged

e)Interest earned on the checking account and added to Karen’s account during March was rs.4.30.Miscallaneous bank service charges amounted to rs.22.

f)A comparison between the deposits listed in the bank statement and the company’s books revealed that a customer’s check in the amount of rs. 1250 appears on the bank statement in March but never added to the customer’s account on the company’s books.

g)The comparison of checks cleared per bank statement with those per books revealed that the wrong amount was charged to company’s account for a check. The amount of check was rs.990 .The proof machine encoded the check in the amount of rs. 909,the amount charged against the company’s account.  

Ans)                                                                       Karen’s Catering                                                                   

                                                                        Bank Reconciliation Statement                                                                                                                                                    March 31, 2012          

Balance as per bank statement                         6506.10 Balance as per cash book                             5229.13

Add: Deposit in transit                        423NSF cheque collection                45.00  

 

Less: Outstanding cheque

No. 112         42.92

No. 117          307.00

No. 120          10.58

No. 122          75.67

Correction of error                                                81  

Add: Interest credited by bank     4.30Amount collected by bank    1250     Less: Bank service charge                 4.50 Miscellaneous bank charge      22  
Adjusted balance, March 31,2010                    6456.93 Adjusted balance, March 31,2010           6456.93

 

Question 2:

a)The balance in cash as reported on the june 30,2010, bank statement is rs. 5654.98.

b)McCarthy Corp. made a deposit of Rs 865 on june 30 that is not included on the bank statement.

c)A comparison between the cancelled checks returned with bank statement and McCarthy’s records indicated that two checks had not yet been returned to the bank for payment. The amounts of the two checks were rs. 236.77 and rs.116.80.

d)The cash account on the company’s book reported a balance on june 30 of rs.4165.66.

e)McCarthy rents some excess storage space in one of its warehouses, and the tenant pays its monthly rent directly to the bank for deposit in McCarthy’s account. The bank statement indicates that a deposit of rs.1500 was made during the month of june.

f)Interest earned on the checking account and added to McCarthy’s account during June was rs.11.75

g)Bank service charges were rs.15 for the month june was reported on the bank statement .

h)A comparison between the checks returned with the bank statement and the company’s record revealed that a check written by the company in the amount rs.56 was recorded by the company erroneously as a check for rs. 560.

Ans)                                                          Mc. Carthy Corporation                                                        

                                                             Bank Reconciliation Statement                                                                                                                                                     June 30, 2012

Balance as per Bank statement               5654.98 Balance as per cash book      4165.66                     
Add: Deposit in transit   865        Less: Outstanding cheque   236.77 116.80 353.57 Add: Rent revenue collected by bank             1500Interest collected by bank                           11.75 Correction of error                                         504 2015   Less: Bank service charge         15    
Adjusted balance, june 30,2012                   6166.41 Adjusted balance, june 30, 2012          6166.41

 

Bank Reconciliation Statement

Bank Reconciliation Statement,Financial Accounting I

Bank reconciliation statement:

Questions:

1) The balance on the May 31,2010 ,bank statement is Rs. 8432.11.

2)Not included on the bank statement is Rs. 1250 deposit made by Calico Corners late on May 31.

3)A comparison between the canceled checks returned with bank statement and the company records indicated that the following checks are outstanding at May 31. No. 123             Rs. 23.40 No. 127             Rs. 145.00 No. 128              Rs. 210.80 No. 130              Rs. 67.32

4)The cash account on company’s book shows a balance of rs. 9965.34.

5)The bank acts as a collection agency for the interest earned on some municipal books held by Calico Corners. The May bank statement indicates interest of rs.465.00 earned during the month.

6)Interest earned on the checking account and added to Calico Corners account during May was rs.54.60 .Miscellaneous bank service charges amounted to rs. 50.

7)A customer’s NSF check in the amount to rs. 166 was returned with the May bank statement.

8)A comparison between the deposits listed on the bank statement and the company’s books revealed that a customer’s checks in amount of rs. 123.45 was recorded on the books during May but was never added to the company’s account .The bank erroneously added the checks to the account of Calico Closet ,which has an account at the same bank.

9)The comparison of deposits per bank statement with those per books revealed that another customer’s check in the amount of rs. 101.10 was correctly added to the company’s account .In recording the check on the company’s books however ,the accountant erroneously increased the cash account by rs.1011.00.

 Ans:

Balance as per Bank Statement                                                                                                       8432.11 Balance as per Cash book                                                                                                          9965.34
   
Add: Deposit in transit      1250 Add:Interest Credited   465
          Correction of error   123.45           Interest credited  54.60
1373.45 519.60
Less: Outstanding Cheque  23.40+145.00+210.80+67.32 Less:Miscellaneous bank service charge         50
                                                                                                                         446.52            NSF cheque returned                                  166
              Correction of error                                     909.9
Adjusted Balance,May 31,2012                                                                                                 9359.04 Adjusted Balance,May 31,2012                                                                                                 9359.04

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Multi- step Income Statement

Multi- step Income statement ,statement of retained earning and classified balence sheet ,Financial Accounting I 

a)Prepare Multi- step Income statement ,statement of retained earning and classified balence sheet Question:

S.no. Particulars Debit Credit
1 Equipment 112500  
2 Acc. Depn equipmnt   22500
3 Buildings 200000  
4 Acc. Depn buildings   40000
5 Land 250000  
6 Office Supplies 48070  
7 Investment 85000  
8 Cash 13230  
9 Goodwill 40000  
10 Prepaid rent 1500  
11 Account receivable 23450  
12 Account Payable   18255
13 Unearned revenue   10000
14 Salaries payable   10400
15 bonds payable   160000
16 interest payable   1500
17 share capital   150000
18 retined earnings   331485
19 rent exp-sales office 17350  
20 salaries -sales women 23000  
21 sales commission 10250  
22 sales revenue   205000
23 salaries exp-administrative 33375  
24 supplies exp 5525  
25 rent exp-administrative 2700  
26 depreciation expenses 39300  
27 tax expenses 31200  
28 telephone expenses 12690  
29 Total 949140 949140

  Ans:

                           Human Metal Industries
                       Multi-step Income statement
       
Particulars Amount Amount  
       
Sales revenue 205000 205000  
less: Operating expenses      
General and admin expenses      
Salaries expenses 33375    
rent expenses 2700    
telephone expenses 12690    
supplies expenses 5525    
depreciation expenses 39300    
Total general and admin expenses 93590    
       
Selling and distribution expenses      
Rent expenses 17350    
Salaries-sales woman 23000    
sales commision 10250    
Total selling and distribution expenses 50600    
       
Total operating expenses   144190  
Total operating profit   60810  
       
Add: Other income and gains      
Net profit before tax   60810  
Less:Tax expenses   (31200)  
Net profit after tax   29610  

 

Statement of retained earnings    
     
Opening balance of Retained earnings   331485
Add: Net profit 29610  
Less:Dividend paid 361095  
Closing balance of retained earnings   0
     

 

                             Human Metal Industries 
                         Classified Balance Sheet
     
Particulars Amount Amount
     
Asset    
Current Assets    
Office supplies 48070  
Cash 13230  
Prepaid 1500  
Accounts receivable 23450  
    86250
     
Investment   85000
     
Property,plant and equipment    
Equipment 112500  
Less: Acc . Depn equipment 22500  
    90000
building 200000  
less: Acc. Depn building 40000  
    160000
land   250000
     
Total current assets   671250
     
Intangible assets    
Goodwill 40000 40000
     
Total assets   711250
     
Liabilities and Owner’s equity    
Current Liabilities    
Accounts payable 18255  
Salaries payable 10400  
Interest payable 1500  
Unearned revenue 10000  
    40155
     
Long term Liabilities    
Bond’s payable   160000
     
Shareholder’s capital    
Share capital 150000  
Retained Earning 361095  
Total liabilities and owner’s equity   711250

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Cash flow Statement |Financial Accounting I |BBA/BBA-BI

Cash flow statement  

Particulars Amount Amount
     
A)Cash from Operating Activities    
1)Cash from sales and receivables    
Sales 89000  
Increase in A/R (3600) 85400
     
2)Cash paid to suppliers    
Cost of goods sold (57000)  
Increase in inventory (4900)  
Increase in accounts payable 3200 (58700)
     
3)Cash paid to employees and others    
Advertising expenses (3200)  
Salaries expenses (12000)  
Increase in prepaid advertisement (1400)  
Decrease in salaries payable (2400) (19000)
     
4)Payment of interest    
5)Payment of tax    
Tax expenses (2600)  
Increase in tax payable 500 (2100)
Net  cash from operating activities   5600
     
B)Cash from Investing Activities    
Purchase of land (70000)  
sale of land 27500  
Purchase of equipment (60000)  
Net cash from investing activities   (102500)
     
C)Cash from Financing Activities    
Issue of Capital stock 100000  
Dividend paid (600)  
Net cash from financing Activities   99400
     
Net change in cash   2500
Add: Opening cash balance   9500
Ending Cash balance   12000

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Journal entries

Questions: Make Journal entries,trial balence ,Accounting equation  

        Expert Counselling Service Incorporation    
        Accounting Equation for the month of march    
                     
Assets = Liabilities and Owners Equity
Date Cash A/R Supplies Equipment     A/P N/P Capital Stock R/E
2-Mar 40000               40000  
7-Mar 15000             15000    
bal 55000             15000 40000  
12-Mar     700       700      
bal 55000   700       700 15000 40000  
19-Mar   4000               4000
bal 55000 4000 700       700 15000 40000 4000
20-Mar (1,300)                 (1300)
bal 53,700 4000 700       700 15000 40000 2700
22-Mar 1000 (1000)                
bal 54,700 3000 700       700 15000 40000 2700
26-Mar 2800                 2800
bal 57,500 3000 700       700 15000 40000 5500
29-Mar (8000)     8000            
bal 49,500 3000 700 8000     700 15000 40000 5500
30-Mar (3300)                 (3300)
bal 46,200 3000 700 8000     700 15000 40000 2200
31-Mar (1400)                 (1400)
  44,800 3000 700 8000     700 15000 40000  
Total Assets=56500     Total liabilities +O/E=565000

  Experts Counseling Services Incorporation                                                               Journal Entries

Date Particulars Debit Credit
       
March 2 Cash Capital stock (To record issuance of capital stock exchange for cash) 40000   40000
March 7 Cash Notes payable (To record loan taken from bank) 15000   15000
March 12 Miscellaneous Supplies Accounts payable (To record purchase of miscellaneous supplies on credit) 700   700
March 19 Accounts Receivable Service Revenue (To record service provided on credit) 4000   4000
March 20 Advertisement expenses Cash (To record cash paid for advertisement ) 1300   1300
March 22 Cash Accounts Receivable (To record collection of cash from receivable) 1000   1000
March 26 Cash Service Revenue (To record cash collection for providing service) 2800   2800
March 29 Computer System Cash (To record purchase of computer system on cash) 8000   8000
March 30 Salary and wages Cash (To record payment of salary and wages on cash) 3300   3300
March 31 Utility expenses Cash (To record payment of utilities expenses on cash) 1400   1400
March 31 Cash Utilities expenses 1400   1400
  Total 78900 78900

      Expert Counseling Service Incorporation                                            Trial Balence

S.no. Particulars Debit Credit
       
1 Cash 46200  
2 Capital Stock   40000
3 Notes Payable   15000
4 Miscellaneous supplies 700  
5 Accounts Payable   700
6 Accounts Receivable 3000  
7 Computer system 8000  
8 Salary and wages 3300  
9 Service revenue   6800
10 Advertisement expense 1300  
  Total 62500 62500

 

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Journal entries

Question: Prepare  Journal entries, T-Accounts and Trial balance

April 1: Article of  incorporation are filed with the state and 100000 shares of common stock  are issued for 100000 in cash. April 4: A six month promissory note is issued at the bank .Interest at an annual rate of 9% per annum will be repaid in six months along with the principal amount of loan of 50000. April 8: Land and a storage shed are acquired for a lump sum of 80000.On the basis of an appraisal ,25% of the value is assigned to the land and remainder to the building. April 10: Mowing equipment is purchased from a supplier at a total cost of 25000.A own payment of 10000 is made with a remainder due by the end of the month. April 18: Customers are billed for services provided during the first half of the month. The total amount billed of 5500 is due within ten days. April 27: The remaining balance due on the mowing equipment is paid to the supplier. April 28: The total amount of 5500 due from customers is received. April 30: Customers are billed for services provided during the month .The total amount billed is 9850. April 30: Salaries and wages of 4650 for the month of April are paid        

 Answer:                                              Garderner  Corporation                                                       Journal Entries  

Date Particulars Debit Credit
       
April 1 Capital Capital Stock (To record issuance of capital stock exchange for cash) 100000 100000
April 4 Cash 9 % Notes Payable (To record loan taken from bank) 50000 50000
April 8 Land Storage Shed Cash (To record purchase of land and storage shed for cash) 20000 60000     80000
April 10 Mowing Equipment Cash Accounts Payable (To record purchase of mowing equipment on cash and credit) 25000   10000 15000
April 18 Accounts Receivable Service Revenue (To record service provided on credit) 5500   5500
April 27 Accounts Payable Cash (To record payment of due amount on cash) 15000   15000
April 28 Cash Accounts receivable (To record cash collection from receivable) 5500   5500
April 30 Account Receivable Service Revenue (To record service provided on credit) 9850   9850
April 30 Wages and Salary Cash (To record payment of salary and wages on cash) 4650   4650
  Total 29550 29550

                                       Gardener Corporation                                     Trial Balance

S.no. Particulars Debit Credit
       
1 Cash 45850  
2 Capital stock   100000
3 Notes payable   50000
4 Land 20000  
5 Storage shed 60000  
6 Equipment 25000  
7 Accounts payable 9850  
8 Service revenue   15350
9 Wages and salary 4650  
  Total 165350 165350

 

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