Name of the Company

Balance Sheet

At the Start of Year 2019

Liabilities and Capital	Rs.
Equity	1,000,000
Retained Earnings	800,000
Long Term Loan	750,000
Bonds Payable (11% per year)	600,000
Lease Payable	500,000
Accounts Payable	200,000
Accrued Expenses	80,000
Notes Payable	120,000
Total	4,050,000
Assets
Land	300,000
Building	900,000
Acc. Dep. Building	-250,000
Plant and Machinery	1,150,000
Acc. Dep. Plant and Machinery	-270,000
Office Equipment	1,000,000
Acc. Dep. Office Equipment	-230,000
Furniture and Fixtures	390,000
Acc. Dep. Furniture and Fixtures	-180,000
Vehicles	680,000
Acc. Dep. Vehicles	-140,000
Stock in Trade	190,000
Accounts Receivable	130,000
Prepaid Expenses (12 months)	120,000
Cash	80,000
Bank	180,000
Total	4,050,000

Transactions in the year 2019.

January

1. Sold a car for Rs. 550000 cash.
2. Deposited Rs. 170000 of the proceeds from the sale of car in a bank account opened in the name of the business.
3. Purchased for Rs. 800000 a small building to be used as an office. Paid Rs. 300000 cash and signed a note payable promising to pay the balance over a period of years.
4. Purchased office equipment from the market Rs. 55000
5. Took office equipment from home for use in the business. The equipment had a Rs. 35000fair value.
6. Purchased office supplies for cash, Rs. 10000
7. Purchased office furniture on credit, on four equal installments Rs. 60000
8. Purchased goods from Alpha Suppliers Rs. 440000.
9. Sold goods on Credit to Zampa Corporation Rs. 170000.
10. Paid a local newspaper Rs. 17000 for a notice of the opening.
11. Sold a part of the building and collected a Rs.580000 cash.
12. Made a Rs.17500 installment payment on the furniture purchased in transaction 7.
13. Paid to Alpha Suppliers the amount owed to them as given in transaction 8.
14. Paid the office salary Rs. 32000.
15. The owner withdrew Rs.52000 from the bank account of the business to pay personal living expenses.
16. Rented a furnished office and equipment of paying Rs.19000cash as the next six months rent.
17. Purchased office supplies for cash Rs.7000.
18. Paid Rs. 5000 for janitorial expense of the month.
19. Sold goods for cash Rs.75000 .
20. Sold goods for Cash Rs. 25000 and on Credit to Yum Yum Rs. 78000.
21. Received half payment from Zampa Corporations.
22. Paid for subscription expense of magazine for the business Rs.43000. This will cover 60 issues of the magazine.
23. Paid the telephone bill for the month Rs. 8000.
24. Paid the utilities expense Rs. 9500.
25. Purchased insurance protection for the next 12 months i.e. February 2019 to January 2020, by paying Rs. 6800 premium.
26. Owner withdrew Rs. 19000 from the business for his personal use.
27. Transferred Rs. 15000 from his personal savings account to a checking account opened in the name of the business.
28. Purchased office supplies for cash, Rs. 16000.
29. Paid for legal fee of the lawyer for a law suit in the court Rs. 29000.
30. Purchased office equipment on credit for DGG Manufacturers Rs.30000.
31. Recorded government duties of Rs. 23000. These will be paid at the end of March 2019.

February

1. Deposited Rs. 50000 in the bank account.
2. Purchased office supplies on credit from Suppliers and Providers Inc.Rs. 31000.
3. Paid for the office equipment purchased on 30^th January.
4. Withdrew Rs. 17000from the bank account.
5. Earned Rs. 1900 Interest Income on the amount in the bank account.
6. Paid the office salary, Rs.26000.
7. Paid the monthly utility bills, Rs.5000.
8. Sold good on credit to BBC Corp. Rs. 75000.
9. Paid a part of the Long-Term Liabilities
10. Goods of Rs. 230000 purchased earlier and the payable amount was adjusted, Alpha Suppliers.
11. Paid travelling expense for the business trip Rs. 36000.
12. Paid one tenth of the leased amount Rs. 58000.
13. Some of the fixtures were sold for Rs. 65000. A loss of Rs. 22,000 was sustained on the sale of the furniture.
14. Paid one fourth of the accrued expenses
15. A note payable of Rs. 190000. was retired.
16. Paid utilities expenses for the month.
17. Made cash purchases of goods Rs. 300000.
18. Made credit purchases from the supplier Rs. 210000.
19. Paid to the supplier from whom the good were purchased on 18^th February getting a discount of 5%.
20. Sold goods for Cash Rs. 540000.
21. Paid repair and maintenance expenses Rs. 6000.
22. Paid advance salary to one of the employees Rs. 22000.
23. Paid rent of one of the building Rs. 7000.
24. Received cash from the accounts receivables. Rs.60000 .
25. Goods of Rs. 45000. were returned by the customers.
26. Took a loan from HBL Rs. 850000.
27. Paid interest expense Rs. .
28. Recorded rent expense Rs. 1900.

March

1. The owner invested Rs. 900000in the business for expansion.
2. A new equipment was leased for the business Rs. 60000.
3. Rs. 65000of the loan taken were returned.
4. Paid salary for the month Rs.38000.
5. Paid utilities expense for the month Rs.6800.
6. Recorded health insurance paid in cash Rs.30000 .
7. Purchased goods for cash Rs.250000.
8. Sold goods on credit Rs. 180000.
9. Purchased goods on credit Rs. 190000.
10. Paid to suppliers Rs. 0000 receiving a discount of Rs. 00
11. Paid to an advertising company for the advertisement of next 20 ads Rs. 6500.
12. Paid Sales tax Rs. 4500.
13. Goods of Rs. 1000 were stolen from the store.
14. Deposited Rs. 55000 in the bank account.
15. Paid a part of the leased amount Rs. 300000
16. Paid the installment of the long-term loan Rs. 50000.
17. The bank sent a debit advice of Rs. 4000 for bank charges.
18. Amount payable to supplier was paid Rs. 400000.
19. Sold good for cash Rs. 60000.
20. Sold good on credit Rs. 90000.
21. Purchased goods of Rs. 400000 getting a discount of Rs. 50000.
22. Sold goods of Rs. 40000 giving a discount of Rs. 8000.
23. Paid plumbing charges for the repair work of the office Rs. 6000.
24. Received electricity bill of Rs. 7000.
25. Received an overdraft amount of Rs. 25000 from Allied Bank.
26. Received from the employee Rs. 15000 against the advance salary paid to him.
27. Paid interest on Bonds Payable for the quarter Rs. 180000.
28. Received advance of Rs. 166000 on the goods to be sold in the future.
29. Rs. 55000 goods were returned by a supplier who purchased goods on credit.
30. Office supplies were purchased for cash Rs. 60000.
31. Rent expense of the month was recorded Rs. 7000.

Adjustments:

1. Rs. 5000 utilities expenses were outstanding at the end of the quarter.
2. Rs. 3000 interest expense are payable at the end of the quarter.
3. Goods of Rs. 16000 were sent against the advance received on 28^th March 2019.
4. Office Supplies of Rs. 4000 were on hand on 31^st March 2019.
5. Ending inventory (stock in trade) was Rs. 45000
6. Prepaid expenses are adjusted accordingly.
7. Depreciation on Building was recorded @ 10% on the cost.
8. Depreciation on Plant and Machinery was recorded @ 10% on the book value
9. Depreciation on Office Equipment recorded @ 5% per year on the book value
10. Furniture and Fixtures depreciation of Rs. 18000 was recorded.
11. Vehicles are depreciated using sum of years digit method with 10 years life and this is the third year.
12. 12 magazines were received by the end of the quarter out of 60, for which subscription was paid
13. 8 out of 20 ads were given by the advertising agency against the amount deposited in advance.
14. Income tax rate is 30% on the amount of Profit before Tax.
15. All of the amount of profit after tax was transferred to the Retained Earnings account.

Required:

1. Pass journal entries in a proper format with amount of your own.
2. Make ledger accounts for all the accounts appearing in the opening balance sheet and the accounts which are to be created because of the journal entries in the first quarter.
3. Make an Unadjusted Trial Balance using the balances in the opening balance sheet and the ledger accounts.
4. Pass the adjusting entries
5. Make and Adjusted Trial Balance
6. Make a Profit and Loss Account for the first quarter from January 2019 to March 2019.
7. Calculate Income Tax
8. Transfer the Net Profit after Tax to the Retained Earnings Account
9. Make a Balance Sheet at the end of first quarter.