Question # 8 [December-2013]

 On April 1, Vinnie Venuchi established Vinnies Travel Agency. The Following

transactions were completed during the month :—
(i). Invested Tk. 15,000 cash to start the agency.
(ii). Paid Tk. 600 cash for April office rent.
(iii). Purchased office equipment for Tk. 3,000 cash.
(iv). Incurred Tk. 700 advertising cost on account.
(v). Paid Tk. 800 cash for office supplies.
(vi). Earned Tk. 11,000 for services rendered; Tk. 3,000 cash is received from
customers and the balance of Tk. 8,000 is billed to customers on account.
(vii). Withdrew Tk. 500 cash for personal use.
(viii). Paid the amount due in (iv).
(ix). Paid employee's salaries Tk. 2,200.
(x). Received Tk. 4,000 in cash from customers who have previously been billed
in transaction (vi).
Instructions :
(i). Prepare a tabular analysis of the transactions using the basic accounting
equation.
(ii). Compute net income or loss for April.
Answer (8). :
(i). Tabular Analysis
Vinnie Venuchi’s
Tabular Analysis of Transactions
Assets = Liabilities + Owner’s
Comments
S/L Equity
No. Cash + Accounts + Office + Office = Accounts + Capital or
Receivable Supplies Equipments Payable Owner’s
Investment
1. 15,000 = 1,5000 Initial
Investment
2. (600) = (600) Office Rent
3. (3,000) 3,000 =
4. = 700 (700) Advertisem
ent Expens.
5. (800) 800 =
6. 3,000 8,000 = 11,000 Service
Revenue
7. (500) = (500) Drawings
8. (700) = (700)
9. (2,200) = (2,200) Salaries
Expenses
10. 4,000 (4,000) =
14,200 4,000 800 3,000 = - 22,000
22,000 = 22,000

Md. Anisur Rahman (Parvej), SO (IT), ICTD, BDBL 13

 (ii). Net Income or Loss
Vinnie Venuchi’s
Income Statement
For the month ended April 30
Description Tk. Tk.
Income :
Service Revenue 11,000

Expenses :
Office Rent 600
Advertisement Expense 700
Salaries Expenses 2,200
Total Expenses (3,500)
Net Income 7,500


Question # 9 [December-2013]
 The following balances were taken from the books of Shampa Traders on
June 30, 2012 :—
Accounts Debit Credit
Taka Taka
Accounts Receivable 2,90,000
Purchase 8,10,000
Allowances for doubtful debts 5,000
Inventories (July 1, 2011) 60,000
Furniture 1,00,000
Accumulated Depreciation-Furniture 40,000
Buildings 14,00,000
Accumulated Depreciation-Buildings 3,00,000
Goodwill 50,000
Bad debts 60,000
Salaries 2,20,000
Interest Expenses 10,000
Rent Expenses 60,000
Freight in 70,000
Dividend paid 1,50,000
Sales 20,00,000
Interest Income 10,000
Bonds payable 2,55,000
Capital (6000 sahres of Tk. 100 each) 6,00,000
Retained earnings (July 1,2011) 70,000
32,80,000 32,80,000

Md. Anisur Rahman (Parvej), SO (IT), ICTD, BDBL 14

 Adjustments on June 30, 2012 are as follows :
(i). Inventory on June 30, 2012 is Tk. 1,00,000.
(ii). Depriciation on furniture @10%, Buildings @5%.
(iii). The allowances for doubtful accounts are to be increased to a balance of Tk.
8,000.
(iv). Accrued salaries Tk. 20,000, Accrued interest on bonds Tk. 10,000.
(v). Income taxes are estimated to be 50% of the income before tax.
(vi). Half of Rent Expenses is to be considered prepaid.
Requirements :
(i). A Multiple Step Income Statement;
(ii). Retained Earnings Statement;
(iii). Classsified Balance Sheet;
(iv). Adjusting Entries;
(v). Closing Entries;

Md. Anisur Rahman (Parvej), SO (IT), ICTD, BDBL 15