Problem # 1

The following is the Trial Balance of AB Co. Ltd. as at 30.06.2018:

AB Co. Ltd.
Trial Balance
30.06.2018
Debtors Taka Creditors Taka
VAT Current A/c 10,000 Capital 127,500
Notes receivable 9,500 16% Loan (01.01.2018) 40,000
Machinery 30,000 Returns 2,000
Account receivable 20,000 Sales 375,430
12% Investment (01.10.2017) 40,000 Commission 4,650
Labor expenses 40,000 Allowance for Bad Debts expense 4,000
Returns 4,600 Account Payable 37,630
Purchases 256,590
Rent 5,600
Opening inventory 94,000
Goods sent on consignment 10,000
Payroll expenses 10,000
Travelling expenses 1,900
Goods sent on sale or return 5,000
Insurance premium 400
Cash balance 600
Bank balance 19,500
Repair expenses 3,400
Commission 3,000
Advertisement 6,000
Bad Debts expense 3,120
Furniture 10,500
Share Call A/c 7,500
Total 591,210 Total 591,210
Additional information:

1. Closing inventory: cost price Tk. 120,000, market price Tk. 125,000;
2. Goods of the value of Tk. 10,000 was destroyed by fire on 20.06.2018, a claim has been lodged
with the insurance company, which acknowledges 80%;
3. Prepaid labor expense Tk. 4,000; whereas Payroll expenses due for November and December;
4. Insurance Premium has been paid up-to 30.09.2018;
5. Of the account receivable Tk. 3,000 is unrecoverable; an allowance of 5% is to be created;
6. Scrutiny of accounts reveals that a credit purchase of Tk. 5,000 remains unrecorded;
7. Goods of the value of Tk. 1,000 distributed free of cost;
8. Depreciation to be charged on non-current assets at 5% p.a.;
9. 75% of the advertisement expenses to be deferred;
10. All the goods sent on consignment has been sold out at Tk. 12,000. Agent is entitled to a
commission of 10%;
11. Neither the confirmation regarding the goods sent on sale or return basis been received nor the
maturity date been expired;
12. The management decides to create of reserve fund by transferring Tk. 10,000;
13. Tax rate to be assumed at 40%;
14. Capital of the company is consisted of 50,000 shares of Tk. 10 each. The company issued 18,000
shares. Subscriptions were received for 15,000 shares. Per share Tk. 8.5 called up.
Required:
(a) Statement of Comprehensive Income for the year ended on 30.06.2018, and
(b) The Statement of Financial Position as at that date.
Problem # 2

From the following Trial Balance of Kamrul & Co. Ltd. and the additional information given
below, prepare a Statement of Comprehensive Income for the year ended at 30.06.2018 and the Statement
of Financial Position as at that date.
Kamrul & Co. Ltd.
Trial Balance
30.06.2018
Debtors Taka Creditors Taka
Purchase of goods 1,120,000 Sale of goods 1,492,000
Opening inventory 108,000 Discount on purchase 9,400
Import Duty 84,000 Discount 17,400
Carriage on Purchases 42,000 Commission 18,600
Carriage on Sales 36,000 10% Loan (01.07.2017) 120,000
Labor 58,000 Notes payable 36,000
Payroll 68,000 Depreciation Reserve- Machinery 72,200
Petty expenses 18,000 Depreciation Reserve- Furniture 22,800
Export Duty 25,000 Allowance for B/D expense 7,000
Discount 13,600 Capital (Tk. 8 Per share) 640,000
Commission 17,400 Account Payable 70,000
Advertisement 41,000 General Reserve 26,000
Insurance Premium (up-to 30.09.2017) 30,000
Notes Receivable 64,000
Machinery 380,000
Furniture & Fittings 120,000
Office Expenses 6,000
Rent 41,000
Bad Debts Expense 3,000
Cash 37,000
Bank 61,000
Account Receivable 150,000
VAT current A/c 8,400
Total 2,531,400 Total 2,531,400

Additional information:

1. Closing inventory Tk. 160,000;

2. Included in the closing inventory goods of the cost of Tk. 20,000, which was sold at a profit of
20% on cost. The buyer did not take the delivery. It is not recorded in the books;
3. Rent payable Tk. 3,000 whereas payroll paid in advance Tk. 1,000;
4. VAT of Tk. 900 paid on advertisement, which is included in VAT Current A/c;
5. VAT of Tk. 3,000 collected form customer erroneously included in Sales;
6. Depreciation to be charged at 10% on the book value of machinery and furniture & fittings;
7. General Manager is entitled to a commission of 5% net profit after charging his commission;
8. Yearly insurance premium is Tk. 24,000 paid up-to 31st March of the following year;
9. Bad debts expense is to be increased to Tk. 9,000, and an allowance for bad debts expense of
5% is to be created on account receivable;
10. Petty expense includes office consumable of the cost of Tk. 5,000;
11. Capital of the company is consisted of 100,000 shares of Tk. 10 each.
Problem # 3

From the Trial Balance of Ankhi Ltd. and the additional information given prepare a Statement of
Comprehensive Income for the year ended on 30.06.2018 and a Statement of Financial Position as at that
date.
Ankhi Ltd.
Trial Balance
30.06.2018
Debtors Taka Creditors Taka
Purchases of Goods 232,500 Capital 155,000
Opening Inventory 19,000 General Reserve 59,100
Carriage & Octroi Duty 13,250 Employee Benevolent Fund 25,350
Sales returns 3,900 Account Payable 24,000
Payroll & travel expense of salesmen 16,400 Notes Payable 11,500
Labor 10,000 Commission received 12,000
Payroll 12,300 Purchases returns 6,350
Packing materials 9,450 Sale of goods 334,000
Stationery & printing 7,350 VAT Current A/c 8,150
Bonus & entertainment 9,650
Bad debt expense 1,050
Land & building 87,500
Motor vehicle 37,500
Patent (10 years) 15,000
Furniture 30,000
Share Call A/c 2,500
Income tax paid on source 2,000
Account receivable 34,000
Bank 14,100
Cash 49,000
Notes receivable 17,250
Discount allowed 3,250
Demurrage 2,350
Petty cash expense 2,150
Payroll paid in advance 4,000
Total 635,450 Total 635,450

Additional information:

1. Closing inventory has been valued Tk. 25,000 at cost and market price Tk. 23,000;
2. Sales includes Tk. 20,000 being goods sent on Sale or Return Basis at a profit of 25% on cost,
confirmation of this sale has not yet been received;
3. Sales returns of Tk. 4,000 has not been recorded;
4. A note of Tk. 2,000 was discounted, which was dishonored after maturity, not recorded in the
books of accounts;
5. Allowance for bad debts expense to be created at 5%;
6. Furniture of the value of Tk. 20,000 was bought on 01.01.2018;
7. Rate of depreciation:
- land & building @ 5%,
- motor vehicle @ 20%,
- furniture @ 10% p.a.;
8. Outstanding labor Tk. 2,000 and commission pre-received tk. 3,000;
9. Motor vehicle sold at Tk. 12,500 (book value Tk. 20,000) included in sales;
10. Stock of packing materials Tk. 1,450;
11. Capital of the company is consisted of 50,000 equity shares of Tk. 10 each;
12. Assume anything where you think fit.
Problem # 4

Given below the Trial Balance of Ishtiaq & Co. Ltd. as at 30.06.2018:

Ishtiaq & Co. Ltd.

Trial Balance
30.06.2018
Debtor Taka Creditor Taka
Insurance premium 600 Account payable 56,445
Notes Receivable 14,250 Allowance for bad debts expense 6,000
Cash on hand 900 Commission income 6,975
Machinery 45,000 Sales 540,645
Balance with bank 47,000 Returns 3,000
Account Receivable 30,000 16% Loan 60,000
Repair expenses 5,100 Capital 180,000
Labor expenses 60,000
12% Investments 60,000
Commission expenses 4,500
Returns 6,900
Advertisement expenses 9,000
Purchases 384,885
Bad debts expenses 4,680
Rent 8,400
Opening inventory 141,000
Furniture 13,500
Travelling expenses 2,850
Payroll expenses 15,000
Total 853,065 Total 853,065

Additional information:

(a) Closing inventory: cost price Tk. 180,000 and market price Tk. 187,500;
(b) Outstanding expenses: labor Tk. 6,000, payroll expenses of November and December, and interest
on loan for 6 months;
(c) Prepaid expenses: insurance expenses paid up-to 30th September, 2018;
(d) Income from investment is accrued for 9 months;
(e) Bad debts expenses is estimated to be Tk. 4,500 and allowance for bad debts expenses is 2%;
(f) Credit purchases of Tk. 7,500 is not recorded in books of accounts, though it has been included in
closing inventory;
(g) Goods sold for Tk. 25,000 not yet been delivered;
(h) It is the policy of the company to depreciate all non-current assets by 5% p.a. and to make a profit
of 20% on all sales;
(i) Capital of the company: 50,000 shares of Tk. 10 each.

Required:

(a) Statement of Comprehensive Income for the year ended on 30.06.2018, and
(b) Statement of Financial Position as at that date.
Problem # 5

The following is the Trial Balance of T Co. Ltd. as at 30.06.2018:

T Co. Ltd.
Trial Balance
30.06.2018
Debtor Taka Creditor Taka
Accumulated loss 20,000 Account payable 100,000
VAT paid 20,000 Allowance for bad debts expense 6,000
Cash 40,000 Investment income 4,000
Carriage inwards 10,000 Sales 742,000
Carriage outwards 8,000 Returns 6,000
Account Receivable 86,000 Bank Overdraft 52,000
Duty 18,000 Capital (40,000 shares) 400,000
Labor expenses 22,000
12% Investments (01.01.2018) 80,000
General expenses 34,000
Returns 14,000
Advertisement expenses 30,000
Purchases 422,000
Rental expenses 60,000
Opening inventory 78,000
Furniture 60,000
Land and Building 240,000
Payroll expenses 78,000
Total 1,310,000 Total 1,310,000

Additional information:

(a) Closing inventor of Tk. 130,000 includes inventory of the value of Tk. 10,000 destroyed by fire;
(b) Opening inventory and closing inventory include consumables respectively Tk. 4,000 and Tk.
5,000, consumables purchased during the year are Tk. 20,000;
(c) Labor expenses of Tk. 6,000 and VAT of Tk. 2000 remain outstanding whereas rent of Tk. 12,000
is paid in advance;
(d) Payroll expenses include Tk. 8,000 given to an employee as loan;
(e) Of the account receivable Tk. 6,000 is irrecoverable, allowable allowance for bad debts expenses
is 5%;
(f) Tk. 16,000 was hijacked from Cashier while he was going to deposit into bank;
(g) Non-current assets are subject to depreciation at 5% p.a.;
(h) Inventory worth Tk. 5,000 distributed among the customers free of cost;
(i) Sale without profit is Tk. 3,000;
(j) There is a claim against the business for Tk. 5,000, which is not acknowledged by the business yet.

Required:

(a) Statement of Comprehensive Income of T Co. Ltd. for the year ended on 30.06.2018, and
(b) Statement of Financial Position as at that date.
Problem # 6

The following is the Trial Balance of M Company Limited as at 30.06.2018:

M Company Limited
Trial Balance
30.06.2018
Debtor Taka Creditor Taka
Leasehold Property (10 years) 96,000 Capital: fully paid shares 300,000
Returns 8,400 15% Loan (01.07.2017) 120,000
Labor 33,000 General Reserve 60,000
Coal and electricity 4,800 Account payable 60,000
Payroll expenses 25,200 Returns 15,000
Rental expenses 24,000 Sales 387,600
Carriage on purchases 6,000 Apprenticeship premium 8,800
Carriage on sales 9,000 Allowance for bad debts expense 6,000
Repairs and renewals 3,600 Investment income 5,400
Promotional expenses 36,000 Discount on purchases 7,200
Purchases 303,000 Bank Overdraft 140,000
Insurance premium 4,200
15% investments (01.01.2018) 144,000
Goods sent on consignment 9,600
Machinery 180,000
Furniture 30,000
Sundry account payable 132,000
Interest on loan 7,200
Cash 3,000
Opening inventory 51,000
Total 1,110,000 Total 1,110,000

Additional information:

(a) The company has been registered with a capital of Tk. 1,000,000 of the shares of Tk. 10, of which
shares of Tk. 400,000 have been issued for public subscription.
(b) Closing inventory valued at Tk. 213,000.
(c) Labor expenses include Tk. 12,000 spent for installation of a machine. This machine has been
installed on 01.01.2018. Cost of machine is Tk. 30,000.
(d) Payroll expense and rental expense are outstanding Tk. 4,800 and Tk. 2,400 respectively whereas
insurance premium of Tk. 1,200 is outstanding.
(e) Apprenticeship premium is for two years.
(f) Inventory worth Tk. 6,000 included in the purchases was used for pacing purposes.
(g) All the goods sent on consignment have been sold for Tk. 15,000. The agent is entitled to
commission at 10%.
(h) Sales include Tk. 15,000 for goods sent on Sale or Return Basis. Confirmation of sale has not been
received yet. Invoice price of all inventory include 20% profit on cost.
(i) Allowance for Bad Debts Expense is to be reduced to Tk. 4,500.
(j) Depreciation to be charged on furniture @ 10% and on machinery @ 5% p.a.
(k) Manager is entitled to a commission @ 2% after charging his commission.
(l) It is the practice of the company to transfer 10% of profit after tax , if any, to General Reserve.
(m) Assume tax rate @ 40%.

Required:

(a) Statement of Comprehensive Income of M Co. Ltd. for the year ended on 30.06.2018, and
(b) Statement of Financial Position as at that date.