Mr. Azim started a travelling Agency business, on first January 2023.

He invested
cash Tk. 400,000 and equipment Tk. 100,000. During the first month his
transactions were as follows: -

January-2: Paid office rent for January Tk. 20,000 cash.

January-4: Purchased one steel cabinet for Tk. 60,000 on account.
January-10: Paid Tk. 10,500 cash for advertising bill.
January-13: Received Tk. 60,000 cash service rendered.
January-16: Purchased office printing & stationery Tk. 5000 cash
January-18: Withdraw Tk. 8000 cash for personal use.
January-24: Service rendered and earned Tk. 10,000 but not yet received.
January-27: Borrowed Tk. 500,000 from AB Bank for 5 years.
January-28: Received cash Tk. 5,000 from accounts receivable.
January-30: Paid cash salaries Tk. 20,000, Telephone bill Tk. 5000 and electricity bill
Tk. 10,000
January-31: Recovered Tk. 4,500 from accounts receivable and the unrealized
balance is treated as discount

Requirement : a) Prepare Journal entry

 Journal entry
Date Particular Debit Credit
01.01.2023 Cash 400,000
Equipment 100,000
Capital 500,000
02.01.2023 Office rent expense 20,000
Cash 20,000
04.01.2023 Furniture & fixture 60,000
other payable 60,000
10.01.2023 Advertising expense 10,500
Cash 10,500
13.01.2023 Cash 60,000
Service Revenue 60,000
16.01.2023 Printing & Stationery 5,000
Cash 5,000
18.01.2023 Withdrawl 8,000
Cash 8,000
24.01.2023 Accounts receivable 10,000
Service Revenue 10,000
27.01.2024 Cash at Bank 500,000
Loan Liability 500,000
28.01.2023 Cash 5,000
Accounts receivable 5,000
30.01.2023 Salaries expense 20,000
Telephone expense 5,000
Electricity bill 10,000
cash 35,000
31.01.2023 Cash 4,500
Discount allowed 500
Accounts receivable 5,000
 Cash
Ref
Date Particular No Debit (Taka) Credit (Taka)
01.01.2023 Capital 400,000
02.01.2023 Office rent expense 20,000
10.01.2023 Advertising expense 10,500
13.01.2023 Service Revenue 60,000
16.01.2023 Printing & Stationery 5,000
18.01.2023 Withdrawl 8,000
28.01.2023 Accounts receivable 5,000
30.01.2023 salary expense 20,000
30.01.2023 Telephone expense 5,000
30.01.2023 Electricity bill 10,000
31.01.2023 Accounts receivable 4,500
Total 469,500 78,500

Equipment
01.01.2023 Capital 100,000

Total 100,000
Capital
01.01.2023 Cash 400,000
Equipment 100,000
Total 500,000
Office rent expense
02.01.2023 Cash 20,000
Total 20,000
Furniture & fixture
04.01.2023 other payable 60,000
Total 60,000
other payable
04.01.2023 Furniture & fixture 60,000
Total 60,000
Advertising expense
10.01.2023 Cash 10,500
Total 10,500
 Service Revenue
13.01.2023 Cash 60,000
24.01.2023 Accounts receivable 10,000
Total 70,000
Printing & Stationery
16.01.2023 Cash 5,000
Total 5,000
Withdrawl
18.01.2023 Cash 8,000

Accounts receivable
24.01.2023 Service Revenue 10,000
28.01.2023 Cash 5,000
31.01.2023 Cash 4,500
31.01.2023 discount allowed 500
10,000 10,000

Cash at Bank
27.01.2024 Loan Liability 500,000

Loan Liability
27.01.2024 Cash at Bank 500,000

Salaries expense
30.01.2023 Cash 20,000

Telephone Expense
30.01.2023 Cash 5,000

Electricity Expense
30.01.2023 Cash 10,000

Discount allowed
31.01.2023 Receivables 500
 Trail Balance
For the period ended 31st January 2023
Particular Debit Credit
Cash 391,000
Equipment 100,000
Capital 500,000
Office rent expense 20,000
Furniture & fixture 60,000
other payable 60,000
Advertising expense 10,500
Service Revenue 70,000
Printing & Stationery 5,000
Withdrawl 8,000
Cash at Bank 500,000
Loan Liability 500,000
Salaries expense 20,000
Telephone Expense 5,000
Electricity Expense 10,000
Discount allowed 500
Total 1,130,000 1,130,000
 Mr. Azim
Statement of Profit or loss
For the period ended 31st January 2023
Particular Amount
Service Revenue 70000
Less : Cost of service
Staff salary 20000
Gross Profit 50000
Less : Admisnistrative,selling & distribution expense
Office rent expense 20000
Advertising expense 10500
Printing & Stationery 5000
Telephone Expense 5000
Electricity Expense 10000
Discount allowed 500
Depreciation 1333
Net loss (2333)
 Mr. Azim
Statement of Financial Position
As at 31st January 2023
Particular Amount Amount
Assets
Non current assets
PPE 158,667
Total 158,667
Current assets
Cash in hand 391000
Cash at Bank 500000
891,000
Total Assets 1,049,667
Equity & Liabilities
Capital
Opening capital 500000
Withdrawl (8000.00)
Net loss (2333.33)
489,667
Liabilities
Current liability
other payable 60,000
Non Current liability
Loan Liability 500,000
Total euity & liabilities 1,049,667