A complete accounting cycle with a minimum of 60 ~ 90
transactions for a business startup.
General Guide Lines:
1. The initial Capital is Rs. 3~ 5 million. 60% invested by owner. 40% through 5
years Long Terms notes Payable at interest rate at 12 % per annum with equal
annual payments.
2. The Time period for Transactions is one Quarter (2 Months). The adjusting entries
are made by the end of every month.
3. The Sales or Service Revenue will be generated both Cash & Credit. % ages are
determined by each group.
4. The Purchases are also recoded on credit basis with the payment due within 30
days.
5. The Time Period will start from March 1st 2021. The books will closed on May 31,
2021.
Requirements:
A formal report containing all essentials of the report must be submitted in hard and soft
form by June 4 th , 2021. Report shall focus on the following steps of an accounting cycle:
1. Company Name and general introduction
2. Chart of Accounts
3. Business Transactions
4. Journal Entries
5. Ledger
6. Trial Balance
7. Adjustments by the end of every month.
8. Adjusted Trial Balance
9. Income Statement as on dated May 31, 2021 (2 Months)
10. Statement of Owner’s Equity dated May 31, 2021 (2 Months)
11. Balance Sheet dated May 31, 2020 (2 Months)
12. Closing Entries
13. Post-Closing Trial Balance
