Every group need to submit a complete accounting cycle with a minimum of 100 ~ 120 transactions for a business startup. Each group must be composed of 5-6 students.
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 (3 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 recorded on credit basis with the payment due within 30 days.
5. The Time Period will start from January 1st 2020. The books will closed on March 31, 2020.
Requirements:
A formal report containing all essentials of the report must be submitted in hard and soft form by April 10, 2020. 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 March 31, 2020
(1 st Quarter)
10. Statement of Owner’s Equity dated March 31,
2020 (1st Quarter)
11. Balance Sheet dated March 31, 2020 (1st
Quarter)
12. Closing Entries
13. Post-Closing Trial Balance.
It’s hypothetical data, Whatever you want, take that amount but between 3-5 million. Shares are given in the general guidelines ( mean how much percent..)
What is debited & what is credited, all is given in the guidelines.
You have to choose 60-90 transactions of any amount & then you have to prepare all the requirements ( given in the requirements ).
