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Workshop Problem

Mr. Morgan started an IT business with an initial investment of Tk. 100,000 and conducted several transactions in April 2023, including purchasing furniture, providing services, paying salaries, and receiving a loan. The document outlines the need to summarize these transactions in terms of their effects on the accounting equation and to prepare an income statement, statement of owner's equity, and balance sheet. The financial activities include cash inflows and outflows, as well as liabilities and expenses incurred during the month.

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Mushfiqul Azam Swachchha
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2 views1 page

Workshop Problem

Mr. Morgan started an IT business with an initial investment of Tk. 100,000 and conducted several transactions in April 2023, including purchasing furniture, providing services, paying salaries, and receiving a loan. The document outlines the need to summarize these transactions in terms of their effects on the accounting equation and to prepare an income statement, statement of owner's equity, and balance sheet. The financial activities include cash inflows and outflows, as well as liabilities and expenses incurred during the month.

Uploaded by

Mushfiqul Azam Swachchha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Session 1: Workshop

Time: 25 Minutes

Problem:

The owner of Quality Services & Co., Mr. Morgan started an IT business on April 01, 2023
investing cash of Tk. 100,000 from his personal source. During the month, the following
transactions took place:

April-04: Purchased furniture on cash for Tk. 35,000.

April-10: Service provided to customers for 32,000 and cash received of Taka 20,000 therein.

April-12: Paid to employees as salary for this month Tk. 10,000.

April-15: The owner paid his personal expense from business petty cash of Tk. 5,000.

April-19: Received Loan from Natwest Bank of Taka 14,000.

April-25: Appointed a manager (monthly salary of Taka 10,000) who will join in May.

April-30: Received a Utility Bill for the month of Tk. Tk. 1,000 which will be paid in May.

Required:

1. Prepare a summary of the above transaction showing their effects in Accounting Equation
(Use the given format).
2. Using the summary (as done for req. 1), prepare the followings:
i) Income Statement for the Month
ii) Statements of Owner’s Equity for the month
iii) Balance Sheet on April 30

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