AAH AUTOMOBILE

ACCOUNTING AND FINANCIAL INFORMATION SYSTEM

SUBMITTED TO: Ma’am SAMINA RIAZSUBMITTED BY: AAKASH KUMAR (11723) HUZAIFA FAROOQ (11275) ARMOGHAN MOIN (13352)

Table of Contents

LETTER OF ACKNOWLEDGMENT............................................................................................................................1

Company Information............................................................................................................................................2

Create Customers..................................................................................................................................................4

Create Vendors......................................................................................................................................................5

Create employees..................................................................................................................................................6

Create Inventory....................................................................................................................................................7

Transactions..........................................................................................................................................................8

CHART OF ACCOUNTS.................................................................................................................................13

Sales Tax Authority..............................................................................................................................................15

General Ledger....................................................................................................................................................16

General Ledger Trial Balance...............................................................................................................................18

Balance Sheet......................................................................................................................................................19

Income Statement...............................................................................................................................................21

Statement of Retained Earnings..........................................................................................................................22

Aged Payables.....................................................................................................................................................23

Assembly List.......................................................................................................................................................24

Inventory Stock Status Report.............................................................................................................................25

Aged Receivables.................................................................................................................................................26

General Journal...................................................................................................................................................27

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LETTER OF ACKNOWLEDGMENT

24th April, 2012

Samina RiazFaculty of Finance and AccountingIoBM

Dear Ma’am

We are grateful to you for giving us this incredible opportunity to gain exemplary experience. You facilitated us and provided us with an opportunity to explore real life applications of what we studied. Throughout this report at every step, we have gained valuable knowledge. We hope that you would find our work resourceful and our efforts commendable.

Sincerely,

AAKASH KUMAR (11723)HUZAIFA FAROOQ (11275)ARMOGHAN MOIN (13352)

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Company InformationCompany name: AAH Automobile

Business Type: Partnership

Address: Site Area

City, St Zip: Karachi, 75350

Contact: 34765474

Fax: 8994563-101

Website: www.aahautomobile.com

Email: AAH@hotmail.com

Chart of Accounts: Build Your Own Company

Accounting Method: Accrual

Posting Method: Real Time

Accounting Period: 12 months

Fiscal Year Start: 1 January 2011

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Data Entering Date: 1 January 2011

Payments: Habib Bank limited

Receipts: Habib Bank limited

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Create Customers

Customer ID

101 102 103 104 105

Customer Indus Motors

Dewan Motors

Margalla Motors

Armo Motors

Bilwani Motors

Address line

Mukkah Chowk u-90

Clifton zamzama

Khalid bin waleed

Seaview road Clifton

Nazimabad

City ST ZIP Karachi SD 74400

Karachi SD 74200

Karachi SD 74100

Karachi SD 74700

Karachi SD 74900

Contact Wajeeh Komal Armoghan Aakash MujtabaTelephone 4946030 6476901 5664832 5775441 2490123Terms Due in 30

daysDue in 30 days

Due in 30 days

Due in 30 days

Due in 30 days

Discount in

20 days 20 days 20 days 20 days 20 days

Percentage

2.5% 2.5% 2.5% 2.5% 2.5%

Credit limit 5000000000 5000000000 5000000000 5000000000 5000000000

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Create Vendors

Vendor ID 101 102 103 104

Vendor Pioneer BMW Mercedes Toyota

Address line KarachiPakistan

LahorePakistan

IslamabadPakistan

PeshawarPakistan

Contact Yusuf Afridi Sania Bilal

Telephone 0300-6689567 0300-2589631 0300-2850966 0300-8900114

Credit Terms 2.5/10 , n/30

2.5/10 , n/30

2.5/10 , n/30

2.5/10 , n/30

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Create employees

Employee ID

Employee Address line

City ST ZIP

SS No Status Pay Type

C 1 Waqas Ali Tariq Road Karachi Pakistan

01 Single Salaried

C 2 Omer Saleem

Clifton Karachi Pakistan

02 Single Salaried

C 3 Abbas Pervez

Gulistan-e-Jauhar

Karachi Pakistan

03 Single Salaried

C 4 Fahad Mohsin

Phase 1 Karachi Pakistan

04 Single Salaried

C 5 Mohsin Haryani

North Nazimabad

Karachi Pakistan

05 Single Salaried

C 6 Shazad Zamaan

Nazimabad Karachi Pakistan

06 Single Salaried

C 7 Hussnain Ahmed

Phase 2 Karachi Pakistan

07 Single Salaried

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Create Inventory

Item ID 1 2 3 4 5 6 7 8

Item Descrip

tion

Window Engine Lights Bonnet Interior Sound Tyre Car doors

Item Class

Stock item

Stock item

Stock item

Stock item

Stock item

Stock item

Stock item

Stock item

Item Type

Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier

Cost Method

FIFO FIFO FIFO FIFO FIFO FIFO FIFO FIFO

Tax Type Regular Regular Regular Regular Regular Regular Regular Regular

Stocking U/M

Each Each Each Each Each Each Each Each

Qty on Hand

40 40 40 40 40 40 40 40

Min Stock

15 15 15 15 15 15 15 15

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Reorder Qty

25 25 25 25 25 25 25 25

Transactions

JANUARY

1: Armo and Huz started a partnership by investing 100000 each.

2: Office equipment purchased for rs50000.

3: Office supplies Purchased for rs40000

4: Machinery Purchased Rs 57000

5: Land purchased Rs 3000000

6: Prepaid rent amounting Rs 48000

FERUARY

1: Loose tools purchased Rs 5500

2: Spare tools purchased Rs 6700

3:- Monthly salaries paid amounting rs35000.

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4: Accrued expense paid Rs 88000 by bank account.

5: Assembled 20 ABC cars.

MARCH

1: Purchase all inventory items from vendor 101 each item quantity 20.

2: Purchased all inventory items from vendor 102 103 104 each item qty 20.

3: Assembled 20 ABC cars.

4: Paid vendors 102 103 104 full payment.

5: Paid 60% to vendor 101.

6: Sold 30 ABC cars to customer 101 of Rs 2500,000.

APRIL

1: 5 ABC cars were returned by customer 101.

2: Paid remaining amount to vendor 101.

3: Received full payment from customer 101.

4: Paid telephone exp 12000.

5: Paid salaries 200,000.

6: Admitted Akash as a partner and acquired 10% ownership by Rs 40,000.

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MAY

1: Incurred maintenance expenses of Rs 30,000 on account.

2: Sold 10 ABC cars to customer 102 of Rs 20, 00,000 each.

3: Received 40% amount from customer 102.

4: Received remaining amount from customer 102.

5: Assembled 70 ABC cars.

6: Sold 35 ABC cars to customer 103 each costing 20, 00,000

JUNE

1: Sold remaining 35 ABC cars to customer 104 each costing 20, 00,000

2: 5 cars were returned by customer 104 to reassemble 2 sound systems.

3: Received full payment from customer 103.

4: Received 80% from customer 104.

5: Purchased office computer of Rs 50,000 for business use.

6: Aakash withdrew his capital and paid existing partners.

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JULY

1: Purchased all inventory items for vendor 102 quantity 30

2: Paid 60% of the payment to vendor 102

3: Sold 30 cars to to customer 101 at 2,5000,000 each

5: Paid 60% payment to vendor 101

6: collected payment form C-101

AUGUST

2: Purchase 30 inventory item from vendor 101

3: Paid salaries to employees worth 5,000,000 issued by check

4: Made full payment to vendor 103

5: Sold 30 ABC cars customer 105

6: Collected full payment from C-105

SEPTEMBER

1: Received inventory from vendor 103 quantity 30 each.

2: Full payment was made to vendor 103.

2: Assembled 30 ABC 2.

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4: Charge depreciation Rs 20, 000 on computer.

5: Paid maintenance expense Rs 100, 000.

6: Received loan Rs 200,000 .

DECEMBER

1: Paid salaries to employees 100,000.

2: Made drawing of Rs 50,000 from bank.

3: Repaid loan of Rs 200,000.

CHART OF ACCOUNTS

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Account ID Account Description Active? Account Type

1 cash Yes Cash2 bank Yes Cash

3prepaid

expenses YesOther Current

Assets4 Land Yes Fixed Assets5 building Yes Fixed Assets

6machinery & equipment Yes Fixed Assets

7 depreciation Yes Expenses

8 acc.depreciation YesAccumulated Depreciation

9 inventory Yes Inventory

10accounts

receivable YesAccounts

Receivable

11accounts payable Yes

Accounts Payable

12income tax

payable YesOther Current

Liabilities

13 accrued expense YesOther Current

Liabilities

14 long term loan YesLong Term Liabilities

15 office supplies YesOther Current

Assets

Account ID

Account

Description Active? Account Type

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16Maintenance

expense Yes Expenses

17purchase discount Yes Expenses

18 sales Yes Income19 freight expense Yes Expenses20 purchase return Yes Expenses21 sales return Yes Income22 sales discount Yes Income

23 retained earning YesEquity-Retained

Earnings24 COGS Yes Cost of Sales

25 DRAWINGS YesEquity-gets

closed

26 Armo CAPITAL YesEquity-gets

closed

27 sales tax payable YesOther Current

Liabilities

28advertising expense Yes Expenses

29operating expenses Yes Expenses

30prepaid

insurance YesOther Current

Assets31 Huz Capital Yes Equity gets closed32 Aakash Capital Yes Equity gets closed

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Sales Tax AuthorityID: - ST-01

Tax rate: - 18%

Tax payable to: - FBR

Sales tax code: - 1

Freight charges: - 5% of sales.

General Ledger

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Account ID Account Description Date Reference Jrnl Trans Description Debit Amt Credit Amt Balance01 CASH 12/1/12     Beginning Balance     -60,200.00

  12/31/12     Ending Balance     -60,200.0002 CASH AT BANK 12/1/12     Beginning Balance     711,049,690.5002 CASH AT BANK 12/1/12   GENJ     100,000.00  02 CASH AT BANK 12/1/12   GENJ     50,000.00  02 CASH AT BANK 12/1/12   GENJ     200,000.00  

02 CASH AT BANK      Current Period Change   350,000.00 -350,000.00

  12/31/12     Ending Balance     710,699,690.5003 PREPAID EXPENSES 12/1/12     Beginning Balance     48,000.00

  12/31/12     Ending Balance     48,000.0004 LAND 12/1/12     Beginning Balance     30,000,000.00

  12/31/12     Ending Balance     30,000,000.00

05BUILDING & MACHIENRY 12/1/12     Beginning Balance     57,000.00  12/31/12     Ending Balance     57,000.00

06 COMPUTER 12/1/12     Beginning Balance     50,000.00  12/31/12     Ending Balance     50,000.00

07 EQUIPMENT 12/1/12     Beginning Balance     50,000.00  12/31/12     Ending Balance     50,000.00

08 DEPRECIATION 12/1/12     Beginning Balance     20,000.00  12/31/12     Ending Balance     20,000.00

09 ACC DEP 12/1/12     Beginning Balance     -20,000.00  12/31/12     Ending Balance     -20,000.00

10 INVENTORY 12/1/12     Beginning Balance     498,105,000.00  12/31/12     Ending Balance     498,105,000.00

11 ACCOUNT RECIVABLE 12/1/12     Beginning Balance     432,419.13  12/31/12     Ending Balance     432,419.13

12 ACCOUNT PAYABLE 12/1/12     Beginning Balance     -269,650,000.00  12/31/12     Ending Balance     -269,650,000.00

14 ACCRUED EXPENSE 12/1/12     Beginning Balance     88,000.00  12/31/12     Ending Balance     88,000.00

15 LONG TERM LOAN 12/1/12     Beginning Balance     -200,000.0015 LONG TERM LOAN 12/1/12   GENJ   200,000.00    

15 LONG TERM LOAN      Current Period Change 200,000.00   200,000.00

  12/31/12     Ending Balance    16 OFFICE SUPPLIES 12/1/12     Beginning Balance     40,000.00

  12/31/12     Ending Balance     40,000.00

17MAINTENENCE EXPENSE 12/1/12     Beginning Balance     142,000.00  12/31/12     Ending Balance     142,000.00

18 PURCHASE DISCOUNT 12/1/12     Beginning Balance     -27,412,500.00  12/31/12     Ending Balance     -27,412,500.00

19 SALE DISCOUNT 12/1/12     Beginning Balance     24,387,787.50  12/31/12     Ending Balance     24,387,787.50

20 SALE 12/1/12     Beginning Balance    -

1,654,214,285.70

  12/31/12     Ending Balance    -

1,654,214,285.7021 FREIGHT EXPENSE 12/1/12     Beginning Balance     -60,853,000.00

  12/31/12     Ending Balance     -60,853,000.00

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General Ledger Trial BalanceAccount ID Account Description Debit Amt Credit Amt

01 CASH   60,200.0002 CASH AT BANK 710,699,690.50  03 PREPAID EXPENSES 48,000.00  04 LAND 30,000,000.00  

05BUILDING & MACHIENRY 57,000.00  

06 COMPUTER 50,000.00  07 EQUIPMENT 50,000.00  08 DEPRECIATION 20,000.00  09 ACC DEP   20,000.0010 INVENTORY 498,105,000.00  11 ACCOUNT RECIVABLE 432,419.13  12 ACCOUNT PAYABLE   269,650,000.0014 ACCRUED EXPENSE 88,000.00  16 OFFICE SUPPLIES 40,000.00  

17MAINTENENCE EXPENSE 142,000.00  

18PURCHASE DISCOUNT   27,412,500.00

19 SALE DISCOUNT 24,387,787.50  20 SALE   1,654,214,285.7021 FREIGHT EXPENSE   60,853,000.00

23 C.O.G.S1,054,845,000.0

0  24 ARMOO CAP   120,000.0025 HUZ CAP   120,000.0027 DRAWING 50,000.00  28 SALES TAX   308,712,111.4329 TOOLS 12,200.00  30 SALARIES EXP 2,135,000.00  

  Total: 2,321,162,097.1 2,321,162,097.13

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Balance Sheet     

ASSETS    

     Current Assets    CASH ($ 60,200.00)  CASH AT BANK 710,699,690.50  PREPAID EXPENSES 48,000.00  INVENTORY 498,105,000.00  ACCOUNT RECIVABLE 432,419.13  OFFICE SUPPLIES 40,000.00   Total Current Assets   1,209,264,909.63

     Property and Equipment    LAND 30,000,000.00  BUILDING & MACHIENRY 57,000.00  COMPUTER 50,000.00  EQUIPMENT 50,000.00  ACC DEP (20,000.00)  TOOLS 12,200.00   Total Property and Equipment   30,149,200.00

     Other Assets     Total Other Assets   0.00

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Total Assets   $ 1,239,414,109.63

          

LIABILITIES AND CAPITAL         

Current Liabilities    ACCOUNT PAYABLE $ 269,650,000.00  ACCRUED EXPENSE (88,000.00)  SALES TAX 308,712,111.43   Total Current Liabilities   578,274,111.43

     Long-Term Liabilities     Total Long-Term Liabilities   0.00 Total Liabilities   578,274,111.43

     Capital    ARMOO CAP 120,000.00  HUZ CAP 120,000.00  DRAWING (50,000.00)  Net Income 660,949,998.20   Total Capital   661,139,998.20 Total Liabilities & Capital   $ 1,239,414,109.63

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Income Statement

 Current

MonthRevenues  

SALE DISCOUNT 0.00SALE 0.00 Total Revenues 0.00

   Cost of Sales  C.O.G.S 0.00 Total Cost of Sales 0.00 Gross Profit 0.00 Expenses  DEPRECIATION 0.00MAINTENENCE EXPENSE 0.00PURCHASE DISCOUNT 0.00FREIGHT EXPENSE 0.00SALARIES EXP 100,000.00 Total Expenses 100,000.00

Net Income 100,000.00)

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Statement of Retained Earnings

Beginning Retained Earnings $ 0.00Adjustments To Date 0.00Net Income 660,969,998.20

Subtotal 660,969,998.20

   ARMOO CAP 120,000.00HUZ CAP 120,000.00AAKASH CAP 0.00DRAWING (50,000.00)

Ending Retained Earnings $ 661,159,998.20

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Aged Payables

Vendor ID Vendor

Contact

Telephone 1

Invoice/CM #

0 - 30

31 - 60

61 - 90

Over 90 days

Amount Due

V-102 BMW 14      269,620,000.

00269,620,000.

00

V-102 BMW269,620,000.

00269,620,000.

00

Report Total

269,620,000.00

269,620,000.00

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Assembly List

Item ID Item DescriptionComponent ID

Component Description

Qty Needed

10 ABC2 1 WINDOW 1.0010 ABC2 2 ENGINE 1.0010 ABC2 3 LIGHTS 1.0010 ABC2 4 BONNET 1.0010 ABC2 5 INTERIOR 1.0010 ABC2 6 SOUND 2.0010 ABC2 7 TYRE 1.0010 ABC2 8 CAR DOORS 1.009 ABC 1 WINDOW 1.009 ABC 2 ENGINE 1.009 ABC 3 LIGHTS 1.009 ABC 4 BONNET 1.009 ABC 5 INTERIOR 1.009 ABC 6 SOUND 1.009 ABC 7 TYRE 1.009 ABC 8 CAR DOORS 1.00

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Inventory Stock Status Report

Aged Receivables

Customer ID CustomerInvoice/CM # 0-30 31-60 61-90

Over 90 days

Amount Due

C-104 ARMO MOTORS 12       432,419.13 432,419.13 C-104 ARMO MOTORS   432,419.13 432,419.13 Report Total     432,419.13 432,419.13

Item ID Item DescriptionItem Class

Stocking U/M

Qty on Hand

Min Stock

Reorder Qty

1 WINDOW Stock item   5.00 15.00 25.0010 ABC2 Assembly   5.00    2 ENGINE Stock item   5.00 15.00 25.003 LIGHTS Stock item   5.00 15.00 25.004 BONNET Stock item   5.00 15.00 25.005 INTERIOR Stock item   5.00 15.00 25.006 SOUND Stock item     15.00 25.007 TYRE Stock item   5.00 15.00 25.008 CAR DOORS Stock item   5.00 15.00 25.009 ABC Assembly   45.00    

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General Journal

Date Account ID Reference Trans Description Debit Amt Credit Amt12/1/12 30     100,000.00  12/1/12 02       100,000.0012/1/12 27     50,000.00  12/1/12 02       50,000.0012/1/12 15     200,000.00  12/1/12 02       200,000.00

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    Total   350,000.00 350,000.00