Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

Financial Statement
Background:
 Financial Statement ej‡Z Avm‡j ‡Kvb Statement ‡bB|
 GKwU cÖwZôv‡bi K‡qKwU Statement ‡K GK‡Î Avgiv Financial Statement ewj|
 Financial Statement g~jZ 3wU Statement Gi mgwš^Z iƒc|

wb‡Pi 3wU Statement ‡K Avgiv Financial Statement ej‡Z cvwi:

 *Income Statement (Statement of Comprehensive Income)

 *Statement of Change in Equity.
 *Balance Sheet (Statement of Financial Position)
 Limited Company Retained Earning bv‡g GKwU Statement Ki‡Z cv‡i|

Financial Statement ‡Kv¤úvbx ev msMVb Abyhvqx wba©vjb Kiv nq|

‡hgb:
 Sole trade n‡j Avgiv Income statement I Balance Sheet Kwi|
 Partnership n‡j Avgiv Income statement, Appropriation Account, Current Account, Capital Account I Balance
Sheet Kwi|
 Manufacturing n‡j-
*Manufacturing Account/Cost Sheet
*Income Statement.
*Balance Sheet.
 Limited Firm n‡j-
*Statement of Comprehensive Income
*Statement of Change in Equity.
*Statement of Financial Position.
*Statement of Cash Flow.
*Note to financial statement.

Zvn‡j Financial statement Gi g~j Av‡jvP¨ welq 3wU

1. Income Statement A_ev Statement of Comprehensive Income.

2. Statement Change in Equity.
3. Balance Sheet A_ev Statement of Financial Position.

Page 1 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Banking Diploma & Financial Statement
Avgv‡`i JAIBB Gi AFS G g~jZ Sole Trade Gi Financial Statement Ki‡Z nq| Avgv‡`i hv Ki‡Z nq Zv n‡jv:
*Multiple Income Statement
*Classified Balance Sheet.
Avm‡j Multiple Income Statement n‡jv Income Statement ‡K GKUz eo K‡i ¸wQ‡q wjLv| ZvB Multiple Income Statement I
Classified Balance Sheet wb‡q Panic nIqvi wKQz bvB|
Just Normal Income Statement I Balance Sheet ‡K GKUz ¸wQ‡q wjLv| g‡b Ki‡eb, Avcbv‡K GKUv Income Statement I Balance
Sheet ‡`qv n‡q‡Q| ZLb Avcwb GUv‡K Multiple I Classified Kivi Rb¨ †Kvb Figure Change Ki‡eb bv| Just wjLv ¸‡jv GKUz EDIT
Ki‡eb|

Multiple Step Income Statement

g~jZ GB Income Statement wU 4 fv‡M wef³:
1. Operating Revenue
2. Non Operating Income
3. Operating Expense.
4. Non Operating Expense.

Operating Revenue:
Trading Company n‡j Sales Revenue (Trading Company ‡Z Stock, purchase service company n‡j service revenue ev
commission revenue (service company ‡Z stock purchase _v‡K bv)

GB Lv‡b Avgiv g~jZ, Tk.

Sales Revenue 100

(-) Cost of good sold (50)
Gross Profit 50
Operating Revenue gv‡b n‡jv Gross profit.
Non operating Income:
mnR K_vq g~j e¨emvq Kv‡Ri evB‡ii Income

mvaviYZ: Interest Income (Firm hw` Loan ‡`q, Z‡e Zvi Interest n‡jv Income)

Sale of Fixed Asset (‡Kvb Asset Sale Ki‡j hw` Profit nq Z‡e Non operating wn‡m‡e Avm‡e)

Operating Expense:
g~j Sv‡gjv GLv‡b nq, Operating Expense ej‡Z Business run Kivi Rb¨ daily expense ev monthly expense ¸‡jv †evSvq| †hgb: Rent,
Salary Z‡e, mvaviYZ Income Statement-G me¸‡jv Expense-‡K GKmv‡_ †`Lv‡bv n‡jI Multiple-G Avjv`v 2wU Heading w`‡q †`Lv‡bv nq|
Heading 2wU n‡jv:
i) Office and Administrative Expense.

Page 2 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
ii) Selling & Distribution Expense.
Administrative Expense G Avgiv Business G Awdwmqvj Kvh©vejx Pvwj‡q †bqvi LiP¸‡jv †`Lv‡bv nq| Finance, Accounts, HRMO etc.
department Gi LiP n‡jv Admin Expense.
Selling & Distribution Expense n‡jv product ¸‡jv Sell Ki‡Z †h LiP nq| mvaviYZ Marketing Department Gi LiP mg~n GLv‡b
†`Lv‡bv nq|
eySvi myweav‡_© wKQz Common Expense ¸‡jv‡K fvM K‡i †`Lv‡bv n‡jv:
Admin Expense Selling & Distribution Export

 Rent  Advertisement
 Electricity Bill  Public Relation
 Salary  Rent of Sales Office
 Utilities Bill  Salary of Marketing Manager
 Insurance  Salary of Sales Staff
 Stationary Expense  Depreciation of Sales Equipment.
 Office Supplies  Depreciation of Furniture in Sales Department.
 Repairs Maintenance
 Depreciation of Equipment
or furniture used in Office
 Telephone
 Office Rent
 Bad Debt
 Depreciation of Building.

N.B: Admin Expense fz‡j Selling G emv‡j ev Selling Expense fz‡j Admin G emv‡j Net, Profit Same Avm‡e| AsK fzj n‡e bv| Z‡e
wKQz gvK©m& KvUv ‡h‡Z cv‡i|

Page 3 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Nur H Automobile
Multiple Income Statement
For the year ended in December 31, 2019
Tk. Tk. Tk.
Sales Revenue 100
(+) Sales not Reoned 2
(-) Sales Discount (1)
(-) Return Inward/Sales Return (1)

Net Sale 100

(-) Cost of Goods sold
Opening Stock 5
(+) Purchase 32
Less: Purchase Discount (1)
Return Outword (1)
Add: Fright In./Carriage Inward 5
35

Good available for Sale 40

(-) Closing Stock (10)
Cost of Goods Sold (50)
Gross Profit 70
(-) Operating Expense:
Selling & Distribution:
Sales Manager Salary 1
Advertisement 1

Total Selling & Distribution Expenses 2

Admin & Office Expense:
Rent 1
Salary 1
Depreciation 1
Total Admin & Office Expense 3

Total Operating Expense (5)

Operating Income 65
Non Operating Income 5
Non Operating Expense (10)

Net Profit Before Tax 60

Page 4 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

Classified Balance Sheet

gyj Section 2Uv
 Assets
 Liabilities
Asset ‡K †f‡½ 3 Uv Heading Kiv nq|
 Non-Current Assets (Fixed Asset)
 Other Non-Current Asset/Intangible Asset
 Current Asset
Liabilities ‡K †f‡½ 3 Uv Heading Kiv nq|
 Owner Equity /Capital Equity
 Non-current Liability/Long Term Liabilities
 Current Liabilities.
Non-Current Assets (Fixed Assets)
‡h Asset ¸‡jv gyjZ Move Kiv hvq bv Ges GB Asset ¸‡jv 1 eQ‡ii †ewk mgq _v‡K|
* Plant & Equipment, * Machinery * Land & Building * Furniture.
Non-current Asset Gi wecix‡Z Avgiv mvaviYZ Depreciation calculation Kwi|
Non-current Asset Gi cost value UvB gyL¨|

Other Asset (Intangible Asset)

Goodwill, Patent, Trade mark, copy right BZ¨vw`|
ZvB Asset ¸‡jv †`Lv hvq bv, Touch Kiv hvq bv evU G‡`i Financial value Av‡Q Ges G¸‡jviI Depreciation nq|
Z‡e Avgiv Depreciation ewj bv| Avgiv ewj write off (evsjvq Ae‡jvcb)|

Current Asset:
Current Asset ej‡Z Avgiv gyjZ 1 eQ‡ii Kg mg‡qi Asset eywS|
mnR K_vq, Fixed Asset Gi g~j value cÖwZ eQi †mBg _v‡K (hw` buy & sell Kiv bv nq)|
Current Asset Gi value same _v‡K bv|
Current Asset ¸‡jv n‡jv:
 Cash in Hand.
 Bank (Bank Overdraft ej‡j current Liability)
 Debtors
 Closing Stock
 Prepaid Expense (‡hgb: prepaid rent)
 Accused Income (‡hgb: Accused Interest Income)
Equity:
Equity g~jZ Capital+Net Profit-Drawing.
Limited Company (Share capital _vK‡e) n‡j:
Page 5 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Share Capital A_ev Common Stock Gi mv‡_ net profit-Drawing wKQzB n‡e bv|
Zvn‡jv Statement of Charge in Equity ‡Z em‡e|
Non-current liabilities:
 Long term Loan (1 eQ‡i †ewk)
 Bank Loan (1 eQ‡i †ewk)
 Mortgage BZ¨vw`
 Desenture
Current Liabilities:
 Creditors
 Accured Expense
 Prepaid Income
 Bell Payable
 Notes Payable
 Short term Loan
 Bank overdraft

Page 6 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Adjustment of Adjustments
Avgiv Financial statement -G g~jZ income statement I balance sheet Kwi| cÖ‡kœ Avgv‡`i trail balance I adjustment ‡`qv nq| g~j
Sv‡gjv ¸‡jv adjustment wb‡q nq|

Ad- Trail Balance Analysis

Dr Cr cÖ‡kœ Trail Balance G Salary Av‡Q 11000.
Salary 11000 Adjustment-G 1 month salary unpaid A_ev yearly salary 12000.
Adjustment: A_ev Monthly Salary 1000
*1 month salary unpaid c‡q›U A‡bK, wKš‘ mgvavb 1wU|
*Salary due for 1 month 1 gv‡mi Salary accured
*yearly salary 12000 Tk. GLb,
*Salary accured Tk. 1000
Trail Balance gv‡b n‡jv we paid.
*Monthly salary 21000
evrmwiK Salary 12000
we paid 11000
Solution
Accured 1000
Income Statement
Tk. Tk.
Avevi,
Salary 11000
1 month salary 1000 Tk.,
(+) Accured 1000 12000
12 month salary 12000 Tk.
But we paid 11000 Tk.
Balance Sheet
So. Accured salary 1000 Tk.
Current Liability Tk Tk
Avevi,
Accured Salary 1000
1 Month salary unpaid
Trail balance showed 11000.
Journal Entries
This means we paid Tk. 11000
Salary Expense Dr 1000
This means we paid Tk. 11000.
Accured Salary Expense Cr 1000
For 11 month salary.
So, 11 month salary Tk. 11000
1 month salary Tk. 1000
Accured salary Tk. 1000.
Zvn‡j cÖ‡kœ Adjustment wewfbœfv‡e ejv n‡jI mKj Analysis G 1000 accured
g~j K_v: Salary accured Tk. 1000.

Page 7 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
3
Adjustment-2 Deffered Adjustments

Trail Balance Analysis

Dr Cr Trail Balance Advertisement 10000.
Adjustment: 10000 gv‡b we paid Tk. 10000.
Adjustment ej‡Q †h, 4/5 Tk. deferred ev GB 10000 UvKv 5
Adjustment: eQ‡ii Rb¨ †`qv n‡q‡Q|
*Deffered Advertisement 4/5 Tk. Avgv‡`i 1 eQ‡ii Uv Expense ‡`wL‡q 4 eQ‡ii prepaid ‡`Lv‡Z
n‡e|
*Advertisement is paid for 5 year.
Deferred 4/5= 4/5 Tk. of 1000
*yearly advertisement Tk. 2000
= Tk. 8000
*1/5 Tk of Advertisement is this year.
This means Tk. 8000 is prepaid.

Note:
Adjustment is paid for 5 years.
Deferred is similar to prepaid
We need to adjust 1 year.
Now, 5 years Adjustment Tk. 10000
Solution
1 year Adjustment Tk. 10000
Income Statement
=20000
Expense: Tk. Tk.
Yearly Advertisement Tk. 2000
Advertisement 10000
(-) Deferred 8000 2000
So, This year 2000
Prepaid 8000 (For 4 years)
Balance Sheet
Current Asset:
1
/5 Tk. of Adjustment
Tk. Tk.
= 10000x1/5
Deferred Advertisement 8000
= Tk. 2000
This year Tk. 2000
Adjusting Journal Countries:
Prepaid Tk. 8000
Deferred advertisement Dr 8000
Advertisement Cr 8000
Zvn‡j, gyj K_v,
10000 UvKvi g‡a¨
(2 nvRvi n‡e bv )
-GB eQ‡i Tk. 2000
Note: Adjustment hw` Freed good distribution _v‡K Z‡e Zv
Advertisement Gi mv‡_ Add K‡i Deferred Ki‡e) -Prepaid Tk. 8000.

Page 8 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

Adjustment-3 Stationary

Trail Balance Analysis

Dr Cr Stationary GK ai‡bi Expense. Trial Balance showed we
Stationary 1000 paid for stationary Tk. 1000.
gv‡b 1000 UvKvi Stationary wKbv nB‡Q evU GLbI 200 UvKv i‡q
†M‡Q| gv‡b e¨envi ev use n‡q‡Q 800 UvKvi|
Adjustment:
*Stationary used This year Tk., 800
*Unused Stationary Tk. 200
*Closing Stock of Stationary Tk. 200
*Remaining Stationary Tk. 200

Solution
Income Statement
Tk. Tk.
Stationary: 1000
(-) unused (200) 800

Balance Sheet
Tk. Tk.
Current Asset:
Unused Stationary 200

Page 9 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Adjustment-4 Insurance Premium

Problem: Analysis
Trail Balance (31.12.2019) Trail Balance Shows that insurance premium paid 1200
Dr Cr GB 1200 UvKv Avgiv 31/03/2020 ch©šÍ pay KiwQ|
Insurance 1200 evU Avgv‡`i Accounting year December 2019.
Zvi gv‡b Avgiv 31 gvP© 2020 ch©šÍ 3 gvm Prepaid w`wm|
Adjustment: Zvn‡j,
*Insurance Premium paid for 31.3-20 for one year. 1200 UvKvi g‡a¨ 3 gvm AwMÖg|
*Insurance premium paid for 31.03.20 12 gv‡m 1200 UvKv|
3 gv‡m 300 UvKv|
Solution
Income Statement
Tk. Tk.
Insurance Premium 1200
(-) Prepaid (300) 900

Balance Sheet
Tk. Tk.
Current Asset:
Prepaid Insurance 300

Page 10 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Adjustment-5 Bad Debt & Provision for doubtful debts.

Key points:
* Bad debt GK ai‡bi Loss Avgiv Bad debt Income statement Gi Expense G Show Kwi|
Provision for doubtful Avgiv income statement -G show Kwi|
Z‡e provision for doubtful debt Kiv 2wU wbqg Av‡Q| Z‡e Avgiv cÖPwjZ wbqgwU AbymiY Ki‡ev|

*Bad debt A‡bK bv‡g _vK‡Z cv‡i| †hgb:

Bad debt.
Doubtful debt zzzzzzzzzzzzzzzzzzzzz

* Provision for doubtful debt wewfbœ bv‡g _vK‡Z cv‡i|

‡hgb: provision for doubtful debt (PDD)
Allowance for doubtful debt (ADD)
Provision for Bad debt.

Bad Debt 2Uv _vK‡Z cv‡i|

-1Uv Trail Balance
-1Uv Adjustment.
Trail Balance Gi Bad Debt Uv Old Bad Debt ai‡Z cvwi| Adjustment Gi Bad Debt Uv New Bad Debt ai‡Z cvwi|

*cÖ‡kœ Provision for doubtful debt 2Uv _vK‡Z cv‡i|

-1Uv Trail Balance
-1Uv Adjustment (% AvKv‡i hv‡K mvaviYZ)
Trail Balance Gi Bad Dubt Uv old provision.
Adjustment Gi provision Uv New provision.

* g‡b ivL‡Z n‡e,

Trail Balance Gi Bad Debt I Provision ïaygvÎ Income Statement G Avm‡e| Balance Sheet –G hv‡e bv|
Adjustment Gi Bad Debt I Provision  Income Statement I Balance Sheet Dfq RvqMvq hv‡e|

Page 11 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

mnR Format of Bad Debt.

Income Statement Balance Sheet
Operating Expense: Tk. Tk. Tk.
Bad Debt (Trail Balance-old) 1000 Debtor 20000
(+) Bad Debt New 600 (--) New Bad Debt
(Adjustment-New) (only adjustment) (600)
(+) New PDD 100
(Adjustment) (-) New PDD
(-) Old PDD (only adjustment) (100)
(Trail Balance) (500)
Net Debtor 19300
Net Bad Debt Figure. 1200

*g~jK_v:
Trail Balance Gi Bad Debt Ges Trail Balance Gi PDD ïaygvÎ Income Statement.
 Bad Debt 2Uv| 2UvB †hvM n‡e (Plus +)
 Provision _vK‡e 2Uv|
Adjustment-Gi Uv †hvM n‡e (+)
Trail Balance -Gi Uv we‡qvM n‡e (-)
 Balance Sheet, ïaygvÎ Adjustment –G Uv Avm‡e|
Trail Balance Gi Bad Debt & PDD Not Come
Adjustment-G Bad Debt I PDD 2UvB Debtor n‡Z ev` (-)
Note:
A‡bK mgq †`Lv hv‡e Trail Balance G Bad Debt bvB|
But Adjustment –G Av‡Q|
Adjustment-G PDD bvB But Trail Balance-G Av‡Q|
Adjustment-G PDD bvB But Trail Balance-G Av‡Q|

Page 12 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Question-1 Question-2
Trail Balance Trail Balance
Dr Cr. Dr. Cr.
Bad Debt 3000 Bad Debt 3000
Destor 10000 Debtor 10000
Adjusting No Data PDD 500
Solution
Income Statement Adjustment:
Tk. No Data about it.
Expense:
Bad Debt 3000 Solution:
Income Statement.
Balance Sheet Tk. Tk.
Current Asset Tk. Bad Debt 3000
Debtor 1000 (-) PDD 500 2500

Balance Sheet
Tk. Tk.
Current Asset
Debtor 10000

Page 13 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

Question-3 Question-4
Trail Balance Trail Balance
Dr Cr. Dr. Cr.
Bad Debt 3000 Bad Debt 3000
PDD 500 PDD 500
Debtor 10000 Debtor 10000

Adjusting Adjustment:
*Written off 2000 *Writen of Debt 2000
Solution *Maintain 5% Provision.
Income Statement
Tk. Tk. Working:
Expense: Provision of Doubtful Debt-=
Bad Debt 3000 (10000-2000)x5% = 400
(+) New Bad Debt 2000 Debtor New Bad Debt.
(-) Old PDD (500) Solution: Balance Sheet
4500 Income Statement Current Asset Tk.
Tk. Debtor 10000
Balance Sheet Bad Debt 3000 (-) New Bad
(+)New Bad Debt 2000 Debt(2000)
Current Asset Tk. Tk.
(+) New PDD 400 (-) New PDD (400)
Debtor 10000
(-) Old PDD (500) 7600
(-) New Bad Debt (2000) 8000
4900

Page 14 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Question-5 Solution
Trail Balance Income Statement
Dr Cr. tk
Bad Debt 3000 Bad Debt 3000
Debtor 10000 (+) New Bad Debt 2000
Sales 72000 (+) New PDD (see working) 650
PDD 500 (-) Old PDD (500)
5150
Adjusting
*Sales Not recorded 5000 Balance Sheet
*Bad debt written off 2000 Tk. Tk.
*maintain provision 5% Debtor 10000
(+) Sales Not Recorded 5000
Working: (-) New Bad Debt (2000)
New PDD Calculation: (-) New PDD (650)
(10000+5000-2000)x5% Net Debtor 12450
(Debtor10000 Sales 5000 New Bad Debt 2000) = 650

Adjustment-G Bad Debt A‡bK bv‡g _vK‡Z cv‡i|

*Bad Debt 2000
*Bad Debt Written of 2000
*Write off Tk. 2000 from debtor
*Trade Receivable Tk. 2000 became irrecoverable.
*A customer wing Tk. 2000 died/declared bankrupt.
*A debtor owing Tk. 5000 made settlement of Tk. 3000 and remaining (Tk. 2000) is proved to inrecoverable.

Adjustment G provision A‡bKfv‡e _vK‡Z cv‡i:

*Keep 5% provision from debtor
*Maintain Tk. 400 as provision for doubtful debt.
*Create an allowance for doubtful.
*Increase provision for doubtful debt by Tk. 3000
(New PDD is Tk. 3000)

Page 15 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Adjustment 6 Loan & Interest.
Key Points:
Trail Balance, Loan, Savings, Securities, Mortgage, Debenture _vK‡Z cv‡i|
Avgiv ‡`L‡ev G¸‡jv Debt bv Credit
aiæb,
Loan Credit G Av‡Q| gv‡b Loan is a liabilities.
Loan Debt G Av‡Q| gv‡b Loan is an Asset.

*Loan, Debenture, Securities Gi mv‡_ GKUv % _vK‡Z cv‡i| †hgb: 5% Bank Loan Tk. 100000.
*Percentage (‡hgb 5%) _vK‡j Aek¨B Interest ‡`Lv‡Z n‡e| Adjustment interest Gi K_v ej‡jI †`Lv‡Z n‡e|
Adjustment G interest Gi K_v bv ej‡jI †`Lv‡Z n‡e|

*How?
cÖ_‡g Avgiv K¨vjKz‡jU‡i Interest KZ Av‡m †ei Ki‡ev|
wØZxqZ Interest hv Av‡m Zv Non-operating expense G †`Lv‡ev|
D`vniY:
5% Bank Loan 100000 (Credit)
Interest Av‡m (5% of 100000) = Tk. 5000
cÖ‡kœ hvB ejyK bv †Kb, Avgv‡`i GB Tk. 5000 Interest †`Lv‡Z n‡e
Non operating Expense- G|
*Loan ‡bqvi GKUv Time w`‡Z cv‡i|
‡hgb:
Trail Balance (30.12.2019)
Dr. Cr.
5% Loan (01.07.2019) 10000
6% Debenture (10 year) 20000
GLv‡b 5% Loan Gi interest n‡e July 19 n‡Z December 19 ev 6 months 6% Loan 10 years gv‡b GUv Long term loan.

Page 16 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Question-1
Trail Balance 30/12/2019 Solution
Dr Cr Income Statement
5% Bank Loan 20000 Tk.
Non-Operating Ex.
Adjustment (wb‡Pi †h †Kvb 1wU ejv n‡Z cv‡i) Interest Expense
*Bank Loan Gi interest accured. (20000x5%) 1000
*Loan interest to be paid
*No interest paid Balance Sheet tk
*Interest on loan accured Tk. 1000 Long Term Liabilities
* wKQzB ejv bvB| 5% Bank Loan 20000

5% Loan G interest Av‡m 1000 UvKv evU Trail Balance G Current Liabilities:
loan Gi †Kvb interest †`qv bvB| Interest Accured 1000
Zvi gv‡b †Kvb interest pay Kiv nq bvB| hw` †Kvb interest ‡`qv
nZ Z‡e trail balance G debt side G _vK‡Zv|

Question-2
Trail Balance Solution
Dr Cr Income Statement
5% Bank Loan 20000 Tk. Tki.
Loan Interest 300 Non-Operating Expense
Bank loan interest 3000
Adjustment: (‡h †Kvb 1wU ej‡Z cv‡i| (+) Accured interest 700
*Interest Accrued ---------
*Full interest not paid 1000
*Yearly interest Tk. 1000
*Accrued interest Tk. 700 Balance Sheet
Long Term Liabilities Tk.
g~jK_v: Bank Loan 20000
Interest Avm‡e (5% of 20000) = Tik. 1000
Avgv‡K Expense G ZvB Tk. 1000 †`Lv‡Z n‡e| Current Liabilities:
Trail Balance ej‡Q interest paid Tk. 300 gv‡b 700 ‡`qv Interest Accrued 700
nq bvB|

Page 17 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

Question-3
Trail Balance Solution
Dr Cr Income Statement
5% Bank Loan 20000 Tk.
Loan Interest 1000 Non-Operating Expense
Loan Interest 1000
Adjustment:
*wKQzB ejv bvB| Balance Sheet
* no interest accured. tk
g~jK_v, Long Term Liabilities
Interest . (5% of 20000) 5% Bank Loan 20000
= Tk. 1000.
Trail Balance Show, Current Liabilities:
Interest paid Tk. 1000 Interest Avm‡e bv| KviY evKx bvB|
So, No. accured interest.

Question-4
Trail Balance (31.12.2019) g~jK_v:
Dr Cr *5% Saving Deposit GKwU Asset Gi interest (5% of
5% Savings Deposit 10000 10000) = Tk. 500
10% Bank Loan 30000 GB Tk. 500 GKwU Non-operating Income.
(1-7-2019) *10% Bank Loan: (Loan Taken 1 july)
6% Debenture 60000 *Time Line:
(31-03-2019) 1 July to 31 December = 6 months.
8% Mortgage (Payable 2025) 80000 interest 10% of 30000x 6/12 = Tk. 1500
*6% Debenture (Taken 31 march)
Adjustment Time line: 1 April to 31 December = 9 months.
‡h †Kvb wKQzB ejyK| interest = 6% x 60000x9/12= Tk.
Solution Same. g‡b ivL‡eb,
30 ZvwiL n‡j H gvm ai‡ev bv|
1 ZvwiL n‡j H gvm ai‡ev|

*8% Mortgage . Long term liabilities 2025 . not matter)

Page 18 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank

Adjustment-7
Depreciation
Key Points:
*Depreciation GKwU voluntary expense GK, non-cash item.
*Depreciation mvaviYZ fixed asset Gi Dci nq|
*Depreciation Ges provision for depreciation/accumulated depreciation `y‡Uv wfbœ wRwbm|
Depreciation n‡jv ivwbs eQ‡ii expense hv income statement G †`Lv‡bv nq|
Accumulated depreciation n‡jv cÖwZ eQ‡ii depreciation Gi †hvMdj ev cumulative figure GKwU

2018 mv‡j accumulated depreciation 5000 UvKv gv‡b n‡jv asset wU wKbvi ci †_‡K 2018 mvj ch©šÍ †gvU depreciation n‡jv 5000 GB
5000 UvKv 1 eQ‡ii depreciation bq| eis K‡qK eQ‡ii|

*aiæb, Trail balance G accumulated depreciation Av‡Q 5000 (credit)

Avcwb Adjustment ‡`‡L depreciation †ei Ki‡jb 1000 Tk.
Zvn‡j Balance Sheet G accumulated depreciation n‡e (5000+100)=6000

Depreciation Calculation method.

 Straight line method (Cost-salvage value)x10%
 Reducing Method/Balancing method/Dimminishing method (cost-accumulalted depreciation)x10%
 Revaluation method (Closing balance-opening balance)

*Depreciation calculate Kivi Rb¨ Avcbvi `iKvit

 Cost Value- ‡h `v‡g cÖ_‡g Asset wKbv n‡q‡Q
 Net Book Value (Cost-Accumulated Depreciation)
 Residule value/Salvage value/realization value --‡h `v‡g asset wU e¨envi †k‡l Sale n‡e|

Page 19 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Illustration 1 Analysis
Trail Balance (31.12.2019)
Dr Cr.
Motor Van (Cost) 10000
Furniture (Cost) 20000
Land & Building 70000
Leasehold (25 year) 50000
Equipment (Cost) 50000
Accumulated Depreciation:
Motor Van 2000
Furniture 1000
Land & Building 5000
Equipment 4000

Adjustment: Motor Van

*No depreciation on land (costing 20000) building Cost = 10000
depreciation 2% Salvage Value = 2000
Depreciation= (10000-2000)x10%
*Motor Van depreciation 10% Straight line =Tk 800
Salvage value Tk. 2000 This is 800 is for old motor van.
*Furniture at 10% Reducing method. Cost of New Morto Van 5000
*Equipment at 5% reducing method. Depreciation of that = 5000x10% = Tk.500
*Motor Van bought 500 not recorded. Total Depreciation = (800+500)
*Equipment bought at 10000 (1-7-2019) not recorded. =Tk.1300
mnR K_vq:
Depreciation motor van
{(10000+5000)-2000}x 10% = Tk 1300
(wQ‡jv 10000bZzb wKbv 5000 Salvage nB‡Q 2000 )

Land & Building:

Cost of Land & Building Tk. 70000
Cost of Land Tk. 20000
Cost of Building Tk. 50000
Depreciation only applicable to building
Depreciation of building 2% of 50000=Tk. 1000
Page 20 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Leasehold property:
No percentage given:
But year given:
Depreciation = Cost  year
= 5000025 year
= Tk 2000 per year
(Adjustment wKQz ejv bvB)

Page 21 of 22
Topical Accounting _Financial Statement Nur H Palash,MBA(DU)Bangladesh Krishi Bank
Solution to Illustrtion 1 :
Income Statement: Furniture
Cost Tk. 20000
Operating Expenses: Tk. Depreciation- 0% reducing.
Motor Van 1300 Depreciation= (Cost-Accumulated depreciation)x 10%
Land & Building 1000 = (20000-1000)x10%
Lease Hold 2000 = Tk. 1900
Furniture 1900 Equipment:
Equipment 5100 Cost Tk. 50000
New Equipment Cost Tk. 10000 (1-7-2019)
Balance Sheet Rate= 10% reducing.

Tk. cÖ_‡g, old equipment.

Motor Van 10000 Depreciation = (cost-accumulated)x10%
(+) New 5000 =(50000-4000)x10%
(-) Accumulated Cretion (3300) =Tk 4600.
-----------------
Net Book Vlaue 11700
Depreciation of New equipment
----------- (Cost-Accumulated)x10% =(10000-0)x10%x6/12
Furniture 20000
( †Kvb Accumulated bvB ) = 500 Tk.
(-) Accumulated (2900)
(1000+1900)
6 month KviY GUv wKb‡Q RyjvB
--------------------
Net Book Vlaue 17100 July to December = 6 months.

Land & Building 70000

(-) Accumulated (5000+1000) (6000) Total Depreciation or equipment. = (4600+500)

----------------------- = Tk. 5100

-Net Book Vlaue 64000

Equipment 50000
(+) New 10000
(-) Accumulated (4000+5100) (9100)
-----------------
Net Book Vlaue 50900

Page 22 of 22