Report on Naznin Law Associates

Introduction

The Principle of Accounting is practiced all through the world . It is significant for us to remain updated with news and information about different kinds of calculations. The principles which are practiced are basically orthodox. The categories and format of the account helps us to make good points on several issues. It is more convenient for us to be  more comprehensive, informative and moreover free to make deals on different calculations. So it is a significant source which enables us to identify and analyze the major ways of how to get a complete idea about accounting through theoretical and practical implementations.

Origin of the report

The report titled as, “Naznin Law Associates”, is to be submitted on 22nd  December 2008 to the course instructor Mr.Arif Rana (Lecturer, School of Business) who authorized and assigned us to do this report.

Background of the report

The report titled as, “Naznin Law Associates”, is originated from the partial requirement of the course Principles of Accounting. It is actually a joint student – faculty learning experience, where the students learn the impact of how to get  comprehensive idea about how accounting calculation works through  the firm .

Objective of the report

This report seeks overall information about how the firm operates its cost  and profit . By this report we tried to represent the actual way of how the wholeaccounting system works. Basically there are two objectives behind doing this report, and they are as follows:

  • The first and the foremost objective of the report is to fulfill the partial requirement   of the course Introduction to Accounting.
  • The second objective of the report is to understand how the firm practices and operates the cash inflows outflows profits and loss with the equities which includes the firm’s one month journals, ledgers, Trial balance, Balance Sheet,  Statement of Owner’s Equity .

 Benefit of the report

The best part of this report is that the students get the opportunity to visualize the accounting calculations. It also helps the students to understand the concept of accounting application in the practical field. This will help the students to enhance their knowledge.

 Limitations of the report

Although it was really an interesting experience to find out how the system works but we had to face our share of limitations while preparing the report and those limitations were:

  • Time Constraints.
  • Lack of proper comprehensiveness.
  • The required information were quite scattered and hence to compile it was quite a difficult a task.

Source of Data

 We have collected some primary data from “Naznin Rahman” and other advocates the data which are related to our problems we have also used some law books and sites of accounting firms.

We have collected most of the data from “Naznin Law Associates” and others. We have collected there theme of presentation, there present observations, there pattern and there related costing as a new firm which has got it’s name on 30th November 2008.

Data Used

In a short time it was not possible to analysis lot of data. We have also collected some data from the huge source of data. But we didn’t use all of the data which we have  collected. So we have used some important and relevant data to complete our analysis. Mainly we have focused on the firm which we have analyzed on .

 PART I

The Transaction  of Naznin Law Associates

 For the month of 31st December 2008    

Mrs Naznin began a new law practice organization and she completed these following transactions.

2008

Dec 1 Invested Tk 25000 in cash and law books having a Tk 12000.

Dec 1 Rented the furnished office of a lawyer who was retiring due to illness and paid two months rent in advance Tk 10000.

Dec 1 Paid the premium on a liability insurance policy giving one years protection Tk  4200.

Dec 2 Purchased office sufflies on credit Tk 400.

Dec 8 Completed legal work for a client and immediately collected Tk 2500 cash for the work.

Dec 12 Paid for the office supplies purchased on Dec 2

Dec 15 Completed legal work for Evans Realty on credit Tk 8500.

Dec 22 Completed legal work for security bank on credit Tk 7500.

Dec 25 Received TK 8500 from Evans Realty for the work completed on Dec 15.

Dec 27 Advocate Naznin withdraw a Tk 150 cheque on the bank account at the legal  practice to pay his home telephone bill.

Dec 29 Purchased additional office supplies on credit Tk 450.

Dec 31 Paid the December telephone bill of the office Tk 250.

Dec 31 Paid the salary of the office (secretary) Tk 9500.

Dec 31 Recognized that one months rent on the office had expired and had become an expense .

Dec 31 Recognized that one months insurance has expired and become an expense.

Dec 31 Took an inventory of unused office supplies and determined that supplies costing Tk 300 Had been used had become an expense.

PART II

Naznin Law Associate’s Journal entries

December 31st,2008

Dr                                                                                                                                       Cr

DateParticularsP.RDebitCredit
2008

dec 1

Cash                                                                    Dr

Law liabrary                                                      Dr

Dr. kamals capital                                             Cr

 25000

12000

 

 

37000

Dec 1

 

Prepaid rent                                                        Dr

Cash                                                                    Cr

 10000 

10000

Dec 1

 

Prepaid insurance                                               Dr

Cash                                                                    Cr

 4200

 

 

4200

Dec 2

 

Office supplies                                                   Dr

Accounts payable                                               Cr

 400 

400

Dec 8Cash                                                                   Dr

Legal fecs earned                                               Cr

 2500 

2500

Dec 12

 

Accounts payable                                               Dr

Cash                                                                    Cr

 400 

400

Dec 15

 

Accounts recivable                                             Dr

Legal fecs earned                                               Cr

 8500 

8500

Dec 22

 

Accounts recivable                                             Dr

Legal fecs earned                                                Cr

 7500 

7500

Dec 25Cash                                                                    Dr

Accounts recivable                                             Cr

 8500 

8500

Dec 27

 

Withdrawal                                                         Dr

Cash                                                                    Cr

 150 

150

Dec 29Office supplies                                                   Dr

Accounts payable                                               Cr

 450 

450

Dec 31Telephone expense                                            Dr

Cash                                                                   Cr

 250 

250

Dec 31Salaries expense                                                 Dr

Cash                                                                    Cr

 9500 

9500

Dec 31Rent expense (10000/2 )                                    Dr

Prepaid rent                                                        Cr

 5000 

5000

Dec 31Insurance expense (4200/12)                             Dr

Prepaid insurance                                               Cr

 350 

350

Dec 31Office supplies expense                                     Dr

Office supplies                                                   Cr

 300 

300

  

PART III

Naznin Law Associate’s General ledger

December 31st,2008

Cash

Dr                                                                                                                                      Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

 Dec 1

Dec 8

Dec 25

2009

Jan 1

Owners capital

Legal fee earned

Accounts recivable

Balance b\d

25000

2500

8500

_________

36000

__________

11500

2008

 Dec 1

Dec 1

Dec 12

Dec 27 Dec 31

Dec 31 Dec 31

 

Prepaid rent

Prepaid insurance

Accounts payable

Withdrawl

Telephone exp

Salaries exp

Balance c\d

10000

4200

40

150

250

9500

11500

___________

36000

___________

 

                                     Accounts Receivable

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 15

Dec 22

2009

Jan 1

Legal fee earned

Legal fee earned

 

Balance b\d

8500

7500

16000

     7500

2008

Dec 25

Dec 31

Cash

Balance c\d

8500

7500

     16000

 

                                                   Salaries expense

Dr.                                                                                                                                   Cr

Date

Particulars

Tk

Date

Particulars

Tk.

2008

Dec 31

2009

Jan 1

Cash

Balance b\d

9500

_________

9500

2008

Dec 31

Balance c\d

9500

—————

                                                    Law library

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 1

2009

Jan 1

Capital

Balance b\d

 

    12000

_________

12000

 

2008

Dec 31

Balance c\d

12000

__________

 

                                                  Advocate Naznin’s capital

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 1

Dec 1

2009

Jan 1

Cash

Law library

Balance b\d

25000

12000

37000

_________

37000

2008

Dec 31

Balance c\d

37000

 

__________

                                                  Legal Fees Earned

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 31

Balance c\d

18500

 

 

________

 

2008

Dec 8

Dec 15

Dec 15

2009

Jan 1

Cash

Accounts recivable

Accounts recivable

     Balance b\d

2500

8500

7500

18500

18500

                                                  Prepaid Insurance

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008 Dec 1

2009

Jan 1

Cash

Balance b\d

  4200

_________

_________

3850

2008

Dec 31

Dec 31

Insurance exp

Balance c\d

350

3850

4200

__________

                                                   Office Supplies

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 2

Dec 29

2009

Jan 1

A\C payable

A\C payable

Balance b\d

400

450

————-

850

————-

————-

550

2008

Dec 31

Dec 31

Office supplies

Balance c\d

300

550

—————

850

—————

—————

                                                   Prepaid rent

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 1

2009

Jan 1

Cash

Balance b\d

10,000

————-

10,000

————————–

5,000

2008

Dec 31

Dec 31

Rent expense

Balance c\d

5000

5000

—————10,000

—————

—————

                                                  Accounts payable

 Dr                                                                                                                                      Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 12

Dec 31

Cash

Balance c\d

400

450

850

————————–

2008

Dec 2

Dec 20

2009

Jan 1

Office supplies

Office supplies

Balance b\d

400

450

850

——————————

450

                                                  Insurance expense

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 31

2009

Jan 1

Prepaid insurance

Balance b\d

350

_________

 

350

2008

Dec 31

Balance c\d

350

__________

                                                  Advocate Naznin’s Withdrawl

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 27

2009

Jan 1

Cash

Balance b\d

150

————————–

150

2008

Dec 31

Balance c\d

150

——————————

                                                         Rent expense

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 27

2009

Jan 1

Prepaid expense

Balance c\d

5000

_________

5000

2008

Dec 31

Balance c\d

5000

——————————

Office expense

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 31

2009

Jan 1

Office supplies

Balance c\d

300

________

300

2008

Dec 31

Balance c\d

300

__________

                                                   Telephone expense

Dr                                                                                                                                       Cr

Date

Particulars

Tk

Date

Particulars

Tk

2008

Dec 31

2009

Jan 1

Cash

Balance c\d

250

250

2008

Dec 31

Balance c\d

250

 

PART IV

Advocate Naznin’s Law Associates

Trial Balance ,December 31st, 2008

Dr                                                                                                                                Cr

Particulars

Debit

Credit

Cash

A\c recivable

Prepaid rent

Prepaid insurance

Office supplies

Law library

A\c payable

Dr. kamal capital

Dr. kamal withdrawl

Legal fees earned

Rent expense

Salaries exp

Telephone exp

Insurance exp

office exp

11500

7500

5000

3850

550

12000

150

5000

9500

250

350

300

55950

450

37000

18500

55950

                          PART V

Naznin Law Associates

 Income statement

For month ended 31st December, 2008

Revenue

Legal fees earned                                                        18500

Operating expenses

Rent expenses                                                               5000

Salaries exp                                                                   9500

Telephone exp                                                               250

Insurance exp                                                                350

Office supplies exp                                                       300         15400

    Net income                                                                                 3100 

                                   PART VI

Statement of Owner’s Equity

Particulars

Tk

Capital on Dec-1                                                             37,000

(-) drawrings                                                                       150

                                                                                        36,850

(+) net income                                                                  3100

capital on December 31st 2008

39,950

     ________

________

PART VII

Naznin Law Associate’s 

Balance sheet  for the year ended 31st December 2008

_____________________________________________________________

Assets                                                                  Liabilities

Cash                                            11500               A\C Payable                       450

A\C Recivable                               7500               Owners equity capital     39950

Prepaid Rent                                  5000                                                        ______

Prepaid Insurance                          3850              Total Liabilities                 40400

Office supplies                                550                                                      _________

Law Library                                12000                                                      _________

Total Assets                                40400

Conclusion

So Nazneen Law Associates  tends to go for accounting terms which are simple and easily understandable. It transforms the accounting equation in a very vivid manner. The firm confronts of small transactions which are easily transparent and clarified in a very simplified manner. The basic infrastructure of the calculations followed are mostly very common. The whole format is a traditional one where all the inflows and outflows of cash transactions are done on the basis of what the firm consists.