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    Term Report

    Uploaded by

    Sumair Soho

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Term Report

    Uploaded by

    Sumair Soho
    13 views7 pages

    Copyright

    © © All Rights Reserved

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    DOCX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views7 pages

    Term Report

    Uploaded by

    Sumair Soho

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    INTRODUCTION OF COMPANY

    The “Soho Fisheries” is one of the leading fish company in the Sindh
    which deals in different kinds of fresh water fishes. The company is
    owned by two brothers of Soho family. Soho Fisheries has almost
    2000 acres of land where they grow fishes and then sell. The
    company only participates in the perfectly competitive market. The
    land where the operations are held of the company is situated in
    District Sujawal, Sindh. It is the leading distributor of fresh water
    fishes in the markets of Thatta, Hyderabad & Larkana. Soho Fisheries
    buy the baby fishes from the different parts of Pakistan such as
    Lahore, Gujranwala etc and then grow the fishes till ready to market.
    Recently, the company has started to produce the baby fishes of
    their own in order to cover their variable costs and maximize
    marginal profit. It offers the best quality of fresh water fishes and
    soon it will start exporting the fresh water fish outside the Pakistan.

    ACCOUNTING POLICY

    The company follows a FIFO(First In First Out) method for their


    business transactions. The reason is that Soho Fisheries is known for
    the big size of the fresh water fish, the average weight of their fish is
    4-5 KG and the company want all of its fishes to meet the average so
    the first baby fish in the pond must go out first so that the last baby
    fish should also get enough time to grow up much to meet the
    requirement.
    RECORDING THE TRANSACTION

    The company is well known and has an accountant who does all his
    work on excel sheet and uses the software named as “Quickbook” to
    record the general journal entries. Unfortunately the company did
    not allow us to see how that software works due to the terms and
    conditions of company but we are assuming it would look something
    like that:

    Rs

    Water Engine xxxxx

    Cash xxxxx

    ANALYSIS OF TRANSACTION

    Above stated transaction shows that the Soho Fisheries has bought a
    “Water Engine” used to drain out the water so the fishes can easily
    be caught by paying cash amount xxxxx. The terms and conditions of
    the company did not allow to disclose the amount. The “Water
    Engine” is a depreciable asset and therefore in case of increase it
    would be written on debit side whereas “Cash” is also asset
    therefore in case of decrease it would be written on credit side.
    LEDGER ACCOUNTS
    Rs

    Dr ENGINE MACHINE Cr

    Cash xxxxx Balance b/d xxxxx

    Balance c/d xxxxx

    Rs

    Dr CASH Cr

    Engine Machine xxxxx Balance b/d xxxxx

    Balance c/d xxxxx


    TRIAL BALANCE

    S.N PARTICULARS DEBIT CREDIT


    O
    Rs Rs
    1. Cash xxxxx
    2. Land xxxxx
    3. A/C Payables xxxxx
    4. A/C Receivables xxxxx
    5. Water Engine xxxxx
    6. Salaries Expense xxxxx

    ADJUSTED TRIAL BALANCE


    The format of Adjusted Trail Balance was same as of Unadjusted Trail
    Balance followed by adjusting entries which were done on software
    “Quickbook” and once again company did not allow us to see the
    format of their adjusting entries.
    BALANCE SHEET

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