The document is a term report submitted by three students to their professor at IoBM. It contains information about AAH Automobile, including company details, creation of customers, vendors, employees and inventory. It also lists various transactions from January to December, such as purchases, sales, payments received and made. Finally, it includes a chart of accounts, general ledger, trial balance and other financial statements.

1. AAH AUTOMOBILE
2012
ACCOUNTING AND
FINANCIAL
INFORMATION SYSTEM
TERM REPORT ON THE
AUTOMOBILE INDUSTRY
SUBMITTED TO: Ma’am SAMINA RIAZ
SUBMITTED BY: AAKASH KUMAR (11723)
HUZAIFA FAROOQ (11275)
ARMOGHAN MOIN (13352)
AAH AUTOMOBILE

2. 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

3. AAH AUTOMOBILE
1
LETTER OF ACKNOWLEDGMENT
24th
April, 2012
Samina Riaz
Faculty of Finance and Accounting
IoBM
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)

4. AAH AUTOMOBILE
2
Company Information
Company 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
Data Entering Date: 1 January 2011

5. AAH AUTOMOBILE
3
Payments: Habib Bank limited
Receipts: Habib Bank limited

6. AAH AUTOMOBILE
4
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 Mujtaba
Telephone 4946030 6476901 5664832 5775441 2490123
Terms Due in 30
days
Due 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

7. AAH AUTOMOBILE
5
Create Vendors
Vendor ID 101 102 103 104
Vendor Pioneer BMW Mercedes Toyota
Address line Karachi
Pakistan
Lahore
Pakistan
Islamabad
Pakistan
Peshawar
Pakistan
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

8. AAH AUTOMOBILE
6
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

9. AAH AUTOMOBILE
7
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
Stockin
g 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
Reorder
Qty
25 25 25 25 25 25 25 25

10. AAH AUTOMOBILE
8
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.
4: Accrued expense paid Rs 88000 by bank account.
5: Assembled 20 ABC cars.

11. AAH AUTOMOBILE
9
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.

12. AAH AUTOMOBILE
10
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.

13. AAH AUTOMOBILE
11
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.

14. AAH AUTOMOBILE
12
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.

15. AAH AUTOMOBILE
13
CHART OF ACCOUNTS
Account ID
Account
Description Active? Account Type
1 cash Yes Cash
2 bank Yes Cash
3
prepaid
expenses Yes
Other Current
Assets
4 Land Yes Fixed Assets
5 building Yes Fixed Assets
6
machinery &
equipment Yes Fixed Assets
7 depreciation Yes Expenses
8 acc.depreciation Yes
Accumulated
Depreciation
9 inventory Yes Inventory
10
accounts
receivable Yes
Accounts
Receivable
11
accounts
payable Yes
Accounts
Payable
12
income tax
payable Yes
Other Current
Liabilities
13 accrued expense Yes
Other Current
Liabilities
14 long term loan Yes
Long Term
Liabilities
15 office supplies Yes
Other Current
Assets

16. AAH AUTOMOBILE
14
Account ID
Account
Description Active? Account Type
16
Maintenance
expense Yes Expenses
17
purchase
discount Yes Expenses
18 sales Yes Income
19 freight expense Yes Expenses
20 purchase return Yes Expenses
21 sales return Yes Income
22 sales discount Yes Income
23 retained earning Yes
Equity-Retained
Earnings
24 COGS Yes Cost of Sales
25 DRAWINGS Yes
Equity-gets
closed
26 Armo CAPITAL Yes
Equity-gets
closed
27 sales tax payable Yes
Other Current
Liabilities
28
advertising
expense Yes Expenses
29
operating
expenses Yes Expenses
30
prepaid
insurance Yes
Other Current
Assets
31 Huz Capital Yes Equity gets closed

17. AAH AUTOMOBILE
15
32 Aakash Capital Yes Equity gets closed
Sales Tax Authority
ID: - ST-01
Tax rate: - 18%
Tax payable to: - FBR
Sales tax code: - 1
Freight charges: - 5% of sales.

18. AAH AUTOMOBILE
16
General Ledger
Account ID Account Description Date Reference Jrnl Trans Description Debit Amt Credit Amt Balance
01 CASH 12/1/12 Beginning Balance -60,200.00
12/31/12 Ending Balance -60,200.00
02 CASH AT BANK 12/1/12 Beginning Balance 711,049,690.50
02 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 710,699,690.50
03 PREPAID EXPENSES 12/1/12 Beginning Balance 48,000.00
12/31/12 Ending Balance 48,000.00
04 LAND 12/1/12 Beginning Balance 30,000,000.00
12/31/12 Ending Balance 30,000,000.00
05
BUILDING &
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 -200,000.00
15 LONG TERM LOAN 12/1/12 GENJ 200,000.00

19. AAH AUTOMOBILE
17
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
17
MAINTENENCE
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
-
1,654,214,285.70
21 FREIGHT EXPENSE 12/1/12 Beginning Balance -60,853,000.00
12/31/12 Ending Balance -60,853,000.00
23 C.O.G.S 12/1/12 Beginning Balance 1,054,845,000.00
12/31/12 Ending Balance 1,054,845,000.00
24 ARMOO CAP 12/1/12 Beginning Balance -120,000.00
12/31/12 Ending Balance -120,000.00
25 HUZ CAP 12/1/12 Beginning Balance -120,000.00
12/31/12 Ending Balance -120,000.00
27 DRAWING 12/1/12 Beginning Balance
27 DRAWING 12/1/12 GENJ 50,000.00
27 DRAWING
Current Period
Change 50,000.00 50,000.00
12/31/12 Ending Balance 50,000.00
28 SALES TAX 12/1/12 Beginning Balance -308,712,111.43
12/31/12 Ending Balance -308,712,111.43
29 TOOLS 12/1/12 Beginning Balance 12,200.00
12/31/12 Ending Balance 12,200.00
30 SALARIES EXP 12/1/12 Beginning Balance 2,035,000.00
30 SALARIES EXP 12/1/12 GENJ 100,000.00
30 SALARIES EXP
Current Period
Change 100,000.00 100,000.00
12/31/12 Ending Balance 2,135,000.00

20. AAH AUTOMOBILE
18
General Ledger Trial Balance
Account ID Account Description Debit Amt Credit Amt
01 CASH 60,200.00
02 CASH AT BANK 710,699,690.50
03 PREPAID EXPENSES 48,000.00
04 LAND 30,000,000.00
05
BUILDING &
MACHIENRY 57,000.00
06 COMPUTER 50,000.00
07 EQUIPMENT 50,000.00
08 DEPRECIATION 20,000.00
09 ACC DEP 20,000.00
10 INVENTORY 498,105,000.00
11 ACCOUNT RECIVABLE 432,419.13
12 ACCOUNT PAYABLE 269,650,000.00
14 ACCRUED EXPENSE 88,000.00
16 OFFICE SUPPLIES 40,000.00
17
MAINTENENCE
EXPENSE 142,000.00
18 PURCHASE DISCOUNT 27,412,500.00
19 SALE DISCOUNT 24,387,787.50
20 SALE 1,654,214,285.70
21 FREIGHT EXPENSE 60,853,000.00
23 C.O.G.S 1,054,845,000.00
24 ARMOO CAP 120,000.00
25 HUZ CAP 120,000.00
27 DRAWING 50,000.00
28 SALES TAX 308,712,111.43
29 TOOLS 12,200.00
30 SALARIES EXP 2,135,000.00
Total: 2,321,162,097.13 2,321,162,097.13

21. AAH AUTOMOBILE
19
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
Total Assets $ 1,239,414,109.63

22. AAH AUTOMOBILE
20
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

23. AAH AUTOMOBILE
21
Income Statement
Current
Month Year to Date
Revenues
SALE DISCOUNT
$
0.00 0.00
($
24,387,787.50) (1.50)
SALE 0.00 0.00
1,654,214,285.7
0 101.50
Total Revenues 0.00 0.00
1,629,826,498.2
0 100.00
Cost of Sales
C.O.G.S 0.00 0.00
1,054,845,000.0
0 64.72
Total Cost of Sales 0.00 0.00
1,054,845,000.0
0 64.72
Gross Profit 0.00 0.00 574,981,498.20 35.28
Expenses
DEPRECIATION 0.00 0.00 20,000.00 0.00
MAINTENENCE
EXPENSE 0.00 0.00 142,000.00 0.01
PURCHASE
DISCOUNT 0.00 0.00 (27,412,500.00) (1.68)
FREIGHT EXPENSE 0.00 0.00 (60,853,000.00) (3.73)
SALARIES EXP 100,000.00 0.00 2,135,000.00 0.13
Total Expenses 100,000.00 0.00 (85,968,500.00) (5.27)
Net Income
($
100,000.00) 0.00
$
660,949,998.20 40.55

24. AAH AUTOMOBILE
22
Statement of Retained Earnings
Beginning Retained Earnings $ 0.00
Adjustments To Date 0.00
Net Income 660,969,998.20
Subtotal 660,969,998.20
ARMOO CAP 120,000.00
HUZ CAP 120,000.00
AAKASH CAP 0.00
DRAWING (50,000.00)
Ending Retained Earnings $ 661,159,998.20

25. AAH AUTOMOBILE
23
Aged Payables
Vendor
ID Vendor Contact
Telephone
1
Invoice/CM
# 0 - 30 31 - 60
61 -
90
Over 90
days Amount Due
V-102 BMW 14 269,620,000.00 269,620,000.00
V-102 BMW 269,620,000.00 269,620,000.00
Report
Total 269,620,000.00 269,620,000.00

26. AAH AUTOMOBILE
24
Assembly List
Item ID Item Description
Component
ID
Component
Description
Qty
Needed
10 ABC2 1 WINDOW 1.00
10 ABC2 2 ENGINE 1.00
10 ABC2 3 LIGHTS 1.00
10 ABC2 4 BONNET 1.00
10 ABC2 5 INTERIOR 1.00
10 ABC2 6 SOUND 2.00
10 ABC2 7 TYRE 1.00
10 ABC2 8 CAR DOORS 1.00
9 ABC 1 WINDOW 1.00
9 ABC 2 ENGINE 1.00
9 ABC 3 LIGHTS 1.00
9 ABC 4 BONNET 1.00
9 ABC 5 INTERIOR 1.00
9 ABC 6 SOUND 1.00
9 ABC 7 TYRE 1.00
9 ABC 8 CAR DOORS 1.00

27. AAH AUTOMOBILE
25
Inventory Stock Status Report
Item ID Item Description
Item
Class
Stocking
U/M
Qty on
Hand
Min
Stock
Reorder
Qty
1 WINDOW Stock item 5.00 15.00 25.00
10 ABC2 Assembly 5.00
2 ENGINE Stock item 5.00 15.00 25.00
3 LIGHTS Stock item 5.00 15.00 25.00
4 BONNET Stock item 5.00 15.00 25.00
5 INTERIOR Stock item 5.00 15.00 25.00
6 SOUND Stock item 15.00 25.00
7 TYRE Stock item 5.00 15.00 25.00
8 CAR DOORS Stock item 5.00 15.00 25.00
9 ABC Assembly 45.00

28. AAH AUTOMOBILE
26
Aged Receivables
Customer ID Customer
Invoice/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

29. AAH AUTOMOBILE
27
General Journal
Date Account ID Reference Trans Description Debit Amt Credit Amt
12/1/12 30 100,000.00
12/1/12 02 100,000.00
12/1/12 27 50,000.00
12/1/12 02 50,000.00
12/1/12 15 200,000.00
12/1/12 02 200,000.00
Total 350,000.00 350,000.00