The following trial balance for the year ended 30 June, 2019 was extracted from the accounting record of Ashar Construction Company: Particular Debit Credit Cash Account Rs. 228,000 Equipment and Machinery 265,600 Accounts receivable 101,100 Supplie

To complete your request for the Ashar Construction Company, we will follow these steps:

1. **Prepare Adjusting Journal Entries**
2. **Create a Schedule for the Unadjusted Trial Balance, Adjustments, and Adjusted Trial Balance**
3. **Prepare Financial Statements**

### a) Adjusting Journal Entries

1. **Depreciation on Equipment and Machinery and Motor Vehicle**
   - Equipment and machinery depreciation = Rs. 265,600 * 10% = Rs. 26,560
   - Motor vehicle depreciation = Rs. 260,000 * 10% = Rs. 26,000
   - **Entry:**
     - Debit: Depreciation Expense (Equipment and Machinery) Rs. 26,560
     - Debit: Depreciation Expense (Motor Vehicle) Rs. 26,000
     - Credit: Accumulated Depreciation Rs. 52,560

2. **Supplies Adjustment**
   - Supplies used = Initial Supplies - Remaining Supplies = Rs. 10,000 - Rs. 6,400 = Rs. 3,600
   - **Entry:**
     - Debit: Supplies Expense Rs. 3,600
     - Credit: Supplies Rs. 3,600

3. **Construction Fee Adjustment**
   - Services not rendered = Rs. 20,000
   - **Entry:**
     - Debit: Construction Fee Rs. 20,000
     - Credit: Unearned Revenue Rs. 20,000

4. **Outstanding Wages**
   - **Entry:**
     - Debit: Wages Expense Rs. 15,000
     - Credit: Accrued Wages Payable Rs. 15,000

5. **Prepaid Rent**
   - Rent related to future periods = Rs. 4,000
   - **Entry:**
     - Debit: Prepaid Rent Rs. 4,000
     - Credit: Rent Expense Rs. 4,000

### b) Schedule Showing Unadjusted Trial Balance, Adjustments, and Adjusted Trial Balance

#### Unadjusted Trial Balance
| Particulars                     | Debit (Rs.) | Credit (Rs.) |
|---------------------------------|-------------|--------------|
| Cash Account                     | 228,000     |              |
| Equipment and Machinery          | 265,600     |              |
| Accounts Receivable              | 101,100     |              |
| Supplies                         | 10,000      |              |
| Accounts Payable                 |             | 18,000       |
| Capital Account                  |             | 650,000      |
| Drawings Accounts                | 25,000      |              |
| Construction Fee                 | 320,000     |              |
| Wages Expenses                   | 45,000      |              |
| Interest Expenses                | 6,000       |              |
| Rent Expenses                    | 24,000      |              |
| Property Tax                     | 8,500       |              |
| Repair and Maintenance Expenses   | 6,500       |              |
| Utilities Expenses               | 8,300       |              |
| Motor Vehicle                    | 260,000     |              |
| **Total**                       | **988,000** | **988,000**  |

#### Adjustments
| Particulars                     | Debit (Rs.) | Credit (Rs.) |
|---------------------------------|-------------|--------------|
| Depreciation Expense (Mach)     | 26,560      |              |
| Depreciation Expense (Vehicle)   | 26,000      |              |
| Supplies Expense                 | 3,600       |              |
| Unearned Revenue                  |             | 20,000       |
| Wages Expense                    | 15,000      |              |
| Accrued Wages Payable           |             | 15,000       |
| Prepaid Rent                    | 4,000       |              |
| Rent Expense                     |             | 4,000        |

**Adjusted Trial Balance**
| Particulars                     | Debit (Rs.) | Credit (Rs.) |
|---------------------------------|-------------|--------------|
| Cash Account                     | 228,000     |              |
| Equipment and Machinery          | 265,600     |              |
| Accounts Receivable              | 101,100     |              |
| Supplies                         | 6,400       |              |
| Accounts Payable                 |             | 18,000       |
| Capital Account                  |             | 650,000      |
| Drawings Accounts                | 25,000      |              |
| Construction Fee                 | 300,000     |              |
| Wages Expenses                   | 60,000      |              |
| Interest Expenses                | 6,000       |              |
| Rent Expenses                    | 20,000      |              |
| Property Tax                     | 8,500       |              |
| Repair and Maintenance Expenses   | 6,500       |              |
| Utilities Expenses               | 8,300       |              |
| Motor Vehicle                    | 260,000     |              |
| Prepaid Rent                    | 4,000       |              |
| Accrued Wages Payable           |             | 15,000       |
| Unearned Revenue                 |             | 20,000       |
| **Total**                       | **1,040,000** | **1,040,000** |

### c) Prepare Financial Statements

#### 1. Income Statement for the Year Ended 30 June 2019

| Particulars                     | Amount (Rs.) |
|---------------------------------|---------------|
| Revenue                         |               |
| Construction Fee (adjusted)    | 300,000       |
| Less: Expenses                  |               |
| Wages Expenses                  | 60,000        |
| Rent Expenses                   | 20,000        |
| Utilities Expenses              | 8,300         |
| Interest Expenses               | 6,000         |
| Property Tax                    | 8,500         |
| Depreciation Expense            | 52,560        |
| Repair and Maintenance Expenses   | 6,500         |
| Supplies Expense                | 3,600         |
| **Total Expenses**              | **165,460**   |
| **Net Income**                  | **134,540**   |

#### 2. Statement of Changes in Equity

| Particulars                     | Amount (Rs.) |
|---------------------------------|---------------|
| Balance at beginning             | 650,000       |
| Add: Net Income                  | 134,540       |
| Less: Drawings                  | 25,000        |
| **Balance at end**              | **759,540**   |

#### 3. Balance Sheet as at 30 June 2019

| Assets                         | Amount (Rs.) |
|--------------------------------|---------------|
| **Current Assets**             |               |
| Cash Account                   | 228,000       |
| Accounts Receivable            | 101,100       |
| Supplies                       | 6,400         |
| Prepaid Rent                   | 4,000         |
| **Non-Current Assets**         |               |
| Equipment & Machinery          | 265,600       |
| Motor Vehicle                  | 260,000       |
| **Total Assets**               | **865,100**   |

| Liabilities                    | Amount (Rs.) |
|--------------------------------|---------------|
| **Current Liabilities**        |               |
| Accounts Payable               | 18,000        |
| Accrued Wages Payable          | 15,000        |
| Unearned Revenue               | 20,000        |
| **Total Liabilities**          | **53,000**    |

| Equity                         | Amount (Rs.) |
|--------------------------------|---------------|
| Capital Account                | 650,000       |
| Add: Current Period Earnings    | 134,540       |
| Less: Drawings                 | 25,000        |
| **Total Equity**              | **759,540**   |

**Total Liabilities and Equity** = **812,540**

### 4. Cash Flows Statement

Assuming direct method for simplicity.

| Cash Flows from Operating Activities                           | Amount (Rs.)  |
|--------------------------------------------------------------|----------------|
| Receipts from Customers (Construction Fees)                  | 320,000        |
| Payments to Suppliers (Wages, Rent, Utilities, etc.)        | (143,800)      |
| **Net Cash from Operating Activities**                        | **176,200**    |

| Cash Flows from Investing Activities                           | Amount (Rs.)  |
|--------------------------------------------------------------|----------------|
| Purchase of Equipment and Machinery (not provided)           | -              |
| **Net Cash from Investing Activities**                        | **0**          |

| Cash Flows from Financing Activities                           | Amount (Rs.)  |
|--------------------------------------------------------------|----------------|
| Capital Contributions (not provided)                          | -              |
| Drawings                                                     | (25,000)       |
| **Net Cash from Financing Activities**                        | **(25,000)**   |

| **Net Increase in Cash**                                     | **151,200**    |
| Opening Cash Balance                                          | 228,000        |
| **Closing Cash Balance**                                     | **379,200**    |

### Conclusion

All financial statements have been prepared based on the information and adjustments provided for Ashar Construction Company for the year ended June 30, 2019. Please review the financial statements and ensure they meet your requirements, or let me know if additional modifications are needed.

Update (2024-10-05):
Let's work through the adjustments required based on the information provided, then compile the trial balance and financial statements as requested.

### a) Adjusting Accounting Entries

The required adjusting entries based on the information provided are as follows:

1. **Depreciation on Equipment and Machinery (10% of Rs. 265,600)**:
   - Depreciation expense: Rs. 26,560
   - Credit: Accumulated depreciation: Rs. 26,560
   
   **Journal Entry**:
   ```
   Dr. Depreciation Expense Rs. 26,560
   Cr. Accumulated Depreciation - Equipment and Machinery Rs. 26,560
   ```

   **Depreciation on Motor Vehicle (10% of Rs. 260,000)**:
   - Depreciation expense: Rs. 26,000
   
   **Journal Entry**:
   ```
   Dr. Depreciation Expense Rs. 26,000
   Cr. Accumulated Depreciation - Motor Vehicle Rs. 26,000
   ```

2. **Adjust Supplies**:
   - Supplies on hand: Rs. 6,400
   - Supplies used: (Rs. 10,000 - Rs. 6,400) = Rs. 3,600
   
   **Journal Entry**:
   ```
   Dr. Supplies Expense Rs. 3,600
   Cr. Supplies Rs. 3,600
   ```

3. **Construction Fee Adjustment**:
   - Services not rendered: Rs. 20,000 to be deducted from income.
   
   **Journal Entry**:
   ```
   Dr. Unearned Revenue Rs. 20,000
   Cr. Construction Fee Rs. 20,000
   ```

4. **Outstanding Wages**:
   - Wages payable: Rs. 15,000
   
   **Journal Entry**:
   ```
   Dr. Wages Expense Rs. 15,000
   Cr. Wages Payable Rs. 15,000
   ```

5. **Adjust Rent Expense**:
   - Rent expense associated with future periods: Rs. 4,000
   
   **Journal Entry**:
   ```
   Dr. Rent Expense Rs. 4,000
   Cr. Prepaid Rent Rs. 4,000
   ```

### b) Schedule of Unadjusted and Adjusted Trial Balance

1. **Unadjusted Trial Balance** (as provided):
   ```
   | Particulars                      | Debit      | Credit      |
   |----------------------------------|------------|-------------|
   | Cash Account                     | 228,000    |             |
   | Equipment and Machinery          | 265,600    |             |
   | Accounts receivable              | 101,100    |             |
   | Supplies                         | 10,000     |             |
   | Accounts Payable                 |            | 18,000      |
   | Capital Account                  |            | 650,000     |
   | Drawings Accounts                | 25,000     |             |
   | Construction Fee                 | 320,000    |             |
   | Wages Expenses                   | 45,000     |             |
   | Interest Expenses                 | 6,000      |             |
   | Rent Expenses                    | 24,000     |             |
   | Property Tax                     | 8,500      |             |
   | Repair and Maintenance Expenses   | 6,500      |             |
   | Utilities Expenses               | 8,300      |             |
   | Motor Vehicle                    | 260,000    |             |
   | Total                            | 988,000    | 988,000     |
   ```

2. **Adjustments**:
   - Depreciation Expense: Total Rs. 52,560 (Rs. 26,560 + Rs. 26,000)
   - Supplies Expense: Rs. 3,600
   - Unearned Revenue: Rs. 20,000
   - Wages Payable: Rs. 15,000
   - Prepaid Rent: Rs. 4,000

3. **Adjusted Trial Balance**:
   ```
   | Particulars                      | Adjusted Debit | Adjusted Credit |
   |----------------------------------|-----------------|-----------------|
   | Cash Account                     | 228,000         |                 |
   | Equipment and Machinery          | 265,600         |                 |
   | Accounts receivable              | 101,100         |                 |
   | Supplies                         | 6,400           |                 |
   | Accounts Payable                 |                 | 18,000          |
   | Capital Account                  |                 | 650,000         |
   | Drawings Accounts                | 25,000          |                 |
   | Construction Fee                 | 300,000         |                 |
   | Wages Expenses                   | 60,000          |                 |
   | Interest Expenses                 | 6,000           |                 |
   | Rent Expenses                    | 20,000          |                 |
   | Property Tax                     | 8,500           |                 |
   | Repair and Maintenance Expenses   | 6,500           |                 |
   | Utilities Expenses               | 8,300           |                 |
   | Motor Vehicle                    | 260,000         |                 |
   | Prepaid Rent                     | 4,000           |                 |
   | Wages Payable                   |                 | 15,000          |
   | Total                            | 1,009,400       | 1,009,400       |
   ```

### c) Financial Statements

1. **Income Statement**:
   ```
   Ashar Construction Company
   Income Statement for the Year Ended 30 June 2019

   Revenue:
   Construction Fees                             Rs. 300,000
   Total Revenue                                 Rs. 300,000

   Expenses:
   Wages Expenses                                 Rs. 60,000
   Interest Expenses                              Rs. 6,000
   Rent Expenses                                 Rs. 20,000
   Property Tax                                   Rs. 8,500
   Repair and Maintenance Expenses                 Rs. 6,500
   Utilities Expenses                              Rs. 8,300
   Depreciation Expense - Equipment                Rs. 26,560
   Depreciation Expense - Motor Vehicle            Rs. 26,000
   Supplies Expense                                Rs. 3,600
   Total Expenses                                 Rs. 1,20,460

   Net Income                                   Rs. 179,540
   ```

2. **Statement of Change in Equity**:
   ```
   Ashar Construction Company
   Statement of Changes in Equity for the Year Ended 30 June 2019

   Opening Capital                             Rs. 650,000
   Add: Net Income                             Rs. 179,540
   Less: Drawings                              Rs. 25,000
   Closing Capital                             Rs. 804,540
   ```

3. **Balance Sheet**:
   ```
   Ashar Construction Company
   Balance Sheet as at 30 June 2019

   ASSETS
   Current Assets:
   Cash Account                                 Rs. 228,000
   Accounts Receivable                          Rs. 101,100
   Supplies                                    Rs. 6,400
   Total Current Assets                        Rs. 335,500

   Non-Current Assets:
   Equipment and Machinery                   Rs. 265,600
   Less: Accumulated Depreciation - Equipment   Rs. 26,560
   Motor Vehicle                             Rs. 260,000
   Less: Accumulated Depreciation - Vehicle     Rs. 26,000
   Total Non-Current Assets                   Rs. 473,040

   Total Assets                               Rs. 808,540

   LIABILITIES
   Current Liabilities:
   Accounts Payable                           Rs. 18,000
   Wages Payable                               Rs. 15,000
   Prepaid Rent                               Rs. 4,000
   Total Current Liabilities                  Rs. 37,000

   Capital Account                             Rs. 804,540
   Total Liabilities & Equity                  Rs. 808,540
   ```

4. **Cash Flow Statement** (Indirect Method):
   ```
   Ashar Construction Company
   Cash Flow Statement for the Year Ended 30 June 2019

   Cash Flows from Operating Activities:
   Net Income                                         Rs. 179,540
   Adjustments for non-cash items:
   Add: Depreciation Expense                          Rs. 52,560
   Changes in working capital:
   (Increase) in Accounts Receivable                  Rs. (101,100)
   (Increase) in Supplies                               Rs. (3,600)
   Increase in Wages Payable                           Rs. 15,000
   (Increase) in Prepaid Rent                          Rs. (4,000)

   Net Cash from Operating Activities                   Rs. 138,400

   Cash Flows from Investing Activities:
   (Purchase of Equipment and Machinery)              Rs. (265,600)
   (Purchase of Motor Vehicle)                        Rs. (260,000)

   Net Cash from Investing Activities                   Rs. (525,600)

   Cash Flows from Financing Activities:
   Drawings                                           Rs. (25,000)

   Net Cash from Financing Activities                   Rs. (25,000)

   Net Increase (Decrease) in Cash                     Rs. (412,200)
   Cash at Beginning of Year                             Rs. 228,000
   Cash at End of Year                                 Rs. (184,200)
   ```

### Conclusion

The financial statements above show how the adjustments impact the overall financial position of Ashar Construction Company after the adjustments have been made. Please revise any calculations based on the context and examine how the financial results may reflect the company's operations accurately.