Q. Aruna, decided to Start business Of fashion garments under the name Of M/s. Degigner Wear. She had a saving Of about Rs. 10,00,000. She invested Rs. 3,00,000 out of her savings and borrowed equal amount from State Bank of India. She purchased a commercial space oi 500 sq. feet for Rs. 5,00,000. The space was renovated to make it ready for the business. Balance of Rs. 1,00,000 was used for repair and painting af the space. Total amount of bank loan is to be repaid in 20 quarterly instalment. beginning 30th June, 2016. Annual Rate Of Interest is 12%.
Bank loan and interest repaid in the first year are as follows:
June 30, 2016 = (Rs. 15,000 + Rs. 9,000) interest)
Sept. 30, 2016 = (Rs. 15,000 + Rs. 8,550) interest)
Dec. 31, 2016 = (Rs. 15,000 + Rs. 8,100) interest)
March 31, 2017 = (Rs. 15,000 + Rs. 7,650) interest)
She started business on 1st April. 2016. In view of further capital requirement She transferred Rs. 1,00,000 from her Savings to the Bank Account to the Bank Acoount Of the business. She paid Security Deposit of Rs. 5,000 for the connection with BSES Rajdhani Power Ltd and Rs. 2,000 to MTNL for telephone connection. Furniture for Rs. 10,000 was purchased.
All payments were be made by cheque. All the receipts were in cash to be deposited in the bank on the same day. At the end of the year, their results showed the following:
Rs. | |
Total Sales | 20,00,000 |
Total Purchases | 17,00,000 |
Electricity Expenses | 40,000 |
Telephone Charges | 50,000 |
Cartage Outwards | 60,000 |
Travelling Expenses | 45,000 |
Entertainment Expenses | 5,000 |
Maintainance Expenses | 25,000 |
Miscellaneous Expenses | 15,000 |
Electricity Expenses Payable | 20,000 |
She withdrew Rs. 5,000 by cheque each month for her personal expenses.
Bank loan was serviced and instalments were paid regularly.
1. Journalise the above post into the prepare the Trial Balance.
2. Prepare the Profit and Loss Account and Balance Sheet. Charge depreciation @ 5% on Building and 10% on Furniture. Closing Stock at the end of the year was Rs. 5,50,000.
3. Prepare a Bar Diagram and/or Pie Charts showing the expenses.
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This is a complete project based question, so we request you to kindly attempt it from your end first and let us know the specific queries;
This would help you in building the understanding from base and give you a deeper insight;
Looking forward to hear from you soon;
Regards,