Question

After the graduation, Mollic started a business of footwear named "Style Wear" Her Father
gave 37,60,000 as capital in gift. She also took a loan of 4,00,000 on 01.04.18 from Axis
Bank al an interest rate of 10% p.a. She purchased a shop for 33,30,000 in a Shopping Mall
and started her business from 1April, 2018. She deposited 5,000 for electricity connection
with TPDDL Ltd. and 10,000 as a security for the shop in the mall. On the same date, she
made some purchases as follows:
(1) Furniture 80,000 (by Cash)
(ii) Goods (footwear) 1,20,000 (by Cash)
On 19 May, 2018, she transferred her Savings Account Balance of 1,20,000 into Current
Account in the name of "Style Wear" and treated this amount as an additional capital. On
the same date, she also appointed Raju and Rahim as salesmen at the salary of 8,000p.m.
cach. She paid * 22,000 on 14 May to Mahima Interiors for furnishing her showroom All
the payments were made by cheque, except wages, freight and cartage. All the receipts were
in cash and were deposited in the bank on the same day.
The summery of transactions which took place during the year are as under.
Information
Amt (9
Cash Sales
15,70,000
Credit Sales
3,30,000
Cash Purchases
7.10.000
Credit Purchases
60,000
Wages Pald
15.000
Electricity Expenses Pald
70,000
Telephone Expenses
55,000
Freight and Cartage
22,000
Scanned with CamScanner
30.000
11.000
1,000
13,000
charged
Advertisement Expenses
Miscellaneous Expenses
Telephone Expenses Outstanding
Electricity Expenses due but not Paid
She withdraw 25,000 p.m. by cheque for her personal expenses. Depreciation was
@5% p.a. on shop and < 19,000 on furniture. Closing stock was valued at 71,75,000
You are required to:
(1) Journalise the above transactions. Post them into Ledger and prepare a Trial Balance
as at 31st March, 2019,
(ii) Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019
and a Balance Sheet as at 31 March, 2019.
(iii) Calculate Profitability Ratios (Gross Profit Ratio, Net Profit Ratio and Return on
Capital Employed) to assess the profitability of the business.
(iv) Determine the short-term and long-term solvency position of the firm with the
help of following ratios: (1) Current Ratio; (ii) Quick Ratio; (iii) Debt Equity Ratio;
(iv) Proprietary Ratio.​

Answer 1

Answer:

944554580 is the answer