Ananya started a business of fashion jewellery on 1st April, 2018 under the name of "My
Style". She invested 5,00,000 as capital. She also took a loan of 2,00,000 from HDFC
Bank Ltd., payable in 10 half yearly instalments beginning from 30th September, 2018 at an
interest rate of 10% p.a.
The amount of loan and interest to be repaid in first year is as follows:
30th September, 2018 (20,000 + 10,000 interest)
31st March, 2019 (20,000 + 9,000 interest)
She took a shop at rent for her business at a monthly rent of * 7,000 p.m. She purchased
furniture for her shop at a cost of 80,000. She also deposited security with BSES and MTNL
for 10,000 and 6,000 respectively. All the payments and receipts during the year were
At the year end, the books of "My Style" showed the following:
made through bank (Except Capital).
Answers
Explanation:
Ananya started a business of fashion jewellery on 1st April,
2019 under the name of "My Style". She invested Rs
5,00,000 as capital. She also took a loan of Rs 2,00,000 from
HDFC Bank Ltd., payable in 10 half yearly instalments
beginning from 30th September, 2019 at an interest rate of
10% p.a.
The amount of loan and interest to be repaid in first year is
as follows:
30th September, 2019 (Rs 20,000+ Rs 10,000 interest)
31st March, 2020 (Rs 20,000+ Rs 9,000 interest)
She took a shop at rent for her business at a monthly rent
of Rs 7,000 p.m. She purchased furniture for her shop at a
cost of Rs 80,000. She also deposited security with BSES and
MTNL for Rs 10,000 and Rs 6,000 respectively. All the
payments and receipts during the year were made through
bank (Except Capital). At the year end, the books of "My
Style" showed the following:
Information Amt. (Rs)
Total Sales 12,80,000
Purchases:
Cash 4,12,300
Credit 2,10,000
Electricity Expenses:
Cash 24,000
Due but not paid 1,350
Telephone Expenses:
Cash 13,700
Due but not paid 2,100
Entertainment Expenses 2,340
Salaries 20,000
Miscellaneous Expenses 9,200
During the year, Ananya withdrew Rs 6,000 p.m. by cheque
for her personal use. Bank loan and interest on loan were
paid on the due dates.
1. Journalise the above transactions, post them into the
ledger and prepare Trial Balance after charging
depreciation on furniture @ 10% pa. Closing Stock was
valued at Rs 31,25,000
2 Prepare Trading and Profit and Loss Account for the year
ending 31" March, 2020 and a Balance Sheet on that date.
Explanation:
trading and profit loss account