Following are the transactions of business of Rohit for the year ending 31st March 2020 1/4/19 - Started business with cash Rs 5,00,000, building worth Rs 10,00,000; and Machinery
for Rs 3,00,000; stock of Rs 20,000. 2/4/19 - Rs 25,000 was paid installation of machinery
3/4/19 - Rohit acquired a bank loan of Rs 5,00,000 @ 10% p.a.
5/4/19 Goods were purchased for Rs 1,50,000 and paid through cheque. 6/5/19 Goods were sold to Chirag for Rs 3,50,000.
8/5/19 Goods of Rs 2,00,000 were purchased from Divya. 20/6/19 Received Rs 1,45,000 cheque from Chirag on account.
25/7/19 Paid Rs 1,50,000 on account to Divya.
26/7/19 Goods of Rs 5,000 were returned by Chirag and of Rs 3,000 to Divya. 30/9/19 Paid Rs 30,000 for whitewash of building and incurred Rs 70,000 for construction
parking shed.
1/11/19 Goods of list price of Rs 1,00,000 were purchased; trade discount Rs 5,000 cash
discount Rs 1,00.
• HD A
51%
of
15/11/19 Goods of list price of Rs 3,00,000 were sold, trade discount @5%, cash discount Rs
2.000 31/12/20 following were recorded: Salary Rs 29,000; Wages Rs 17,000; Rent received Rs
1,00,000; mCommission (Cr) Rs 50,000.
PREPARE JOURNAL ENTRIES, LEDGER ACCOUNTS ,TRIAL BALANCE and FINAL
ACCOUNTS
Following are the adjustments to be considered while preparing final accounts:
1. Closing Stock Rs 30,000 2. Outstanding Salary 11,000.
3. Wages of Rs 2,000 was paid in advance
4. Charge depreciation of Rs 15,000 on machinery
5. Rs 4,000 rent was received in advance
6. Rs 10.000 commission was due but not received
7. PREPARE JOURNAL ENTRIES OF ABOVE ADJUSTMENTS, CLOSING ENTRIES FOR TRADING AND PROFIT AND LOSS ACCOUNTS
8. Calculate following 5 ratios in order to analyse the final accounts a. Current Ratio
b. Gross profit ratio
C. Net profit ratio
d. Debt equity ratio e. Working capital turnover ratio
9. Show comparison of firm's ratios with Industry Ratios and give graphical interpretation of
the same.
10. Write conclusion with suggestions
11. Communicate solution of above question in a week to your Accounts Teacher
Answers
Explanation:
Following are the transactions of business of Rohit for the year ending 31st March 2020 1/4/19 - Started business with cash Rs 5,00,000, building worth Rs 10,00,000; and Machinery
for Rs 3,00,000; stock of Rs 20,000. 2/4/19 - Rs 25,000 was paid installation of machinery
3/4/19 - Rohit acquired a bank loan of Rs 5,00,000 @ 10% p.a.
5/4/19 Goods were purchased for Rs 1,50,000 and paid through cheque. 6/5/19 Goods were sold to Chirag for Rs 3,50,000.
8/5/19 Goods of Rs 2,00,000 were purchased from Divya. 20/6/19 Received Rs 1,45,000 cheque from Chirag on account.
25/7/19 Paid Rs 1,50,000 on account to Divya.
26/7/19 Goods of Rs 5,000 were returned by Chirag and of Rs 3,000 to Divya. 30/9/19 Paid Rs 30,000 for whitewash of building and incurred Rs 70,000 for construction
parking shed.
1/11/19 Goods of list price of Rs 1,00,000 were purchased; trade discount Rs 5,000 cash
discount Rs 1,00.
• HD A
51%
of
15/11/19 Goods of list price of Rs 3,00,000 were sold, trade discount @5%, cash discount Rs
2.000 31/12/20 following were recorded: Salary Rs 29,000; Wages Rs 17,000; Rent received Rs
1,00,000; mCommission (Cr) Rs 50,000.
PREPARE JOURNAL ENTRIES, LEDGER ACCOUNTS ,TRIAL BALANCE and FINAL
ACCOUNTS
Following are the adjustments to be considered while preparing final accounts:
1. Closing Stock Rs 30,000 2. Outstanding Salary 11,000.
3. Wages of Rs 2,000 was paid in advance
4. Charge depreciation of Rs 15,000 on machinery
5. Rs 4,000 rent was received in advance
6. Rs 10.000 commission was due but not received
7. PREPARE JOURNAL ENTRIES OF ABOVE ADJUSTMENTS, CLOSING ENTRIES FOR TRADING AND PROFIT AND LOSS ACCOUNTS
8. Calculate following 5 ratios in order to analyse the final accounts a. Current Ratio
b. Gross profit ratio
C. Net profit ratio
d. Debt equity ratio e. Working capital turnover ratio
9. Show comparison of firm's ratios with Industry Ratios and give graphical interpretation of
the same.
10. Write conclusion with suggestions
11. Communicate solution of above question in a week to your Accounts Teacher