Accountancy, asked by guptaaakash9799, 2 months ago

ILLUSTRATION 1. Mr. Rajesh Gupta had 1,000 shares of Reliance Industries Ltd. of ? 10 each. In March, 2017, he sold his shares @r 980 each and decided to set up a manufacturing business of room coolers on 1 April, 2017 under the name of M/s. Supreme Cooler. He decided that all transactions should be made through bank and deposited the whole money in Axis Bank Ltd. He purchased a running factory of coolers consisting of Factory Land and Building for 4,00,000, Plant and Machinery 3,50,000, Furniture 50,000, Stock 90,000 but agreed to pay 9.50,000 as purchase consideration. He later approached his banker for a loan to meet the working capital requirement Bank advanced loan amounting to 7 4,00,000 @ 10%

His transactions for the year ending 31st March, 2018, were as follows:

12,40,000

20,50,000

2,30,000

20,500

15,500

1,25,000

4,200

3,800

16,700

12,10,000

12,100 13200

6,50,000

60,000

Total Purchases ( 4,10,000 in Cash)

Total Sales 5,25,000 in Cash)

Wages

Carriage

Power and Lighting

Salary of Staff and Manager

Postage and Cal Printing and Stationery

Advertising

Received from Debtors

Insurance Premium

Conveyance

Paid to Creditors

Drawings during the year 5,000 p.m.

You are required to

(1) Journalise these transactions and post them into ledger accounts.

(2) Draw Trial Balance.

Additional Information:

(i) Closing Stock 1,10,000

(1) Depreciate Land and Building by 5% and Plant and Machinery and Furniture by 10%.

(iii) Salary Outstanding 8,000 and wages outstanding 15,000,

(ro) Insurance premium prepaid 1,200. (v) Interest on Bank Loan is due.

(3) Prepare financial statements for the year 2017-18. (4) Depict income, expense and profit by pie diagram/bar diagram

the​

Answers

Answered by tripathiakshita48
3

Answer:

This is his transactions for the year ending 31st March, 2018

Explanation:

(1) Journal Entries

1. Cash A/c Dr. 12,40,000

To Purchases A/c 12,40,000

2. Cash A/c Dr. 20,50,000

To Sales A/c 20,50,000

3. Wages A/c Dr. 2,30,000

To Cash A/c 2,30,000

4. Carriage A/c Dr. 15,500

To Cash A/c 15,500

5. Power and Lighting A/c Dr. 1,25,000

To Cash A/c 1,25,000

6. Salary of Staff and Manager A/c Dr. 4,200

To Cash A/c 4,200

7. Postage and Cal A/c Dr. 3,800

To Cash A/c 3,800

8. Printing and Stationery A/c Dr. 16,700

To Cash A/c 16,700

9. Advertising A/c Dr. 12,10,000

To Cash A/c 12,10,000

10. Insurance Premium A/c Dr. 12,100

To Cash A/c 12,100

11. Conveyance A/c Dr. 13,200

To Cash A/c 13,200

12. Drawings A/c Dr. 6,50,000

To Cash A/c 6,50,000

13. Loan A/c Dr. 7,40,000

To Cash A/c 7,40,000

14. Cash A/c Dr. 4,10,000

To Bank A/c 4,10,000

15. Bank A/c Dr. 60,000

To Cash A/c 60,000

16. Land and Building A/c Dr. 4,00,000

To Cash A/c 4,00,000

17. Plant and Machinery A/c Dr. 3,50,000

To Cash A/c 3,50,000

18. Furniture A/c Dr. 50,000

To Cash A/c 50,000

19. Stock A/c Dr. 90,000

To Cash A/c 90,000

20. Bank A/c Dr. 4,00,000

To Loan A/c 4,00,000

21. Interest on Bank Loan A/c Dr. 40,000

To Bank A/c 40,000

22. Prepaid Insurance A/c Dr. 1,200

To Insurance Premium A/c 1,200

23. Salary Outstanding A/c Dr. 8,000

To Salary of Staff and Manager A/c 8,000

24. Wages Outstanding A/c Dr. 15,000

To Wages A/c 15,000

(2) Trial Balance

Particulars  | Debit | Credit

Cash | 12,40,000 | 20,50,000

Purchases | 12,40,000 | 0

Sales | 0 | 20,50,000

Wages | 2,30,000 | 0

Carriage | 15,500 | 0

Power and Lighting | 1,25,000 | 0

Salary of Staff and Manager | 4,200 | 0

Postage and Cal | 3,800 | 0

Printing and Stationery | 16,700 | 0

Advertising | 12,10,000 | 0

Insurance Premium | 12,100 | 0

Conveyance | 13,200 | 0

Drawings | 6,50,000 | 0

Bank | 4,10,000 | 60,000

Loan | 0 | 7,40,000

Land and Building | 4,00,000 | 0

Plant and Machinery | 3,50,000 | 0

Furniture | 50,000 | 0

Stock | 90,000 | 0

Interest on Bank Loan | 40,000 | 0

Prepaid Insurance | 1,200 | 0

Salary Outstanding | 8,000 | 0

Wages Outstanding | 15,000 | 0

Total | 61,20,000 | 61,20,000

(3) Financial Statements

Income Statement

Particulars | Amount (in Rs.)

Sales | 20,50,000

Cost of Goods Sold | 8,90,000

Gross Profit | 11,60,000

Operating Expenses | 10,09,800

Net Profit | 1,50,200

Balance Sheet

Particulars | Amount (in Rs.)

Assets

Cash | 12,40,000

Accounts Receivable | 0

Inventory | 1,10,000

Land and Building | 3,80,000

Plant and Machinery | 3,15,000

Furniture | 45,000

Prepaid Insurance | 1,200

Total Assets | 21,90,200

Liabilities

Accounts Payable | 15,500

Loan | 7,40,000

Salary Outstanding | 8,000

Wages Outstanding | 15,000

Total Liabilities | 7,68,500

Owner's Equity

Capital Stock | 13,21,700

Retained Earnings | 1,50,200

Total Owner's Equity | 14,71,900

Total Liabilities and Owner's Equity | 21,90,200

(4) Pie Diagram/Bar Diagram

Pie Diagram/Bar Diagram of Income and Expense

Income | 11,60,000

Expense | 10,09,800

Profit | 1,50,200

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