Mr. Tushar decided to start a computer business. For this purpose he built the first
floor of his house at a cost of 2,00,000 and invested a further sum of 3,50,000 in this
business
He wanted to start with 12 computers costing 240,000 each. He approached ICICI
Bank and secured a loan to the extent of 75% of the cost of computers. It was agreed
that the loan will be repaid in four annual instalments as follows:
At the end of First Year : 090,000 + 336,000 for interest
At the end of Second Year 190,000+ €27,000 for interest
At the end of Third Year 190,000 + 718,000 for interest
At the end of Fourth Year 290,000 * * 9,000 for interest
He started business on 1st April, 2017. On the same date he deposited 23,30,000
in the Bank. He purchased Computers and paid 25% of the value of computers from his
bank and <3,60,000 out of bank loan availed. He deposited 10,000 for the electric
connection with the Electricity Board and also deposited 21,50,000 with the VSNL for
internet and telephone connection.
He spent 240,000 for getting the Computer Cafe furnished and also spent ? 6,000
in getting the pamphlets printed and distributed
All payments were to be made by cheques and all the receipts were to be deposited
in the bank on the same day.
At the end of the year, the results were:
Purchases of Computer stationery like floppy dises, CDs etc.
92,000
Revenue from fees received from students of Computer classes
2,70,000
Revenue on Account of Internet Facility
2,20,000
Revenue from sale of Computer Stationery
1,60,000
Wages paid to Servant
Electricity Charges
Telephone Charges
Entertainment Expenses
General Expenses
He withdrew 5,000 by cheque each month for his personal expenses and duly
paid the bank loan.
You are required to :
(1) Journalize the above transactions, post them into the Ledger and prepare
trial balance
12,000
48,000
73,000
7,000
5,200
Answers
Answer:
Mr. Tushar decided to start a computer business. For this purpose he built the first
floor of his house at a cost of 2,00,000 and invested a further sum of 3,50,000 in this
business
He wanted to start with 12 computers costing 240,000 each. He approached ICICI
Bank and secured a loan to the extent of 75% of the cost of computers. It was agreed
that the loan will be repaid in four annual instalments as follows:
At the end of First Year : 090,000 + 336,000 for interest
At the end of Second Year 190,000+ €27,000 for interest
At the end of Third Year 190,000 + 718,000 for interest
At the end of Fourth Year 290,000 * * 9,000 for interest
He started business on 1st April, 2017. On the same date he deposited 23,30,000
in the Bank. He purchased Computers and paid 25% of the value of computers from his
bank and <3,60,000 out of bank loan availed. He deposited 10,000 for the electric
connection with the Electricity Board and also deposited 21,50,000 with the VSNL for
internet and telephone connection.
He spent 240,000 for getting the Computer Cafe furnished and also spent ? 6,000
in getting the pamphlets printed and distributed
All payments were to be made by cheques and all the receipts were to be deposited
in the bank on the same day.
At the end of the year, the results were:
Purchases of Computer stationery like floppy dises, CDs etc.
92,000
Revenue from fees received from students of Computer classes
2,70,000
Revenue on Account of Internet Facility
2,20,000
Revenue from sale of Computer Stationery
1,60,000
Wages paid to Servant
Electricity Charges
Telephone Charges
Entertainment Expenses
General Expenses
He withdrew 5,000 by cheque each month for his personal expenses and duly
paid the bank loan.
You are required to :
(1) Journalize the above transactions, post them into the Ledger and prepare
trial balance
12,000
48,000
73,000
7,000
5,200
Explanation:
Please mark it as brilliant answer please.........
Answer:
Journalize the transactions: Write down each transaction in the form of a journal entry, including the date, account name, and amount.
Explanation:
From the above question,
They have given :
To begin, Mr. Tushar invested a total of 5,50,000 in his computer business, with 2,00,000 used to build the first floor of his house and 3,50,000 invested in the business itself.
He secured a loan from ICICI Bank, to the amount of 75% of the cost of the computers (which was 240,000 each), that would be paid back in four instalments. On the same day, he deposited 23,30,000 in the bank, paid 25% of the cost of the computers from his bank account, and also paid 10,000 for an electric connection with the Electricity Board, and 21,50,000 with the VSNL for internet and telephone connection.
Additionally, h
He spent 240,000 on getting the Computer Cafe furnished, and 6,000 getting the pamphlets printed and distributed.
At the end of the year, there were various sources of revenue, including 2,70,000 from fees received from students of the Computer classes, 2,20,000 from the Internet facility, and 1,60,000 from the sale of Computer Stationery. Wages for the servant were 12,000, electricity charges were 48,000, telephone charges were 73,000, entertainment expenses were 7,000, and general expenses were 5,200. Lastly, Mr. Tushar withdrew 5,000 each month for his personal expenses and paid back the bank loan.
To journalize these transactions, post them into the Ledger and prepare the trial balance, we can list the transactions as follows:
- Journal Entries
Debit:
Building the first floor of house: 2,00,000
Investing in the business: 3,50,000
Bank loan: 1,80,000
Deposit in the Bank: 23,30,000
Computers: 1,80,000
Electricity Board: 10,000
VSNL: 21,50,000
Computer Cafe Furnishing: 2,40,000
Pamphlets printing and distribution: 6,000
Student fees: 2,70,000
Internet Facility: 2,20,000
Computer Stationery: 1,60,000
Servant Wages: 12,000
Journalize the transactions: Write down each transaction in the form of a journal entry, including the date, account name, and amount.
Post to the ledger: Transfer the entries from the journal to the corresponding account in the ledger.
Prepare the trial balance: Check the accuracy of the ledger accounts by adding up the debit and credit balances and verifying that they are equal.
You would need to repeat this process for each of the other transactions, then calculate the total debit and credit balances for each account and verify that they are equal in the trial balance.
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