Question

On 1st April, 2016 Pankaj started the business of selling Refrigerators with a Capitals of Rs 30 lakhs. Entire amount of Capital was deposited into the bank after keeping the amount to be given to the petty Cashier. On the same date, he entered into an agreement with L.G. limited to sell the Refrigeratiors bought from them on one month credit basis. During the year he purchased the following assets making payments through bank: Building 2500000 Office Equipments 200000 Furniture 150000 Refrigerators were to be sold for cash only and the cash proceeds were to be depsoited in the bank on the same day. All expenses except petty expenses were to be paid only through bank. The Petty Cashier was given Rs. 2500 on 1st April 2016 under Imprest system. The petty cashier would be reimburesed the actual expenses of the month on the first day of the next month before depositing the sale proceeds of the day. The following transactions were affected through bank during the year ended 31st March 2017 Purchase 1690000 Sales 2439700 Salaries 66000 Advertising expenses 9400 Telephone expenses 10200 Electricity expenses 7600 Printing and stationery 3600 Insurance premium 4000 During the year petty cashier was reimbursed for the expenses incurred by him amounting to Rs. 20300. The cash with the petty cashier on 31st March 2017 was Rs. 800 The purchase for the mouth of march. 2017 amounted to Rs. 140000 L.G Limited was paid for purchases as per terms agreed upon. Other Infomations: (i) Salaries have been paid for 11 months (ii) Telephone expenses Rs. 1000 and Electricity expenses Rs. 800 are yet to be paid. (iii) The closing stock as on 31st March 2017 were as follos: Refrigerators Rs. 350000 Stationery Rs. 600 (iv) Charge depreciation on builidng @ 4% and on office Equipments and Furniture @ 20%. Prepare Trail Balance as at 31st march 2017, profit & Loss Account for the year Ended on 31 march 2017 and a Balance sheet as at that date.

Answer 1

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Answer 2

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Prepare Accounting Ratios