Question

otal Sales 20,00,000

Total Purchases 17,00,000

Electricity Expenses 40,000

Telephone Charges 50,000

Cartage 60,000

Travelling Expenses 45,000

Entertainment Expenses 5,000

Maintenance Expenses 25,000

Miscellaneous Expenses 15,000

Electricity Expenses Payable 20,000

They withdrew Rs. 2,500 by cheque each month for their personal

expenses.

They paid the bank loan regularly.

They are desirous to expand business.

Note: Question one is mandatory & Remaining are Voluntary.

(I) Journalize the above transactions. Post them into the ledgers

and prepare trial balance.

(II) Prepare Profit and Loss Account and balance sheet. Change

depreciation @5% on building and 10% on furniture. Closing

stock at the end of the year was Rs. 3,50,000.

(III) Calculate profitability ratios.

(IV) They approached the bank for further loan. Compute the ratios

that the banker will require before granting the loan. (Solvency

Ratios)

(V) Comment on the efficiency of the business if the net profit ratio

and gross profit in similar type of business enterprises are 15%

and 30% respectively.​

Answer 1

Answer:

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Explanation:

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Answer 2

Answer:

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Explanation:

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