Question

PROJECT
PROJECT 10.
On 1st April, 2016 Pankaj started the business of selling Refrigerators with a
Capital of 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 Refrigerators, bought from them on one
month credit basis.
During the year he purchased the following assets making payments through bank:
Building
25,00,000
Office Equipments
2,00,000
Furniture
1,50,000
Refrigerators were to be sold for cash only and the cash proceeds were to be
deposited in the bank on the same day. All expenses except petty expenses were to be
paid only through bank. The Petty Cashier was given 52,500 on 1st April, 2016 under
'Imprest System. The petty cashier would be reimbursed 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:
Purchases
Sales
Salaries
Advertising expenses
Telephone expenses
Electricity expenses
Printing and stationery
Insurance premium
16,90,000
24,39,700
66,000
9,400
10,200
7,600
3,600
4,000
During the year petty cashier was reimbursed for the expenses incurred by him
amounting to 20,300. The cash with the petty cashier on 31st March 2017 was * 800.
The purchases for the month of March, 2017 amounted to 1,40,000. L.G. Limited
was paid for purchases as per terms agreed upon.
Other Informations :
(i) Salaries have been paid for 11 months.
(ii) Telephone expenses 71,000 and Electricity expenses 800 are yet to be paid.
(iii) The closing stock as on 31st March, 2017 were as follows:
Refrigerators 3,50,000
Stationery
600
(iv) Charge depreciation on building @ 4% and on Office Equipments and Furniture
@ 20%
Prepare journal entries, ledger accounts , Trial Balance as at 31st March, 2017, Profit & Loss Account for the year
ended on 31st March, 2017 and a Balance Sheet as at that date.​

Answer 1

Answer:

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