Question

* Project1
On 1st April,2017 Pranav started the business of selling refrigerators with the capital 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 refrigerators bought from them on one month credit basis. During the year he purchased the followings assets making payments through bank:

Building
Office Equipments Furniture
Rs. 25,00,000
2,00,000 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 Rs.2,500 on 1st April,2017 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,2018:
Purchases
Sales
Salaries
Advertising Expenses Telephone Expenses Electricity Expenses Printing & Stationery Insurance Premium
Rs. 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 Rs.20,300. The cash with the Petty cashier on 31st March,2018 was Rs.800.
The purchases for the month of March,2018 amounted to Rs.1,40,000.L.G.Limited was paid for purchases as per terms agreed upon.
Other Information:
* Salaries have been paid for 11 months.

* Telephone expenses Rs.1,000 and Electricity expenses Rs. 800 yet to be paid.

* The closing stock as on 31st March,2018 were as follows:

a.Refrigerators Rs.3,50,000
b. Stationery Rs. 600
iv. Charge Depreciation on Building @4% and on Office Equipments and Furniture @ 20%
Prepare Trial balance as at 31st march,2018,Trading and Profit & Loss Account for the year ended on 31st March,2018 and a Balance Sheet as at that date. Further
* L.G.Ltd. want to know the short term financial position of Pranav before extending the agreement on Credit policy for the next year.

* Pranav wants to know the profitability of his business in terms of sales and capital employed into the business.

You are required to compute the required ratios and comment upon them.
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Answer 1

Answer:

Sorry I don't know the answer.