Mr. A started the business on 1st April 2013.

The financial transactions for a particular year are given below

Based on these financial transactions, you have to pass the journal entries, prepare a ledger account, prep
Trial Balance and Final Accounts.
Date
4/1/2013
4/30/2013
5/6/2013
6/7/2013
8/17/2013
9/18/2013
10/20/2013
11/26/2013
2/27/2014
3/31/2014

Adjustments:
1. Provide depreciation on Laptop @60% and car @25%
2. Income Tax rate may be assumed at 10%

A started the business on 1st April 2013. The financial transactions for a particular year are given below;
ed on these financial transactions, you have to pass the journal entries, prepare a ledger account, prepare
l Balance and Final Accounts.
Transaction
Mr. A started the profession as a consultant with a capital of Rs.200000
He purchased laptop from X Ltd. on credit for Rs. 25000
He paid cheque to X Ltd. Rs. 25,000
He rendered services to Good Ltd. on credit for Rs. 300000
He received cheque from Good Ltd. Rs. 250000
He further purchased Car from Maruti Dealer on credit basis Rs. 250000
He paid cheque to Maruti Dealer Rs.250000
He further rendered services to Y Ltd. for Rs.100000
He received cheque from Y Ltd. Rs. 100000
He spent on petrol for Rs. 20000, telephone expenses Rs. 2500 and staff salary Rs. 25000

rovide depreciation on Laptop @60% and car @25%

ncome Tax rate may be assumed at 10%

STEP 1
Journal Entries in the books of Mr. A for the year 2013-2014
Date
4/1/2013

4/30/2013

5/6/2013

6/7/2013

8/17/2013

9/18/2013

10/20/2013

11/26/2013

2/27/2014

3/31/2014

Particulars

LF

Bank Account
Dr.
To Mr. A's Capital Account
(Being Capital Introduced in the profession)
Laptop Account
Dr.
To X Ltd.
(Being Laptop purchased on credit)
X Ltd.
Dr.
To Bank Account
(Being cheque paid for purchase of laptop)
Good Ltd.
Dr.
To Income Account
(Being services rendered to Good Ltd, on credit)
Bank Account
Dr.
To Good Ltd.
(Being cheque received from Good Ltd.)
Vehicle (Car) Account
Dr.
To Maruti Dealer Account
(Being car purchased from delear on credit basis)
Maruti Dealer Account
Dr.
To Bank Account
(Being cheque paid for purchase of car)
Y Ltd. Account
Dr.
To Income Account
(Being services rendered to Y Ltd, on credit)
Bank Account
Dr.
To Y Ltd.
(Being cheque received from Y Ltd.)
Petrol Account
Dr.
Telephone Expenses
Dr.
Staff Salary Account
Dr.
To Bank Account
(Being expenses paid )
Total
STEP 2

1
2
3
4
5
6
7
8
9

Ledger Accounts
Mr. A's Capital Account
Income Tax payable
X Ltd.
Maruti Dealer Account
Car Account
Laptop Acount
Bank Account / Cash Account
Good Ltd.
Y Ltd.

Type
Liability
Liability
Liability
Liability
Asset
Asset
Asset
Asset
Asset

10
11
12
13
14

Income Account
Petrol Account
Telephone Account
Staff Salary Accout
Depreciation

Income
Expenses
Expenses
Expenses
Expenses
STEP 3
Trial Balance as at 31/3/2014

Sr.No.
1
2
3
4
5
6
7
8
9
10
11
12

Particulars
Mr. A's Capital Account
X Ltd.
Maruti Dealer Account
Car Account
Laptop Acount
Bank Account / Cash Account
Good Ltd.
Y Ltd.
Income Account
Petrol Account
Telephone Account
Staff Salary Accout
Total

Debit (Rs.)

2,50,000
25,000
#VALUE!
#VALUE!
#VALUE!
20,000
2,500
25,000
#VALUE!

year 2013-2014
Dr. (Rs.)

Cr. (Rs.)

2,00,000
2,00,000
25,000
25,000
25,000
25,000
3,00,000
3,00,000
2,50,000
2,50,000
2,50,000
2,50,000
2,50,000
2,50,000
1,00,000
1,00,000
1,00,000
1,00,000
20,000
2,500
25,000
47,500

Appear in
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet

FINANCIAL
POSITION

Income Statement
Income Statement
Income Statement
Income Statement
Income Statement

Credit (Rs.)
2,00,000
0
#VALUE!

#VALUE!

#VALUE!

PROFIT
POSITION

Income Statement of Mr A For the period 1/4/2013 to 31/03/2014

Sr.No.
A

C
D
E

Sr.No.
A

Particulars
Income
Less: Expenses
Petrol
Telephone
Salary
OPBDI & T
Depreciation
Laptop (@60%)
Car (@25%)
OPBI & T
Less: Interest
OPBT
Less: Tax @ 10%
PAT

Amount ( Rs.) Amount ( Rs.)

400000
20000
2500
25000
352500
15000
62500
275000
0
275000
27500
247500

Balance Sheet as at 31st March 2014

Particulars
Amount ( Rs.) Amount ( Rs.)
Sources of Funds
Mr. A's Capital Account
Add: Profit for the year

200000
247500

Income Tax Payable

27500

Total

Application of Funds
Fixed Assets
Laptop
Less: Depreciation
Car
Less: Depreciation
Current Assets
Sundry Debtors
Good Ltd.
Cash / Bank Balance
Total

447500

475000

25000
15000
250000
62500

10000
187500

50000
227500
475000

Operating Profit before Depreciation, Interest and Tax

Operating Profit before Interest and Tax

Tax rate 10% assumed.

Transferred to Balance Sheet Liability Side