Bhumi-Atmi softnet Ltd.

( 2015)
After working for over a decade in a leading software company, Bhumika and her friend
Atmika decided to set up their own software firm. Software Ltd. on June 1st. Each of them
deposited Rs5,00,000 and Rs3,00,000 respectively in a bank account in the name of the
company in exchange for 80,000 shares of Rs10 each. They followed the practice of
depositing in the bank all amounts received from customers and making all payments by
cheques.
On June 2nd Kritika , an old friend of Atmika joined the company as office manager on a
monthly salary of Rs10,000 regardless of the number of days he attended office. Although
Kritika had no knowledge of accounting, she was methodical in filing letters, invoices and
other papers. She put all the purchase invoices in a file. Also, she noted down details of the
cheques received and issued, in a diary. The following information is available from the
file and diary kept by Kritika
On June, Software Ltd borrowed Rs2,00,000 from the bank. The same day, they ordered a
computer costing Rs2,50,000. An advance of Rs1,50,000 was paid with the order and the
balance amount was to be paid in three equal installments on the fifth of every month
beginning July. The computer was received on June 2 , they hired an office room on a
monthly rental of Rs15,000 payable on the first day of the month. The rent for June was
paid in full immediately. Four programming assistants were appointed-namely Jyotika,
Lipika, Monica and Samapika on June 3, each of them was to be paid Rs1,000 per day for
the actual number of days worked.
In June , the company billed customers for Rs4,00,000 for programming services. Cheques
totaling Rs2,76,000 were received from customers on account. In addition, a cheque for
Rs50,000 was given by a customer as payment for services to be provided in July. During
the month, the company ordered supplies on credit for Rs50,000. Of these, supplies costing
Rs30,000 were received on June 8, and the remaining items were delivered on July 3. One
box of fluffy disks costing Rs5000 differed slightly from the purchase specifications; all
other items were as ordered and were paid for June 16. On June 27, the supplier informed
all that he was willing to give discount of Rs500 on the floppy disks to make up for the
deviations. The proposal was accepted and the amount was paid on 30th June. On June 30,
an electricity bill for Rs3800 was received, but this could be paid only in July1.
During the month, the company had twenty one working days. While Jyotika reported for
work on all working days , Lipika worked only for 17 days and Monica and Samapika
reported for 18 days and 19 days respectively . The salaries of the assistant and manager
were paid on June 30. The June-end inventory of supplies was figured out to be Rs5 ,000.
Bad debts Rs.2,000 and depreciation on computer for the month comes to be Rs3,000.

Prepare Accounting Equation, Income Statement, Balance Sheet and Cash flow Statement.
 Raj Software Ltd. (2014)
After working for over a decade in a leading software company, Anish and his friend Ansh
decided to set up their own software firm. Raj Software Ltd. on August 1 st. Each of them
deposited Rs2,00,000 and Rs3,00,000 respectively in a bank account in the name of the
company in exchange for 50,000 shares of Rs10 each. They followed the practice of
depositing in the bank all amounts received from customers and making all payments by
cheques only.
On 2nd August Aatmika , an old friend of Anish joined the company as office manager on
a monthly salary of Rs15,000 regardless of the number of days she attended office.
Although Aatmika had no knowledge of accounting, she was methodical in filing letters,
invoices and other papers. She put all the purchase invoices in a file. Also, she noted down
details of the cheques received and issued, in a diary. The following information is
available from the file and diary kept by Aatmika.
On August , Raj Software Ltd borrowed Rs2,00,000 from the bank. The same day, they
ordered a computer costing Rs3,00,000. An advance of Rs1,00,000 was paid with the order
and the balance amount was to be paid in 2 equal installments on the fifth of every month
beginning September. The computer was received on August 2nd, they hired an office
room on a monthly rental of Rs20,000 payable on the first day of the month. The rent for
August was paid in full immediately. Two programming assistants were appointed on
August 3, each of them was to be paid Rs1,000 per day for the actual number of days
worked.
In August , the company billed customers for Rs3,00,000 for programming services.
Cheques totaling Rs2,00,000 were received from customers on account. In addition, a
cheque for Rs30,000 was given by a customer as payment for services to be provided in
September. During the month, the company ordered supplies on credit for Rs80,000. Of
these, supplies costing Rs50,000 were received on August 8, and the remaining items were
delivered on September 3 On August 31st, an electricity bill for Rs3800 was received, but
this could be paid only in September 1st . Depreciation on computer charged 10 p.a.
Discount allowed to customers 3% of bill raised to the customer and 2% discount allowed
by the supplier on the credit supplies.
During the month, the company had twenty three working days. While one of the assistants
reported for work on all working days and other worked only for 17 days. The salaries of
the assistant and manager were paid on August 31st . The August -end inventory of
supplies was figured out to be Rs10,000.

You are required to prepare Accounting Equation, Income Statement, Balance Sheet and
Cash Flow of Raj Software Ltd. for the month of August 2014