A

Cash Bank
1.       Nitin invested Rs. 50,000 cash and Rs.
5,00,000 by cheque to start a business. 50000 500000
2.       He deposited Rs. 5,000 out of cash in
the bank. -5000 5000
3.       Purchased goods for Rs. 5,000 against
cash. -5000
4.       Purchased a building and paid Rs.
2,50,000 by cheque. -250000
5.       Purchased goods from M/s. Hari &
Co. for Rs. 1,00,000.

6.       Sold goods for cash Rs. 50,000.

50000
7.       Sold goods on credit to M/s. Ramesh
& Co. Rs. 25,000.

8.       M/s. Ramesh & Co. returned goods of

Rs. 5,000, being defective.

9.       Goods returned by M/s. Ramesh &

Co. returned to M/s. Hari & co. at cost
price i.e. Rs.4000.

10.   Paid salary to staff by cheque Rs.

15,000.
-15000

11.   Paid rent for residence of Nitin Rs.

10,000 by cheque.
-10000

12.   Paid electricity charge for the month

Rs. 1,000 in cash.
-1000

13.   Paid telephone charges Rs. 500 in

cash.
-500

14.   Bought office furniture for Rs. 25,000

against cheque.

-25000
15.   Paid M/s. Hari & co. on account Rs.
50,000 per cheque.
-50000

16.   Received from M/s. Ramesh & co. Rs.

15,000 by cheque.

17.   Placed order for goods with M/s. Abhi 15000

& sons of Rs. 2,00,000; paid them Rs.
18.    Received
20,000 orderasfor
by cheque goods from
advance, M/s.to
balance -20000
Ajay
be paid& co.
onof Rs. 3,00,000
delivery along with a
of goods.
cheque for Rs. 30,000 as advance, 30000
balance to be received against delivery of
goods.

19.   Paid Rs. 1,000 for stationery.

-1000
20.   Nitin withdrew Rs. 10,000 for
household expenses out of cash. -10000
77,500 180,000

Debit Amount
nitin capita 50000
Sales 50000

Total 100000

Debit Amount
Nitin's cap 500000
Cash 5000
M/s Rames 15000
M/s Ajay 30000

Total 550000

Debit Amount
Cash 5000
M/s Hari 100000
cost of goo 4000

109000

Debit Amount
Bank 250000
250000

Debit Amount
Purchase 4000
Bank 50000
54000
ending bal 46000

Debit Amount
Sales 25000

25000

Debit Amount
Cash 1000

1000

Debit Amount
Cash 500

500

Debit Amount
Bank 25000

25000

Debit Amount
Bank (adv 20000

20000

Debit Amount
balancing f 30000

30000

Debit Amount
Cash 1000

1000

Debit Amount
Bank 10000
Cash 10000
20000

Debit Amount

75000

Debit Amount
stock/ pur 40000
stock/ pur 20000

60000

Debit Amount
Ramesh 5000

Debit Amount
balancing f 550000

550000

salary
Debit Amount
bank 15000

Balance Sheet
As On

Assets
Current Assets
Cash
Cash in bank
Inventory
account receivables
others (Advances)
Total current assets
Fixed (Long-Term) Assets
Long-term investments
Property, plant, and equipment

Intangible assets
Total fixed assets
Other Assets
Deferred income tax
Other
Total Other Assets

Total Assets

Liabilities and Owner's Equity

Current Liabilities
Accounts payable
Short-term loans
Income taxes payable
Accrued salaries and wages
Unearned revenue
other
Total current liabilities
Long-Term Liabilities
Long-term debt
Deferred income tax
Other
Total long-term liabilities
Owner's Equity
Owner's investment
Retained earnings
Other
Drawings
Total owner's equity
Total Liabilities and Owne

Income Statement
For the Years Ending [Dec 31, 2020 and Dec 31, 2019]

Revenue
Sales revenue
(Less sales returns and allowa
Service revenue
Interest revenue
Other revenue
Total Revenues

Expenses
advertisment
Commissions
Cost of goods sold
Depreciation
Employee benefits
Furniture and equipment
Insurance
Interest expense
Maintenance and repairs
Office supplies
Payroll taxes
Rent
Research and development
Salaries and wages
Software
Travel
Utilities (telephone)
Utilities (stationary)
(electricity)
Total Expenses

Net Income Before Taxes

Income tax expense

Income from Continuing

Below-the-Line Items
Income from discontinued ope
Effect of accounting changes
Extraordinary items

Net Income
 Assets= Capital +Liabilities
Assets Capital+
Stock Building Debtors Furniture Advance Capital

550000

5000

250000

100000

-40000

-20000 25000

4000 -5000

-4000

25000
 -15000

20000

45,000 250,000 5,000 25,000 20,000 550,000

602,500 602,500

Trial Balance
CASH debit
Credit Amount cash
Bank 5000 bank
Purchase goods 5000 Drawing's
Electricity Charge 1000 stock/ purc
Telephone Charges 500 building
Stationery 1000 M/s Ramesh
Drawings 10000 Electricity
Total 22500 Telephone
Furniture
Stationary
closing balance 77500 M/s Abhi &
cost of good
sales return
bank salary
Credit Amount
 Building 250000 total
Salary 15000
drawing(rent) 10000
Furniture 25000
M/s Hari and Co 50000
M/s Abhi and sons (Advan 20000
Total 370000
ending balance 180000
550000

stock/ purchase
Credit Amount
hari 4000
cost of good sold 40000
cost of good sold 20000

64000
45000

building
Credit Amount
balancing figure 250000

M/s Hari &Co.

Credit Amount
Purchases 100000

100000

M/s Ramesh &Co.

Credit Amount
Sales Return 5000
Bank 15000
20000
ending balance 5000

Electricity
Credit Amount
 balancing figure 1000

1000
Telephone
Credit Amount
balancing figure 500

500
Furniture
Credit Amount
balancing figure 25000

25000
M/s Abhi &Co.
Credit Amount
balancing figure 20000

20000
M/s Ajay & Co.
Credit Amount
18 Bank (paid) 30000

30000
Stationary
Credit Amount
balancing figure 1000

1000
Drawing's
Credit Amount
balancing figure 20000

20000

sales
Credit Amount
cash 50000
M/s Ramesh &Co. 25000
75000

cost of good sold

Credit Amount
 stock 4000
balancing figure 56000

60000

sales return
Credit Amount
balancing figure 5000

Capital
Credit Amount
Cash 50000
Bank 500000

550000

Credit Amount

2020

77500
180000
45000
5,000
20,000
327500

0
275000

0
275000
 602500

and Owner's Equity

46,000
0
0
0
30000
0
76,000

0
0
0
0

550000
-3500
0
-20000
526500
602,500

atement
nding [Dec 31, 2020 and Dec 31, 2019]

75000
-5000
0
0
0
70000

0
0
56000
 0
0

0
0
0
0
0

0
15000

500
1000
1000
73500

-3500
0

-3500

Line Items
0
0
0

-3500
+Liabilities
Capital+Liablilities
Creditors Revenue Drawings Expenses Advance debit credit

cash, bank capital

bank cash

goods cash

building bank

100000 goods hari and co.

50000 -40000 cash sales

25000 -20000 ramesh and co. sales

goods (sales ramesh and

-5000 4000 return)=5000 co.=5000

purchase
-4000 hari and co. return/goods

-15000 salary bank

-10000 rent bank

-1000 electricity charge cash

-500 telephone charges cash

office furniture bank

 -50000 hari and co. bank

bank ramesh and co.

abhi and sons bank

30000 bank goods

-1000 stationary cash

-10000 drawing cash

46,000 70,000 -20,000 -73,500 30,000

Trial Balance
amount credit amount
77500 M/s Hari &Co. 46000
180000 M/s Ajay & Co. 30000
20000 sales 75000
45000 capital 550000
250000
5000
1000
500
25000
1000
20000
56000
5000
15000
701000 701000
debit credit

expense (cogs)
=40000 stock=40000

expense=20000 stock=20000

stock=4000 expense=4000
 Cash Flow Statement

Particulars Amount (Rs)

Cash from Operating Activities:

Profit after Tax

Add:
Depreciation 0
Loss on sale of Asseets 0
Any non-operating expense 0
Less:
Profit on Sale of Assets 0
Any non-operating Income 0

Cash from Operating before changes in Working Capital

Changes in Working Capital:

Add: Increase in Current Liability / Decrease in Current Assets
Increase in Accounts Payable 46,000
Increase in Unearned Revenue 30,000
Less: Decrease in Current Liability / Increase in Current Assets
Increase in Inventory 45,000
Increase in Advances 20,000
Increase in Accounts Receivables 5,000
Total Changes in working Capital

Cash from Operating Activities (A)

Cash from Investing Activities:

Purchase of Furniture -25000

Purchase of Building -250000

Total Cash from Investing Activities (B)

Cash from Financing Activities:

Capital Brought in 550000

Drawings taken out -20000

Total Cash from Financing Activities (C)

Cash flow from all activities (A+B+C)
Add: Opening Balance of Cash

Closing Cash Balance

Amount (Rs)

-3500

-3500

6,000

2,500

-275000

-275000

530000

530000
257,500
0

257,500