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Financial Transactions and Statements

The document records various accounting transactions between March 1st and April 30th. It includes increases and decreases to asset, liability, capital, income and expense accounts through debits and credits. Journal entries are provided to record transactions such as capital introduction, bank loans, inventory purchases and sales, expenses paid. Ledger accounts are maintained for bank, inventory, salaries etc. A trial balance is prepared at the end to check the equality of total debits and credits.

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Param Shah
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98 views10 pages

Financial Transactions and Statements

The document records various accounting transactions between March 1st and April 30th. It includes increases and decreases to asset, liability, capital, income and expense accounts through debits and credits. Journal entries are provided to record transactions such as capital introduction, bank loans, inventory purchases and sales, expenses paid. Ledger accounts are maintained for bank, inventory, salaries etc. A trial balance is prepared at the end to check the equality of total debits and credits.

Uploaded by

Param Shah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Date Account A/L/I/E/C Increase/Decrese DR/CR DR Amount

Mar-01 Bank Asset Increase DR ₹ 150,000


Share Capital/Equity Capital Capital Increase CR

Mar-01 Employed salesman -no transaction

Mar-01 Bank Asset Increase DR ₹ 150,000


Borrowings - LKB Liability Increase CR

Mar-14 Bank Asset Decrease CR


Inventory Asset Increase DR ₹ 90,000

Mar-15 Bank Asset Decrease CR


General Expense Expense Increase DR ₹ 1,200

Mar-19 Trade Receivable : IIMB Store Asset Increase DR ₹ 90,000


Sales Income Increase CR

Inventory Asset Decrease CR


Cost of Goods Sold Expense Increase DR ₹ 54,000

Mar-29 Cash Asset Increase DR ₹ 8,000


Sales Income Increase CR

Inventory Asset Decrease CR


Cost of Goods Sold Expense Increase DR ₹ 3,600

Mar-30 Bank Asset Decrease CR


Salary paid - salesman Expense Increase DR ₹ 6,000
CR Amount

₹ 150,000

₹ 150,000

₹ 90,000

₹ 1,200

₹ 90,000

₹ 54,000

₹ 8,000

₹ 3,600

₹ 6,000
BANK ACCOUNT
Date DR CR Balance
Mar-01 ₹ 150,000.00 ₹ 150,000.00
Mar-01 ₹ 150,000.00 ₹ 300,000.00
Mar-14 ₹ 90,000.00 ₹ 210,000.00
Mar-15 ₹ 1,200.00 ₹ 208,800.00
Mar-30 ₹ 6,000.00 ₹ 202,800.00 DR Balance

INVENTORY
Date DR CR Balance
Mar-14 ₹ 90,000.00 ₹ 90,000.00
Mar-19 ₹ 54,000.00 ₹ 36,000.00
Mar-29 ₹ 3,600.00 ₹ 32,400.00 DR Balance

SALARY
Date DR CR Balance
Mar-30 ₹ 6,000.00 ₹ 6,000.00 DR Balance

GENERAL EXPENSES
Date DR CR Balance
Mar-15 ₹ 1,200.00 ₹ 1,200.00 DR Balance

Trade Receivable
Date DR CR Balance
Mar-14 ₹ 90,000.00 ₹ 90,000.00 DR Balance

SHARE CAPITAL ACCOUNT


Date DR CR Balance
Mar-01 ₹ 150,000.00 ₹ 150,000.00 CR Balance

CASH
Date DR CR Balance
Mar-29 ₹ 8,000.00 ₹ 8,000.00 DR Balance

BORROWINGS : LKB
Date DR CR Balance
Mar-01 ₹ 150,000.00 ₹ 150,000.00 CR Balance

COST OF GOODS SOLD


Date DR CR Balance
Mar-19 ₹ 54,000.00 ₹ 54,000.00
Mar-29 ₹ 3,600.00 ₹ 57,600.00 DR Balance
SALES
Date DR CR Balance
Mar-19 ₹ 90,000.00 ₹ 90,000.00
Mar-29 ₹ 8,000.00 ₹ 98,000.00 CR Balance
This will be transferred to P&L
Trial Balance as on xxxxx
Account DR CR
Bank Balance ₹ 202,800.00
Inventory ₹ 32,400.00
Salary ₹ 6,000.00
General Expense ₹ 1,200.00
T. Receivable ₹ 90,000.00
Share Capital ₹ 150,000.00
Cash ₹ 8,000.00
Borrowings : LKB ₹ 150,000.00
Cost of Goods Sold ₹ 57,600.00
Sales ₹ 98,000.00
Interest ₹ 1,500.00
Interest Payable ₹ 1,500.00 (adjustment)

Total ₹ 399,500.00 ₹ 399,500.00

Statement of Profit and Loss for the year ended 31/3/xx

Sales 98000

Expenses
Cost of goods sold 57600
Salary 6000
Interest exp 1500
General exp 1200
Total 66300

Profit for the year 31700

Balance Sheet as on 31/3/xx


Particulars Amount ₹
Assets
PPE 0

Current assets
Bank 202800
Cash 8000
Inventory 32400
Trade Receivable 90000
Total 333200
Equity and Liability
Share Capital 150000
Retained Earnings 31700

Borrowings 150000
Interest Payable 1500
Total 333200
In year 2: the opening Balances of all carried forward Balance sheet items w
Journal Entry
Dr cr
Date Account
Apr-01 Bank Asset dec cr 25000
Furniture Asset inc dr 25000

Printing Mac Asset inc Dr 20000


Bank Asset dec cr 20000

Apr-03 Inventory Asset inc dr 60000


Trade Payable liab inc cr 60000

Apr-03 Bank Asset dec cr 1500


Interest Payable liab dec dr 1500

Apr-05 Trade Receivable Asset INC dr 45000


Sales IncomeINC cr 45000

Inventory asset dec cr 30000


COGS expenseinc dr 30000

Apr-19 Trade Receivable asset dec cr 90000


Bank asset inc dr 90000

Apr-20 Trade Payable liab dec dr 60000


Bank asset dec cr 60000

Apr-25 Bank asset dec cr 5000


Receivable: Loan to emp asset inc dr 5000

Bank asset inc dr 10000


Unearned Revnue: Roxy liab inc cr 10000

Bank asset dec cr 6000


salary expenseinc dr 6000

Apr-30 Interest exp inc dr 1500


Interest Payable liab inc cr 1500

Please prepare the Ledger on your own to get the Trial Balance

Ledger: Bank Account


Dr Cr Balance
Apr-01 Opening Balance 202800 202800
Apr-01 25000 177800
Apr-01 20000 157800
Apr-03 1500 156300
90000 246300
60000 186300
5000 181300
10000 191300
6000 185300
Closing Balance 185300 Dr

Ledger: Retained Earnings Dr Cr

Opening Balance 31700 31700 cr

Ledger: Furniture Dr Cr

Apr-01
orward Balance sheet items will appear

Trial Balance as on ….

Dr cr

Trial Balance as on xxxxx


Account DR CR Statement of Profit and Loss for the year ended 3
Bank Balance ₹ 185,300.00
Inventory ₹ 62,400.00 Sales 45000
Salary ₹ 6,000.00
Retained earnings ₹ 31,700.00 Expenses
T. Receivable ₹ 45,000.00 Cost of goods sold 30000
Share Capital ₹ 150,000.00 Salary 6000
Cash ₹ 8,000.00 Interest exp 1500
Borrowings : LKB ₹ 150,000.00 Depreciaion 375
Cost of Goods Sold ₹ 30,000.00 PBT 7125
Sales ₹ 45,000.00 Tax 2138
Interest ₹ 1,500.00 Profit for the year 4987
Interest Payable ₹ 1,500.00
Loan to employee ₹ 5,000.00
Unearned Revenue ₹ 10,000.00
Furniture 25000
Printing Machine ₹ 20,000.00 Depreciation 375

Total ₹ 388,200.00 ₹ 388,200.00


Balance Sheet as on 31/3/xx
Particulars Amount ₹
the year ended 3 Assets
PPE 45000 0
Less: Accum. Depr 375 44625
Current assets
Bank 185300
Cash 8000
Inventory 62400
Trade Receivable 45000
Loan to employees 5000

Total 350325
Equity and Liability
Share Capital 150000
Retained Earnings 31700
Current year profit 4987 36687
Borrowings 150000
Interest Payable 1500
Advance from customer 10000
Income tax Payable 2138
Total 350325

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