Accountancy Comprehensive Project
Accountancy Comprehensive Project
Accountancy Comprehensive Project
On 1st Jan. 2012, Afr. Rahul decided to open a computer tminillS <'<'nr,v rn Clurndi;rnrh. JI" 11t,rd1crN .f
a commercial comple..-.: measuring 300 sq. feet carpet area at o <'Ost of ~ :?.50.000 and decufrrl tu w,·,·::t
r 2,50,000 as a further capital in proposed business. He> apprr.x1chcd Rajosthan HonJ.• fi1,· loon u-lurli
agreed to provide 80% loan of the cost of computers. He bought 30 computer~ vt ro.,tin~ ,• 2,1,()()() ro, II.
He paid ( 1,50,000 and Rajasthan Bank financed the rcmai•1i11.g 80''0 amount of, <>.00.<KX) G_l, I()'?; Tl1<
loan was payable in 4 annual instalments along with illfcrt'sf dut'.
The transactions during the year were:
(n
Purchased Furniture ..................................................................................................... -10.(){}0
Fees received from students ....................................................................................... 5.~~0.000
Bought computer stationery ....................................................................................... 1.10.000
Sale of computer stationery ....................................................................................... 1.(,0,00U
Wages paid ..................................................................................................................... 90.000
Salaries paid ............................................................................................................... l.25.000
Electricity charges .......................................................................................................... -I i'.500
Advertisement ................................................................................................................. 22.000
Postage and Call ............................................................................................................. P.500
General Expenses ............................................................................................................. o. 000
I
~
Insurance Preniium ......................................................................................................... 4.600
Bought Printer Machine ............................................................................................... 30.000
I
He withdrew ( 12,000 p.m. as drawing and repaid the annual instalment of bonk /fl(lll c::\",..: r,•ith
interest due on 31st Dec. 2012. Assume all transactions took place through RQ.iast<m Bonk 'h'<. on•
required to:
1. Journalise these transactions after considering the followi~ infurmation:
(i) Stock of computer stationery ( 19,500.
(ii) Depreciate building by 5% and computer and fumitun.• ~1' 10<~ p.o.
(iii) Salary unpaid (9,000.
t
(iv) Advertisement includes unissued material worth ( .J..000. 't
t
I
I
;
:J. Prc•1><m· fi11<11u·utl Hlo /1 •1111•11/.'i /c,r !Ill' y1•or 1•11rli•d .'I Isl /)1 •1·1•111/;1•1 :20 I''
4. Mr. Ua/111/ wrn/11w lo 1,:paml hi.'I h11s1111•H.'I /itl'llwr HO /11• "l'l"'""rlll'cl /n .1.1 bC1t1lw,· /,,,. 1111111 , Wi, 0 1
1
ralws .1.1 /,ould l,1.'I lm11l.'l•r 1·011srd1•r lwj,,n• pro11,r/11111 /0011 r1111.i;1d1•ri11;: tho/ Mmilo, /um n1111s fit;t 0
as Gm/i,,; l'ro/it oll(/ 2:J% o,'I Nt•t I'm/it (
5. 7'h<' J>roje,·I Wor/,• i,'I (P/a 111111wJ
(t) lo pn•par,• m·,·01111flll/.l tf'ford of Mr. Ha/111/ (or tlu• W'C'Ollfllinl,( y1·,11· 2 / '>
(11) lo prl'par,• 7'nal JJalam·,• all(/ l11H 'l 'mdttllf and l'rn{tl & ! JOSH A I,. a11d lfol<t11n· 8h('C'/,
lo ml<-11lal1• profilabtlily ra/10.'I,
(iii)
(iu) lo /mow wh,•lht•r lw will 1,(1•/ l,a11I: /o(tt/ or 110/. Nt•,·1 ,'IHW)' data 1
i,1.1 µ11 11•11 to r1,r1111frt1• ti, 1,
JJl'Ojt'C'/ wor/t.
E~,•cution of Pnyect Work
( I) l'n•paralio11 of ,lmmu,/, J.,l'<ll,(1 r wul 'l'rl(L/ /Jal<111<·1•.
1
(2) Pn1p<11·a.lw11 of /im1111wl Hla/1•1111•11/,'I /<H' 1/w ,Yl'<tl' 1•11t!111J.! .'IJHI /)1•1·,•mlwr 2012.
of µroH1; pm{tl l'(//1(), '"'' /Jl'IJ/il mlio, (Ill(/ OJW(lflll/.f l'(lf/(1 lo (IS/W,'IH pro/itai>1lttv
(,'J) ('ompuluftoll
(4) C'ompul<tltcm o(.i;hort l1•r111 011<1 lo111( tam Holul'IH'Y mlw, to /wow w/1/'tlwr loo11 be /.[tl'l'II by htt11I,·
or not.
Solution:
J. In the Book of Mr. lwhul
Journal Entrlos
.
0.1 ((' P.utlwl,1n L.I. Dr(~ Cr(~
--
201 2
),111, I Building Ale 1)1 , l,',0,000
B,111k A/1· Dr. J_,r,o,ooo
Io C.1pi1,1I Ale h,00,000
(I or , ,1p11,1I i11V1•st t>d in Uusirwss)
,
4,000
(For stock of advertisement material)
Prepaid Insurance Ne
To Insurance Ne
Dr. 1,500 ·,
1,500
(For insurance prepaid)
COMPREHENSIVE PROBLEMS
----- -- -- --- ---- 13
LEDGER ACCOUNTS
1
2.
Or Building Ale Cr
r PJrtitu/Jn I .I . •
Oat~ Particulars L.f. Datr
By D<>prec.1,1t1on Nl
- \
17 5()()
2012 To (dpital Ale. 3,50,000 101'.l
8)' B,11,mc t' def l, l.!,liOO
1 o Clp1tal Ale
L.F.
2,50,000
0df('
lG,00,000 1'1,00,000
2013
Jan. 1 To Balance bid 11,400
2012 2012
Dec. 31 To Balance dd 6,00,000 Jan. 1 By Building Al< l , t;0,000
By Bank Ak 2,50,000
6,00,000 h,00,0UO
2013
jan. 1 By B.ilJnce bid b,00,000
2012 2012
- -
Jan. 1 To Bank Ne 2,10,000 Jan. 1 Br B,mk ~./c h 00,000
Dec. 31 To Balance dd 4,50,000 Jan. 1 Bv lntere,t ~...tc t,O, l)l){)
6,60,000 6 60,t)Oll
2013
Jan 1 Bv Balance b.'d 4,t;O,t)OO
2012 2012
Jan. 1 To Bank Ne 7,50,000 Dec. 31 B) Depreciation .\ (' -s.ooo
Dec. 31 B) Balance dd 6,,5,000
:-',50,000 i,50,000
2013
Jan. 1 To Balance bid 6,75,000
2012 2012
Dec. 31 To Trading Ne 7,50,000 Jan. 1
Jan. 1
By Bani-. Ve
By Banl .\/c
5,90 000
1,60 000 ,
-
l
i
7,50,000 7,50,000
COMPREHENSIVE PROBLEMS 15
0, PurchA&Od Ale
t
,,,,,,. l',11 tit 11/,tr 1 r l>rtlf• l't1rtu 11l.u~
'111 I '1
lo B,1111-. N, 1, 10,000 1)1'(. 11 Hy <,1(X k of <,oo<ls Air
l)Pr 11 By l r.irhng Nr
1, 10,000
Dt Wages Ale
C,
---,
2012
t>.atf' Particulars L.f. r Date Particulars
-r -
Lf r ---
2012
Ian. 1 1o B.mk N< 90,000 2012 By Trading Ne 90,(T.(J
~
1,34,000 1,34,000
Dr Advertisement Ale ~ Cr
Date Particulars L.F. r Date Particulars L.F. r
2012 201 2
jdn. 1 To Bank Ne 22,000 Dec. 31 By Stock of Adv. Ne 4,000
Dec. 31 By P&L Ne 18,000
22,000 22,000
16
o,. Gener al E,cpenaes
- o,,t" Pi!rticulars
Ale
Cr
- - -
201..?
l..f. r {),1f('
P.,r," ul.us Lf. ,
),Ill 1 To B.inl,; Ne :rn11
. <,,ooo D1"( i1 By P&l Ne 6,000
2012 2012
Jan. 1 To Bank Loan Ne 60,000 Dec. 31 By P&L Ne 60000
- 96,500 96,500
201 2 2012
9,000 Dec. 31 By Sd lari,•s Ale 9,000
Dec. 31 To Balancc> d d
2013
Jan. I By Balance b/d 9,000
2012 2012
4,000 Dec. 31 By Balance dd 4,000
Dec. 31 To Advertisement Ne
2013
Jan. 1 To Balance b/d 4,000
(
Date Particulars L.F. r Date Particulars L.F.
2012 2012
Dec. 31 To Insurance Ne 1,500 Dec. 31 By Balance dd 1,500
2013
Jan. 1 To Balance b/d 1,500
2012 2012
Dec. 31 To Purchase Ne 19,500 Dec. 31 By Balance dd 19,500
Trial Balance
as on December 31, 2013
Building Ne
Name of Ledger Accounts Dr. (<")
3,32,500
Cr. (<")
j
Bank Ne 11,400
Capital Ne 6,00,000
Bank Loan Ne 4,50,000
Computers Ne 6,75,000
Furniture Ne 36,000
Fees from Students Ne 7,50,000
Purchases Ne 90,500
Wages Ne 90,000
Salaries Ne 1,34,000
- -----------------------------L------- II
.!J,3//,
iP..f/ h
'; Y/J
0-,
--
3. ANANCfAL ACCOUNTS
Trading and Prof it and Loss Ale
for the year ending Dec. 31, 2012
~ Partirolan I r
Particulars f
I
7,:h_,f/jf]
90,500 Bv fees from Studems -~- c
To Purchase Ale
90,000
To Wages Ne
5,69,500
To Gross Profit dd
7,50,000 ~ i,5f!,00.C
'
5,69 ,500
1,34, 000 By Gross Proiit bl'd
To Salaries Ne
47,5 00
To Electricity Charges Ale
18,000
To Advertising Ale
9,500 -
To Postage and Call Ale
6,00 0
To General Expenses Ale 3,100
To Insurance Ale
60,000
To Interest on Bank Loan Ale
To Depreciation Ale:
17,5 00
Building
75,0 00
Computers 96,50 0
4,00 0
Furniture 1,94,900
To Net Profit I
I
.i 69 500
5,69,500
\
19
COMPREHENSIVE PROBLEMS
Balance Sheet
2
for the year end ed on J 1st Dec., 201
Assets r
Liabilities r
11,400
9,000 Bank
Salary Outstanding Ne 1,500
4,50,000 Prepaid Insurance
Bank loan 19,500
6,00,000 Stock of Goods
Capital 4,00 0
Stock of Advertisement
+ Net Profit 1,94,900 3,32,500
7,94,900 Building less Depreciation
6,75,000
6,50,900 Computers less Depreciation
- Drawings (1,44,000) 36,000
Furniture less Depreciation
30,000
Printer Machine
11 ,09, 900
11,09,900
n:
low ing rat ios bef ore pro vid ing loa
4. Ba nk er sho uld con sid er the fol
Pro fita bil ity Ratios:
Gross Profit x 100
(i) Gross Pro fit Ratio =
Sales
51691500
= ~5~ 000 X 100 = 75 .93n~t.
Ne t Profit x 100
(ii ) Gross Profit Ratio = Sales
94 9
= l, , 00 X 100 = 25.98%
7,50,000
Op era ting Exp.) x 100
Operating Ratio = (Cost of Sales +
(iii) Sales
where
(a) Cost of Sales = Sales - Gross Profit
= 7,50,000 - 5,69,600 = t 1,80,500 e
Exp ens es = Sal arie s + Ele ctri city Charges + Adverti sem ent + Pos tag
(b) Operating st + Depreciation
+ General Exp . + Ins ura nce + Int ere
= 1,34,000 + 47,500 + 18,000 + 9,50
0 + 6,000 + 3,000 + 60,000 + 96,500
= ~ 3,74,600
00] x 100
Operating Ratio = [1,80,500 + 3,74,6
7,50,000
5,55 ,lOO X 100 = 74.01%
=
7,50,000
Co mm ent s: quite good.
io of Mr . Rah ul is 75.93% aga ins t ind ust ry sta nda rd of 58% which is
(i) Gross Pro fit Rat
also good.
Pro fit Rat io of firm is 25.98% aga ins t ind ust ry sta nda rd of 23%. It is
(ii) The Ne t
XII
PROJECT WORK IN ACCOUNTANCY-
20
So len cy Ra tio :
(i) Sh or t Te rm So
lv en cy Ra tio s
Cu rre nt AHsctR :rn,-100
(a ) Cu rre nt Rn tio = r;.9 00 ( = 0 23 )
Cu rre nt LiabiJiticR = J ,,>. • )
wh er e,
of St ati on er y
(i) Cu rre nt As se ts = Ba nk + Pr ep aid In su ra nc e + St oc k
nt
+ St oc k of Ad ve rti se me
,50 0 + 4,0 00
= 11 ,40 0 + 1,5 00 + 19
= ~ 36 ,40 0 id ne xt ye ar )
lar ies + In sta lm en t of Ba nk lo an (to be pa
(ii ) Cu rr en t Li ab ili
tie s = O/ s Sa
= 9,0 00 + 1,50,000 = ~ 1,59,000
Lo ng te rm Lo an
(b ) De bt Eq ui ty Ra tio = Ca pi tal
= Ba nk Lo an (A fte r
1 ye ar re pa ym en t)
Ca pi tal
3,0 0,0 00
= --- = 0.4 6:1
00
6,5 0,9
bt
Comment: rd ly 0.2 3:1 ag ai ns t st an ~d ra tio of 2:1. De
tio is ha
ve ry po or as cu rre nt ra nd ar d, ra tio of 2:1 . So
lo an
Sh or t te rm so lv en cy is ng is on ly 0.4 6:1 ag ai ns t sta
th at lo ng te rm bo rro wi ry po or.
Eq ui ty ra tio in di ca te s sh ou ld im pr ov e its cu rre nt ra tio as it is ve
nk bu t fir m
ca n be gr an te d by ba
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