Mr.Ramakant decided to start a computer …

Mr.Ramakant decided to start a computer business. For this purpose he built the first floor of his house at a cost of Rs. 2,00,000 and invested a further sum of Rs. 3,50,000 in his business. He wanted to start with 12 computers costing Rs.40,000 each. He approached ICICI bank and secured a loan to the extent of 75% of the cost of computers. It was agreed that the loan will be repaid in four annual instalments as follows. At the end of first year Rs90,000 + Rs36,000 for interest At the end of second year Rs90,000 + Rs27,000 for interest At the end of third year Rs90,000 + Rs18,000 for interest At the end of fourth year Rs90,000 + Rs.9,000 for interest He started business on 1st April 2017. On the same date he deposited Rs.3,30,000 in the bank. He purchased computers and paid 25% of the value of computers from his bank and Rs.3,60,000 out of bank loan availed. He deposited Rs.10,000 for the electric connection with the Electricity Board and also deposited Rs.1,50,000 with the VSNL for internet and telephone connection. He spent Rs.40,000 for getting the computer cafe furnished and also spent Rs.6,000 in getting the pamphlets printed and distributed. All payments were to be made by cheques and all the receipts were to be deposited in the bank on the same day. At the end of the year, the results were: Rs Purchases of computer stationery 92,000Revenue from fees received from students of computer classes 2,70,000 Revenue on account of internet facility 2,20,000 Revenue from sale of computer stationery 1,60,000 Wages paid to servant 12,000 Electricity charges 48,000 Telephone charges 73,000 Entertainment expenses 7,000 General expenses 5,200 He withdrew Rs.5,000 by cheque each month for his personal expenses and duly paid the bank loan. You are required to Journalize the above transactions ,post them into the ledger and prepare a trial balance. Prepare trading and profit and loss account and balance sheet taking into consideration that :- 1. A telephone bill of Rs. 6,800 is yet to be paid. 2. Depreciate building by 5% , furniture by 20% and computers by 30%.

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Madhuri and Arsh were partners in a firm sharing profits and Their Balance Sheet as at 31 ^ (st) * M * a * r * c * h 2019, was as follows: losses in the ratio of 3: 1. Balance Sheet of Madhuri and Arsh As on 31 ^ (st) March, 2019 4 Assets Amount (3) Liabilities Amount () 4,70,000 1,10,000 Capital Madhuri Arsh 1,20,000 2,00.000 Machinery Investments 5,00,000 Debtors Less: Provision for doubtful 60,000 debts Workmen's Compensation Fund (10,000) 1,10,000 Creditors Employees' Provident Fund 1,90,000 Stock 1,10,000 8,60,000 Cash 1,40,000 30,000 8,60,000 On 1 ^ (st) April, 2019, they admitted Jyoti into partnership for 1 / (4 ^ (th)) share in the profits of the firm. Jyoti brought proportionate capital and 40,000 as her share of goodwill premium. The following terms were agreed upon; (i) Provision for doubtful debts was to be maintained at 10% on debtors. (ii) Stock was undervalued by 10,000. (iii) An old customer whose account was written off as bad, paid 15,000.. (iv) 20% of the investments were taken over by Arsh at book value. (v) Claim on account of workmen's compensation amounted to 70,000. (vi) Creditors included a sum of 27,000 which was not likely to be claimed. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm

Sita and Geeta are partners in a firm sharing profits in the ratio of 3:2 They had given a loan to a firm for 30000 in their profit sharing ratio 1st October 2021The partnership deed is silent on interest on loan from partner compute interest payable by the firm to the partner assuming the firm closer it's book every year on 31 March

Dev with true rupees 10 10000 on 15th day of every month interest on drawing was be changed a 12% per annum calculate interest on their string

Chapter 1 solution

Dev withdrew rs.10000 of 15th day of every month.

(Interest on capital when closing capital is given) A and B are partners sharing profits and losses in the ratio 4: 3. Their capital on 31st December, 2022 were 3,00,000 and 2,00,000 respectively. During the year, their drawings were 50,000 each. The firm earned profit amounting to 70,000 for the year ending 31st December, 2021. Later on they decided that interest on their capital be charged at 10% p.a. Compute interest on Capital.

Tom and Josh are partners in a firm sharing profits and losses in the ratio of 3 1. They admed Max as a new partner 1/10th share in the profits and losses. Max contributes the following assets to his capital and his share for goodwill: Sma a0,000 Land and Building 3,00,000, Plant and Machinery 2,60,000, Capital 74,00,000. Record the journal entries in the books of the firm on Max's admission. necesey

ABC aur partners having profit equally b is guaranteeng minimum profit of the 2 lakhs per annum salary is payable to be of 10000 per month net profit for the year ending 31st March 2024 is 660000

Pooja and Archna are parmas in a finn sharing profits and losses 1. Their capital accounts as en 1st April, 2017 stand at 70,000 ratio of 2 respectively. The partners the partners during s are allowed muret in capital @ 10% the year ended 31st March, 2018 amounted to p.a. The respectively. Interest is charged on drawings at the tale of 10% p.a. and t 1st December 1st February Interest on drawings is charged @ of A for the year ended 31st March, 20 [Ans. Interest on Drawings ₹221. Q. 22 (A). Gopal is a partner in a dras first day of every month during th If interest on drawings is c drawings of Gopal. 4,800 and Pooja has given a loan to firm as on 1st November, 2017 of ₹20,000. The profit of the firm for the year ended ist March, 2018 before adjustments was 280,000. 10% of this pult is beligt in a Reserve Account Current A/c balances on 1st April, 2017 wet Pooja ₹5,000 (Cr.); As 23,000 (Dr