Aruna, decided to start business of …

Aruna, decided to start business of fashion garments under the name M/S Designer Wear from 1st April,2020. She had Savings of Rs. 10,00,000 .She invested Rs. 3,00,000 out of her savings and also borrowed Rs.3,00,000 from State Bank of India. She purchased a commercial space of 500 sq. feet for Rs. 5,00,000. The space so purchased was suitably renovated to make it ready as showroom.she purchased furniture and fixtures for Rs . 75,000. Total amount of bank loan is to be repaid in 20 quarterly instalments beginning 30th June,2020. Annual rate of interest is 12% p.a. Repayment Schedule of Bank Loan in the first year is as follows: Due Date Principal Interest Instalment June 30, 2020 15,000 9,000 24,000 September 30, 2020 15,000 8,550 23,550 December 31, 2020 15,000 8,100 23,100 March 31, 2021 15,000 7,650 22,650 She started business on 1st April, 2020 getting it registered under Goods and Services Tax (GST). In view of further capital requirement, she further deposited Rs. 2,00,000 in the bank. She paid Security Deposits of Rs. 5,000 for the electricity connection with BSES Rajdhani Power Ltd. and Rs. 2,000 to MTNL for telephone connection. Furniture for Rs. 10,000 was purchased further. All payments were to be made by cheque. All the receipts were in cash and to be deposited in the bank in the morning of next day. At the end of the year, her results showed the following: Rs. Total Sales 20,00,000 Total Purchases 17,00,000 Electricity Expenses 40,000 Telephone Charges 50,000 Cartage Outwards 60,000 Travelling Expenses 45,000 Business Promotion (Restaurant Bill) Expenses 5,000 Maintenance Expenses 25,000 Miscellaneous Expenses 15,000 Electricity Expenses Payable 20,000 She withdrew Rs. 5,000 by cheque each month for her personal expenses. Bank Loan was serviced and instalments were paid regularly. 1. Journalise the above transactions in the books of M/s Designer Wear, post them into the Ledger and prepare the Trial Balance. 2. Also, prepare its Trading Account, Profit and Loss Account and Balance Sheet. Charge depreciation @ 5% on Building and 10% on Furniture and Fixtures. Closing Stock at the end of the year was 5,50,000

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After completing a course in gemology, Esha joins her father in the family business of fashion jewellery. Her father owns two showrooms at different locations in the city and operates his business through them. However, Esha intends to expand the business by venturing into online retailing. She also intends to introduce flexible manufacturing with the use of computer networks wherein the marketing department can interact constantly with the production department and get the customized products made as per the requirements of the individual customer. a. b. How is the mode of business that Esha intends to adopt different from the one that her father has been following over the years? Distinguish between the two different modes of business as identified in part (a) of the question b

On 1st April, 2005, Z Ltd. purchased machinery for 1,20,000 and on 30th September 2006, it acquired additional machinery for 20,000. On 30.06.2007 one of the original machine (purchased on [0.4 * 0.2005) which had cost 5,000 was found to have become obsolete and was sold as scrap for ₹500. On the same date a new machine was purchased for ₹8,000. Depreciation is to be charged @15% p.a. on written down value. Accounts are closed on 31st March each year. Show machinery account for the first three years.

Ram and Raghav are twin brothers. Ram was interested in computers and would find the time to always work on computers either at college or at his friends place.His Keen interest in the subject made him take up computer software for his degree course. He pleaded with his father Mr rangan and purchase the computer for his use at home. Raghav was always interested in sitting at his father’s shop at the nearby market place selling electrical appliances he would often go and help his father at the shop after college hours. Mr rangan was happy that Raghav showed interest in his business but was worried about Ram who would always spend time with computers and modern gadgets. He felt that if the interest of the two sons be put together they could start a new business of their own. The boom in the IT industry made him find ways to satisfy his son’s dream. After college, the twins were drifting apart due to varied interest . Rangan decided that this is the time for him to intervene and make decisions for his sons. he asked Raghav a commerce graduate to draw a proposal for the same. Raghav came out with the following ideas: The area they decided to run a shop consisted of lower income group families and many of them did not poses computers at home. The shop could provide the following: -computer classes for various age groups. -computer using facilities on payment per hourly basis and printing of documents from computers. -internet access facility at the prevailing market rates by entering into contract with VSNL. -computer games corner for children. Ram jump at the idea and they made up a common proposal. Ram wanted that they purchased 10 computers and start with two areas of operation and expand when things go well. The shop they had at the market place was a single story building. Their father offered to build the first floor and give it to them for their business.. he spend rs 100000 on construction facility and give them rs 250000 for the business. The sons went to bank and put up their proposal and manage to get a loan to the extent of 75% of the cost of computer rs 400000 with printers. As the bank manager was aware of the creditworthiness of Mr rangan .he advanced the loan of rs 3 lakh. Total amount to be repaid will be rupees 360000 including interest in three annual installment as follows: -end of 1 st year=rs.1,30,000(1,00,000+30000) -end of 2nd year=rs.1,20,000(1,00,000+20,000) -end of 3rd year=rs.1,10,000(1,00,000+10,000) They started business on first April,2016. Raghav decided to deposit rs 2,40,000 in the bank .he gave rs 100000 to computer company as 25% of the value of computers purchased and rupees 3 lakh out of bank loan availed. he deposited rs.1,000 for the electrical connection with the electricity board as security deposit. He paid a deposit of rs 100000 with VSNL for the internet connection. he used the telephone connection at the shop as there were two connections at the shop the brothers got the computer cafe furnished by paying rs 25000. Raghav got pamphlets printed and distributed at the cost of rupees 4500 in the surrounding colonies. All payments what to be made by cheques. All the receipts when cash to be deposited in the bank on the same day. The students on the average paid a monthly fee of rs 1500 for the three months computer evening classes. There were a number of Internet subscribers and receipts on the account of internet facility was rupees 10000 amount in the first quarter on an average. The decided to buy and sell computer stationery also like floppy disc CDS at etc. At the end of the year the results showed the following: Total revenue including sales of computer stationery rs. 498000 Purchase of computer stationery rs 55000 Electricity charges yet to be paid rs 1,24,000 Telephone charges 34 000 Petty expenses 12000 Entertainment expenses 10000 maintenance expenses 10000 There was a helper at their father’s shop who agreed to clean up the computer cafe and fetched water to visitors. For these services, he was paid rs.500. The brothers withdrew rs 3000 by cheque every month for their personal expenses. They paid the bank loan regularly. Father was pleased at their sons efficiency. He wanted to expand business. You are required to journalise the above transactions. Post them into ledger and prepare trial balance.

50 transactions of class 11 journal ledger trial balance