PROJECT WORK IN ACCOUNTANCY (2023-24) COMPREHENSIVE …

PROJECT WORK IN ACCOUNTANCY (2023-24) COMPREHENSIVE PROJECT TOPIC: Study of the Operational Efficiency of "Clean Detergent Soap" (With GST) Objectives of the Project: The main objectives of my project are that I will be able: To judge the performance of the firm. To judge the overall profitability position. To check the financial soundness. To judge the effectiveness with which the fixed assets have been used. To identify Investing and Financing activities and prepare Cash Flow Statement. TOOLS OF ANALYSIS (1) Ratios (ii) Cash Flow Statement SOURCE MATERIAL Project Statement: 'Clean Detergent Soap' On January 1, 2022 National Small Industries Corporation (NSIC) organised a Camp for those who wanted to start a small business. The NSIC displayed 1500 small business projects which could be started with an investment of 2,00,000. The NSIC also promised to buy the entire production of the first year. It promised to supply the required machinery at a very subsidised rate. It also had a scheme to give loans upto 50% of the working capital requirement. A large number of people visited the camp. There were project demonstrations by the NSIC advisers and experts. Ms. Neelam was very impressed by the demonstration of the small business project on Detergent Powder. The project was economically vlable. She was convinced that she will definitely succeed in carrying out the project. She entered into an agreement with the NSIC who agreed to supply the necessary plant for ₹ 60,000 (GST @ 18 %) on turnkey basis. She had sufficient open space at her residence in a village. She got the machine fixed, and the down payment of 20,800 was made. The balance was to be paid equally over a period of five years. She went through the literature provided by the NSIC to know the addresses of the suppliers of the raw materials. She placed necessary orders for the raw material and arranged for workers who will operate the machine and do other necessary production work. She set up a small workable office and decided to do all office work herself. All supplies were on a credit for two weeks. She formally inaugurated the production on April 1, 2022. She invited all the villagers on the very first day. Clean Detergent powder was very reasonably priced. The price was very much lower than other brands in the market. She visited ten other villages around her village. She told the people there, as to how her detergent powder is better and cheaper than others. Her product was really good and was accepted by all those who used it. Within two months she could sell whatever she produced every week. Her initial investment was 80,000 out of which she paid the first instalment (down payment) of plant on April 1, 2022. She opened a Bank Account with 49,200 on the same date. She had an old scooter worth 20,000 which she decided to use in her business. She also purchased furniture for 12,000 (GST @ 12%). Thus, her total investment was 1,00,000. The payments to suppliers were made on the 15th and the 30th of each month. The salaries and wages were paid only on the 7th of each month. The Sales were mostly for Cash. The Cash Sale was deposited in the Bank the next day. The sale to local customers was on credit for oneweek. All the customers were honest and paid the amount as and when due. The following expenses were incurred and revenue realised during the year ended March 31, 2023. (₹) 1. Raw material purchased on credit (GST @ 12%) 12,00,000 2. Cash paid to the (suppliers) creditors 11,24,000 3. Cash Sales (GST @ 18%) 16,00,000 4. Credit Sales (GST @ 18%) 15,25,000 5. Cash received from customers 2,31,000 6. Wages paid for eleven months 19,000 7. Office expenses 25,000 8. Power bills paid 10,000 9. Packing expenses (GST @ 12%) 2,52,000 10. Drawings Other balances as on March 31, 2023 were as follow: (i) Closing Stock (₹) (ii) Plant 25,000 60,000 (iii) Furniture 12,000 (iv) Debtors 75,000 (v) Scooter 20,000 Depreciation was charged @ 10% p.a. on both plant and furniture and @ 20% on Scooter. Wages are outstanding for one month. Required: 1. Ms. Neelam wants to judge her performance. ii. Calculate necessary ratios to find out her overall profitability and production efficiency. iii. Evaluate her liquidity position at the end of the year. iv. Identify her main financing and investing activities. V. Prepare Cash Flow Statement. vi. Can she get a loan from a bank?

U and V Were Partners in a firm

Rao and Majumdar are partners sharing profits and losses in the ratio of 3: 2. Rao died on 31st December, 2020. The following was the Balance Sheet on that date: Payment to Executors in Instalments Liabilities Amount Assets Amount ed on 281 Creditors Reserve Rao's Capital Majumdar's Capital 24,000 Cash at Bank 15,000 Stock 18,000 40,000 Amount 18,000 25,000 Debtors Furniture 20,000 35,000 The share of Rao in firm's goodwill was agreed at 36,000. Assets and liabilities were valued reasonably. Assuming that 10,000 was paid immediately on January 1, 2021 and the balance was payable in three equal instalments on 31st December every year and interest was payable @ 12% per annum on unpaid balance. Prepare Rao's Executor's Account.

Q. 120. Risha and Nisha were partners. The partnership deed provides: (1) That the accounts be balanced on 31st December each year. (ii) The profits be divided as follows: Risha one-half, Nisha one-third and carried to Reserve account one-sixth. (ii) That in the event of death of a partner, her executor will be entitled to the following: (a) The capital to her credit at the date of death. (b) Her proportion of profit to date of death based on the average profits of the last three completed years. (c) Her share of goodwill based on three year's purchase of the average profits for the three preceding completed years. On 31st December, 2020 the Trial Balance was as under: Particulars Risha's Capital Nisha's Capital Reserves Bills Receivables Investments Cash Creditors Dr. (3) Cr. (3) 90,000 60,000 30,000 50,000 40,000 1,10,000 20,000 2,00,000 2,00,000 The profits for the three years were: 2018 ₹4,200; 2019 ₹3,900 and 2020 ₹4,500. Nisha died on 31st May, 2021. Draw up the deceased Partner's Capital A/c and Executor's A/c. Ans. Balance due to Nisha's Executor's ₹77,740.]

On 1st April ,2019 ,Mathew Ltd issued 10,000,9%Debentures of rs.100each at a discount of 5%,redeemable at premium of 5%.These debentures were redeemable as follows: On 31st March ,20-2000debentures On31st March,21. 5000Deb On 31st March 22. 3000Debentures . Prepare account for loss on issue of debenture , 9%Debentures ,and premium on redemption

Ativ, Meha and Nupur were partners in a firm sharing profits and losses in the ratio of 5 : 3:2. On 31-03-2016 their Balance sheet was as under: Liabilities Amount (T) Assets Amount (R) | Trade Creditors 26,500 Bank 23.500 Debtors 1,00,000 Stock 50,000 Fixed Assets 40,000 Advertisement Expenditure 25,000 Employees Provident Fund Ativ's Capital Meha's Capital 30,000 55,000 1,20,000 Nupur's Capital 10,000 2,40,000 2,40,000 Ativ retired on 1-4-2016. For this purpose, the following adjustments were agreed upon: (i) Goodwill of the firm was to be valued at 2 years purchase of the average profits of 3 completed years preceding the date of retirement. The profit for previous years were: 2013-14 55,000; 2014-15 7 65,000; 2015-16 7 60,000.

The capital of the firm of anuj and benu is , 100000 and the market rate of interest is 15% . Annual salary to the partner is 60000 each. The profit for the last three years were , 300000 ,360000 , 420000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profit

Accounting for partnership Firms Fundamentals notes

Q. 46. Ayushi and Shristhi are partners sharing profits in 3 : 2. Their Balance Sheet showed Stock at ₹3,10,000; Machinery at ₹4,95,000; Debtors at ₹6,00,000; Creditors at ₹3,47,000. They admit Tina as a partner and new profit sharing ratio is agreed at 4: 3: 2. Following terms were agreed : (1) Machinery is overvalued by 10%. (ii) Unrecorded debtors of ₹20,000 be brought into books and provision for doubtful debts be created at 10%. (iii) Creditors of ₹27,000 are not likely to be paid. Shristhi's share in loss on revaluation amounted to ₹36,000. You are required to calculate the revalued value of stock

Gita Radha and Garv are partner sharing prophets in the ratio of 1 by 2 2 by 5 and 1 by 10 find the new profit sharing ratio of the remaining partners if girl retires

B and C are partner sharing profit in the ratio 3 2. Goodwill appears in the book at Rs3000 DIs admitted into partnership on payment of 2000 for 1/4, share as goodwill .B and C between themselves.Sharing future profit and loses equally given journal.