Aruna, decided to start business of fashion garments under the name of M/s Designer
Wear from 1st April, 2021. She had savings of ₹ 10,00,000. She invested ₹ 3,00,000 out
of her savings and also borrowed ₹ 3,00,000 from State Bank of India. She purchased
commereial space of 500 sq. feet for ₹ 5,00,000. The space so purchased was suitably
a
renovated to make it ready as showroom. She purchased furniture and fixtures for
₹ 75,000. Total amount of bank loan is to be repaid in 20 quarterly instalments
beginning 30th June, 2021. Annual rate of interest is 12% p.a.
Repayment Schedule of Bank Loan in the first year is as follows:
Due Date
Principal R)
InterestR
Instalment ()
June 30, 2021
15,000
9,000
24,000
September 30, 2021
15,000
8550
23,550
December 31, 2021
15,000
8,100
23,100
March 31.2022
15,000
7,650
22,650
She started business on 1st April, 2021 getting it registered under Goods and Services
Tax (GST). In view of further capital requirement, she further deposited ₹ 2,00,000
in the bank. She paid Security Deposits of ₹ 5,000 for the electricity connection with
BSES Rajdhani Power Ltd. and ₹ 2,000 to MTNL for telephone connection. Furniture
for ₹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:
Total Sales
Total Purchases
Electricity Expenses
Telephone Charges
Cartage Outwards
Travelling Expenses
Business Promotion (Restaurant Bill Expenses
Maintenance Expenses
Miscellaneous Expenses
Electricity Expenses Payable
She withdrew ₹5.000 by cheque each month for her personal expenses.
20,00,000
17,00,000
-40,000
50,000
60,000
45,000
5,000
25,000
15,000
20,000
1/2
DELHI PUBLIC SCHOOL, SAHARANPUR
Class-11th
Accountancy Assignment
Bank Loan was serviced and instalments were paid regularly.
Journalise the above transactions in the books of M/s Designer Wear, post them
1.
into the Ledger and prepare the Trial Balance.
Also, prepare its Trading Account, Profit & Loss Account and Balance Sheet. Charge
Priyanshi Behal 9 months, 2 weeks ago
0Thank You