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On 1st January, 2018, Mr. Mukesh Nagpal decided to open a computer training centre in Delhi. He purchased a commercial complex measuring 300 square feet carpet area at a cost of    3,50,000 and decided to invest   2,50,000 as a further capital in the proposed business.

He approached Punjab National Bank for loan which agreed to provide 80% loan of the cost of computers. He bought 25 computers of HCL costing   30,000 each. He paid   1,50,000 and P.N. Bank financed the remaining 80% amount of   6,00,000 @ 10% p.a. The loan was payable in 4 annual instalments along with interest due.

The transactions during the year were:

( )

Purchase Furniture    40,000

Fees received from students 5,90,000

Bought computer stationery 1,10,000

Sale of Computer Stationery 1,60,000

Wages paid    90,000

Salaries paid 1,25,000

Electricity charges    47,500

Advertisement    22,000

Postage & Call      9,500

General Expenses      6,000

Insurance Premium               4,600

Bought Printer Machine    30,000

He withdrew   12,000 p.m. as drawing and repaid the annual instalment of bank loan along with interest due on 31st December, 2018. Assume all transactions took place through P. N. Bank. You are required to:

• Journalise these transactions after considering the following information:

• Depreciate building by 5 % and computer and furniture @10% p.a.

• Salary unpaid   9,000.

• Advertisement includes unissued material worth   4,000.

• Insurance prepaid   1,500.

• Stock of computer stationery   19,500.

• Post them into ledger and prepare Trial Balance.

• Prepare Financial Statements for the year ended 31st December, 2018.

• Also depict the information diagrammatically.

Asked by Gursimranmann8244 2nd January 2020, 6:39 PM
Answered by Expert
Similar Questions under the chapter Journal are provided on our website. Detailed solutions along with the complete workings for all similar text book questions are provided under Text Book Solutions.
Answered by Expert 3rd January 2020, 9:57 AM
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