On 1st January, 2022, Mr. Mukesh Nagpal decided to open a computer training centre in Delhi. 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 instalment along with interest due. The transactions during the year were: Purchased 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 and 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 2022. Assume all transactions took place through P.N. Bank. You are required to: (1) Journalise these transactions after considering the following informations: (i) Depreciate building by 5% and computer and furniture @ 10% p.a. (ii) Salary unpaid ₹9,000. (iii) Advertisement includes unissued material worth ₹4,000. (iv) Insurance prepaid ₹ 1,500. (v) Stock of computer stationery ₹19,500. (2) Post them into ledger and prepare Trial Balance. (3) Prepare financial statements for the year ended 31st. December, 2022.
Answer this question
×Browse free questions and answers by Chapters
- 1 Introduction to Accounting
- 2 Bank Reconciliation Statement
- 3 Financial Statements I
- 4 Application of Computers in Accounting
- 5 Basic Accounting Terms
- 6 Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards (IFRS)
- 7 Bases of Accounting
- 8 Accounting Equation
- 9 Accounting Procedures - Rules of Debit and Credit
- 10 Origin of Transactions - Source Documents and Preparation of Vouchers
- 11 Journal
- 12 Ledger
- 13 Special Purpose Books I - Cash Book
- 14 Special Purpose Books II - Other Books
- 15 Trial Balance
- 16 Depreciation
- 17 Provisions and Reserves
- 18 Accounting for Bills of Exchange
- 19 Rectification of Errors
- 20 Financial Statements of Sole Proprietorship
- 21 Adjustments in Preparation of Financial Statements
- 22 Accounts from Incomplete Records - Single Entry System