Ledgers Aug

By-chirag Bhatia
B15141
JALADHAR
The business idea I am looking to give a shape to and start is JALADHAAR Private Limited. I will
be the sole owner of the plant id est a sole proprietorship type company. It will be a
manufacturing unit which would deal with producing bottled mineral water. The plant would be
located at Patalganga, Maharashtra which is 20kms from Mumbai. The total area of the plant
would be approx 7000 Sqft. The area has satisfactory water level with positive TDS TEST results
showing enough raw material presence. The plant is divided into five divisions:1. Reverse Osmosis (RO) Unit
2. Sweetening unit
3. Microbiology unit
4. Bottling & packing unit
5. Storage unit
The cities like Mumbai, Thane, Navi Mumbai and towns like Alibaug, Mohopada, karjat and kashid
form prime markets for the plant. Bottled water would be supplied directly to retail shops located
at the above mentioned places.
I will bring in the funds in addition to an anticipated grant from the government under the make
in india campaign.
My capital contribution is INR 23.97 crores.
Long term loan is INR 24 crores.
Major raw material:

1.
2.
3.
4.
5.
6.
7.
Raw water
Frozen plastic
Packaging material
Bottles
Reverse osmosis candles
Bottle fabrication materials
Transparenting chemicals
Major buyers :
1.
2.
3.
4.
5.
6.
M/s aaa limited

M/s jkl limited
M/s ghi limited
M/s jc limited
M/s hola limited
M/s wip limited
Purchases to COGS
MONTH 1(AUG 2015)
purchases=40 lakhs
productivity factor=0.0625 thousand bottles/lakh
total number of bottles produced= INR 2,50,000
MONTH 2(SEP 2015)
purchases=44 lakhs
MONTH 1(AUG 2015)
purchases=48.62 lakhs
ASSUMPTIONS
1. Transaction are spread across three months of 2015; august, September, October
2.
3.
4.
5.
6.
Starting cash infusion was 23.97 crores

Jaladhar pvt limited is a sole proprietorship firm
Productivity factor of plant is =(.0625) (thousand bottles/lakh value of purchases)
Company will make losses in initial few months
In month of September , narendra modi came to power and announced a waiver of
electricity , water and security expenses for all companies for 1 month.
7. Company has small credit sales period. Provisions for Doubtful debts are
considered 10% of total sundry debtors. These provisions are created from the
very outset because the owner of the company is a pessimist and wants to face the
worst case scenario.
8. Sales price of bottles increase by 10 % per month
9. Jaladhar is a continuous process plant. The productivity factor remains constant
throughout.
Features of this project

This project contains the following financial statements for all three months
1.
2.
3.
4.
5.
6.
Transactions
Journal entries
Ledger accounts
Trial balance
Profit and loss account
Balance sheet
PERIOD I-AUGUST 2015-(1/08/2015-31/08/2015)
1. TRANSACTIONS
txn
no.
date
1/8/201
1 5
1/8/201
2 5
1/8/201
3 5
2/8/201
4 5
2/8/201
5 5
3/8/201
5
4/8/201
6 5
4/8/201
7 5
5/8/201
8 5
5/8/201
9 5
10/8/20
10 15
10/8/20
11 15
11/8/20
12 15
11/8/20
13 15
12/8/20
14 15
12/8/20
15 15
13/8/20
16 15
13/8/20
17 15
14/8/20
18 15
14/8/20
19 15
15/8/20
20 15
15/8/20
21 15
16/8/20
22 15
16/8/20
23 15
17/8/20
24 15
debit
amou
nt
credit
amount
particulars
Filter
introduced capital worth
23,97,00,000 INR
debit A/c
credit
A/c
cash
capital
2397
2397
took loan from accel investors

bought land for bottling unit for
36,00,00,000 INR
bought reverse osmosis candles for
5,00,000
bought bottle fabrication material for
3,00,000
cash
loan
2400
2400
land
cash
3600
3600
purchases
cash
purchases
cash
HOLIDAY
bought packaging machine A
equiment
cash
25
25
bought packaging machine B
equiment
cash
25
25
bought packaging material in cash

bought packing material on credit
with invoice number pa1
expenses towards inaugration
ceremony
gifts given during inaugration
ceremony
balance payment done to security
services
balance payment done to medical
services
purchases
cash
A/c
payable
15
15
cash
cash
0.5
0.5
cash
cash
availed loan of 5 crores from SBI
cash
loan
500
500
availed loan of 5 crores from PNB

bought frozen plastic @ 5 crores on
credit with invoice number pa2
bought plastic transparenting
chemicals in cash
cash
loan
A/c
payable
500
500
cash
cash
cash
cash
cash
0.5
0.5
cash
25
25
cash
paid for the electrification expenses

paid for the water expenses
paid for the computer and
telephopne expenses
paid for the internet expenses
bought raw water agency for one
month on credit with invoice number
pa3
paid for the lab expenses
paid joining salary to Sr. scientists
purchases
inaug
expenses
inaug
expenses
security
expenses
medical
expenses
purchases
purchases
elec
expenses
water
expenses
tele
expenes
internet
expenses
purchases
lab
expenses
salary
expenses
A/c
payable
17/8/20
24 15
18/8/20
15
19/8/20
25 15
19/8/20
26 15
20/8/20
27 15
20/8/20
28 15
21/8/20
29 15
21/8/20
30 15
22/8/20
31 15
22/8/20
32 15
23/8/20
33 15
24/8/20
34 15
24/8/20
35 15
25/8/20
15
26/8/20
36 15
26/8/20
38 15
27/8/20
39 15
27/8/20
40 15
28/8/20
42 15
29/8/20
43 15
29/8/20
44 15
30/8/20
45 15
paid joining salary to jr. scientists

holiday:::production begins tomorrow
cash received due to 10000 bottles of
water sold to abc company @20 INR
per bottle
bought empty bottles for 1 crore at
credit with invoice number pa4
sold 10000 bottles to def company @
20 per bottle ;cash received
sold 25000 bottles to ghi company @
20 per bottle on credit with invoice
number sa1
per bottle
expenses towards disposing off the
waste produced
sold 10000 bottles to def company @
20 per bottle ;cash received
number sa2
first debottlenecking expenses
paid towards getting NOC from
enviroment board
per bottle
Holiday
waste produced
number sa3
sold 25000 bottles of water sold to jkl
company @20 INR per bottle on
credit with invoice number sa4
waste produced
sold 25000 bottles to hola company
@ 20 per bottle on credit with invoice
number sa5
sold 25000 bottles to aaa company@
20 per bottles on credit with invoice
number sa6
sold 10000 bottles to wip limited @
20 per bottle in credit with invoice
sa7
sold 10000 to family limited @ 20
per unit on credit with invoice
number sa8
salary
expenses
cash
1
0
cash
purchases
sales
A/c
payable
cash
sales
M/s ghi
limited
sales
cash
disposal
expenses
sales
cash
0.5
0.5
cash
sales
sales
cash
20
20
cash
sales
M/s ghi
limited
btlnkng
expenses
envirment
exp
cash
0
disposal
expenses
cash
0.03
0.03
M/s ghi
limited
sales
sales
cash
0.03
0.03
M/s hola
limited
sales
0.24
M/s aaa
limited
sales
M/s wip
limited
sales
M/s fam
limited
sales
M/s jkl
limited
disposal
expenses
30/8/20
46 15
31/8/20
47 15
31/8/20
48 15
31/8/20
49 15
31/8/20
50 15
31/8/20
51 15
31/8/20
52 15
31/8/20
53 15

waste produced
sold 15000 bottles to fam company@
20 per bottles on credit with invoice
number sa9
paid salary to employees
sold 10000 bottles to wip limited @
20 per bottle in cash
sold 15000 family units of water @
20 per unit on credit with invoice
number sa10
interest paid for loan
paid loan emi
18.37 crores deployed in
interorporate market
disposal
expenses
M/s fam
limited
salary
expenses
cash
M/s fam
limited
interest
expenses
loan
intercorpor
ate
balance
cash
0.03
0.03
sales
cash
11.75
11.75
sales
sales
cash
19.9
19.9
cash
56
56
cash
1837
1837
2. journal enteries
No.
Date.
Debited to
1/8/2015
cash
1/8/2015
1/8/2015
2/8/2015
2/8/2015
4/8/2015
4/8/2015
5/8/2015
Credited from
capital
(being capital infused by owner )
cash
loan
(being loan taken )
land
cash
(being purchase of fixed assets )
purchases
cash
(being purchases in cash )
purchases
cash
equiment
cash
equiment
cash
purchases
cash
Debit Amount
INR lakhs)
2397
2400
3600
25
25
5/8/2015
purchases
15
A/c payable
10
10/8/2015
11
10/8/2015
12
11/8/2015
13
11/8/2015
14
12/8/2015
15
12/8/2015
16
13/8/2015
17
13/8/2015
18
14/8/2015
19
14/8/2015
20
15/8/2015
21
15/8/2015
22
16/8/2015
23
16/8/2015
24
17/8/2015
(being purchases on credit )

inaug expenses
cash
(being payment of inaug expenses )
inaug expenses
cash
(being payment of inaug expenses )
security expenses
cash
(being payment of security expenses )
medical expenses
cash
(being payment of medical expenses )
cash
loan
(being loan taken )
cash
loan
(being loan taken )
purchases
A/c payable
purchases
cash
(being payment of elec expenses )
elec expenses
cash
(being payment of water expenses )
water expenses
cash
(being payment of tele expenses )
tele expenes
cash
(being payment of internet expenses )
internet expenses
cash
purchases
A/c payable
(being payment of lab expenses )
lab expenses
cash
(being payment of salary expenses )
salary expenses
0.5
500
500
0.5
25
24
17/8/2015
25
19/8/2015
26
19/8/2015
27
20/8/2015
28
20/8/2015
29
21/8/2015
30
21/8/2015
31
22/8/2015
32
22/8/2015
33
23/8/2015
34
24/8/2015
35
24/8/2015
36
26/8/2015
38
26/8/2015
39
27/8/2015
cash
salary expenses
cash
cash
sales
(being sales in cash )
purchases
A/c payable
(being purchase on credit )
cash
sales
M/s ghi limited
sales
(being sales on credit to ghi limited )
cash
sales
disposal expenses
cash
(being payment of disposal expenses )
cash
sales
M/s ghi limited
sales
btlnkng expenses
cash
(being payment of debottlenecking expenses )
envirment exp
cash
(being payment of enviroment expenses )
cash
sales
disposal expenses
cash
M/s ghi limited
sales
M/s jkl limited
sales
0.5
20
0.03
40
27/8/2015
42
28/8/2015
43
29/8/2015
44
29/8/2015
45
30/8/2015
46
30/8/2015
47
31/8/2015
48
31/8/2015
49
31/8/2015
50
31/8/2015
51
31/8/2015
52
31/8/2015
53
31/8/2015
(being sales on credit to jkl limited )

disposal expenses
cash
M/s hola limited
sales
(being sales on credit to hola limited )
M/s aaa limited
sales
(being sales on credit to aaa limited )
M/s wip limited
sales
(being sales on credit to wip limited )
M/s fam limited
sales
(being sales on credit to fam limited )
disposal expenses
cash
M/s fam limited
sales
(being sales on credit to fam limited )
salary expenses
cash
cash
sales
M/s fam limited
sales
(being salesh on credit to fam limited )
interest expenses
cash
(being payment of interest of expenses )
loan
cash
(being payment of loan emi(on principle) )
intercorporate balance
cash
(being deployment of excess cash in intercorporate market
)
0.03
0.03
11.75
19.9
56
1837
3. LEDGER ENTERIES
debit
date
21/8/20
15
26/8/20
15
27/8/20
15
30/8/20
15
disposal expenses
amount(in INR
lakhs)
particu
lar
cash
0.5
cash
0.03
cash
0.03
cash
0.03
balan
ce
0.59
da
te
particu
lar
credit
amount(in INR
lakhs)
4. ADJUSTED TRIAL BALANCE
particular
debit
cash
land
equipment
accumulated depreciation
inventory
m/s aaa limited
m/s ghi limited
m/s fam limited
m/s hola limited
m/s wpi limited
m/s jkl limited
loan
payable
provision for bad debts
capital
sales
COGS
medical expenses
security expenses
salary expenses
tele expenses
water expenses
internet expenses
interest expenses
disposal expenses
btlnkng expenses
elec expenses
envirm expenses
inaug expenses
lab expenses
depreciation expenses
provision for bad debt
expenses
144.44
3600
1837
50
-5
0
5
15
8
5
2
5
credit
3344
30
3
2397
50
40
5
5
13.75
1
2
0.5
28.22
0.59
20
2
1
5.5
25
5
3
total
5824
5824
PROFIT AND LOSS SHEET
P/L STATEMENT FOR
Less
1/8/2015-31/8/2015(All figures in Rs lakhs)
Gross Sales
Net sales
COGS
50
50
-40
Gross Profit
10
Less
inaug expenses
security expenses
elect expenses
water expenses
tele expenses
internet expenses
lab expenses
salary expenses
disposal expenses
btnking expenses
medical expenses
fuel expenses
enviro expenses
maintainence expenses
bad debt expenses
registeration expenses
transport expenses
Less
discount earned
penalty received
-84.34
-74.34
-5
-79.34
0
0
interest expenses
-79.34
-28.22
EBITDA
Less
Operating Profit
Add
-5.5
-5
-2
-2
-1
-0.5
-25
13.75
-0.59
-20
-5
0
-1
0
-3
0
0
84.34
Add
EBIT
Less
PAT
107.56
0
107.56
NET PROFIT
107.56
EBT
Less
muncipal tax
5. Balance sheet
B/L sheet for 1/8/2015-31/8/2015
(All figures in INR Lakhs)
Current assets
loans
144.4
4
cash
payable
provision for bad
debts
1837
total current
assets
1981.
44
1981.
44
total debts
3344
30
3
3377
M/s aaa limited

M/s ghi limited
M/s fam
limited
M/s hola
limited
5
15
capital
M/s wpi limited

M/s jkl limited
total
recievables
2
5
P/L TRANSFER
2397
107.5
6
Total capital(O.E)
2289.
44
40
inventory
Fixed assets
0
land
equipment
accumulated
depreciation
subidary/acquistition
40
2011.
44
2011.
44
3600
5
0
5
45
3645
3645
total fixed
assets
5656.
44
5666.
44
5666.44
Total assets
Total Debt and

Capital
5666.44
5666.
44
7. COMPLIANCE REPORT
For the period
1/8/2015
to
1/11/2015
Date of birth: 17/08/1991

Roll no : b15141
Capital to be contributed : 141*17= 2397 lakhs
Long term loans to be between (2397 to 4794 lakhs)
Loans availed amount to 4800 lakhs
With 3400 lakhs ---- availed in month 1(debts at the end of
month one
point to 3400 lakhs)
1400 lakhs-----availed in month 3
Fixed assets to be (76-80)% of long term loans available

Hence the total fixed assets being used are valued at
Land
3600 lakhs
Equipment 50 lakhs
Total 3650 lakhs
Therefore fixed assets are 76.04% of long term loans
Depreciation is by written down value
Expected life say, 10 years (120 months)
Monthly depreciation is assumed to be 10% based on the calculations given below
Pow(0.9,120)=0.00000322 which is approximately equal to zero
In ten years the value of equipment would become a meager INR 16 from INR 50 lakhs
Depreciation is provided in first month
10% of 50=5
Accumulated depreciation
To
Dr.
5
Cr.
Credit sales had to be four times of cash sales

Clearly in august 2015, cash sales amount to 10 lakhs
Clearly in august 2015, credit sales amount to 40 lakhs
Hence ratio (credit sales/ cash sales)=40/10= 4
Credit purchase will be three times of cash purchase

Cash purchases in august 2015 amount to 10 lakhs
Credit purchase in the same period amount to 30 lakhs
Hence ratio (credit purchase/ cash purchase)=30/10= 3
Credit sales term is two weeks

Credit purchase term is 45 days
20% of the receivable is delayed by one half of the credit sales period
Credit sales period is 2 weeks
Total receivables are 40 lakhs
Receivables from ghi and fam limited were received in (15-21) days
i.e delayed by half credit period
their amount was (5+3)= 8 lakhs
percentage of total recievables = (8/40)*100= 20%
Penalty is earned over receivables delayed by credit period.
Those are credit sales invoiced sa1 and sa10.
They will be paid in the next month and will be penalized there
For references , September transactions can be checked
Period 2, September , transaction number 48 and 24 an be checked.
Interest on long term loan is being paid monthly @10 p.a
It can be checked at August , transaction number no 51
EMI on loan paid is paid monthly

For reference , August Transaction number 52
I have divided the loan payable into 60 monthly installments
3400/60= 56 lakhs approximately
Interest on the outstanding loan amount is paid monthly @10% p.a
Sales volume will increase by 10% in September

For reference , kindly observe the September transactions
Sales price will increase by 10% in September

Purchase price will increase by 5% semi-monthly.

Costs such as disposal expenses, fuel expenses, electricity expenses, water expenses
remain stable over the period.
The reason for a spike in electricity expenses and water expenses in month of September
is
mentioned in assumptions.
The firm was wary of putting cash in the market during the first month of its operations. It
wanted to get an idea of actual daily / monthly expenses and act accordingly. So for
august, the first month it does not deploy money in inter corporate market.
It however does the same from September
Provision for doubtful debts
Dr.
To
doubtful debt expenses
Cr.
Municipal tax is paid at the beginning of every calendar month. The closing owner equity
of 1st month i.e august is calculated in balance sheet and its 1% is paid as municipal tax.
For reference , see transaction number 1, September period
Salaries paid is between (10-30) % of sales
Salary paid =13.75 lakhs
Sales =50 lakhs
Salaries paid as a percentage of sales= 27.5%
There are a total of 190 transactions across 3 months
August has 52 transactions with everyday having more than two transactions, if any at all.
SEPTEMBER
TRANSACTIONS
tx
n
no.
Date
1/9/201
1 5
1/9/201
2 5
1/9/201
3 5
1/9/201
4 5
1/9/201
5 5
2/9/201
6 5
2/9/201
7 5
2/9/201
8 5
2/9/201
9 5
2/9/201
10 5
2/9/201
11 5
3/9/201
12 5
3/9/201
13 5
3/9/201
14 5
3/9/201
15 5
3/9/201
16 5
4/9/201
17 5
4/9/201
18 5
4/9/201
19 5
debit
amou
nt
credit
amou
nt
particulars
filter
debit A/c
credit A/c
MUNCIPAL TAX @ 1% OF OE
payment recieved against invoice sa2
and sa3
and sa9
waste produced
bought packing material on credit with
invoice number ps1
bought frozen plastic on credit with
invoice number ps2
bought raw water agency for the water
supply for one month on credit with
invoice number ps3
bought empty bottles at credit with
invoice number ps4
bought reverse osmosis candles in
cash
tax
cash
M/s ghi
limited
M/s fam
limited
23.97
23.97
10
10
cash
A/c
payable
A/c
payable
0.03
0.03
16.5
16.5
8.8
8.8
5.5
5.5
2.2
2.2
5.5
5.5
cash
cash
cash

paid transportation company 3lakh for
7 days
bought bottle fabrication material for
3,00,000
chemicals in cash
cash
transport
expenses
cash
purchases
cash
3.3
purchases
registratio
n
expenses
cash
1.1
cash
1.5
1.5
cash
sales
2.31
2.31
cash
sales
2.31
2.31
expenses towards vehicles registration

sold 11000 bottles to FRO limited @
21 per bottle
sold 11000 bottles to Fty limited @ 21
per bottle in cash
cash
cash
disposal
expenses
purchases
purchases
purchases
purchases
purchases
A/c
payable
A/c
payable
cash
M/s jkl
limited
M/s hola
limited
M/s aaa
limited
M/s wip
limited
5/9/201
5
6/9/201
20 5
6/9/201
21 5
7/9/201
22 5
7/9/201
23 5
7/9/201
24 5
8/9/201
25 5
8/9/201
26 5
8/9/201
27 5
9/9/201
28 5
10/9/20
29 15
11/9/20
30 15
11/9/20
31 15
12/9/20
32 15
14/9/20
33 15
14/9/20
34 15
15/9/20
35 15
15/9/20
36 15
16/9/20
37 15
16/9/20
38 15
16/9/20
39 15
17/9/20
40 15
17/9/20
41 15
17/9/20
42 15
holiday
sold 27500 bottles to kaks limited @ 21
per bottle on credit with invoice
number ss1
sold 5500 bottles to peps limited @ 21
per bottle in cash
sold 27500 bottles to aaa limited @ 21
number ss2
fuel expenses
penalty charged for late payment
against invoice sa1
waste disposal expenses on cash
sold 27500 bottles to kpss limited @ 21
number ss3
drew 200 lakhs from intercorporate
market
sold 27500 bottles to jal corpo limited
number ss4
sold 27500 bottles of mineral water @
number ss5
expenses towards maintainence
fuel expenses
medical test of the labourers
sold 5500 bottles @ 21 per bottle.
sold 11000 bottles of mineral water @
21 per bottle
fuel expenses
payment done against invoice ps1
4% discount availed against timely
payment against invoice ps1
0
M/s kaks
limited
sales
5.775
5.775
cash
sales
1.155
1.155
sales
5.775
5.775
0.55
0.55
5
0.006
5
5
0.006
5
0.3
0.3
sales
intercorpo
rate
balance
5.775
5.775
200
200
sales
5.775
5.775
sales
5.775
5.775
cash
15.75
15.75
cash
0.08
0.08
cash
10
10
cash
sales
1.155
1.155
cash
fuel
expenses
disposal
expenses
A/c
payable
A/c
payable
A/c
payable
A/c
payable
A/c
payable
sales
2.31
2.31
cash
0.03
0.03
cash
0.33
0.33
cash
15.84
15.84
cash
8.448
8.448
cash
5.28
5.28
2.112
2.112
0.66
0.66
M/s aaa
limited
fuel
expenses
cash
cash
disposal
expenses
M/s kpss
limited
cash
M/s jc
limited
A/c
recievabl
es
maintena
nce
expenses
fuel
expenses
medical
expenses
cash
M/s ghi
limited
penalty
a/c
cash
cash
discount
earned
17/9/20
43 15
17/9/20
44 15
17/9/20
45 15
17/9/20
46 15
17/9/20
47 15
17/9/20
48 15
17/9/20
49 15
17/9/20
50 15
17/9/20
51 15
17/9/20
52 15
17/9/20
53 15
18/9/20
54 15
19/9/20
15
19/9/20
55 15
20/9/20
56 15
20/9/20
57 15
21/9/20
58 15
21/9/20
59 15
21/9/20
60 15
22/9/20
61 15
22/9/20
62 15
23/9/20
63 15
23/9/20
64 15
65 23/9/20

second debottlenecking
undertaken:contract given to neumag
A/c
payable
A/c
payable
A/c
payable
btlnkng
expenses
discount
earned
discount
earned
discount
earned
purchases

penalty charged for late payment
against invoice sa10
cash
payment recieved against invoice ss4
cash
cash
cash
cash
maintena
nce
expenses
cash
M/s fam
limited
penalty
a/c
M/s jc
limited
M/s aaa
limited
M/s kpss
limited
A/c
recievabl
es
old machines repaired and adjusted
cash
cash
cash
0.352
0.352
0.22
0.22
0.088
0.088
25
25
1.1
1.1
3
0.001
8
3
0.001
8
5.775
5.775
5.775
5.775
5.775
5.775
5.775
5.775
5.775
5.775
1 day shutdown taken: zero production

maintenance activities
number ss6
sold 11000 bottles to peps limited @
21 per bottle
number ss7
fuel expenses
sold 11000 bottles to kpss limited @ 21
number ss8
number ss9
number ss10
0
maintena
nce
expenses
cash
0.5
0.5
M/s kaks
limited
sales
5.775
5.775
2.31
2.31
5.775
5.775
sales
2.31
2.31
cash
0.03
0.03
cash
0.03
0.03
M/s kpss
limited
sales
2.31
2.31
M/s kaks
limited
sales
3.46
3.46
M/s jc
limited
cash
sales
M/s jc
3.46
2.31
3.46
2.31
cash
cash
M/s jc
limited
fuel
expenses
disposal
expenses
sales
M/s kaks
limited
66
67
68
69
70
71
15
24/9/20
15
24/9/20
15
28/9/20
15
29/9/20
15
30/9/20
15
30/9/20
15
30/9/20
15
30/9/20
15
limited
fuel expenses
waste disposal expenses
fuel
expenses
disposal
expenses
cash
0.03
0.03
cash
0.03
0.03
0
strike
paid salary to employees
loan emi paid
interest paid for loan
interest received from intercorporate
market
0
salary
expenses
loan
interest
expenses
cash
cash
11.75
cash
56
cash
interest
earned
11.75
56
8.3
8.3
8.14
8.14
2. JOURNAL ENTERIES
N
o.
Date.
1/9/20
1 15
Debited to
Credited from
tax
Debit
Amount(in INR
lakhs)
Credit
Amount(in INR
lakhs)
23.97
cash
( Being payment of muncipal tax )
1/9/20
2 15
cash
23.97
10
M/s ghi limited

( Being cash payment received from ghi
limited )
1/9/20
3 15
1/9/20
4 15
1/9/20
5 15
cash
10
M/s fam limited

( Being cash payment received from fam
limited )
disposal
expenses
cash
( Being payment of disposal expenses )
purchases
0.03
0.03
16.5
A/c payable
( Being purchases on credit )
2/9/20
6 15
purchases
16.5
8.8
A/c payable
2/9/20
7 15
purchases
8.8
5.5
A/c payable
5.5

2/9/20
8 15
purchases
2.2
A/c payable
2/9/20
9 15
purchases
2.2
5.5
cash
( Being purchases in cash )
1 2/9/20
0 15
cash
5.5
M/s jkl limited

( Being cash payment received from jkl
limited )
1 2/9/20
1 15
cash
M/s hola limited

( Being cash payment received from
hola limited )
1 3/9/20
2 15
cash
M/s aaa limited

( Being cash payment received from aaa
limited )
1 3/9/20
3 15
1 3/9/20
4 15
1 3/9/20
5 15
cash
M/s wip limited

( Being cash payment received from wip
limited )
transport
expenses
cash
( Being payment of transport expenses )
purchases
3
3
3.3
cash
1 3/9/20
6 15
1 4/9/20
7 15
1 4/9/20
8 15
purchases
1.1
cash
registration
expenses
cash
( Being payment of transport expenses )
cash
1.5
1.5
2.31
sales
( Being sales in cash )
1 4/9/20
9 15
cash
2.31
2.31
sales
2 6/9/20
0 15
M/s kaks limited
2.31
5.775
sales
( Being sales on credit to kaks limited )
2 6/9/20
1 15
cash
5.775
1.155
sales
2 7/9/20
2 15
M/s aaa limited
1.155
5.775
sales
( Being sales on credit to aaa limited )
2 7/9/20
3 15
fuel expenses
5.775
0.55
cash
( Being payment of fuel expenses )
2 7/9/20
4 15
cash
0.55
M/s ghi limited

( Being cash payment received from ghi
limited )
2 8/9/20
5 15
2 8/9/20
6 15
2 8/9/20
7 15
cash
penalty a/c
( Being penalty charged for late
payment against invoice sa1 )
disposal
expenses
cash
M/s kpss limited
0.0065
0.0065
0.3
0.3
5.775
sales
( Being sales on credit to kpss limited )
2 9/9/20
8 15
cash
5.775
200
intercorporate
balance
( Being cash drawn from intercorporate
market )
2 10/9/2
9 015
M/s jc limited
200
5.775
sales
( Being sales on credit to jc limited )
3 11/9/2
0 015
A/c recievables
3 11/9/2
sales
( Being sales on credit )
maintenance
5.775
5.775
5.775
15.75
1 015
expenses
cash
( Being payment of maintainence
expenses )
3 12/9/2
2 015
fuel expenses
15.75
0.08
cash
3 14/9/2
3 015
medical expenses
0.08
10
cash
( Being payment of medical expenses )
3 14/9/2
4 015
cash
10
1.155
sales
3 15/9/2
5 015
cash
1.155
2.31
sales
3 15/9/2
6 015
3 16/9/2
7 015
3 16/9/2
8 015
fuel expenses
2.31
0.03
cash
disposal
expenses
cash
A/c payable
0.03
0.33
0.33
15.84
cash
( Being cash payment done against
purchases )
3 16/9/2
9 015
A/c payable
15.84
8.448
cash
purchases )
4 17/9/2
0 015
A/c payable
8.448
5.28
cash
purchases )
4 17/9/2
1 015
A/c payable
5.28
2.112
cash
purchases )
4 17/9/2
2 015
A/c payable
2.112
0.66
discount earned
0.66
( Being discount earned against

payment for purchases )
4 17/9/2
3 015
A/c payable
0.352
discount earned
4 17/9/2
4 015
A/c payable
0.352
0.22
discount earned
4 17/9/2
5 015
A/c payable
0.22
0.088
discount earned
4 17/9/2
6 015
btlnkng expenses
0.088
25
cash
( Being payment for debottlenecking
expenses )
4 17/9/2
7 015
purchases
25
1.1
cash
4 17/9/2
8 015
cash
1.1
M/s fam limited

( Being cash payment received for
purchases from fam limited )
4 17/9/2
9 015
cash
0.0018
penalty a/c
( Being penalty charged for late
payment from fam limited )
5 17/9/2
0 015
cash
0.0018
5.775
M/s jc limited
purchases from jc limited )
5 17/9/2
1 015
cash
5.775
5.775
M/s aaa limited

purchases from aaa limited )
5 17/9/2
2 015
cash
5.775
5.775
M/s kpss limited

purchases from kpss limited )
5 17/9/2
3 015
cash
5.775
5.775
5 18/9/2
4 015
5 19/9/2
5 015
5 20/9/2
6 015
A/c recievables
purchases )
maintenance
expenses
cash
( Being payment of maintainenece
expenses )
maintenance
expenses
cash
( Being payment of maintainenece
expenses )
M/s kaks limited
5.775
5.775
5.775
0.5
0.5
5.775
sales
5 20/9/2
7 015
cash
5.775
2.31
sales
5 21/9/2
8 015
cash
2.31
5.775
M/s kaks limited

purchases from kaks limited )
5 21/9/2
9 015
M/s jc limited
5.775
2.31
sales
6 21/9/2
0 015
6 22/9/2
1 015
6 22/9/2
2 015
fuel expenses
cash
disposal
expenses
cash
M/s kpss limited
2.31
0.03
0.03
0.03
0.03
2.31
sales
( Being sales on credit to kpss limited )
6 23/9/2
3 015
M/s kaks limited
2.31
3.46
sales
6 23/9/2
4 015
M/s jc limited
6 23/9/2
sales
cash
3.46
3.46
3.46
2.31
5 015
M/s jc limited
purchases from jc limited )
6 24/9/2
6 015
6 24/9/2
7 015
6 30/9/2
8 015
fuel expenses
cash
disposal
expenses
cash
salary expenses
2.31
0.03
0.03
0.03
0.03
11.75
cash
( Being payment of salary expenses )
6 30/9/2
9 015
loan
11.75
56
cash
( Being payment of loan emi (principle) )
7 30/9/2
0 015
interest expenses
56
8.3
cash
( Being payment of interest expenses )
7 30/9/2
1 015
Cash
8.3
8.14
interest earned
( Being interest earned from
intercorporate market )
8.14
3. LEDGER ACCOUNTS

entry
debit
credit
cash
210.20
83
3600
1637
45
-4.5
land
equipment
accumulated
depreciation
INVENTORY
m/s aaa limited
A/c recievable
M/s jc limited
M/s kaks limited
M/s kpss limited
m/s ghi limited
m/s fam limited
m/s hola limited
m/s wpi limited
m/s jkl limited
loan
payable
capital
sales
interest earned
discount earned
COGS
medical expenses
security expenses
salary expenses
tele expenses
fuel expenses
transport expenses
tax paid
water expenses
internet expenses
interest expenses
disposal expenses
btlnkng expenses
elec expenses
envirm expenses
inaug expenses
0
0
0
3.46
9.235
2.31
0
0
0
0
0
3288
30
1.5005
2289.4
4
57.74
8.14
1.32
44
10
0
11.75
0
0.72
22.05
1.5
3
23.97
0
0
27.75
0.72
25
0
0
0
lab expenses
expenses
total
6.
7.
0
4.5
1.5005
5677.6
73
5677.6
73
PROFIT AND LOSS ACCOUNT
P/L STATEMENT FOR
less
Gross Sales
Net sales
COGS
57.74
57.74
-44
Gross Profit
13.74
less
EXPENSES
salary expenses
disposal expenses
bad debt expenses
btnking expenses
medical expenses
fuel expenses
transport expenses
less
-11.75
-0.72
1.4995
-25
-10
-0.72
-22.05
-1.5
-3
-74.74
EBITDA
less
Operating Profit
add
discount earned
interest earned
add
-74.74
-59.5005
-4.5
-64.0005
1.32
8.14
9.46
PAT
9.46
-54.5405
-27.75
-82.2905
-23.97
-106.2605
NET PROFIT
-106.2605
EBIT
less
interest expenses
EBT
less
muncipal tax
7. BALANCE SHEET
B/L sheet for 1/9/201530/9/2015

Current
assets
loans
210.2
08
cash
intercorporate
balance
1637
total current
assets
1847.
208
M/s jc limited
M/s kaks
limited
3288
payable
provision for
bad debts
30
1.5005
total debts
3319.5
005
3.46
9.235
M/s kpss
limited
M/s aaa
limited
total
recievables
P/L TRANSFER
2289.4
73
106.26
05
Total
capital(O.E)
2183.2
125
Total Debt and

Capital
5502.713
5502.7
13
capital
2.31
0
15.00
5
Fixed assets
land
equipment
accumulated
depreciation
subidary/acquistiti
on
total fixed
assets
Total assets
3600
45
4.
5
40.5
3640.
5
3640.
5
5502.
713
5502.713
7 COMPLIANCE REPORT
Capital remaining :
2289.4 lakhs
Long term loans on starting of month: 3356.0 lakhs
Fixed assets to be (76-80)% of long term loans available

Hence the total fixed assets being used are valued at
Land
3600 lakhs
Equipment 50 lakhs
Total 3650 lakhs
Therefore fixed assets are 76.04% of long term loans
10% of 45=4.5
To
Dr.
4.5
Cr.
4. 5

Clearly in september 2015, cash sales amount to 11.55 lakhs
Clearly in september 2015, credit sales amount to 46.2 lakhs
Hence ratio (credit sales/ cash sales)=40/10= 4

Cash purchases in september 2015 amount to 11 lakhs
Credit purchase in the same period amount to 33 lakhs
Hence ratio (credit purchase/ cash purchase)=30/10= 3

More than 20% of the receivable is delayed by one half of the credit sales period
Total receivables are 46.2 lakhs
Receivables from aaa, kpss, kaks,jc limited were received in (15-21) days
Invoice are ss1, ss8, ss9,ss10
their amount was (5.775+2.31+3.46+3.46)= 14.98 lakhs
percentage of total recievables = (14.98/46.2)*100= 32%
Those are credit sales invoiced ss1 and ss8, ss9, ss10.
They will be paid in the next month and will be penalized there
For references , September transactions can be checked
Period 3, october , transaction number 21,35,36,37 be checked.
Interest on outstanding long term loan is being paid monthly @10 p.a
It can be checked at september , transaction number no 70
For reference , September Transaction number 69
3400/60= 56 lakhs approximately

Sales volume
August (bottles)
total
25000
25000
25000
25000
25000
25000
10000
10000
15000
15000
50000
2,50,000
September
(bottles)
27500
27500
27500
27500
27500
27500
11000
11000
16500
16500
55000
2,75,000
Clearly the total sales volume increase by 10%
Sales price has increase by 5% in September

Purchase Price in august of same quantity of purchases was 40 lakhs
Purchase Price in September of same quantity of purchases was 44 lakhs
An increase of 5% across 15 days twice
1.05*1.05=1.102
therefore a net increase of 10.2 % should be there
Percentage increase (actual)= 10%
The reason for a spike in electricity expenses and water expenses in month of September
is
mentioned in assumptions.
The firm was wary of putting cash in the market during the first month of its operations. It
wanted to get an idea of actual daily / monthly expenses and act accordingly. So for
august, the first month it does not deploy money in inter corporate market.
On last day of august , a lot of cash was transferred to inter corporate market. 200 lakhs
were withdrawn during the month of September
The interest is received @6% pa for the month corresponding to the time duration and
amount in inter corporate balance
8 days: 1837 lakhs
22 days: 1637 lakhs
Total interest earned : 8.14 lakhs
For reference , September, transaction number 72
Provision for doubtful debts
Dr.
To
doubtful debt expenses
Cr.
Municipal tax is paid at the beginning of every calendar month. The closing owner equity
of 1st month i.e august is calculated in balance sheet and its 1% is paid as municipal tax.
For reference , see transaction number 1, September period
Sales =57.4 lakhs
Salaries paid as a percentage of sales= 20.34 %
September has 71 transactions with everyday having more than two transactions, if any at
all
October
1. TRANSACTIONS
txn
no.
Date
1/10/20
1 15
2 1/10/20
particulars
debit A/c
credit A/c
MUNCIPAL TAX @ 1% OF OE
sold 30250 bottles to kpss limited @
tax
M/s kpss
cash
sales
debit credit
amou amou
nt
nt
22.10 22.10
8
8
6.641 6.641
15
1/10/20
3 15
4
5
6
7
8
2/10/20
15
2/10/20
15
2/10/20
15
2/10/20
15
2/10/20
15
3/10/20
9 15
3/10/20
10 15
3/10/20
11 15
3/10/20
12 15
4/10/20
13 15
4/10/20
14 15
6/10/20
15 15
6/10/20
16 15
7/10/20
15
7/10/20
15
7/10/20
15
8/10/20
17 15
8/10/20
18 15
8/10/20
19 15
8/10/20
20 15
22.05 per bottle on credit with invoice

number so1
22.05 per bottle in cash
@ 22.05 per bottle on credit with
invoice number so2
bought packing material on credit with
invoice number po1
bought reverse osmosis candles in
cash
bought bottle fabrication material in
cash
bought frozen plastic on credit with
invoice number po2
bought raw water agency for one
month on credit with invoice number
po3
sold 30250 bottles to kpss limited @
number so3
chemicals in cash
sold 30250 bottles to kaks limited @
number so4
number so5
limited
cash
M/s jc
limited
sales
25
25
6.615
6.615
6.641
25
6.641
25
18.23
18.23
purchases
sales
A/c
payable
purchases
cash
6.06
6.06
purchases
3.63
3.96
purchases
cash
A/c
payable
9.72
9.72
purchases
A/c
payable
6.07
6.07
cash
1.21
1.21
cash
0.03
0.03
sales
6.641
25
6.641
25
cash
purchases
cash
1.21
1.21
M/s kaks
limited
sales
6.641
25
6.641
25
M/s peps
limited
sales
6.641
25
6.641
25
purchases
disposal
expenses
M/s kpss
limited
maintena
nce
expenses
0
0
diwali puja
drew 300 lakhs from intercorporate
market
number so6
number so7
@ 22.05 per bottle on credit with
invoice number so8
0
cash
intercorpo
rate
balance
300
M/s kaks
limited
sales
6.641 6.641
25 25
M/s peps
limited
sales
2.668 2.668
05 05
M/s jc
limited
sales
2.668 2.668
05 05
300
8/10/20
21 15
8/10/20
22 15
8/10/20
23 15
8/10/20
24 15
9/10/20
25 15
9/10/20
26 15
9/10/20
27 15
10/10/2
28 015
10/10/2
29 015
10/10/2
30 015
10/10/2
31 015
10/10/2
32 015
10/10/2
33 015
11/10/2
34 015
12/10/2
35 015
12/10/2
36 015
12/10/2
37 015
12/10/2
38 015
12/10/2
39 015
12/10/2
40 015
12/10/2
41 015
12/10/2
42 015
13/10/2
43 015
13/10/2
44 015
14/10/2
45 015
14/10/2
46 015

penalty received for late payment
against invoice ss1
water expenses
electricity expenses
security expenses
fuel expenses
number so9
payment done against invoice po1
4% discount availed for timely
payment against invoice po1
payment done against invoice po2 and
po3
payment against invoice po2 and po3
number so10
cash
cash
elec
expenses
security
expenses
security
expenses
fuel
expenses
disposal
expenses
M/s kaks
limited
A/c
payable
A/c
payable
A/c
payable
A/c
payable
fuel expenses
M/s peps
limited
fuel
expenses
cash

payment recieved against invoice
ss10
against invoice ss8
against invoice ss9
against invoice ss10
cash
cash
cash
cash
M/s kaks
limited
penalty
a/c
5.775
0.064
8
5.775
0.064
8
cash
cash
cash
cash
0.03
0.03
cash
0.03
0.03
cash
discount
earned
3.996
3
17.50
08
0.729
2
15.15
84
0.631
6
3.996
3
17.50
08
0.729
2
15.15
84
0.631
6
sales
3.996 3.996
3 3
sales
cash
discount
earned
cash
M/s kpss
limited
M/s kaks
limited
M/s jc
limited
penalty
a/c
penalty
a/c
penalty
a/c
0.03
0.03
2.31
2.31
3.46
3.46
3.46
3.46
0.003
0.003
0.011
0.011
0.011
0.011
cash
0.03
0.03
cash
disposal
expenses
availed loan of 10 crores from sbi
cash
loan
1000
1000
availed loan of 4 crores from pm yojna

aquired kaladhar mineral water
bottling plant (total assets =13.5
crores, liabilities =0) on in cash
commissiong of changes in kaladhar
plant by neumag services
cash
loan
400
400
cash
1500
1500
payment recieved against invoice so3
cash
cash
M/s kpss
limited
100
6.641
25
100
6.641
25
investme
nts
investme
nts
14/10/2
47 015
16/10/2
48 015
14/10/2
49 015
15/10/2
50 015
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
15/10/2
015
16/10/2
015
16/10/2
015
17/10/2
015
17/10/2
015
17/10/2
015
18/10/2
015
20/10/2
015
20/10/2
015
27/10/2
015
27/10/2
015
27/10/2
015
27/10/2
015
27/10/2
015
20/10/2
015
31/10/2
015
31/10/2
015

and so6 and so9
and so8
registeration charges for merging
kaladhaar into jaladhaar
bought empty bottles at credit with
invoice number po4
22.05 per bottle in cash
and so7
payment done against invoice po4
payment against invoice po4
fuel expenses
fuel expenses
payment done against invoice pa1,
pa2, pa3, pa4
payment recieved against invoice
so10
against invoice so1
against invoice so10
cash
cash
investme
nts
purchases
maintena
nce
expenses
cash
cash
A/c
payable
A/c
payable
fuel
expenses
disposal
expenses
fuel
expenses
A/c
payable
cash
cash
cash
salary expenses
cash
interest
expenses
disposal
expenses
salary
expenses
interest earned
cash
interest paid
M/s kaks
limited
M/s jc
limited
17.27
88
9.309
3
17.27
88
9.309
3
cash
A/c
payable
25
25
cash
cash
discount
earned
2
6.725
25
9.309
3
2.332
8
0.097
2
2
6.725
25
9.309
3
2.332
8
0.097
2
cash
0.08
0.08
cash
0.08
0.08
cash
0.08
0.08
cash
M/s kpss
limited
M/s peps
limited
penalty
a/c
penalty
a/c
30
6.641
25
3.996
3
30
6.641
25
3.996
3
0.052
0.052
0.005
0.005
cash
8.3
8.3
cash
0.08
0.08
cash
interest
earned
11.75
11.75
6.75
6.75
sales
M/s peps
limited
2.43 2.43
2. JOURNAL ENTERIES
N
o.
Date.
1/10/201
1 5
1/10/201
2 5
1/10/201
3 5
Debited to
Credited from
tax
Debit Amount(in
INR lakhs)
22.108
cash
( being payment of muncipal tax )
M/s kpss
limited
sales
( being sale on credit to kpss
limited )
cash
22.108
6.64125
6.64125
6.615
sales
( being saes in cash )
2/10/201
4 5
M/s jc limited
6.615
6.64125
sales
( being sale on credit to jc limited )
2/10/201
5 5
purchases
6.64125
18.23
A/c payable
( being purchases on credit )
2/10/201
6 5
purchases
18.23
6.06
cash
( being purchase in cash )
2/10/201
7 5
purchases
6.06
3.63
cash
2/10/201
8 5
purchases
3.96
9.72
A/c payable
3/10/201
9 5
purchases
9.72
6.07
A/c payable
1 3/10/201
0 5
1 3/10/201
1 5
Credit Amount(in
INR lakhs)
purchases
cash
disposal
expenses
cash
6.07
1.21
1.21
0.03
0.03
1 3/10/201
2 5
1 4/10/201
3 5
1 4/10/201
4 5
1 6/10/201
5 5
1 6/10/201
6 5
1 8/10/201
7 5
1 8/10/201
8 5
1 8/10/201
9 5
2 8/10/201
0 5
( being payment of disposal

expenses )
M/s kpss
limited
sales
( being sales on credit to kpss
limited )
maintenance
expenses
cash
( being payment of maintainence
expenses )
purchases
cash
M/s kaks
limited
sales
( being sales on credit to kaks
limited )
M/s peps
limited
sales
( being sales on credit to peps
limited )
cash
6.64125
6.64125
2
2
1.21
1.21
6.64125
6.64125
6.64125
6.64125
300
intercorporate
balance
( being cash drawn from
M/s kaks
limited
sales
limited )
M/s peps
limited
sales
limited )
M/s jc limited
300
6.64125
6.64125
2.66805
2.66805
2.66805
sales
( being sales on credit to jc
limited )
2 8/10/201
1 5
cash
M/s kaks limited
( being cash payment received
from kaks limited )
2.66805
5.775
5.775
2 8/10/201
2 5
cash
0.0648
penalty a/c
( being penalty received from kaks
limited )
2 8/10/201
3 5
2 8/10/201
4 5
2 9/10/201
5 5
2 9/10/201
6 5
2 9/10/201
7 5
2 10/10/20
8 15
2 10/10/20
9 15
elec expenses
0.0648
cash
( being payment of water expenses
)
security
expenses
cash
( being payment of electricity
expenses )
security
expenses
cash
( being payment of security
expenses )
fuel expenses
2
2
5
5
0.03
cash
( being payment of fuel expenses )
disposal
expenses
cash
expenses )
M/s kaks
limited
sales
limited )
A/c payable
0.03
0.03
0.03
3.9963
3.9963
17.5008
cash
( being cash payment done for
purchase )
3 10/10/20
0 15
A/c payable
17.5008
0.7292
discount earned
( being discount earned against
timely payment )
3 10/10/20
1 15
A/c payable
0.7292
15.1584
cash
purchase )
3 10/10/20
2 15
A/c payable
15.1584
0.6316
discount earned
0.6316
3 10/10/20
3 15
3 11/10/20
4 15

timely payment )
M/s peps
limited
sales
limited )
fuel expenses
3.9963
3.9963
0.03
cash
3 12/10/20
5 15
cash
0.03
2.31
M/s kpss limited

from kpss limited )
3 12/10/20
6 15
cash
2.31
3.46
M/s kaks limited

from kaks limited )
3 12/10/20
7 15
cash
3.46
3.46
M/s jc limited
from jc limited )
3 12/10/20
8 15
cash
3.46
0.003
penalty a/c
( being penalty received from kpss
limited )
3 12/10/20
9 15
cash
0.003
0.011
penalty a/c
( being penalty received from kaks
limited )
4 12/10/20
0 15
4 12/10/20
1 15
4 12/10/20
2 15
cash
0.011
0.011
penalty a/c
( being penalty received from jc
limited )
disposal
expenses
cash
expenses )
cash
0.011
0.03
0.03
1000
loan
( being loan taken )
4 13/10/20
3 15
cash
1000
400
loan
( being loan taken )
4 13/10/20
4 15
investments
400
1500
cash
( being aquirement of kaladhaar
plant )
4 14/10/20
5 15
investments
1500
100
cash
( being commissiioning cost of
kaldhaar )
4 14/10/20
6 15
cash
100
6.64125
M/s kpss limited

from kpss limited )
4 14/10/20
7 15
cash
6.64125
17.2788
M/s kaks limited

from peps limited )
4 16/10/20
8 15
cash
17.2788
9.3093
M/s jc limited
from jc limited )
4 14/10/20
9 15
investments
9.3093
25
cash
( being registeration charges of
kaladhaar )
5 15/10/20
0 15
5 15/10/20
1 15
5 16/10/20
2 15
purchases
A/c payable
maintenance
expenses
cash
( being payment of maintainence
expenses )
cash
25
2.43
2.43
2
2
6.72525
sales
( being sales in cash )
5 16/10/20
3 15
cash
6.72525
9.3093
M/s peps limited

from peps limited )
5 17/10/20
4 15
A/c payable
9.3093
2.3328
cash
purchase )
5 17/10/20
5 15
A/c payable
2.3328
0.0972
discount earned
timely payment )
5 17/10/20
6 15
5 18/10/20
7 15
5 20/10/20
8 15
fuel expenses
0.0972
0.08
cash
disposal
expenses
cash
expenses )
0.08
0.08
fuel expenses
0.08
0.08
cash
5 20/10/20
9 15
A/c payable
0.08
30
cash
purchase )
6 27/10/20
0 15
cash
30
6.64125
M/s kpss limited

from kpss limited )
6 27/10/20
1 15
cash
6.64125
3.9963
M/s peps limited

from peps limited )
6 27/10/20
2 15
cash
3.9963
0.052
penalty a/c
( being penalty received from kpss
limited )
6 27/10/20
3 15
6 27/10/20
4 15
6 20/10/20
5 15
cash
penalty a/c
( being penalty received from peps
limited )
interest
expenses
cash
( being payment of interest
expenses )
disposal
expenses
0.052
0.005
0.005
8.3
8.3
0.08
6 31/10/20
6 15
6 31/10/20
7 15
cash
( being payment of waste disposal
expenses )
salary
expenses
cash
( being payment of salary
expenses )
cash
interest earned
( being interest earned from
3. LEDGER ACCOUNTS
0.08
11.75
11.75
6.75
6.75

PARTICULAR
cash
land
equipment
accumulated
depreciation
investment
purchases
m/s aaa limited
A/c recievable
M/s jc limited
M/s kaks limited
M/s kpss limited
m/s peps limited
m/s fam limited
m/s hola limited
m/s wpi limited
m/s jkl limited
loan
payable
debit
130.28
66
3600
1337
40.5
-4.05
1625
0
0
0
0
0
0
0
0
0
0
0
4608
0
0
2183.1
8
71.114
75
0.1468
6.75
1.45
capital
sales
penalty earned
interest earned
discount earned
COGS
medical expenses
security expenses
salary expenses
tele expenses
fuel expenses
transport expenses
tax paid
water expenses
internet expenses
interest expenses
disposal expenses
credit
48.56
0
5
11.75
0
0.22
4
1.5
3
22.108
2
0
38.91
0.25
btlnkng expenses
elec expenses
envirm expenses
inaug expenses
lab expenses
expenses
total
0
2
0
0
0
4.05
0
6872.0
85
1.5005
6872.0
85
5. PROFIT AND LOSS ACCOUNT

P/L STATEMENT FOR
less
Gross Sales
Net sales
COGS
less
Gross Profit
EXPENSES

71.087
71.087
-48.56
22.527
inaug expenses
security expenses
elect expenses
water expenses
tele expenses
internet expenses
lab expenses
salary expenses
disposal expenses
btnking expenses
bad debt expenses
medical expenses
fuel expenses
transport expenses
less
0
-5
-2
-2
0
0
0
11.75
-0.25
0
1.5005
0
-0.22
-4
-1.5
-3
29.72
EBITDA
less
Operating
Profit
add
OTHER INCOME
-9.7425
discount earned
penalty received
interest earned
add
EBIT
less
interest expenses
EBT
less
muncipal tax
PAT
NET PROFIT
-29.72
-5.6925
-4.05
1.45
0.168
6.75
8.368
8.368
-1.3745
-38.91
40.2845
-22.108
62.3925
-
62.3925
6. BALANCE SHEET
B/L sheet for 1/9/2015-30/9/2015
Current
assets
loans
130.2
866
cash
intercorporate
balance
payable
provision for bad
debts
1337
total current
assets
1467.2
866
total debts
0
0
4608
P/L TRANSFER
2183.1
3
62.392
5
Total capital(O.E)
2120.7
375
Total Debt and

Capital
6278.7
37
capital
4608
Fixed assets
land
equipment
accumulated
depreciation
subidary/acquistiti
on
3600
40.
5
4.0
5
36.45
1625
total fixed
assets
5261.4
500
Total assets
6728.7
37
7.COMPLIANCE REPORT
Capital remaining :
2183.21 lakhs
Long term loans on starting of month:
3400+1400 lakhs

10% of 40.5=4.05
To
Dr.
4.05
Cr.
4.0 5
Clearly in october 2015, cash sales amount to 13.34 lakhs
Clearly in october 2015, credit sales amount to 53.6 lakhs

Hence ratio (credit sales/ cash sales)=53.6/13.34= 4.01
Cash purchases in coctober 2015 amount to 12.1 lakhs

Credit purchase in the same period amount to 36.4 lakhs
Hence ratio (credit purchase/ cash purchase)=36.4/12.1= 3.008

More than 20% of the receivable is delayed by one half of the credit sales period
Total receivables are 53.6 lakhs
Receivables from kpss, peps, limited were received in (15-21) days
Invoice are so1, so10
their amount was (6.64+3.811)= 10.45 lakhs
percentage of total recievables = (10.45/53.6)*100= 19.49 %

Those are credit sales invoiced ss1 and so1, ss10.
They will be paid in tist month and will be penalized there
For references ,October transactions can be checked
Period 3, october , transaction number 60,61 be checked.
Interest on outstanding long term loan is being paid monthly @10 p.a
It can be checked at september , transaction number no 64

For reference , September Transaction number 69

3400/60= 56 lakhs+1400/58=80 lakhs

Sales volume
Total
August (bottles) September

(bottles)
25000
27500
25000
27500
25000
27500
25000
27500
25000
27500
25000
27500
10000
11000
10000
11000
15000
16500
15000
16500
50000
55000
2,50,000
2,75,000
October(bottles
)
30250
30250
30250
30250
30250
30250
12100
121000
18,15,000
1815000
60500
302500
Clearly the total sales volume increase by 10%
Sales price has increase by 5% in october (20----21----------22.05)

For reference , kindly observe the October transactions

Purchase Price in September of same quantity of purchases was 44 lakhs
Purchase Price in October of same quantity of purchases was 48.62 lakhs
An increase of 5% across 15 days twice
1.05*1.05=1.102
therefore a net increase of 10.2 % should be there
Percentage increase (actual)= 10.5 %
Costs such as disposal expenses, fuel expenses, electricity expenses, water

expenses remain stable over the period.
The firm was wary of putting cash in the market during the first month of its
operations. It wanted to get an idea of actual daily / monthly expenses and act
accordingly. So for august, the first month it does not deploy money in inter
corporate market.
On last day of september , a lot of cash was transferred to inter corporate market. 300
lakhs were withdrawn during the month of September
The interest is received @6% pa for the month corresponding to the time duration and
amount in inter corporate balance
8 days: 1637 lakhs
22 days: 1337 lakhs
Total interest earned : 6.75 lakhs

For reference , September, transaction number 67
My credit sales period was 14 days. I have assumed the doubtdul/bad debts to be
applicate over the value of receivable.
Municipal tax is paid at the beginning of every calendar month. The closing owner
equity of 1st month i.e September is calculated in balance sheet and its 1% is paid
as municipal tax.
For reference , see transaction number 1, October period

Sales =71.087 lakhs
Salaries paid as a percentage of sales= 16.52 %

October has 67 transactions with everyday having more than two transactions, if any at
all.

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By-chirag Bhatia

Major raw material:

M/s aaa limited

Starting cash infusion was 23.97 crores

Features of this project

PERIOD I-AUGUST 2015-(1/08/2015-31/08/2015)

took loan from accel investors

bought packaging machine B

bought packaging material in cash

availed loan of 5 crores from SBI

availed loan of 5 crores from PNB

paid for the electrification expenses

paid joining salary to jr. scientists

expenses towards disposing off the

(being purchases on credit )

(being sales on credit to jkl limited )

4. ADJUSTED TRIAL BALANCE

PROFIT AND LOSS SHEET

P/L STATEMENT FOR

1/8/2015-31/8/2015(All figures in Rs lakhs)

M/s aaa limited

M/s wpi limited

Total Debt and

Date of birth: 17/08/1991

Fixed assets to be (76-80)% of long term loans available

Credit sales had to be four times of cash sales

Credit purchase will be three times of cash purchase

Credit sales term is two weeks

EMI on loan paid is paid monthly

Sales volume will increase by 10% in September

Sales price will increase by 10% in September

Purchase price will increase by 5% semi-monthly.

payment recieved against invoice sa4

payment recieved against invoice sa5

payment recieved against invoice sa6

payment recieved against invoice sa7

expenses towards vehicles registration

4% discount availed against timely

bought packaging material in cash

payment recieved against invoice sa10

payment recieved against invoice ss4

payment recieved against invoice ss2

payment recieved against invoice ss3

payment recieved against invoice ss5

old machines repaired and adjusted

1 day shutdown taken: zero production

M/s ghi limited

M/s fam limited

( Being purchases on credit )

M/s jkl limited

M/s hola limited

M/s aaa limited

M/s wip limited

M/s kaks limited

M/s aaa limited

M/s ghi limited

( Being discount earned against

M/s fam limited

M/s aaa limited

M/s kpss limited

M/s kaks limited

M/s kaks limited

4. ADJUSTED TRIAL BALANCE