SL.

NO.

PARTICULARS
Cash A/C
To Capital A/C

1.

L.F
Dr.

DEBIT(Rs)

CREDIT(Rs)

25,00,000
25,00,000

(Being business started with cash)

Purchases A/C

Dr.

1,50,000
1,50,000

2.

To Cash A/C
(Being goods purchased)
Cash A/C

3.

Dr.

3,00,000
3,00,000

To Sales A/C
(Being cash sales made)
Bank A/C

4.

Dr.

7,00,000
7,00,000

To Cash A/C
(Being cash deposited in bank)
Machinery A/C

5.

Dr.

1,00,000
1,00,000

To CD Traders A/C
(Being machinery purchased)
Furniture A/C

6.

Dr.

10,000
10,000

To Cash A/C
(Being furniture purchased)
Rent A/C

7.

Dr.

To Cash A/C

20,000
20,000

(Being rent paid)

Cash A/C
8.

Dr.

50,000

To Purchase Return A/C

(Being purchase return made)
Sales Returns A/C
Dr.

9.

2,000

To Cash A/C
(Being sales returns made)
Cash A/C

10.

2,000

Dr.

1000

To Commission A/C

1000

(Being commission received)

Telephone Expense A/C
Dr.
11.

50,000

10,000
10,000

To Cash A/C
(Being telephone expense paid)
Drawings A/C
Dr.

8,000
8,000

12.

To Cash A/C
(Being cash withdrawn for personal
use)
Depreciation A/C
Dr.

13.

20,000

To Machinery A/C
(Being machinery depreciated)
Rent A/C
Dr.

14.

5000
5000

To Outstanding rent A/C

(Being rent outstanding)
Accrued Interest on investment A/C Dr.

15.

20,000

3000
3000

To interest A/C
(Being interest received)

C.Ltd A/C
16.

Dr.

20,000

To Cash A/C

20,000

(Being cash paid to C. Ltd)

M Traders A/C
17.

Dr.

3,50,000

To Bank A/C

3,50,000

(Being cash paid from check)

Bank A/C
18.

Dr.

4,00,000

To Rakesh A/C

4,00,000

(Being cheque deposited in bank)

Electricity A/C
19.

Dr.

1000

To Cash A/C

1000

(Being electricity paid)

Printing and stationery A/C
20.

Dr.

400

To Cash A/C

400

(Being printing and stationery paid)

Expense A/C
21.

Dr.

6000

To Outstanding expense A/C

6000

(Being outstanding expense)

Prepaid Outstanding A/C
22.

Dr.

5,000

To Expense A/C

5,000

(Being prepaid expense)

Accrued income A/C
23.

Dr.

To income A/C

10,000
10,000

(Being income not received)

3

Income A/C
24.

26.

15,000

To pre received income

(Being income pre-received)
Drawings A/C

25.

Dr.

15,000

Dr.

10,000

To purchases A/C

10,000

(Being withdrawal of goods for personal

use)
Mr. Sanjay A/C
Dr.
To Cash A/C
To Discount received A/C

1500
1000
500

(Being cash paid and discount allowed)

Salary A/C
27.

Dr.

10,000

To Cash A/C

10,000

(Being salary paid)

Carriage Outward A/C
28.

Dr.

1500

To Cash A/C

1500

(Being carriage paid)

Miscellaneous expenses A/C
29.

Dr.

20,000

To Cash A/C

20,000

(Being miscellaneous expenses paid)

Travelling Expenses A/C
30.

Dr.

To Cash A/C

2200
2200

(Being travel expenses paid)

Stationery A/C
31.

Dr.

800

To Cash A/C

800

(Being stationery purchased)

Postage A/C
32.

Dr.

50

To Cash A/C

50

(Being postage purchased)

Bank charges A/C
33.

Dr.

1000

To Bank A/C

1000

(Being charges debited by bank)

Bad debts A/C
34.

Dr.

4000

To Debtors A/C

4000

(Being bad debts provided )

Capital A/C
35.

Dr.

600

To interest on drawing A/C

600

(Being the transfer on drawings charged)

Labour charges A/C
36.

Dr.

5000

To Cash A/C

5000

(Being labour charges paid)

Cash A/C
37.

Dr.

To Salman Ltd. A/C

50,000

(Being cash received from salman ltd.

a/c)
Octroi A/C
Dr.
38.

50,000

To Cash A/C

8,000
8,000

(Being Octroi charges paid)

Excise duty A/C

39.

Dr.

To Cash A/C

761600

(Being excise duty paid)

Marketing and advertisement expense Dr.
40.

10,000

To Cash A/C

10,000

(Being marketing and advance expense

a/c)
Wages A/c
Dr.
41.

761600

15,000

To Cash A/C

15,000

(Being wages paid )

Machinery A/C
42.

Dr.

1,00,000

To Bank A/C

1,00,000

(Being machinery purchased)

Discount allowed A/C
43.

Dr.

500

To sundry debtors A/C

500

(Being the additional discount allowed to

debtors recorded)
Repairs A/C

Dr.

8500

To Building A/C

8500

44.
(Being repairs made to building)

Bills receiveable A/C

45.

Dr.

To Rahuls A/C

3000
3,000

(Being acceptance received from Rahul

for mutual)
6

Claim for defected goods A/C

46.

Dr.

To Ram & Co. A/c

150

(Being a claim for defects on goods

admitted)
Ramesh A/c
Dr.
47.

1000

To Bills payable A/c

1000

(Being bill dishonoured due to

insolvency)
General expenses A/c
48.

150

Dr.

4000

To Cash A/c

4000

(Being general expenses paid)

Roshan A/c
49.

Dr.

3000

To Sales A/c

3000

(Being goods sold on credit)

Roshan A/c
50.

Dr.

To claim for breakage A/c

(Being claim admitted my Roshan)

100
100

LEDGER
Dr.

CASH A/C

Particulars
J.F
To capital a/c
To sales a/c
To purchases returned a/c

Amt.
25,00,000
3,00,000
50,000

Particulars
By purchases a/c
By bank a/c
By furniture a/c

To commission a/c
To discount allowed a/c
To salman ltd. a/c

1000
500
50,000

By rent a/c
By sales returns a/c
By telephone expense
a/c
By drawings a/c
By c ltd a/c
By electricity a/c
By printing and
stationery a/c
By Mr. sanjay a/c
By salary a/c
By carriage outward a/c
By travelling expense
a/c
By labour charges a/c
By octroi a/c
By excise duty a/c
By marketing and
advertisement expense
a/c
By miscellaneous
expense a/c
By wages a/c
By general expenses a/c
By postage a/c
By stationery a/c
By balance c/d

By balance b/d

2901500
1126950

Cr.
J.F

Amt.
1.50,000
7,00,000
10,000
20,000
2000
10,000
8000
20,000
1000
400
15000
10,000
1500
2200
5000
8000
7,61,600
10,000

20,000
15,000
4000
50
800
1126950
2901500

CAPITAL A/C
Particulars
To interest on drawings a/c
To balance c/d

J.
F

Amt.

Particulars

600
2499400

By cash a/c

J.F Amt.
25,00,000

2499400

2499400
2499400

By balance b/d

PURCHASES A/C
Particulars
To cash a/c

J.F

Amt.
1,50,000

Particulars
By drawing a/c
By balance c/d

J.F Amt.
10000
1,40,000
1,50,000

1,50,000
1,40,000

By balance b/d

SALES A/C
Particulars
To balance c/d

J.F

Amt.
3,03,000

Particulars
By cash a/c
By Roshan a/c

J.F

Amt.
3,00,000
3000
3,03,000
3,03,000

J.F

Amt.
3,50,000
1000
1,00,000
6,49,000
11,00,000

3,03,000
By balance b/d

BANK A/C
Particulars
To cash a/c
To Rakesh a/c

J.F

Amt.
7,00,000
4,00,000

Particulars
By M traders a/c
By Bank charges a/c
By machinery a/c
By balance c/d

11,00,000
6,49,000

To balance b/d

TO PURCHASES RETURNS A/C

Particulars
To balance c/d

J.F

Amt.
50,000
50,000

Particulars
By cash a/c
By balance b/d

FURNITURE A/C

J.F

Amt.
50,000
50,000
50,000

Particulars
To cash a/c

J.F

Amt.
10,000
10,000
10,000

To balance b/d

Particulars
By balance c/d

J.F

Amt.
10,000
10,000

J.F

Amt.
1000
1000
1000

COMMISSION A/C
Particulars
To balance c/d

J.F

Amt.
1000
1000

Particulars
By cash a/c
By balance b/d

RENT A/C
Particulars
To cash a/c
To outstanding rent a/c

J.F

To balance b/d

Amt.
20,000
5000
25,000
25,000

Particulars
By balance c/d

J.F

Amt.
25,000
25,000

DISCOUNT ALLOWED A/C

Particulars
To sundry debtors a/c

J.F

Amt.
500

Particulars
By cash a/c

J.F

Amt.
500

SALES RETURNS A/C

Particulars
To cash a/c

J.F

Amt.
2000
2000
2000

To balance b/d

Particulars
By balance c/d

J.F

Amt.
2000
2000

SALMAN LTD. A/C

Particulars
By balance c/d

J.F

Amt.
50,000
50,000

Particulars
By cash a/c

J.F

By balance b/d

Amt.
50,000
50,000
50,000

TELEPHONE EXPENSE A/C

Particulars

J.F

Amt.

Particulars
10

J.F

Amt.

To cash a/c

10,000
10,000
10,000

To balance b/d

By balance c/d

10,000
10,000

TRAVELLING EXPENSE A/C

Particulars
To cash a/c

J.F

Amt.
2200
2200
2200

To balance b/d

Particulars
By balance c/d

J.F

Amt.
2200
2200

DRAWINGS A/C
Particulars
To cash a/c
To purchases a/c

J.F

Amt.
8000
10,000
18000

Particulars
By balance c/d

J.F Amt.
18000
18000

To balance b/d

C LTD. A/C
Particulars

J.F

To cash a/c
To balance b/d

Amt.

Particulars

20,000
20,000
20,000

By balance c/d

J.
F

Amt.
20,000
20,000

ELECTRICITY A/C
Particulars
To cash a/c

J.F

To balance b/d

Amt.
1000
1000
1000

Particulars
By balance c/d

J.F

Amt.
1000
1000

PRINTING AND STATIONERY A/C

Particulars
To cash a/c
To balance b/d

J.
F

Amt.

Particulars

400
400
400

By balance c/d

Mr. SANJAY A/C

11

J.
F

Amt.
400
400

Particulars
To cash a/c
To discount received a/c
To balance b/d

J.F Amt.
1000
500
1500
1500

Particulars
By balance c/d

J.F

Amt.
1500
1500

SALARY A/C
Particulars
To cash a/c

J.F

To balance b/d

Amt.
10,000
10,000
10,000

Particulars
By balance c/d

J.F

Amt.
10,000
10,000

J.
F

Amt.

CARRIAGE OUTWARD A/C

Particulars

J.F

To cash a/c
To balance b/d

Amt.

Particulars

1500
1500
1500

By balance c/d

1500
1500

LABOUR CHARGES A/C

Particulars
To cash a/c

J.F

To balance b/d

Amt.
5000
5000
5000

Particulars
By balance c/d

J.F

Amt.
5000
5000

OCTROI A/C
Particulars
To cash a/c
To balance b/d

J.F

Amt.
8000
8000
8000

Particulars
By balance c/d

EXCISE DUTY A/C

12

J.F

Particulars
8000
8000

Particulars

J.
F

By balance c/d

Amt.

Particulars

761600
761600

By cash a/c

J.F Amt.
761600
761600
761600

By balance b/d

MARKETING AND ADVERTISEMENT EXPENSE A/C

Particulars

J.F

To cash a/c
To balance b/d

Amt.

Particulars

10,000
10,000
10,000

By balance c/d

J.
F

Amt.
10,000
10,000

MISCELLANEOUS EXPENSE A/C

Particulars
To cash a/c

J.F

To balance b/d

Amt.
20,000
20,000
20,000

Particulars
By balance c/d

J.F

Amt.
20,000
20,000

WAGES A/C
Particulars
To cash a/c
To balance b/d

J.F Amt.
15,000
15,000
15000

Particulars
By balance c/d

J.F Amt.
15,000
15,000

GENERAL EXPENSES A/C

Particulars
To cash a/c

J.F

By balance b/d

Amt.
4000
4000
4000

Particulars
By balance c/d

J.F

Amt.
4000
4000

POSTAGE A/C
Particulars
To cash a/c
To balance b/d

J.F

Amt.
50
50
50

Particulars
By balance c/d

13

J.F Amt.
50
50

STATIONERY A/C
Particulars
To cash a/c
To balance b/d

J.F Amt.
800
800
800

Particulars
By balance c/d

J.F

Amt.
800
800

DEPRECIATION A/C
Particulars
To machinery a/c

J.F

To balance b/d

Amt.
20,000
20,000
20,000

Particulars
By Balance c/d

J.F

Amt.
20,000
20,000

J.F

Amt.
6000
6000
6000

OUTSTANDING EXPENSE A/C

Particulars
To balance c/d

J.F

Amt.
6000
6000

Particulars
By expense a/c
By balance b/d

ACCRUED INTEREST ON INVESTMENT A/C

Particulars
To interest a/c

J.F

To balance b/d

Amt.
3000
3000
3000

Particulars
By balance c/d

J.F

Amt.
3000
3000

M TRADERS A/C
Particulars
To bank a/c

J.F

To balance b/d

Amt.
3,50,000
3,50,000
3,50,000

Particulars
By balance c/d

J.F Amt.
3,50,000
3,50,000

RAKESH A/C
Particulars
To balance c/d

J.F

Amt.
4,00,000
4,00,000

Particulars
By bank a/c

14

J.F

Amt.
4,00,000
4,00,000

By balance b/d

4,00,000

PREPAID A/C
Particulars
To expense a/c

J.F

To balance b/d

Amt.
5000
5000
5000

Particulars
By balance c/d

J.F

Amt.
5000
5000

ACCRUED INCOME A/C

Particulars
To income a/c

J.F

To balance b/d

Amt.
10,000
10,000
10,000

Particulars
By balance c/d

J.F Amt.
10,000
10,000

INCOME A/C
Particulars

J.F

To pre-received income
a/c

Amt.

Particulars

J.
F

15,000

By accrued income a/c

10,000

By balance c/d

5000
15000

15000
5000

To balance b/d

Amt.

PRE-RECEIVED INCOME A/C

Particulars
To balance c/d

J.F

Amt.
15000
15000

Particulars
By income a/c

J.F

By balance b/d

Amt.
15000
15000
15000

DISCOUNT RECEIVED A/C

Particulars
To balance c/d

J.
F

Amt.

Particulars

1500
1500

By Mr. sanjay a/c

By balance b/d

BAD DEBTS A/C

15

J.F

Amt.
1500
1500
1500

Particulars
To debtors a/c

J.F

To balance b/d

Amt.
4000
4000
4000

Particulars
By balance c/d

J.F

Amt.
4000
4000

DEBTORS A/C
Particulars
To balance c/d

J.F

Amt.
4000
4000

Particulars
By bad debts a/c

J.F

By balance b/d

Amt.
4000
4000
4000

INTEREST ON DRAWING A/C

Particulars

J.F

To balance c/d

Amt.

Particulars

600
600

By capital a/c

J.
F

Amt.
600
600
600

By balance b/d

SUNDRY DEBTORS A/C

Particulars
By balance c/d

J.F

Amt.
500

Particulars
By discount allowed
a/c

J.F

500

Amt.
500
500
500

By balance b/d

BILLS RECEIVABLE A/C

Particulars
To Rahuls a/c

J.F

To balance b/d

Amt.
3000
3000
3000

Particulars
By balance c/d

J.F

Amt.
3000
3000

J.
F

Amt.

RAHULS A/C
Particulars
To balance b/d

J.F

Amt.

Particulars

3000
3000

By bills receivable a/c

16

3000
3000

By balance b/d

3000

CLAIM FOR DEFECTED GOODS A/C

Particulars
To Ram & co. a/c
To balance b/d

J.
F

Amt.

Particulars

150
150
150

By balance c/d

J.
F

Amt.
150
150

RAM & CO.A/C

Particulars
To balance c/d

J.F Amt.
150

Particulars
By claim for defected
goods a/c

J.F Amt.
150

150

150
150

By balance b/d

BILLS PAYABLE A/C

Particulars
To balance c/d

J.F Amt.
1000
1000

Particulars
By Ramesh a/c
By balance b/d

J.F Amt.
1000
1000
1000

RAMESH A/C
Particulars
To balance payable a/c
To balance b/d

J.F Amt.
1000
1000
1000

Particulars
By balance c/d

J.F Amt.
1000
1000

CLAIM FOR BREAKAGE A/C

Particulars
To balance c/d

J.F Amt.

Particulars

100
100

By Roshan a/c
By balance b/d

17

J.
F

Amt.
100
100
100

ROSHANS A/C
Particulars
To claim for breakage
a/c
To sales a/c

J.F

Amt.
100

Particulars
By balance c/d

J.F

Amt.
3100

3000
3100
3100

To balance b/d

3100

OUTSTANDING RENT A/C

Particulars
To balance c/d

J.F

Amt.
8500
8500

Particulars
By repairs a/c

J.F

Amt.
8500
8500
8500

J.F

Amt.
8500
8500

By balance b/d

REPAIRS A/C
Particulars
To building a/c

J.F

To balance b/d

Amt.
8500
8500
8500

Particulars
By balance c/d

BUILDING A/C
Particulars
To balance c/d

J.F

Amt.
8500
8500

Particulars
By repairs a/c
By balance b/d

J.F Amt.
8500
8500
8500

TRIAL BALANCE
Particulars
Bank a/c
Machinery a/c
CD traders a/c
Furniture a/c
Cash a/c
Purchases a/c
Sales a/c
Rent a/c
Purchases return a/c
Sales returns a/c
Commission a/c
Telephone expense a/c

Debit
649000
1800000

Credit
100000

10000
1126950
140000
303000
25000
50000
2000
1000
10000
18

Drawings a/c
Depreciation a/c
Outstanding rent a/c
Accrued interest on investment a/c
Interest a/c
C ltd a/c
M traders a/c
Rakesh a/c
Electricity a/c
Printing and stationery a/c
Expense a/c
Repairs a/c
Prepaid a/c
Building a/c
Accrued income a/c
Income a/c
Pre-received income a/c
Mr.sanjay a/c
Discount received a/c
Salary a/c
Carriage outward a/c
Travelling expense a/c
Stationery a/c
Postage a/c
Bank charges a/c
Bad debt a/c
Debtors a/c
Outstanding expense a/c
Capital a/c
Claim for breakage a/c
Interest on drawing a/c
Labour charges a/c
Salman ltd a/c
Octroi a/c
Excise duty a/c
Marketing and advertising expense a/c
Wages a/c
Roshan a/c
Bills payable a/c
Ramesh a/c
Sundry debtors a/c
Bills receivable a/c
Rahuls a/c
Claim for defected goods a/c
General expenses a/c
Ram & co a/c
Miscellaneous expense a/c
Suspense a/c

18000
20000
5000
3000
3000
20000
350000
400000
1000
4000
1000
8500
5000
8500
10,000
5000
15000
1500
1500
10000
1500
2200
800
50
1000
4000
4000
6000
2499400
100
600
5000
50000
8000
761600
10000
15000
3000
1000
1000
500
3000
3000
150
4000
150
20,000
79300
19

Total

4295650

4295650

TRADING AND PROFIT LOSSA/C

Dr.

Cr.

Particulars
To purchases a/c
1,50,000
Less: purchases retuns a/c 50,000
To Octroi a/c
To Labour charges a/c
To Excise duty a/c
To wages a/c
To gross loss b/d
To rent paid a/c
To telephone expense a/c
To Depreciation a/c
To electricity a/c
To printing and stationery a/c
To salary paid a/c
To expense a/c
1000
Add: outstanding expense 6000

Amt.

Particulars
By sales
Less: sales returns a/c

90000
8000
5000
761600
15000
879600
578300
25000
10000
20,000
1000
4000
10,000

Amt.
303000
2000
301000

By gross loss c/d

578300

By commission a/c
By interest a/c
By income a/c
By discount a/c

879600
1000
3000
5000
1500

By net loss

692850

7000
To repairs a/c
To carriage outward a/c
To travelling expense a/c
To stationery a/c
To postage a/c
To bank charges a/c
To bad debts a/c
To miscellaneous a/c
To marketing and advertisement
a/c
Total

8500
1500
2200
800
50
1000
4000
20,000
10000
703350

703350

BALANCE SHEET

Sr.

Particulars

Not
20

Figures as
at the end
of the

Figures as
at the end
of the

No.

I.

e
no.
EQUITY AND LIABILITIES
(1)Shareholders funds
(a) Share capital
Capital a/c
Less: Drawing a/c

II.

previous
reporting
period

2499400
18000
2481400
692850
1788550

Less: Net loss

current
reporting
period

(b) Reserves and surplus

(c) money received against share warrants
(2)Share application money pending allotment
(3)Non currents liabilities
(a) long term borrowings
(b) deferred tax liabilities(net)
(c) other current liabilities
(d) short term provisions
(4)Current liabilities
(a) Short term borrowings
(b) Trade payables
Rakesh a/c
CD traders
Salman ltd a/c
Roshan a/c
Rahuls a/c
Ram and Co. a/c
(c) Other current liabilities
Outstanding rent a/c
Suspense a/c
Pre-received income a/c
(d) Short term provisions
TOTAL
ASSETS
(1)Non- current assets
(a) Fixed Assets
(i)Tangible assets
Machinery a/c
Furniture a/c
(ii)Intangible Assets
(iii)Capital work in progress
(iv)Intangible assets under development
(b) Non-current investments
(c)Deferred tax assets (net)
(d)long-term loans and advances
(e)other non-current assets
(2)Currents Assets
21

400000
100000
50,000
3000
3000
150
5000
81400
15000
2446100

1800000
10000

(a) Current investments

(b) investors
(c) trade receivables
C ltd
M traders
Mr. Sanjay a/c
Debtors a/c
Ramesh a/c
(d) Cash and cash equivalents
Bank a/c
Cash a/c
(e) Short term loans and advances
(f) Other current assets
Accrued interest on investment a/c
Accrued income a/c
Prepaid expense a/c
TOTAL

22

20,000
350000
1500
4000
1000
649000
1126950
3000
10,000
5000
2853500

STATEMENT OF PROFIT AND

LOSS
PARTICULARS

I.
II.

III.
IV.

V.
VI.
VII
.

NOT
E
NO.

Revenue from operations

sales
Other income
Interest received
Commission received
Discount received
Income received
Total Revenue(I+II)
Expenses:
Purchases
wages
octroi
Excise duty
Carriage outward
rent
Printing and stationery
Telephone expense
electricity
salary
Travelling expense
postage
Miscellaneous expense
Marketing and advertisement
Labour charges
repairs
depreciation
Bank charges
Bad debts
Total expense
loss before tax(III-IV)
Tax
loss after tax(V-VI)

Figures
for the
current
reportin
g period
3,03,000
3000
1000
1500
5000
3,13,500
1,50,000
15000
8000
7,61,600
1500
25,000
4000
10,000
1000
10,000
2200
50
20,000
10,000
5000
8500
20,000
1000
4000
1056850
773350
773350

23

Figures
for the
previous
reportin
g period