XAVIER INSTITUTE OF MANAGEMENT, XAVIER UNIVERSITY, BHUBANESWAR

MBA 2016-18 Sec A D

Financial Transactions for Journal & Ledger

1. A company named MBA 2016 was formed on 1.4.2016 with an authorised capital of Rs.1 crore.
2. The company formation expenses was Rs.2,50,000/-.
3. The initial subscription to the share capital was 5 lakh shares of Rs.10 each fully paid up.
4. The company is basically a trading organization dealing supply of rice to the Govt. under the Mid
day meal scheme.
5. It obtained a loan from SBI for working capital amounting to Rs. 1 crore.
6. It took a furnished office premise on rent of Rs.20,000 per month.
7. The Directors decided to appoint 2 Purchase officers @Rs. 25,000per month, one driver
@Rs.15,000pm, 1 office assistant @Rs.10,000pm. Initially they decided to do the accounting,
marketing , tender work etc on their own.
8. In order to facilitate the delivery of rice on time, it purchased a delivery van for Rs. 10 lakhs.
9. The company hired a warehouse for storing the rice@Rs.1,20,000 per annum.
April 2016
10. Purchased 20000kgs of rice @ Rs.20per kg .
11. 10000kg of rice was sold @Rs.35per kg.
12. 100kg of rice was damaged due to poor storage arrangement.
13. Balance (9850 kg) rice was sold @Rs.34per kg.
14. Electricity bill was Rs.2,300/- and telephone bill was Rs. 1500/-, Printing & stationery was Rs.
350.
15. Fuel for the delivery van was Rs. 16,000/-.
May 2016
16. Purchased 30000kgs of rice @ Rs.22per kg .
17. 20000kg of rice was sold @Rs.33per kg.
18. Balance (9800 kg) rice was sold @Rs.37per kg.
19. Electricity bill was Rs.2,600/- and telephone bill was Rs. 1700/-. Print & stat was Rs. 100.
20. Fuel for the delivery van was Rs. 18,000/-.
June 2016
21. Purchased 25000kgs of rice @ Rs.25per kg .
22. 15000kg of rice was sold @Rs.35per kg.
23. 50kg of rice was damaged due to poor storage arrangement.
24. Balance rice was in stock.
25. Electricity bill was Rs.2,300/- and telephone bill was Rs. 1500/-. Print & stat was Rs. 600.
26. Fuel for the delivery van was Rs. 16,500/-.
Prepare the accounts for the Q1 of the company.