Tushar decided to start a computer business. For this purpose, he invested a sum of ₹ 5,50,000, of which he spent ₹ 2,00,000 for constructing the shop.
He decided to conduct the following activities in his computer café: Computer classes for students, sale of computer accessories and internet service facility.
He purchased 12 computers costing ₹ 40,000 each. He approached ICICI Bank and secured a loan to the extent of 75% of the cost of computers. At the end of the first year, the amount payable was ₹ 90,000 towards loan and ₹ 36,000 for interest.
He started his business on 1stApril 2021. On the same day he deposited ₹ 3,30,000 in the Bank. He purchased computers and paid the amount by cheque. He deposited ₹ 1,50,000 with VSNL for internet and telephone connection. He spent ₹ 40,000 on furnishing the computer café and also spent ₹ 6,000 on distributing pamplets.
All payments were to be made by cheque and all receipts to be deposited in bank on the same day.
At the end of the year, the results were:
|
₹
|
Revenue from Sale of Computer accessories like CDs etc
|
1,60,000
|
Revenue from fees received from students of computer classes
|
2,70,000
|
Revenue from Internet facility
|
2,20,000
|
Purchase of computer accessories
|
92,000
|
Wages of assistant
|
12,000
|
Electricity charges
|
48,000
|
Telephone charges
|
73,000
|
Entertainment Expenses
|
7,000
|
General Expenses
|
5,200
|
He withdrew ₹ 5,000 by cheque each month for his personal expenses and paid the loan instalment with interest at the end of the year.
Depreciate Building by 5% p.a., furniture by 20% p.a. and computers by 30% p.a.
Prepare Journal, Ledgers, Trial Balance and financial statements of the above business for the year ended 31stMarch 2022.Copy and Paste Your Assignment Here