facing problem in making journal entries ....rest of the ques is easy bt i am not getting how to start the ques plse help me out...

facing problem in making journal entries ....rest of the ques is easy bt i am not getting how to start the ques plse help me out... Aruna, decided to Start business Of fashion garments under the name Of Mjs. Degigner Wear. She had a saving Of about She invested out Of her savings and borrowed equal amount from State Bank of India. She purchased a commercial space oi 500 sq. feet for The gpace was renovated to make it ready for the business. Balance of wag used for repair and painting af the space. Total amount of bank loan is to be repaid in 20 quarterly instalment. beginning 30th June, 2016. Annual Rate Of Interest is 12%. Bank loan and interest repaid in the first year are as follows: June . Is.oco sooo interest) Sept. 2016 — 15m) interest) Dec. at, 20ii Mare, 31, 2017 - + She started business on 1st April. 2016. In view of further capital requirement She her Savings to the Bank Of business. She paid Security Deposit of 5,000 for the connection with BSES Rajdh•ni Power Led and to MTNL for telephone connection. Furniture purchased , All payments were be made by cheque. AD the receipts Were in cash to be in the bank on the game day. At the end of the year, eleir results Showed the following: CharF She withdre• 5,00Q by cheque each month for her personal Bank loan wag serviced and instalments were paid regularly. I. Journalise the above post into the prepare the 2, Prepare the Profit and Account and Sheet. Charge deprwiation@ 5% on Building and on Furniture. Closing Stock at the end of the year was a. Prepare a Bar Diagram and/or Pie Charts showing the expenses,

Dear Student,

Journal entries can be started with the following transactions:
a) Investment entry of Rs 3,00,000 by Dr Cash & CR Capital;
b) Entry for Loan taken of Rs 3,00,000 by DR Cash CR Loan A/c
c) Entry for purchase and repairs of space;
d) Bank Interest entry for first four quarters of the year @ 12%;
e) Transfer of Rs 2,00,000 from saving A/c to Bank A/c of the business;
f) Entry for Security deposit for electricity and telephone;
g) And final entry for furniture purchased and amount drawn;

Hope this helps;

Do get back to us for any further queries;

Regards,


 

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