Madhvi is a widow has two children Gaurav and Saurabh .Gaurav has completed graduation and Saurabh is in the first year of B. Com. Medhavi wants Gaurav to go to further studies but Gaurav and Saurabh want to become business man and help their mother. They want to start a readymade shirts business under the trade name of M/s Fancy Look & Bros. Their mother agrees to the proposal but the problem is shortage of funds. They decided to start a business on 1st april 2012, with a small amount of Rs. 5,00,000. They managed to buy a shop for Rs. 3,50,000 on 1.5.2012. Now the balance i.e Rs. 1,50,000 was too small to run the day to day expenses of the business. Saurabh suggested to approach a bank for obtaining bank loan. The bank manager asked for some papers for proposal which were submitted by them in time. SBI approved a loan of Rs. 4,50,000 on 1.10.2012, interest @5% p.a. due on 31st march every year. He opened a bank account with Rs. 1,50,000 on 1.8.2012 . SBI credited his bank account with the amount of loan on 1.10.2012.   

On 1.10.2012, They purchased a computer for the use of business at Rs. 40,000. the payment was made through cheque. 
All payments were to be made through cheque  and all receipts on account of sales were to be deposited into bank. During Diwali festival, they renovated the shop and purchased furniture for Rs. 2,00,000 on 31.12.2012 they also distributed Diwali gifts of Rs. 10,000. Their transactions for the year 31 March 2013 were as follows; 

Total purchases	1680000
Total Sales	2040000
Carriage Inward	10000
Salary to work Manager (10,000 p.m)	120000
Salary to Staff	100000
(@ Rs. 5,000 p.m. for 12 months to two employees)
Telephone Expenses	18200
Electricity Charges	15000
Packing Expenses	48000
Printing & Stationary	6000
Accounting Expenses	60000
Advertising	45000
Bank Charges	15000
Insurance Premium	5000
Staff welfare Expenses	16000
Conveyance	5750

At the end of the year, Closing stock valuing Rs. 4,00,000 was lying on 31.3.2013.  
1. They decided to depreciate computer @20% p.a and Furniture @10% p.a.  
2. A telephone bill of Rs. 6800 is yet to be paid. 
3. Interest on loan is not paid yet.
4. Commission to salesman is paid at 5% on sales. 
5. Interest @ 10% p.aa is to be provided on capital and drawings 
6. General manager is to be allowed a commission of 5% on net profit after charging such commission.  Gaurav and Saurabh also made drawings of Rs. 3000 and Rs. 2000 respectively every month

Give journal entries, Ledger, Trial Balance, Final A/C with Narration and closing journal entries.