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Solve this: 1 Uah•' has Gaurav and Saurabh Gaurav grxluaton and Saw is of B Com wants G*lrav to further twt Gautav and Saumbh Nan' to boconu• he. Tt*y want to a shits business under the trade name of Fancy S The. 'mttv vees to proposal the problem iS shortage of funds They decried to start business April 2012 Mth • sma•amountote 500.000 They manag«ftobuy a shop 330,000 on IS 7012 Now 'e 19.000 was to run the day to day exmnseso' the business ._SÅrnbh suggested to apptomh a bank Gaurav catsdered the to a go•d idea Nex' day they approached Sdl 10 find out the Äøs Oan bank manag« asked for papers for the proposal which submitted by them SB' a of e 450.000 on 1. to 2012. nterest@ pa due on On 3tv Mach every yea a rco..nt on 182012 SB' Craned his aca)unt with the arnount Of ban on 1 '02012 1 t02C'2 a eonwter the use of business at 40000. the payment was roade through cheque A' paynents deque and receipts Xcount ot to be deposted bank During renovated furniture 200.000 on 31 , 122012 they also Diwali of 10000. Ther transrtøns tre year 31 March 2013 were as follows; Tu Sæs tc p. m) to •aft 5.01 p m 12 rmths to Paves Ei*næs Charges Prenül SY Weare Ex*rses 16.80000 20.40000 10.000 1.200m 100,000 18200 48.000 6.000 60.000 45.000 15.000 5.000 16,000 5.750 AtteerdoftEyeæ, Cbsiv valuig 4,00m0was On 31.32013, They dededto pa p.a, 2 A tebptmebdlofRs6800 is yet to 3 is not pad yet. 4 to saesrna-r is 5% On Saks 5, &est @ 1004 pas to be provd«i on capu and draw*-gs a-•d Saw-abh drawing of e 3000 and 2000 monttv, , Tufa! , f10qat

Dear Student

You have posted a full project in this thread, I have prepared journal entries as well as adjustment entries here, I request you to kindly prepare Trial balance and final accounts as required from the below journal entries as you just have to post these entries into ledgers and trial balance.
In case of any problem or query, please get back to us so that we can help you at the earliest in preparing the final accounts. 



 
Journal in the books of M/s Fancy Look and Bros.
Date Particulars    Debit   Credit 
01-04-12 Cash A/c Dr.            500,000  
    To Capital A/c                500,000
  (Being business started with capital)      
         
01-05-12 Shop A/c Dr.            350,000  
    To Cash A/c                350,000
  (Being shop purchased)      
         
01-08-12 Bank A/c Dr.            450,000  
    To Cash A/c                450,000
  (Being bank account opened and cash deposited into bank)      
         
01-10-12 Bank A/c Dr.            450,000  
    To Bank Loan A/c                450,000
  (Being bank loan credited into bank)      
         
01-10-12 Computer A/c Dr.               40,000  
    To bank A/c                   40,000
  (Being computer purchased)      
         
31-12-12 Furniture A/c Dr.            200,000  
    To Bank A/c                200,000
  (Being furniture purchased)      
         
31-12-12 Gift Expenses A/c Dr.               10,000  
    To Bank A/c                   10,000
  (Being diwali gift to employees)      
         
31-03-12 Purchases A/c Dr.         1,680,000  
    To Bank A/c             1,680,000
  (Being purchases made)      
         
31-03-12 Bank A/c Dr.         2,040,000  
    To Sales A/c             2,040,000
  (Being sales made)      
         
31-03-12 Carriage Inward A/c Dr.               10,000  
    To Bank A/c                   10,000
  (Being carriage expenses paid)      
         
31-03-12 Salary To Manager A/c Dr.            120,000  
  Salary to Staff A/c Dr.            100,000  
  Telephone Expenses  Dr.               18,200  
  Electricity Expenses Dr.               15,000  
  Packing Expenses  Dr.               48,000  
  Printing and Stationery Dr.                 6,000  
  Accounting Expenses Dr.               60,000  
  Advertising Dr.               45,000  
  Bank Charges Dr.               15,000  
  Insurance Premium Dr.                 5,000  
  Staff Wellfare Dr.               16,000  
  Conveyance Expenses Dr.                 5,750  
    To Bank A/c                453,950
  (Being Expenses for full year passed in single entry)      
         
31-03-12 Drawings A/c Dr.               60,000  
    To Bank A/c                   60,000
  (Being Drawings made by gaurav and sourabh @ 3,000 and 2,000 per month)      

Adjustment entries :
Journal in the books of M/s Fancy Look and Bros.
Date Particulars    Debit   Credit 
         
31-03-12 Depreciation A/c Dr.                 9,000  
    To Computer A/c (40,000 x 20% x 6/12)                     4,000
    To Furniture A/c (2,00,000 x 10% x 3/12)                     5,000
  (Being depreciation charged)      
         
  Telephone Expenses A/c Dr.                 6,800  
    To Outstanding Telephone Expenses                     6,800
  (Being Telephone expenses are to be paid)      
         
  Interest on Loan A/c (4,50,000 x 5% x 6/12) Dr.               11,250  
    To Bank Loan                    11,250
  (Being Interest on loan unpaid)      
         
  Commission A/c (20,40,000 x 5%) Dr.            102,000  
    To Commision Payable A/c                102,000
  (Being Commission payable)      
         
  Interest on Capital A/c (5,00,000 x 10%) Dr.               50,000  
    To Capital A/c                   50,000
  (Being Interest on capital provided at 10%)      
         
  Capital A/c Dr.                 3,000  
    To Interest on Drawings A/c (60,000 x 10% x 6/12)                     3,000
  (Being Interest on drawings charged @10% for 6 months assuming drawings in each month is done in the middle of the month)      

Please note that Managers commission entry is remaining to be made as net profit is not calculated yet.


Hope this helps
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Regards

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