"TRANSACTIONS

Mr M.s Patel decided to start a TRAVEL WORLD business named SAMSONITE

Sales(p) Ltd.
ATrading Company On Ist April 2020 he invested a sum amount of 4,80,000 for
this purpose he took a building costing 4,00,000 and spent 1,00,000 for its overhaul
interior and fittings separately to purchase the opening stock which is almost
amounted to 1,80,000 he appointed ICICI Bank and secured loan to the extent of
75% of the cost of stock it was agreed that the loan will be repaid
Ifour equal instalment as follows

At the end of lst year: 90,000+36000 for the interest

At the end of 2nd year: 90,000+27,000 for the interest
At the end of 3rd year 90,000+18,000 for the interest
At the end of 4th year 90,000+9,000 for the interest
Afer commencing the TRAVEL WORD on lst April, 2020 he had spent some
amount

OF 10,000 for electric fttings on 5th April 2020 and on 16th April he placed on
fixed deposit amount at bank by transferring from current account 100,000.
ON 18th April he spent 40,000 for getting pamphlets printed and distributed.
ON 18 April goods costing 20,000 were Sold To Mr. kapoor at 409% trade discount
on 10th July 2020 goods of 500 were returned to Mr. Kapoor on 19th July 2020.
Transportation charges for 100 octroi 150 was paid in cash on 28 July 2020 trade
expense charged paid in cash 500.
On 30th July 2020 miscellaneous expenses charged for newspaper, tea, coffee etc
800. ON 15" September 2020 for 10,000 furniture purchased bags from company
for 5.000 on 1Otober 2020 on credit on 10 October 2020 was made by check for
800 was issued to petty cashier on 1November 2020 and on ist December 2020 the
company gave 10% commission on sales up to' 4 lakhs on 15th January 2021 Mr.
kapoor who owned us 10,000 were declared insolvent and 25 paisa in a rupee is
received at the end of year i.e. on 31st march 202linterest o loan is paid
deprecation on building at 20% on 4,00,000 salary paid to employees 10,000 cash
sales for 4,00,000 on credit to debtors who paid 90,000 cash and rest
 BOOK OF M/S PATEL TRAVEL WORLD
JOURNAL
DATE PARTICULAR LF AMOUNT() AMOUNT()
2020
Apr-01 Cash A/C Dr. 300000
Stock A/C Dr. 480000
Building AVC Dr. 400000
To Capital A/C 1180000
(Commencement Of Business)

Apr-01 Furniture and Fitting A/C Dr 100000

To Cash A/C 100000
(Interior furniture &Fitting for the office)

Apr-0S Electric Fittings A/c Dr 10000

To cash A/c 10000
(Electric Fitting for the Office)

Apr-16 Fixed Deposit A/c Dr 100000

To Bank A/c 100000
(Fixed Deposit By the Bank)

Apr-18 Advertisement Expense A/ Dr. 40000

To Cash Ac 40000
(Pamphlets Printed& Distributed)

Apr-18 Cash A/e De 23400

Discount Allowed Ac Dr 2600
To Sales A/C 26000
(Cash Sales At 30% profit & 10% cash discount)

Apr-28 Purchases A/c Dr. 72000

To Bank A/c 72000
(Purchases Being Made By Bank)

Apr-30 Bank A/c Dr 9000

To Purchases Return A/c 9000
(Goods returned and payment to bank)

May-01 Bank A/c Dr 180000

To Cash Ac 180000
(Deposited Cash into bank)

May-05 Loss by Theft A/c Dr 15000

To Purchases A/c 5000
To Cash A/c 10000
(Goods And Cash being loss by theft)
Carried Forward 1732000 1732000
 Brought Forward 1732000 1732000
May-08 Bank Charges A/c Dr. 50
To Bank A/C S0
(Bank Charges By Bank)
May-10 Investment Alc Dr 50000
To Cash Alc 50000|
(Investment in Reliance Shares )

May-10Salary Alc Dr. S000

To Cash A/C S000
(Salary Being Paid in Cash)

May-15 Bank A/c Dr 8500

Discount Allowed A/c Dr. 500
To Sales A/c 9000
(Being Sales made at 10% T.D &500 C.D)

May-20 Drawings A/C Dr 1500

To Cash A/C 1500
(Withdrawn for Life Insurance)

May-21 Drawings A/c Dr 500

To Bank A/c 500
(Being Income Tax paid)

May-30 Interest A/c Dr. 1000

To Bank A/C 1000
(Interest Charged By bank)
Jun-05 Drawings A/c Dr. 1000
To Purchases A/c 1000
(Goods Withdrawn for Personal Use)

Jun-05 Cash A/c Dr 5000

To Sales A/C 5000
(Being Sales Made on Car)

Jun-12 Advertising Expenses Ae Dr. 1000

To Bank Ac 1000
(Advertising Expenses Paid By Check)
Jul-07 Mr. Kapoor A/c Dr 9000
To Sales Ac 9000
(Goods sold on credit at 10% trade discount)
Carried Forward 1815050 1815050
 Brought Forward 1815050 1815050
Jul-10 Sales Return A/C Dr 450
To Mr. Kapoor A/c 450
(Goods of list price 500 Return Back)

Jul-19 Transportation Charges Alc Dr 100

Octroi Ac Dr 150
To Cash Alc 250
( Transportation&Octrai Charges in Cash)

Aug-30 Miscellaneous Expenses A/c Dr. 10000

To Cash Alc 10000
(Miscellaneous expenses occurred)

Sep-15 Furniture & Fittings Alc De 8000

To Cash Alc 8000
(Furniture Being Purchase in Cash)

Oct-01 Purchases Alc Dr 5000

To Samsonite 5000
(Purchase FromCompany Credit )

Oct-10 Samsonite Alc S000

To Bank Alc 5000
(Payment Tocompany by check )
Nov-01 Petty Cashier Alk Dr 800
To Bank A/C 800

(Issued Acheck to petty Cashier )

Dec-01 Cash A/C Dr 40000
To Commission Alc 40000
(company Gave 10 %commission on sales )
Jan-15 Cash Alc Dr 2500
Bad Debts A/C Dr 7500
To Mr. Kapoor A/C 10000
( Mr. Kapoor being insotvent &25% Recetved)

Mar-31 Interest on loan Alc Dr 36000

To Bank Loan Alc 36000
(Interest due on loan)
Mar-31 Bank loan Alc Dr 126000
To Bank A /C 126000
( Payment on " bank loan|
Carried Forward 2056550 2056550
 Brough Forward 2056550 2056550
Mar-31 Depreciation Alc Dr 30000
To Building A /C 30000
( Depreciation charged on Building )
Mar-31 Salary Alc Dr. 10000
To Cash Alc 10000
( Salary Being Paid To Employees )
Mar-31 Cash A/ C Dr. 90000
Debtors A/C Dr. 310000
To Sales Alc 400000
( Sales on Cash &Credit Bases )

Mar-31 Bank A/C Dr. 90000

To Bank Loan Alc 90000
(Bank Loan Taken to purchase of loan)
2630850 2630850
 LEDGER
BANK A/C
Dr. Cr.
DATE PARTICULAR J.F AMOUNT() DATE PARTICULAR |J.F AMOUNT()
2020 2020
Apr-30 To purchase return A/c 9000 Apr-16 By Fixed deposit A/C 100000
May-01 To cash A/C 180000 Apr-28 By Purchases A/C 72000
May-15 |To sales A/C 8500 May-08 By Bank Charges AC 50
Jun-10 To Dividend A/C 1000 May-20 By Drawings A/C 2000
Mar-31To Balance C/d 108850 May-30 By Interest A/C 500
Jun-12 By Advertisement A/C 1000
Oct-10 By Samsonite A/C 5000
Nov-01 By Petty Cashier A/C 800
Mar-31 By Bank Loan A/C 126000

307350 307350

LOSS BY THEFT A/C

Dr. Cr.

DATE PARTICUAR |J.FAMOUNT( ) DATE PARTICULAR J.F AMOUNT( )

2020 2020
May-05 To Purchases A/C 5000 Mar-31 By Profit &Loss A/C 15000
May-31 To Cash A/C 10000
15000 15000

BANK LOAN A/C

Dr. Cr.
DATE PARTICULAR |J.FAMOUNT() DATE PARTICULAR J.FAMOUNT ()
2020 2020
Mar-31 To Bank A/c 126000| Mar-31 By Profit &Loss A/c 36000
Mar-31 By Bank A/C 90000

126000 126000

DEBTORSA/C
Dr Cr.
DATE PARTICULAR J.F AMOUNT () DATE PARTICULAR J.F AMOUNT ()
2020 2020
Mar-31 To Sales A/C 310000| Mar-31 By Balance C/d 310000
310000 31000
 DIVIDEND A/C Cr.
Dr.
DATE PARTICULAR J.F AMOUNT ()
DATE PARTICULAR |J.FAMOUNT (3)
2020
Jul-05 1000
Mar-31 To Profit &Loss A/C 1000 Jun-10 By Bank A/C
1000
1000

DEPRICIATION A/C
Cr.
Dr. J.FAMOUNT ()
J.F AMOUNT () DATE PARTICULAR
DATE PARTICULAR
2020
2020
Mar-31 By Profit &Loss A/C 80000
Mar-31 To Building A/c 80000
80000 80000

CASH A/C
Cr.
Dr.
PARTICULAR J.F AMoUNT () DATE PARTICULAR J.FAMOUNT()
DATE
2020
2020 100000
Apr-01 To Capital A/C 300000 Apr-01 By Furniture A/C
Apr-18 To Sales A/C 23400 Apr-05By Electric Fittngs 10000
5000 Apr-18 By Advertisement 40000
Jun-05 To Sales A/C
Dec-01To Commission A/C 40000 May-01 By Bank A/C 180000
May-05 By Loss By Teft A/C 10000
2003
Jan-05 To Mr. Kapoor 2500 May-10 By Investment A/C 50000
90000 May-10 By Salary A/C s000
Mar-31 To Sales AC
Jul-19By Transportation A/C 100
Jul-19 By Octroi A/C 150
Jul-28 By Trade Expense A/C 300
Aug-30 By Miss. Expense A/C 800
Sep-15 By Furniture A/C 10000
Mar-31 By Salary A/C 10000
Mar-31 By Balance C/d 44350
460900 460900
 PURCHASES A/C
Cr
Dr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.FAMOUNT()
2020 2020
Apr-02 To Bank A/C 72000 Apr-05 By Loss By Theft A/C 5000
Oct-01 To Samsonite A/C 5000 May-05 By Drawings A/C 1000
2003
Mar-31 By Trading A/C 71000
77000 77000

INTERESTA/C
Cr.
Dr PARTICULAR J.FAMOUNT()
PARTICULAR |J.FAMOUNT () DATE
DATE
2020
2020 36500
500 Mar-31 By Profit &Loss A/C
May-30 To Bank A/C
May-31 To Bank Loan A/C 36000
35500
36500

SALARY A/C Cr.

Dr. PARTICULLAR J.FAMOUNT ()

PARTICULAR J.FAMOUNT () DATE
DATE 2020
15000
2020 5000 Mar-31 By Profit &Loss A/C
May-10 |To Cash A/C 10000
Mar-31 To Cash A/C 15000
15000

SALES RETURN A/C Cr.

PARTICULAR J.FAMOUNT ()
Dr.
PARTICULAR
J.FAMOUNT () DATE
DATE 2020 450
2020 450 Mar-31 By Trading A/C 450
Aug-10 To Mr. Kapoor 450
 ADVERTISE EXPENSES A/C
Dr. Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.FAMOUNT (3)
2020 2021
Apr-18 To Cash A/C 40000 Mar-31 By Profit &Loss AC 41000

Jun-12 To Bank A/C 1000

41000 41000

TRADE EXPENSE A/C

Dr. Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.FAMOUNT ()
2020 2020
Jul-28 To Cash A/C S00 Mar-31 By Profit &Loss A/C 500
500 500

MISCELLANEOUS EXPENSE A/C

Dr. Cr.
DATE PARTICULAR LFAMOUNT () DATE PARTICULAR J.FAMOUNT ()
2020 2020
Oct-30 To Cash A/C 800 Mar-31 By Profit &Loss A/C 800
800 800

DISCOUNT ALLOWED A/C

Dr. Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR .FAMOUNT (3)
2020 2021
Apr-18 To Sales A/C 2600 Mar-31 By Profit &Loss AC 3100
May-15 To Sales A/C S00
3100 3100

PURCHASE RETURN A/C

Dr Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.FAMOUNT ()
2020 2020
Mar-31 |To Trading A/C 9000 Apr-30 By Bank A/C 9000
9000 9000
 BANK CHARGES AC Cr.
J.FAMOUNT ()
PARTICULAR
Dr. J.FAMOUNT (3) DATE
PARTICULAR
DATE 2020 50
Loss A/C
2020 50 Mar-31 By Profit & 50
Mar-08 To Bank A/C S0

OCTROI A/C Cr
PARTICULAR
|J.FAMOUNT ()
Dr.
PARTICULAR
J.FAMOUNT () DATE
DATE 2020
A/C 150
2020 150 Mar-31 By Profit & LoSs 150
Jul-19 To Cash A/C
150

OPENING STOCK A/C

Cr.
Dr. PARTICULAR J.FAMOUNT ()
PARTICULAR J.FAMOUNT () DATE
DATE
2020
2020 480000
Apr-01 To Capital A/C 480000 Mar-31 By Trading A/C
480000
480000

SALES A/C
Cr.
Dr. J.FAMOUNT ()
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR
2020 2020
Mar-31 To Trading A/C 449000 Apr-18 By Cash AC 23400
Apr-18By Discount AllowedA/C 2600
May-15 By Bank A/C 8500
May-15By Discount Allowed A/C S00
Jun-05 By Cash A/C S000
Jun-07 By Mr.kapoor A/C 9000
Mar-31 By Cash A/C 90000
Mar-31 By Debtor A/C 310000
449000 449000
 INVESTMENT A/C
Dr. Cr
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.FAMOUNT()
2020 2020
Mar-10 To Cash A/C 50000 Mar-31 By Balance C/d 50000
S0000 S0000

DRAWING A/C
Dr. Cr.
DATE PARTICULAR J.FAMOUNT() DATE PARTICULAR J.FAMOUNT ()
2020 2020
May-20 To Bank A/C 1500 Mar-31 By Capital A/C 3500
May-21 To Bank A/C 1000
Jun-05 To Purchase A/C 1000
3500 3500

BUILDINGA/C
Dr. Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR LFAMOUNT(3)
2020 2021
Apr-01 To Capital A/C 400000 Mar-31 By Depriciation AC 80000
Mar-31 By Balance c/d 320000
400000 400000

CAPITAL A/C
Dr. Cr
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.FAMOUNT ()
2020 2020
Mar-31 |To Balance C/d 1180000 Apr-01 By Cash A/C 300000
Apr-01 By Stock A/C 480000
Apr-01 By Building A/C 400000
1180000 1180000

SAMSONITE COMPANY A/C

Cr.
Dr.
DATE PARTICULAR |J.F AMOUNT () DATE PARTICULAR .FAMOUNT (R)|
2020 2020
5000 Oct-01 By Purchases A/C 5000
Oct-10 To Bank A/C
5000 5000
 PETTY CASHIER AC
Dr Cr.
DATE PARTICULAR J.F AMOUNT () DATE PARTICULAR .FAMOUNT ()
2020 2020
Nov-01 To Bank A/C 800 Oct-01 By Balance C/d 800
800 800

COMMISSION A/C
Dr Cr.
DATE PARTICULAR J.F AMOUNT () DATE PARTICULAR |J.F AMOUNT ()|
2020 2020
Mar-31 To Profit &Loss AC 40000 Dec-01 By Cash A/C 40000
40000 40000

BAD DEBTS A/C

Dr. Cr.
DATE PARTICULAR J.F AMOUNT () DATE PARTICULAR .FAMOUNT ()
2020 2020
Jan-15 To Mr.Kapoor AC 7500 Mar-31 By Profit & Loss A/C 7500
7500 7500

FURNITURE & FITTINGS A/C

Dr Cr.
DATE PARTICULAR J.FAMOoUNT () DATE PARTICULAR D.FAMOUNT (3)
2020 2021
Apr-01 To Cash A/C 100000 Mar-31By Balance C/d 110000
Sep-15To CashA/C 10000
110000 110000|

ELECTRIC FITTINGS A/C

Dr Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR J.F AMOUNT ()
2020 2021
Apr-05To Cash A/C 10000 Mar-31 By Profit & Loss A/c 10000
10000 10000
 FIXED DEPOSIT A/C
Dr. Cr.
DATE PARTICULAR J.FAMOUNT () DATE PARTICULAR LFAMOUNT ()
2020 2021
Apr-16 To Bank A/C 100000 Mar-31 By Balance C/d 100000
100000 100000

MR. KAPOOR A/C

Dr. Cr.
DATE PARTICULAR |J.F AMOUNT() DATE PARTICULAR |J.F AMOUNT(3)
2020 2020
Jul-07 To Sales A/C 9000 Jul-10 By Sales Return A/C 450
Mar-31 To Balance c/d 1450 Jan-15 By Cash A/C 2500
Jan-17 By Bad Debts A/C 7500
10450 10450

TRANSPORTATION CHARGES AC
Dr Cr.
DATE PARTICULAR J.F AMOUNT() DATE PARTICULAR J.FAMOUNT ()|
2020 2020
Ju-19 To Cash A/C 100 Mar-31 By Profit &Loss A/C 100
100 100
 TRIAL BALANCE
OF H.S KOCHAR AS ON 31 MARCH, 2021
NAME OF ACCOUNT BALANCE Dr. (3) BALANCE Cr. ()
Cash in hand 44350
purchase Account 71000

Building Account 320000

Opening Stock 480000
1180000
Capital account
Furniture &fitting account 110000

Advertisement Account 41000

Bank account (overdraft ) 19350|

Electric fiting 10000

Fixed deposit 100000

Discount allowed account 3100

Sales account 449000

Return outward 9000

Dividend account 1000
Mr. kapoor account 1450

Commission received 40000

Loss by theft 15000

Salary account 15000

Bank Charges
50000
|Investmentaccount
Drawings account 3500
Interest charged by bank 36500
Return inward account 450

Transportation account 100

Octroicharges 150

Trade expense account S00

Miscellaneous Expense account 800

Petty cashier account 800

Bad debt account 7500

Bank loan account 90000

Depreciation account 80000

Debtor account 310000
1699800 1699800
 TRADING& PROFIT/LOSS A/C
FOR THE YEAR ENDED 31st MARCH, 2021
PARTICULAR AMOUNT () PARTICULAR |AMOUNT ()
To Opening Stock 480000
To Purchases 71,000 By sales 449000
|Less return outward 9000 Less return inward 450 448550
Less loss by theft 5000 57000 By closing stock 273600
To octroi 150
To balance c/d 185000

To work manager o/s

|commission 18500
To gross profit 166500 By gross profit 166500
By interest on fixed deposi 31406
To discount Allowed 3100 By interest on investment 5000
To loss by theft 15,000 By interest on Drawing 7029
Add further 500 15500 By Divdend 1000
Salary 15,000 By Provision for Discount on
Less prepaid S,000 10000 Debtors 173694
To bank charges 50 By commission 40000
To interest by bank 36500 Add Accrued Commission 22600
To transportation expense 100
To miscellaneous expense 800
To trade expenses 500
To bad debts 7500
Add new provision 1500 23000
To depreciation 80000
To provision for discount on
debtors 5890
Toadvertisement expense 4100
To net profit transferred 42689
to Capital account
1129379 1129379
 BALANCE SHEET
AS ON 31st March 2021
LIABILITIES Amounts() ASSETS AMOUNT)
Capital 1180000 Cash In Hand 44350
Add Net Profit 42689 Investment 50000
Less Drawing 4200 1218489 Add Interest 5000 55000

Creditor 1450 Petty Cashier 800

Less Provision For Debtors 310000
Discount 29 1421 Less Provision 15500
Less Discount 5840 288610
Workmen Manager O\s 1850
Commission Inshurance Claim 4500
Bank Overdraft 19350 Closing Stock 273600
Building 320000
Furniture &Fitting 110000
Electric Fitings 10000
Fixed Deposit 100000 128250
Add Interest 8000
Accured Commission 1000
Perpaid Salary 5000

1241110 1241110