K

I am very thankful to C.B.S.E.
New Delhi ,which

issued timely guidelines along with specific project
work in the interest of student.
I am extending my heartiest gratitude & profound
thanks to our teacher Mrs. Shipra Sharma , who
always gave valuable suggestion & guidance in
completion of my project.
At last , I would like thanks those who helps me
to complete this project.
This is to certify that Karuna of XII Commerce of
B.B.B.D.A.V.Sen.Sec. School , Moonak has completed her
project under my supervision. She has taken care & shown
sincerity in the completion of this project. It is her original
work & fit for evaluation of class XII project work in
Accountancy.
Mrs. Shipra Sharma

Teacher of commerce
B.B.B.D.A.V.Sen.Sec.School
MOONAK
Comprehensive Problem : 1
Mr. Manoj , a commerce student , opted Computer vocational
subjects while doing his B.Com. He decided to start a computer
business after doing his B.Com. For this purpose , his father built the
first floor of their single storey building at a cost of
Rs.2,00,000 and gave him a further sum of Rs.3,50,000 for the
business.
Manoj decided to start with 12 computers costing Rs.40,000. He
approached HDFC Bank and managed to secure a loan to the extent
of 75% of the cost of computers. It was agreed that the loan will be
repaid in three annual instalments as follows :
At the end of Ist year : Rs.90,000+Rs.36,000 for interest

At the end of IInd year : Rs.90,000+Rs.27,000 for interest
At the end of IIIrd year : Rs.90,000+RS.9,000 for interest
He started business on Ist April, 2002 . On this date
he deposited Rs.3,30,000 in the Bank . He purchased
computers and paid 25% to the computer company from
his bank and Rs.3,60,000 out of bank loan availed . He
deposited Rs.10,000 for the electric connection with the
Electronic Board and paid a deposit of Rs.1,50,000 with
BSNL for internet and telephone connection.
He got the Computer Cafe furnished by paying
Rs.40,000 . He also spent Rs.6,000 on advertisement.
All payments were to be made by cheques and all the
receipts to be deposited in the bank on the same day.
At the end of the year, the results were :
Rs.
• Purchases of computer stationary 92,000
• Revenue from fees received from students 2,70,000
• Revenue on account of internet facility 2,20,000
• Revenue from sale of computer stationary 1,60,000
• Wages paid to servant 12,000
• Electricity charges 48,000
• Telephone charges 73,000
• Entertainment charges 7,000
Maintenance expenses 52,000
He withdrew Rs.5,000 by cheque for his personal expenses and
paid the bank loan regularly.
You are required to:
(i) Journalize the above transactions, post them into the

ledger and prapare a trial balance.
(ii)Prepare profit ansd loss account balance sheet taking into
consideration that a telephone bill of Rs.6,800 and
electricity bill of Rs. 3,000 are yet to be paid.
(iii)Charge depriciation at the rate of 30% on computers,
15% on furniture and 4% on building.
(iv)Comment on the efficiency of the buisness if the gross
profit ration and net profiit ratio in similar type of business
concerns are 60% and 25%.
(v)Manoj approached the bank for the further loan.compute
the ratios that the banker will required before granting the
loan.(Current Ratio, Quick Ratio and Debt Equity Ratio)
Journal
Date Particular Dr. Amt. Cr. Amt
2009
April 1 Building A/C Dr. 2,00,000
Cash A/C Dr. 3,50,000
To Capital A/C 5,50,000
(Capital invested in the business )
April 1 Bank a/c Dr. 3,30,000
To Cash A/C 3,30,000
(cash deposited into bank)
April 1 Bank a/c Dr. 3,60,000
To Bank loan A/C 3,60,000
(loan taken from ICICI Bank)
April 1 Computer A/C Dr. 48,00,000
To Bank A/C 48,00,000
(Computer purchased for 3,60,000
from the loan and balance from
own source)
April 1 Electricity Board A/C Dr. 10,000
BSNL A/C Dr. 1,50,000
To Bank A/C 1,60,000
(Security deposited with electricity
Board and BSNL)
April 1 Furniture A/C Dr. 40,000

To Bank A/C 40,000
(Furniture for computer cafe)
2010
March 31 Advertisement A/C Dr. 6,000
To Bank A/C 6,000
(Payment made for
advertisement)
March 31 Purchases A/C Dr. 92,000
To Bank A/C 92,000
(Computer stationary is
purchased)
March 31 Bank A/C Dr. 6,50,000
To Revenue from fee & Sales A/C 6,50,000
( Revenue Received)
March 31 Wages A/C Dr. 12,000
Electric Charges A/C Dr. 48,000
Telephone Charges A/C Dr. 73,000
Entertainment Expenses A/C Dr. 7,000
Maintenance A/C Dr. 5,200
To Bank A/c 1,45,200
(Expenses paid)
March 31 Drawings A/C Dr. 60,000
To Bank A/C 60,000
(Amount withdrawn for personnel
use)
March 31 Interest on bank loan A/C Dr. 36,000
To Bank A/C 36,000
(Interest due on Bank Loan)
March 31 Bank Loan A/C
Dr.
To

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I am very thankful to C.B.S.E.

New Delhi ,which

Mrs. Shipra Sharma

At the end of Ist year : Rs.90,000+Rs.36,000 for interest

(i) Journalize the above transactions, post them into the

April 1 Furniture A/C Dr. 40,000

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