Transaction Cash a b c d e f g h i j

Debtors Spares 7000 29900 -2900 -2700

Spares consumed 3300

-700

700

1400

29900

2600

700

Profit loss 0.451612903 Sales 61100

Salaries Rent Insurance Depreciation Equipment Consumned supplies Spares Consumed

9600 4800 1200 1000 770 700 18070 43030

Drawings

18000 25030

Tools and equipments consumed Supplies supplies 10000 770

Salaries 2700 -770 8800 800

Rent

Insurance 4800 1200

10000

770

1930

9600

4800

1200

37500

0.90322581 0.31 Assets Cash less dep Debtors Unused supplies Prepaid Rent Prepaid Insurance 30000 3000

Dep

Prepaid Rent Drawings 1000 4800

1000

4800

18000

36600 37400 37400 37400 37400 37400 37400 37400 37400 37400 37400 86700

Capital Creditors 61000 25000 800 91300 400 91300 91300 91300 91300 91300 91300 91300 91300 91300 91300 91300 25000 1200

27000 970 1540 500 1300 31310

(-Dividend)

Acc Dep bank OD 1000

RET Ear

Revenue 3000 31200 29900

1000

3000

61100

-53900 -53900 -53900 -53900 -53900 -53900 -53900 -53900 -53900 -4600 -91300 0

Name : Nikhil A Baid Roll No : 11232 1. Financial statements for April. Venu's Music Corner Balance Sheet, April 30, 20XX Assets + Expenses Liabilities + Capital Rs. Rs. Cash 570 Capital Equipment 25500 Creditors Supplies 2190 Additional Investment Debtors 1210 Unearned Revenue Profit Less Drawings 29470

21140 2510 3000 600 6220 4000 29470

Venu's Music Corner Profit and Loss Account For the Year Ended April 30, 20XX Revenues Revenue from Services Total Expenses Salary Electricity Advertisement Rent Total Net Profit 5600 410 130 300 6440 6220 Rs. 12660 12660

2. Comment on the working of his business. It can be observed from the Income statement that the business has not faired as badly as it looked from Venu's initial Income statement as he is making a profit of approximately 30% of his initial capital. However the cash balance is very low.

It can be observed from the Income statement that the business has not faired as badly as it looked from Venu's initial Income statement as he is a making a profit of approximately 30% of his initial capital. However the liquidity is very less.