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Acknowledgement

I express my deep gratitude and appreciation to those who agreed to participate


in this project, for their time expended and courage in sharing their insights with
a fledging student. It is to them that I am most indebted, and I can only hope
that product of our collaboration benefits each one as much as I benefitted from
the process.
I had been immeasurably enriched by working under the supervision of Mr. Lalit,
the subject teacher, who has great level of knowledge and who has an art of
encouraging, correcting and directing me in every situation possible, which has
enabled me to complete the project.
At times, my studies carried out at great cost to those closest to me. I thank my
family and my fellow students for their best understanding and support.
I acknowledge to all the people who have involved and supported me in making
this project.

Submitted By:- Mridul Verma


CERTIFICATE

This is to certify that Mridul Verma of Class XI of Ganga International School,


New Delhi has completed his project file under my guidance. He has taken
proper care and shown utmost sincerity in completing this project.

I certify that this project is up to my expectations and as per the guidelines


issued by CBSE.

Mr. Lalit
(Accountancy Teacher) (Signature)
Comprehensive Project
(Accountancy)

On Jan 07, 2014, Mr. Kumar Mangalam wanted to start a business. So, he decided to start a
business on Agro Seeds. He decided to move on with Agro Seeds as he had an eight-year
experience in private Agro seeds business firm. He decided to name the firm as Agro Biotech
Pvt. Ltd.

He decided to invest ₹10,00,000. He got the amount from different services. He first received
₹3,00,000 from his father, Mr. Aditya from his savings. He applied for a bank loan on
10 Jan,2014 and submitted the necessary documents to State Bank of India (SBI). He
had promised his house for the loan as security. He got an amount of ₹2,50,000 from
his fixed deposit on Feb 2,2014.

He opened a bank account in State Bank of India (SBI) with the name of “AGRO
BIOTECH”. He deposited an amount of ₹2,00,000 and kept the other ₹50,000 as cash-
in-hand on Feb 3,2014. On February 12,2014, the bank loan was sanctioned and an
amount of ₹3,50,000 was transferred to his account. He borrowed ₹73,000 from Mr.
Jayaprakash on 15 Feb,2014 by promising him to pay an amount of ₹7,300 for 10
months and an interest of 1% per month for the total amount. He took a small loan for
the remaining capital of ₹27,000 from Mr. Ritesh on Feb 16,2014. It was interest free
and he had to pay it before December 20,2014 i.e., he had to pay ₹3,000 every month.
Mr. Kumar Mangalam withdrew ₹50,000 from the bank account on Feb 20,2014.

On Feb 20,2014, he had ₹2,00,000 as cash-in-hand and ₹8,00,000 in his bank


account. On Feb 24, 2014, he get a building on rent by paying an advance of ₹1,00,000
through the bank account by cheque and he had to pay a rent of ₹20,000 every month.
On April 01,2014, “Agro Biotech” was started
At the end of the year, the following transactions were recorded (excluding transactions
made before the business was started)

1. Purchases (on credit - ₹4,00,000) 8,00,000


2. Sales (on credit - ₹2,00,000) 10,00,000
3. Rent 2,40,000
4. Insurance 12,000
5. Travelling Expenses 10,000
6. Electricity Expenses 15,000
7. Other Expenses 20,000
8. Wages 8,000
9. Service and Maintenance 6,000
10. Shop Modification 3,000
11. Drawings 24,000
12. Interest paid to Jayaprakash 8,760
13. Interest paid to Bank 42,000

On May 01,2014, Mr. Kumar Mangalam bought a laptop of ₹29,000 by paying cash.
On Sep 08,2014, he bought a printer worth ₹8,000 through cash.
The laptop was supposed to depreciate at 10% per annum and 8% on printer.