Show the P&L Account and Balance Sheet in the same format as we used for the assignment

submission, one entry per worksheet, for the following set of entries:

Mr. A starts a company for manufacturing “thingamajigs” and has the following transactions,
for the calendar year 2018:

1. Brings in capital of 3 crores

2. Buys machinery for 40 lakhs (life 8 years, expected salvage value at the end of 8
years, 8 lakhs, method of depreciation : straight line / normal)
3. Buys furniture for 30 lakhs (life 5 years, no salvage value expected)
4. Buys raw material for the thingamajigs, Rs. 85 lakhs, on credit

5. Takes a bank loan for 35 lakhs , (at the middle of the year , on 30 June, 2018, at 10
th

percent per annum rate of interest, interest payable yearly, first payment of interest to be on
30 June 2019)
th

6. Manufacturing salaries are paid 15 lakhs

7. Manufacturing costs are incurred which includes all kinds of factory expenses 43
lakhs
8. Sells thingamajigs worth 1 crore, 30 percent on cash, 70 percent on credit
9. Pays his creditors 62 lakhs
10. Receives from his debtors 33 lakhs

Thus ends the year. The following needs to be done

1. Depreciation entries
2. Closing stocks, including Raw material, work in process and finished goods, 60 lakhs
3. Bad debt write-off 45,000
4. Unpaid electricity bills 23,000
5. Pass entry for the interest due for the year but not paid (see entry no. 5)

2.

Show the P&L Account and Balance Sheet in the same format as we used for the assignment
submission, one entry per worksheet, for the following set of entries:

Mr. A starts a company for manufacturing “thingamajigs” and has the following transactions,
for the calendar year 2018:

1. Brings in capital of 7 crores

2. Buys machinery for 95 lakhs (life 8 years, expected salvage value at the end of 8
years, 15 lakhs, method of depreciation : straight line / normal)
3. Buys furniture for 80 lakhs (life 5 years, no salvage value expected)
4. Buys raw material for the thingamajigs, Rs. 150 lakhs, on credit
5. Takes a bank loan for 40 lakhs , (at the middle of the year , on 30 June, 2018, at 10
th

percent per annum rate of interest, interest payable yearly, first payment of interest to
be on 30 June 2019)
th

6. Manufacturing salaries are paid 35 lakhs

7. Manufacturing costs are incurred which includes all kinds of factory expenses 63
lakhs
 8. Sells thingamajigs worth 2 crore, 30 percent on cash, 70 percent on credit
9. Pays his creditors 62 lakhs
10. Receives from his debtors 33 lakhs

Thus ends the year. The following closing entries need to be passed too:

11. Depreciation entries

12. Closing stocks, including Raw material, work in process and finished goods, 120
lakhs
13. Bad debt write-off 45,000
14. Unpaid electricity bills 23,000
15. Pass entry for the interest due for the year but not paid (see entry no. 5)