ACCOUNTANCY PROJECT

STORYLINE
Yatish Agrawal 19 years old my brother is looking for new business as he
started searching for new business he had many options like Garments
,Cosmetics ,Manufacturing of Steel Products. But he finally he decided to do
trading of Ferrous & Non-Ferrous Scrap. It has huge consumption in steel plant
regarding this business his Father was his ideal as he was also engaged in the
same business.

For trading purpose he requires minimum 2 crores for purchase of scrap. Main
source of purchase is online auction & import from Dubai, Africa, Singapore
etc. My brother has arranged 90 lakhs from his capital account and borrowed
unsecured loan of Rs 30 lakhs from his friend. He also took bank loan of Rs 80
lakhs to start his new business. He named his unit as RAJRATAN IMPEX and
took all the required licence that is GST registeration , pollution control board
certificate, Import-Export licence etc. He had to make expenditure of Rs 50,000
for above registeration process. He took a office for his business premises on
rent for Rs 15,000 per month from 1st January 2020. He also made furniture &
fixture expenses for Rs 1,25,000 and computer, printer expenditure for Rs
45,000. He also appointed account staff and sub staff for monthly salary of Rs
35,000. Very first he purchased MS Scrap by online auction 200 metric ton
scrap @ 25,000 per mt+ GST 18% from Kirshak Barti , Agira and made payment
from bank. Out of that purchase he sold 50 mt to Divyam Enterprise @ 26,500
per mt + 18% GST and 100 mt to Pankaj Steel @ 26,100 per mt + 18% GST He
also sold 40 mt to Tulsi Enterprise @ 26,400 per mt + 18% GST.He deposited Rs
50 lakhs to his bank loan account. He made a deal with Sapla Traders LLC of
Stainless Steel Scrap of 100 mt @ 1200 $ per mt for which he had transferred
10% margin money, Bank had booked 10% margin money @ 72.31 INR per $.
Import goods received and balance amount remitted to party @ 72.15 INR per
$.Custom duty of Rs 17,98,020 paid for import cargo in which IGST amount is
of Rs 16,54,840. Custom clearing & forwarding expenses of Rs 3,58,540 paid to
Shakti Forwarders by bank. Import cargo sold to Nakoda Steels @ 95,000 per
mt + 18% GST.

All the amount regarding sales received in bank account from Divyam
Enterprise & Pankaj Steel. Tulsi Enterprise had paid @ 26,200 per mt + 18%
GST, balance amount deducted against quality claim. Payment received from
Nakoda Steel for 75 mt and balance amount receiveable.
SUMMARY OF TRANSACTIONS
LIABILITIES
- Capital Account : Rs 90 lakhs
- Unsecured Loan : Rs 30 lakhs
- Bank Loan : Rs 80 lakhs

TOTAL EXPENSES
- Registration Fees : Rs 50,000
- Rent Paid : Rs 15,000
- Furniture & Fixture : Rs 1,25,000
- Computer & Printer : Rs 45,000
- Salary : Rs 35,000
- Custom Duty Expenses : Rs 1,43,180
- Custom C&F Expenses : Rs 3,58,540

PURCHASES

- Local Purchase 200 MT : Rs 50 lakhs + 18% GST

- Import Purchase 100 MT : Rs 86,59,920

SALES

- Local Sales 190 MT : Rs 49,91,000 + 18% GST

- Import Cargo 100 MT : Rs 95 lakhs + 18% GST

ADJUSTMENTS

- Closing Stock 10 MT valued at Rs 25,000 per MT