Balance Sheet As on 1st April 2018

Liabilities Amt Assets Amt

Owners' equity 10,949,498 Land 4,200,000
Building 900,000
Rides Equipment 3,040,000
Bank Loan 5,000,000 Electronics equipment 800,000
Furniture and fixtures 400,000
Tourist vans 900,000
Outstanding salary 499,002
Outstanding property tax 100,000 Inventory (beverages) 171,500
Prepaid insurance 2,400,000
Secure fixed deposits 3,000,000
Cash and bank balances 737,000

Total 16,548,500 Total 16,548,500

Cash Account For the period April 2018 - March 2019

Receipts Amounts Payments Amounts
To Balance b/d 737,000 By Bank Loan 500,000
By Interest on Bank loan 450,000
To Tourist van 350,000 By Outstanding salary 499,002
By Outstanding property tax 100,000
By Water park 3,000,000

To Revenue from advertising 725,000 By Theatre projection equipment 1,000,000

To Revenue on tickets for adults 21,000,000 By Mobile app and software 1,500,000
To Revenue on tickets for students 6,000,000 By Salary 5,499,022
To Revenue from drive-in theater 1,275,000 By Electricity expenses 1,595,000
 By Purchases (transport) 85,000
To Prereceived income 75,000 By Admin and selling expenses 1,805,000
To Furniture (insurance claim) 50,000 By Repair and rennovation 80,000
By Cleaning and maintenance 3,658,000
By Internet communication 446,500
By Property tax 300,000
By Purchases (beverages) 2,800,000
By Tax 2,273,243

By Balance c/d 4,621,233

WORKING NOTES

1) Owners' equity

Particulars Amount (INR)

Land 4,000,000
Additional legal expenses for land 200,000
Cash 3,000,000
Initial owners' equity 7,200,000
(-) Drawings for son's education -300,000
(+) Profits upto 1 April 2018 4,049,498
(Assumed to be balancing figure in
balance sheet as on 1 April 2018)
Owners' equity as on 1 April 2018 10,949,498
(-) Drawings for owners' function -150,000
(+) Profit for the year 5,304,233
Owners' equity as on 31 March 2019 16,103,731

2) Fixed assets

2.1 Tangible Fixed Assets

Fixed assets Value as on 1 April Value as on 1 April 2018 Depreciation Addition/

2016 (Gross value) for 2018-19 Disposal

Land 4,200,000 4,200,000 - -

Building 1,000,000 900,000 50,000 -
Rides Equipment 3,800,000 3,040,000 380,000 -
Electronics equipment 1,000,000 800,000 100,000 -
Furniture and fixtures 500,000 400,000 50,000 -80,000
Tourist vans 1,500,000 900,000 225,000 -375,000
Water park - - 112,500 3,000,000
Theatre projection equipment - - 150,000 1,000,000

2.2 Intangible Fixed Assets

Fixed assets Value as on 1 April Value as on 1 April 2018 Amortization Addition/

2016 (Gross value) for 2018-19 Disposal

Mobile app and software - - 225,000 1,500,000

3) Tourist vans

Particulars Amount (INR)

Initial value 1,500,000
Value as on 1 April 2018 900,000
Depreciation till 30 September 2018 150,000
Value per van as on 1 October 2018 375,000
Sale value of van 350,000
Loss on disposal 25,000
Depreciation for 6 months till 31 March 20 75,000
Total depreciation 225,000
Closing WDV as on 31 March 2019 300,000

4) Revenue

Particulars Amount (INR)

Revenue on tickets for adults 21,000,000
Revenue on tickets for students 6,000,000
Revenue on tickets issues for owner's
function 150,000
Revenue from advertising 1,550,000
Revenue from drive-in theatre 1,275,000

Total revenue for the year 29,975,000

5) Salaries

Particulars Amount (INR)

Total salary for the year 5,988,024
(-) Adjustment for driver who was not
employed for 6 months from 1 October
2018 -48,000
(+) Additional compensation to driver 50,000
Salary expense for 2018-19 5,990,024
Salary outstanding as on 31 March 2019
(excl. 1 driver) 491,002

6) Beverage inventory

Particulars Amount (INR)

Opening inventory 171,500
Purchases 2,825,000
Closing inventory (FIFO) 411,000
Cost of good sold 2,585,500

Assumptions
1. Since legal expenses pertain to transfer of land, these are valid acquisition costs and are hence added to cost of land.
2. It is assumed that personal loan taken by Mr. Ramesh has not been utilized for the business, and hence not been accounted.
3. It is assumed that the water park construction is completed as on 1 July 2018, and payment is made on same day.
4. It is assumed that all movie watchers also had snacks and beverages.
5. It is assumed that entire purchased stock of food is consumed during the year.
6. It is assumed that inward transport of food has been paid for in cash.
 Income Statement for the period 1st April 2018 to 31st March 2019 A L
Expenses Amt Revenue Amt 4000000
To Cost of Goods sold By Revenue (Refer note 4) 29,975,000
- Food 3,335,000
- Beverages 2,585,500 By Interest on fixed deposits 240,000
To Interest on Loan 450,000
To Depreciation
'-on Building 50,000
'-on Rides Equipment 380,000
'-on Electronics equipment 100,000
'-on Furniture and fixtures 50,000
'-on Tourist vans 225,000
'-on Water park 112,500
'-on Theatre projection equip. 150,000

To Amortization 225,000
To Salary (Refer note 5) 5,990,024
To Loss on disposal of van 25,000
To Electricity expenses 1,740,000
To Insurance expense 800,000
To Admin and selling expenses 1,805,000
To Repair and rennovation 80,000
To Cleaning and maintenance 3,658,000
To Internet communication 446,500
To Property tax 400,000

To Loss on damage to furniture 30,000

To Tax expense 2,273,243

To Profit carried to Owners'

equity 5,304,233
Total 30,215,000 Total 30,215,000

Balance sheet As on 31st March 2019

Liabilities Amt Assets Amt
Owners' equity 16,103,731 Tangible fixed assets
Land 4,200,000
Building 850,000
Rides Equipment 2,660,000
Electronics equipment 700,000
Furniture and fixtures 270,000
Tourist vans 300,000
Bank Loan 4,500,000 Water park 2,887,500
Theatre projection equipment 850,000
Accounts payable Intangible fixed assets
-for Food 3,250,000 Mobile app and software 1,275,000
-for Beverages 25,000

Inventory 411,000
Prepaid insurance 1,600,000
Prereceived income 75,000
Outstanding salary 491,002 Account receivable 825,000
Oustanding electricity bill 145,000 Secure fixed deposits 3,000,000
Outstanding property tax 100,000 Interest accrued on FD 240,000
Cash and bank balances 4,621,233

Total 24,689,733 Total 24,689,733

-
Value as on 31 March 2019 Accuumlated
(Written down value) depreciation

4,200,000 -
850,000 150,000
2,660,000 1,140,000
700,000 300,000
270,000 230,000
300,000 450,000
 2,887,500 112,500
850,000 150,000

Value as on 31 March 2019 Accuumlated

(Written down value) amortization

1,275,000 225,000
L C P/L
4000000