Accountancy Project

Story: Bharat Bhushan has been working part time as a

business consultant for several years. He had acquired
enough clients and had decided to go into business full
time. He created a company called Bhushan Traders on
April 1, 2019 and registered it under Goods and Services
Tax (GST).

Business Transactions: Following are the transactions
for the period April,2019 to March,2020 in the books of
Bharat Bhushan.

1-Apr Bharat started business with cash 6,00,000, cash
at State Bank of India 7,00,000, furniture 2,00,000.
1-Apr Purchased Plant & Machinery worth 2,50,000 by
cheque.
25-Apr Purchased goods from Karim Ltd worth 8,00,000
@10% trade discount.
5-May Cash Sales 1,000,000 @5% trade discount to Ramesh
Traders.
15-May Deposited cash with State Bank of India 5,00,000.
5-Jun Paid Dinesh& Co. 3,00,000 in cash.
10-Jun Received commission 75,000 by cheque.
25-Jun Cash Purchases 2,50,000.
5-Jul Sold goods to Mohit Traders 4,75,000.
15-Jul Received 2,75,000 by cheque from M/S Lal & Sons
5-Aug Loan taken from State Bank of India 2,00,000
25-Aug Purchased goods from Singh & Co. 50,000
27-Aug Withdrew cash from bank 10,000.
5-Sep Received commission 55,000 in cash.
10-Sep Paid Garg Bros 70,000 by cheque.
20-Sep Received 90,000 in cash from Sona Traders.
1-Oct Bank loan repaid 50,000.
25-Oct Cash Purchases 25,000.
5-Nov Sold goods to Jain & Sons 47,000.
15-Nov Withdrew cash from bank 15,000.
5-Dec Received interest from bank 5,000.
25-Dec Purchased goods from Mohan Ltd. 75,000.
5-Jan Cash Sales 1,00,000.
15-Jan Carriage Outwards 35,000.
25-Feb Cash Purchases 4,50,000.
28-Feb Office was taken on rent in the month of Feb. Office
rent paid in cash 50,000.
28-Feb Employees were hired in the month of Feb. Paid salary
by cheque 30,000 & cash 30,000 for the month of Feb
2020.
5-Mar Sold goods to Tiwari & Sons. 6,75,000.
31-Mar Paid office rent by cheque 50,000.
31-Mar Paid salary in cash 30,000 for the month of March
2020.

(i) Journalize the above transactions and post them in
Ledgers and prepare a Trial Balance.

(ii) Prepare Trading A/c, Profit & Loss A/c and Balance Sheet
taking into consideration:
1. Closing Stock as on 31st March 2020 is 2,00,000.
2. Salary outstanding for the month of March 2020 is 30,000.
3. Depreciation@10% to be charged on Furniture & Fixtures and
@15% on Plant & Machinery.