The transactions during the financial year 2014-15 were z Purchases of Computers 7,50,000 Security Deposited for electric connection with electricity board 20,000 Security Deposited with VSNL for telephone and Internet connection, 30,000 Purchased Furniture 40,000 Fees received from students 6,50,000 Bought computer stationery 1,10,000 Sale of computer stationery 1,60,000 Wages paid 90,000 Salaries paid 41,25,000 Electricity charges 47,500 Advertisement 2,000 Postage and Call 9,500 General Expenses 6,000 Insurance Premium 4,600 Bought Printer Machine 30,000 He withdrew & 12,000 per month as drawing and repaid the annual instalment of bank loan along with interest ddue on 34st March, 2015, Assume al ransactions took place through HOFC Bank. You are required to: (1) Journalise these transactions after considering the following information : (i) Depreciate building by 5% and computer and Furniture @ 10% p.2. (ii) Salary unpaid 7 9,000 (ii) Advertisement include unissued material worth & 4,000. (iv) Insurance prepaid € 1,500. (v) Stock of computer stationery % 19,500. (2) Post them into Ledger and prepare Trial Balance. (3) Prepare financial statements for the year ended 31st March, 2015. (4) Mr. Roop Narain wishes to expand his business further so he approached his banker for further loan. What ratios shouldhisbanker considerbefore providingloan considering that similar firms earn 60%as Gross Profitand25%asNet Profit? Sol. The Project work is (Planning) ()) To prepare accounting record of Mr. Roop Narain for the accounting year 2014-15. (i) To prepate Trial Balance and his Trading and Profit and Loss Account and Balance Sheet. (ii) To calculate profitability ratios. (iv) To know whether he will get further bank loan or not Necessary data glven to complete the Project Work Execution of Project Work (1) Preparation of Journal, Ledger and Trial Balance. (2) Preparation of financial statements for the year ending 34st March, 2015, (3) Computation of gross profit ratio, net profit ratio and operating ratio to assess profitability (4) Computation of short term and long term solvency ratios to know whether loan be given by bank or not Accountancy ~ 12 2)