Q. 1 : Satya Paul started a new business on 1st April 2017.

For the first quarter his transactions

are listed below. Do the transaction Analysis and prepare Income Statement and Balance Sheet.

1. Started business with `1,000,000 capital in cash

2. Opened a bank account and deposited `990,000 in the bank
3. Paid towards rent `60,000 by cheque
4. Bought stationary for `7,000 paid in cash.
5. Invested `100,000 in government bonds through bank account.
6. Bought Machinery for `250,000 paid through bank account.
7. Bought Furniture for `150,000 from M/s Furniture Mart on credit
8. Bought goods for `400,000 paid by cheque
9. Bought goods for `200,000 from X Limited on credit
10. Sold goods for cash `550,000
11. Made part payment to X in cash `150,000.
12. Sold goods to Y on credit for `250,000
13. Received part payment from Y by cheque for `175,000, allowed him discount of `5,000
for prompt payment.
14. Received interest on investment `1,000 by cheque.
15. Paid Salary to employees by cheque `110,000.

Q. 2: Kong Fuser Ltd prepares its financial statements on Calendar year basis. Prepare
statement of Transaction Analysis and then prepare Profit and Loss Account and Balance Sheet
of the company:
a. Business started with Rs 65 Lacs on 1st January
b. Factory was acquired on 20 th January, worth Rs 18 lacs by paying from bank
account.
c. Purchased computer on 1st February 2017 to be used in the office for `100,000. The
useful life of the computer is estimated to be 3 years with zero residual value.
d. Made investment of `400,000 in government securities on 28th February 2017. The
market value of these investments has fallen to `320,000 on the date of the Balance
Sheet.
e. Goods sold to Raj & Company for `450,000 on credit on 10th April 2017.
f. Sale was made to SR & Company on credit for Rs. `925,500;
g. An asset in a factory with a book value of `225,000 was destroyed by fire
h. Purchased stationary items for `20,000 during the year. At the end of the year
inventory in hand amounted to `1,800.
i. Received Rs 250000/- from Raj & Company
j. SR & Company from whom an amount of `925,500 was due; made a payment of
`900,000 as full and final settlement
k. Paid annual fire insurance premium amounting to `24,000 on the office building on 1st
October 2017.
l. Purchased land for `3,000,000 on 31st October 2017 for setting up office building.
m. Received an advance payment of `1,500,000 from a customer on 28th November
2017, for a future sale to happen on 31st December 2017.
n. Salary paid during the year amounted to `2,400,000 including an advance of `100,000
paid to some of the employee.