SEMESTER FALL 2015

SOLUTION OF ASSIGNMENT # 01
1-Revenue and Net Profit for the period ended on 31st December 2014
Particulars

Rs.

Rs.

Revenue:
Cash Sales

600,000

Credit Sales

100,000

Purchases

250,000

700,000

Less: Expenses
Rental charges

70,000

Commercial expenses

140,000

(460,000)
240,000

Net Profit

2-Cash in hand, Liabilities and Capital as on 31st December 2014

Investment
Loan taken
BALANCE
Purchases
BALANCE
Sales
BALANCE
Expenses
paid
BALANCE
Loan repaid
BALANCE

Cash
500,000
300,000
800,000
(250,000)
550,000
600,000
1,150,000
(210,000)
940,000
(130,000)
810,000

Assets
Fixed
Assets
900,000

=
Sundry
Debtors

300,000
300,000

900,000
900,000
900,000

Liabilities
Sundry
Loan
Creditors

100,000
100,000

900,000

100,000

900,000

100000

300,000
300,000
300,000
(130,000)
170,000

Capital
Capital
1,400,000
1,400,000
(250,000)
1,150,000
700,000
1,850,000
(210,000)
1,640,000
1,640,000

ALTERNATIVE ATTEMPTS:
Capital at the end:
= Capital at the start + Net profit
= (500,000 + 900,000) + 240,000
= 1,400,000 + 240,000
= Rs. 1,640,000
OR
= Assets Liabilities
= *1,810,000 170,000
= Rs. 1,640,000
* Assets

= Cash + Sundry Debtors + Fixed Assets

= 810,000 + 100,000+ 900,000
= 1,810,000

Liabilities at the end:

Assets - Capital
= 1,810,000 1,640,000
= Rs. 170,000
OR
= Loan taken Loan repaid
= 300,000 130,000
= Rs. 170,000

Cash in hand with the help of cash account:

Cash Account
Rs.
Rs.
Capital
500,000 Purchases
250,000
Loan
300,000 Expenses
210,000
Sales
600,000 Loan
130,000
Balance
810,000
1,400,000
1,400,000
OR

Cash in hand:
Cash invested in business + Loan taken + Cash sales Cash purchases Expenses paid
Loan repaid
= 500,000 + 300,000 + 600,000 250,000 -210,000 130,000
= Rs. 810,000