ACCOUNTING FOR MANAGERS

ASSIGNMENT IB
(20Marks)

Mr Rohan after successfully completing his post graduation in business management in

marketing specialization from DSU, Bengaluru, decided to start a trading business on 01-04-
2019 by investing Rs. 25,00,000 in the equity shares of the newly started company and raised Rs.
25,00,000 from the general public by issuing equity shares of Rs. 10 each at par and further Rs.
50,00,000 by issue of 10% debentures redeemable after 10 years. The company has been
registered as ‘Rohan Fashions Apparels Ltd.’ under Indian Companies Act 2013 for which he
spent Rs 1,00,000. The business has been carried out for one year period of time with reasonable
transactions of buying and selling of apparels in whole sale.

Now you are asked to…..

1. List down minimum of thirty transactions that might have occurred during the course
of his business. (05 marks)
2. Journalize those transactions in the books of the company. (05 Marks)
3. Prepare the necessary ledger accounts for the above transactions. (05 Marks)
4. Show the Trial balance of the business as on the last date of the accounting period (31-
03-2020). (05 Marks)

Instructions:
1. Business entity is ‘Rohan Fashions Apparels Ltd’.
2. The business of Rohan Fashions Apparels Ltd’ is ‘B2B’ model
3. Business transactions are strictly to be on line with the nature of business formed (buying
and selling of apparels in whole sale).
4. The fund available in the business is to be effectively used and not kept idle.
5. Each ledger account should minimum comprising of at least two entries.
6. Transactions are to be of more real time nature
7. Trial balance should not comprise of more than 10 items/accounts.
Format for you Reference:

Format of Journal
Date Particulars L/F Debit Credit
No.

Format of Ledger

Dr Name of the Account Cr

Date Particulars J/F Amount Date Particular J/F Amount

Format of Trial balance

S. No Name of the Account Debit Credit

Total
Examples of Business Transactions are…………………
o paid rent to landlord Rs 3000
o paid salary to manager Rs 1000
o opened bank account in SBI by depositing Rs.5000
o purchased 1500 gents tracksuits for Rs. 3,00,000
o paid advertisement expenses Rs.25,000
o sold 1000 tracksuits to Trinity Apparels Pvt Ltd for Rs. 4,00,000