ACCOUNTS

PROJECT
2023-2024

Alishba Siddiqui
12 C
 CONTENTS
PROJECT 1: Comprehensive Project
 Journal entries
 Ledger accounts
 Trial Balance
 Trading Profit and loss account
 Balance sheet
 Ratios
 PROJECT 1:

COMPREHENSIVE
PROJECT

Rams Cyber Café

Mr. Rama decided to commerce a computer business in a
building which was constrained for Rs 1,00,000 and contributed
a further sum of Rs 2,50,000. He wanted to start with 10
computers. He went on to HDFC bank and put his proposal and
managed to get a loan to the extent of 75 percent of the cost of
the computer Rs 4.00,000 with pointers it was agreed that the
loan was rapid in three annual installments as follows:
 At the end of first year=Rs 1,00,000+ 30000 interest
 At the end of 2ND year= Rs 1,00,000+20000 interest
 At the end of 3rd year=Rs 1,00,000+10000 interest

He started business on 1st April 2019 on the same day he

deposited Rs 2400000 in the bank
He gave Rs 1,00,000 to the computer company as 25% of the
value of the computer purchase & Rs 3,00,000 out of bank loan
availed. He deposited Rs 100000 with VENL for the telephone
internet connection, he got the computer code finished by paying
Rs 25,000 and also spent Rs 4520 on getting pamphlets printed
and distributed.
All payments were to be made by cheques and all the receipts
were each to be deposited in the bank on the same day, At the
end of the year, their results showed the following:
Revenue from fees from student of 2,80,000
computer class
Revenue on account of internet facility 1,20,000
Revenue from the sale of computer 98000
stationery
Purchase of computer stationery like 55000
 floppy disk, CDS, etc
Telephone charges 34,000
Petty expenses 12,000
Entertainment expenses 10,000
Miscellaneous expenses 10,000
Wages paid to servant 60000

He withdraws 61,000 by cheque each month for their expenses.

He paid the bank loan regularly.
 Journalize the above transactions. But then into the edge
and prepare a trial balance.
 Prepare profit loss and balance sheet after taking into
account that electricity charges of Rs 124,000 are yet to be
paid.
 Charge depreciation at the rate of 25% on computers 10%
on furniture and 5% on building.
 Calculate the profitability ratio and comment on the
efficiency of the business if the net profit ratio and gross
profit in a similar type of business concerns are 20% and
50% respectively.
 Mr. Rama wants to expand his business. He approached
that bank for a further loan. Compose the ratio that the
banker will require before granting the loan. Current ratio.
The quick ratio and debt-equity ratios.