Date Entry Debit Credit

1-Mar-15 Cash € 50,000

Share Capital € 50,000
To recorde the investment in the company

1-Mar-15 Cash € 25,000

Best Bank loan € 25,000
To record the loan from Best Bank

1-Mar-15 Van € 12,000

Best Bank Loan € 10,000
Cash € 2,000
To record the purchase of Van against loan and partial cash payment

1-Mar-15 Cash Register € 3,300

Other equipment € 4,500
Sack Truck € 450
Cash € 8,250
To record the purchase of various equipments

1-Mar-15 Purchases € 40,000

Transit In € 1,500
Cash € 41,500
To record the purcahse of inventory and their transportation

29-Feb-16 Cash € 300,000

Accounts Receivable € 50,000
Sales € 350,000
To record the sales on cash and on credit.

29-Feb-16 Purchases € 130,000

Cash € 130,000
To record the purcahse of inventory on cash.

29-Feb-16 Advertising Expense € 21,000

Cash € 21,000
To record the advertising expense

29-Feb-16 Rent Expenses € 6,300

Telepone Expenses € 1,080
Utilities € 4,200
Director's Wage € 30,000
 Wages € 55,000
Cash € 96,580
To record other various expenses

29-Feb-16 Best Bank loan € 4,261

Intrest Expense € 2,000
Cash € 6,261
To record the repayment of principle and its interest

29-Feb-16 Interest Expense € 627

Best Bank loan € 3,333
Cash € 3,960
To record the repayment of principle and its interest
 Cash
1-Mar-15 Share Capital € 50,000 1-Mar-15 Van € 2,000
1-Mar-15 Best Bank loan € 25,000 1-Mar-15 Cash Register € 3,300
1-Mar-15 Other equipment € 4,500
1-Mar-15 Sack Truck € 450
1-Mar-15 Purchases € 40,000
1-Mar-15 Transit In € 1,500
1-Mar-15 Balance C/D € 23,250
€ 75,000 € 75,000

Share Capital
1-Mar-15 Cash € 50,000

1-Mar-15 Balance C/D € 50,000

€ 50,000 € 50,000

Van
1-Mar-15 Cash / Best Bank € 12,000

1-Mar-15 Balance C/D € 12,000

€ 12,000 € 12,000

Best Bank Loan

1-Mar-15 Van € 10,000
1-Mar-15 Cash € 25,000

1-Mar-15 Balance C/D € 35,000

€ 35,000 € 35,000

Cash Register
1-Mar-15 Cash € 3,300
 1-Mar-15 Balance C/D € 3,300
€ 3,300 € 3,300

Other Equipment
1-Mar-15 Cash € 4,500

1-Mar-15 Balance C/D € 4,500

€ 4,500 € 4,500

Sack Truck
1-Mar-15 Cash € 450

1-Mar-15 Balance C/D € 450

€ 450 € 450

Purchases
1-Mar-15 Cash € 40,000

1-Mar-15 Balance C/D € 40,000

€ 40,000 € 40,000

Transit In Expense
1-Mar-15 Cash € 1,500

1-Mar-15 Balance C/D € 1,500

€ 1,500 € 1,500
 Particulars Debit Credit

Purchases 40000
Cash 23250
Van 12000
Other Equipment 4500
Cash Register 3300
Transit Expense 1500
Sack Truck 450
Share Capital 50000
Best Bank Loan 35000
Total 85000 85000
Balance sheet as on 1st March 2015
Assets Liability and Equity
Current Assets Long Term Liability
Cash € 23,250 Best Bank Loan € 35,000
Inventory € 41,500
Total Current Assets € 64,750 Total Lont Term Liability € 35,000

Non-Current Assets
Van € 12,000 Equity
Other Equipment € 4,500
Cash Register € 3,300 Share Capital € 50,000
Sack Truck € 450
Total Non-Current Assets € 20,250 Total Equity € 50,000

Total € 85,000 Total € 85,000

Interest Rate 18.80%
Monthly interest Rate 0.52%

Monthly intrest Due 52.2

Monthly principle repayment 277.8
 Cash
1-Mar-15 Share Capital € 50,000 1-Mar-15 Van € 2,000
1-Mar-15 Best Bank loan € 25,000 1-Mar-15 Cash Register € 3,300
29-Feb-16 Sales € 300,000 1-Mar-15 Other equipment € 4,500
1-Mar-15 Sack Truck € 450
1-Mar-15 Purchases € 40,000
1-Mar-15 Transit In € 1,500
29-Feb-16 Purchases € 130,000
29-Feb-16 Advertising Expense € 21,000
29-Feb-16 Rent Expenses € 6,300
29-Feb-16 Telepone Expenses € 1,080
29-Feb-16 Utilities € 4,200
29-Feb-16 Director's Wage € 30,000
29-Feb-16 Wages € 55,000
29-Feb-16 Best Bank loan € 4,261
29-Feb-16 Intrest Expense € 2,000
29-Feb-16 Best Bank loan € 3,333
29-Feb-16 Intrest Expense € 627
29-Feb-16 29-Feb-16 Balance C/D € 65,449
€ 375,000 € 375,000

Share Capital
1-Mar-15 Cash € 50,000

29-Feb-16 Balance C/D € 50,000

€ 50,000 € 50,000

Van
1-Mar-15 Cash / Best Bank € 12,000

29-Feb-16 Balance C/D € 12,000

€ 12,000 € 12,000

Best Bank Loan

29-Feb-16 Cash € 4,261 1-Mar-15 Van € 10,000
29-Feb-16 Cash € 3,333 1-Mar-15 Cash € 25,000
29-Feb-16 Balance C/D € 27,405
€ 35,000 € 35,000

Cash Register
1-Mar-15 Cash € 3,300

29-Feb-16 Balance C/D € 3,300

€ 3,300 € 3,300

Other Equipment
1-Mar-15 Cash € 4,500

29-Feb-16 Balance C/D € 4,500

€ 4,500 € 4,500

Sack Truck
1-Mar-15 Cash € 450

29-Feb-16 Balance C/D € 450

€ 450 € 450

Purchases
1-Mar-15 Cash € 40,000
29-Feb-16 Cash € 130,000

29-Feb-16 Balance C/D € 170,000

 € 170,000 € 170,000

Transit In Expense
1-Mar-15 Cash € 1,500

29-Feb-16 Balance C/D € 1,500

€ 1,500 € 1,500

Accounts Receivable
29-Feb-16 Sales € 50,000

29-Feb-16 Balance C/D € 50,000

€ 50,000 € 50,000

Sales
29-Feb-16 Cash € 300,000
29-Feb-16 Accounts Receivable € 50,000

29-Feb-16 Balance C/D € 350,000

€ 350,000 € 350,000

Advertising Expense
29-Feb-16 Cash € 21,000

29-Feb-16 Balance C/D € 21,000

€ 21,000 € 21,000

Rent Expenses
29-Feb-16 Cash € 6,300
 29-Feb-16 Balance C/D € 6,300
€ 6,300 € 6,300

Telepone Expenses
29-Feb-16 Cash € 1,080

29-Feb-16 Balance C/D € 1,080

€ 1,080 € 1,080

Utilities
29-Feb-16 Cash € 4,200

29-Feb-16 Balance C/D € 4,200

€ 4,200 € 4,200

Director's Wage
29-Feb-16 Cash € 30,000

29-Feb-16 Balance C/D € 30,000

€ 30,000 € 30,000

Wages
29-Feb-16 Cash € 55,000

29-Feb-16 Balance C/D € 55,000

 € 55,000 € 55,000

Interest Expense
29-Feb-16 Cash € 2,000
29-Feb-16 Cash € 627

29-Feb-16 Balance C/D € 2,627

€ 2,627 € 2,627
 Particulars Debit Credit

Purchases € 170,000
Cash € 65,449
Wages € 55,000
Accounts Receivable € 50,000
Director's Wage € 30,000
Advertising Expense € 21,000
Van € 12,000
Rent Expenses € 6,300
Other Equipment € 4,500
Utilities € 4,200
Cash Register € 3,300
Intrest Expense € 2,627
Transit Expense € 1,500
Telepone Expenses € 1,080
Sack Truck € 450
Sale € 350,000
Share Capital € 50,000
Best Bank Loan € 27,405
€ 427,405 € 427,405
 Income Statement for the year ended 29 Feb 2016

Sale € 350,000
Less: Cost of Sale
Purchases € 192,500
Transit Expense € 1,500
Cost of Good Sold € (194,000)
Gross Profit € 156,000
Less: Other Expense
Wages € 55,000
Director's Wage € 30,000
Advertising Expense € 21,000
Rent Expenses € 6,300
Utilities € 4,200
Telepone Expenses € 1,080
Total Expenses € (117,580)
Net Profit before intrest and Tax € 38,420
Intrest Expense € (2,627)
Net Profit before Tax € 35,793
Balance sheet as on 29 Feb 2016
Assets Liability and Equity
Current Assets Long Term Liability
Cash € 65,449 Best Bank Loan € 27,405
Inventory -€ 22,500
Accounts Receivable € 50,000 Total Lont Term Liability € 27,405
Total Current Assets € 92,949

Non-Current Assets Equity

Van € 12,000
Other Equipment € 4,500 Share Capital € 50,000
Cash Register € 3,300 Profit € 35,793
Sack Truck € 450 Total Equity € 85,793
Total Non-Current Assets € 20,250

Total € 113,199 Total € 113,199

 Statement of Recipts

1-Mar-15 Share Capital € 50,000

1-Mar-15 Best Bank loan € 25,000
29-Feb-16 Sales € 300,000
Total Recipts € 375,000

Statement of Payments

1-Mar-15 Van € 2,000

1-Mar-15 Cash Register € 3,300
1-Mar-15 Other equipment € 4,500
1-Mar-15 Sack Truck € 450
1-Mar-15 Purchases € 40,000
1-Mar-15 Transit In € 1,500
29-Feb-16 Purchases € 130,000
29-Feb-16 Advertising Expense € 21,000
29-Feb-16 Rent Expenses € 6,300
29-Feb-16 Telepone Expenses € 1,080
29-Feb-16 Utilities € 4,200
29-Feb-16 Director's Wage € 30,000
29-Feb-16 Wages € 55,000
29-Feb-16 Best Bank loan € 4,261
29-Feb-16 Intrest Expense € 2,000
29-Feb-16 Best Bank loan € 3,333
29-Feb-16 Intrest Expense € 627
Total Payments € 309,551

Net increase in Cash € 65,449

Fixed Costs
Wages € 55,000
Transit In € 1,500
Director's Wage € 30,000
Advertising Expense € 21,000
Rent Expenses € 6,300
Utilities € 4,200
Interest Expense € 2,627
Telepone Expenses € 1,080
Total Fixed Costs € 121,707

Contribution ratio 45%

Break even € 270,459