P.

21
Project Work

PROJECT-ICOMPREHENSIVE
fashion
Parul and Aruna, school time friends, met at the school reunion. Parul had become a after
designer and had worked for a few years designer. Aruna,
nds with a leading fashion store. At the meeting
completing her MBA in Marketing, had worked with aleading retail agreed
0%1 they had a brief discussion about setting up
to meet later and discuss the business
their OWn garment stores for teens and

prospects.
They mer agan to discuss the possibility of starting the business and after discussiOons decleu
to set up ready-made garments stores exclusively for teenagers with a high disposable lamy
incomes and who follow latest fashion trends, They decided to open their hrst s
O00 15th April, 2022.
They deCIded to produce and sell clothes which were not expensive as it will gIVe tie
customer value for money and, in the process. their urnover will increase due to which ne
4)
profit will also be high. They decided to open their flagship store in Select City Walk, Saket,
New Delhi. The name decided was C4T, a short form of Clothes 4 Teens.
They disCussed and finalised the business plan, capital requirement and sources, etc. P'arul
source, which
was to design the clothes and source the material besides identifying tailoring and rernt a
was to be outsourced. Aruna, besides looking after marketing, was to identify
was agreed that
suitable place for the store, renovate it and take care of the legal aspects. It
each partner will initially contribute 10 lakhs towards capital.
Aruna employed Bikram, an experienced accountant, applicable and requested him to draw the
laws. She gave him the
Partnership Deed and get the firm registered under the
terms of partnership agreed between her and Parul.
finalised the rent and entered into an
Aruna located a shop measuring 800 square feet,
15,000 per month starting from
agreement. It was agreed that rent for the shop will be A security deposit
furnishing the shop.
1st April, 2022 and in between period will be used for
equal to six months' rent was to be given. name of C4T in which
A bank account was opened with the State Bank of India in the
deposited cheques of 10 lakhs each. Cheques for ? 90,000 as security deposits for
they Electricity were issued. A contract was signed
for
rent, 7,000 as Security Deposit for A website was got developed from
73,50,000 for renovation of the outlet which was paid.
developer to attract mail orders. Website designing and hosting expense came to
a local
1,00,000. Rent for website space was 20,000 payable from Ist April, 2023. A computer
?
50,000.
and printer was purchased for
took a term loan of ? 10 lakhs trom the bank repayable in 20 equal quarterly
The firm June, 2022. The bank granted loan interest
instalments. First instalment was to be paid on 30th was as follows:
repayment schedule
being @12% per annum. Loan
Principal () Interest ) Instalment ()
Date
30,000 80,000
June 30, 2022
50,000
50,000 28,500 78,500
September 30, 2022
50,000 27,000 77,000
December 31, 2022
50,000 25,500 75,500
March 31, 2023
 ProjectSolution
ProJect

About
theProje
Statements--CBSEXII larul,
and Aruna
Financial thetee
sale shall be foor
Analysisof cash besides the theyare COmpar
chothes
also
and transactions
cheques prpare
thefina
P.22 made by their
payments shall be year, various
ratios s
all end of the
decided that At the
It was
the bank next morning. 90,00,000
Thus,the proje
deposited in 70,00,000
follows:
above were as 1,20,000 L Recordingt
Particulars 2,25,000
55,00,000)
trial balanc
1,20,000
Sale (Credit Sale 20,00,000)
Purchase 2.Calculatet
Purchases (Credit 50,000
Electricity Expenses 1,00,000
Job-work Charges 75,000 1 Comparet
Carriage Inwards 1,10,000 Thetransactio
Courier and Postage
Travelling and Conveyance 35,000
50,000
Exhibition Expenses
Repairs and Maintenance 2,80,000
Insurance Expenses 1,80,000
Telephone Expenses Pa
Date
Salary
during the year. 6,60,000. 2022
Rent
from the debtors creditors were 1B
40,00,000
The firm received the year end, was charged.
Website April
creditors during the year. At computers
The firm paid part Furniture and Furnishing and
30% on
Depreciation @10% on
over 4 years.
expenses were amortised per month each. with the
were 12,000 31st December,
2022
Drawings by the partners Fixed Deposit as on
5,00,000 was placed in 1
An amount of 10% per annum. lower April
bank carrying interest @ partners at the year-end. It was valued at of
verified by the 25,50,000 being cloth stock
Closing stock was physically
value. Closing stock was valued at
of cost or net realisable stock of 5,50,000. 1
20,00,000 and apparels April
2022 for one year.
Insurance Premium paid on 1st July,
for the last month.
Salary outstanding was 25,000 interest can be realised at the end
three years and, therefore, the April
The Fixed Deposit is for
of the period.
by the firm and compare its
You have to compute the profit earned or loss incurred
as follows:
performance with the industry standards which are April
(a) Gross Profit Ratio-40%
(b) Net Profit Ratio-27.5%
(c) Debt to Equity Ratio-1
(d) Proprietary Ratio-1
April
(e) Inventory Turnover Ratio-4.50 Times
() Working Capital Turnover Ratio-2 Times
(8) Operating Ratio -75%
(h) Current Ratio-2 une
(i) Trade Receivables Turnover Ratio-5 Times
() Trade Payables Turnover Ratio-5 Times.
 besides ScBSEXI
the shall
d stock lower
oth ofued at withth22
e 6,60,000. be le
Website
ged. 70,00,00
2,25000
100,000 120,00 120,000 90,00
900
1,80,000
2,80,000 11000075000
50,000
50,00035000
compare is thate
end

June April April April April April April 2022 Date The 3. 2. Thus,various
1. thProj
e ect ProjeWorct k
Calculate trial
Recording preparecompared ParProject
aunAbout
ld Solution
Compare
transactions
the theyclareothes Aruna
the for
30| 1| BankA/c1|
balance ratios
Bank1|
A/c 1 1| Particulars project compared,
(Amount InterestA/c Bank (Bank Electricity Website(Amount Furniture
(ComputerComputers A/c (Amount
deposited statements,
financial
Loss teens.theto
BankA/To
c To
(Amount Security(Amount Bank
BankA/To
c A/To
c BankA/To
c BankA/To
c To To the the the
Loan loan
shall
Bank Aruna'sParul's enteredratios ratios and involves have
of A/c
ofDeposiincurred incurred
ts Development and and in of transactions be
bank ofDepartment
Loan security tcapital prepare tO
itThe
Furnishingprinter he CapitalCapital
as computednecessary is setup
10,00,000 on on bank) into with
loan A/c A/c brought used performance is
deposits A/c A/C
the
(
development renovation
A/c bythe a
and purchased)
A/c
the in new
taken 7,000) by C4T given infollowing:
interest Journal toi.e.,
given Parul the Profit venture,
bearing of of are compareProfit
to outlet) and ratios
industry Write
debited website recorded &
landlord Aruna JOURNAL Loss BoOk,
interest C4T of &up bei.e.,
by and them
(? by the Account
inposting the
bank) @ hosting cheque in such fabricating
12% 90,000) industry with
the Accountbooks
p.a.) thereof) and
and respectivebusinesses. and them the ofwith
and Balance industry and
account, and
into the
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to selling
..Dr. books Ledger Balanceindustry
.Dr. ..Dr. Dr. comment
.Dr. ..Dr.
LF. Sheet. standards. draw of
as
00020
00 Accounts, trialin-house
Sheet.standard.
1.00,000 3,50,000 Dr. ) follows:
thereon.
10,00,000 50.000
97,000 balance
30,000S0,000 Thereatter, designed
1000.000
10,00,000 drawd Before P.23
3,50,000 Cr. )
10,00,000 1,00000 00050 and
000 97
80,000
 Rent @
31| |31
31| |
31 31
larch
31 vch March brch
March (arch
Statements-CBSE
XIl 35,000 78,500 77,000 5,00,000 75,500 35,00,000 55,00,000 40,00,000 50,00,000
20,00,000 13,40,000 1,20,000 2,25,000 1,20,000
2,25,000 1,20,000
13,40,000 1,20,000
35,000 50,00028,500 50,027,00000 5,00,000 50,00025,500 35,00,000 55,00,000 40,00,000 50,00,000 20,00,000
Financial . .Dr. ..Dr. ..Dr. ...Dr ...Dr ...Dr ..Dr ..Dr ...Dr
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Analysis
of
year)
bank) bank) bank) the
during
by by by
debited debited debited
credit
year)
paid)
interest interest
interest bank)
the
purchased creditors) cheque)
on
inwards
year) A/c
the during
the A/c by A/c paid)A/c
and and and Creditors
A/c paid)
charges
(nsurance loan loan in loan (Sales the Debtors
cheque)
against Sundry
To A/c Expensespaid carriage
Expenses made A/c during received goods to Charges charges
bank bank A/CTo Debtors
Sales (Cash Sundry Creditors
To purchases) To made A/c
A/C
Bank Bank
To bills A/c Bank
To Inwards
Alc
Bank
To
To bankAc A/c A/c
Sales
To
A/c A/c
A/c Bank
Bank
To deposit A/c A/c
Bank
To A/c A/c
A/c
Bank
To A/c
Bank Bank
To
A/c Deposit
Insurance LoanA/CInterestof(AmountInterestof(Amount LoanA/c
Interest of sales Purchases Purchasesof(Amount (Payment Work workCarriage of(Amount
Electricity(Electricity
LoanA/c (Amount
A/c Sundry A/c (Amount
(Credit Sundry
Fixed (Fixed Bank Bank Bank To
Bank Bank Job (Job
1| 30 31 31 31 31 31 31 31 31 31 31 31 31
March March March March March March March March
P.24 July Sept. Dec. Dec. 2023 March March
 . .Dr .Dr Dr. Dr
. Dr . Dr . Dr
. Dr . Dr
35A0,000 S00,000
50,00,000 40,00,000 55,00,000 550 50,000
1340, 00 |20,00,00
2 50 0 120,0 |20 00
0 50.00 40.00,000 55,00,000 35,00
000 75500
1340 2
March March March March March March March March March Proj
31eWorct k
March March March March
31
31 31| 31 31 31| 31
31 31 31 31 31
(Expenses Repairs (Expenses Travelling
travellingon (Courier
postage
and Courier
Aruna'sA/Parul's
c (Amount (ExpensesTelephone
Salary (Expenses Exhibition
(1/4th Website (Amount Drawings Rent(Salary To BankA/cTo BankAc
To BankA/cTo
(Entry Salary
insurance
(Prepaid
adjusted) Prepaid(Interest Accrued computers)
@30%(Amount
on Depreciation Bank
A/cTo Bank
A/cTo BankA/cTo BankA/cTo
To To To To ComputersA/To c To A/c paid BankA/c and and
made Interest of
Website Furniture Drawings A/c and
A/
Outstanding Insurancec Insurance on Interestwebsite Charges of withdrawn of incurred
incurred Expenses incurred Expenses Postage
rent for Maintenance
depreciation Conveyance
for A/c the
5,00,000Earned Development and A/c paid) on on in A/c
the A/c Amortised year) A/C expenses
Expenses Alc development
Furnishing by telephone) A/c
repairs) exhibition conveyance)
and
outstanding Salary fixed A/c partners) A/c A/c
@
A/c A/c A/c 10% for
deposit A/c of the
charges on A/c products)
salary Furniture year)
@
at 10% amortised)
the for and
end 3
of
months) Furnishing
the
year)
and

...Dr. .Dr. . .Dr Dr

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...Dr. ..Dr.
...Dr. ...Dr.

1,80,000 2,80,000 1,10,000 75,000

1,00,000
1,44,000
144,000 50,000 50,000
25,000 50,000
12,500
25,000 8,750
1,10,000 100,000
2,88,000 1,80,000 2,80,000 50,000 75,000
15,00035,000
50,000 P.25
12,500 25,000
25,000 8,750
 Dr P.26
Dr 2023 Date March 2023 Date
April 2023 MarchMarch 2023 April April April 2022 Date March

31 31
31|31
1| 1| 1| 1 To To
Particulars
To ToTo ToToParticularsTo Particulars
Bank Balance Balance
Balance Sundry Sales Aruna'Parul'
s s
A/c Loan c/d c/d
b/d Debtors CapitalCapital
A/c
A/c A/c

ARUNA'
ACCOUNT
CAPITSAL PARUL'
ACCOUNT
CAPITSAL
1,05,00,000 35,00,000
40,00,000|
June June10,10,00,000|
00,0Apr0010,il0Apr0,i0l 00|April ACCOUNT
BANK
10,010,0,00000,000April 10.00,10,00000,0Apr00il Account
Ledger s
11,19,000

July April 2022 Date 2023 2022 Date April 2023 2022 Date
MarchMarchMarchMarch 2023 Dec. Dec. Dec.Sept. Sept. April
March MarchMarchMarchMarchMarchMarch MarchMarchMarchMarchMarchMarch
1
1 1 1
Analysis
31| 3131| 31| 3030| 1|30| 30| 1| 1 1| 1| BalanceBy
b/d BankBy
31| 31| 31| 31| 31| 31| 31| 31| 31| 313131| 31| 31| 31| 31| By BalanceBy
b/d BankBy
A/Part
c iculars ParA/c ticulars of
ByByBy ByByByByByByByByByByByParticulars
ByByByByByByByByByByByByByBy InterestInsurance Bank
Purchases
Job Sundry xed Bank
Interest Bank FiInterest Bank Interest Security te
WebsiFurniture Computers
Balance
Aruna'Parul' RentSalary Exhibition
s s Telephone Courier
RepairsTraveling CarriageElectricity Financial
Loan
A/c A/c Work Loan Deposit Loan Loan
A/c A/c
Drawings and and Inwards Creditors A/c A/c A/c Deposits
A/c
c/Drawings
d and Charges
Expenses A/c A/c A/c Expenses and A/C Development
Maintenance Expenses
Expenses Conveyance Postage Furnishing
A/c
A/c A/c
A/c A/c Ac
A/c A/c
A/c A/c A/c A/c
A/c A/c
Statements- CBSE
A/c A/c
10,00,000
10,.00,00010,00,000
10,00,000
10,00,00010,00,000
50,00,000 3,50,000
1,00,000
1,0000500 1,20,000
13,40,000
1,20,000 5,00,00027,00050,00028,50050,00035,00030,00050,00097,000 50,000
1.80,000
00 1,44,000
11,19,01,44,000 1,10.000 1,00,000
2,80.00050.000 75.000 50,000 2,25,000 50,000
25.500 C. XIL
Cr

Mach Cec. Segt. 12

arch Vach 3I
Narch 313 1
31 3030
 P.27 Cr. 5,00,000
5,00,000 Cr. 70,00,000
70,00,000
97,000
97,000 Cr. 10,00,000 8,00,000
10,00,000 Cr. 1,11,000 1,11,000 Cr.
c/d b/d c/d c/d c/d
ParticularsBalance ParticularsA/c Balance
Balance Particulars ParticularsBalance Balance
Particulars
Bank
ACCOUNT 31By
SECURITY
DEPOSITS By By By 31By By
| ACCOUNT ACCOUNT
PURCHASES31
LOAN
BANK
ACCOUNT 1 1
ACCOUNT 31
INTEREST
March March March
Date2023
March
Date 2023 Date 202250,000
April 2023April Date 2023 Date 2023
DEPOSIT
FIXED
97,000
97,000 97,000 50,000 50,000
50,000 10,00,000
8,00,000 30,000
28,500 1,11,0001,11,000
27,000 25,500 5,00,0005,00,000
5,00,000 70,00,00070,00,000
50,00,000
20,00,000
A/c
Creditors
To
Balance
b/d To
Balance
c/d Balance
b/d
To b/d
Balance
To b/d
Balance
To
To
Bank
A/c A/c To
A/c A/c
Bank A/c A/c A/c A/c To
Bank
A/c A/c
Bank
To To Sundry
A/c
Bank
Particulars Particulars Particulars
BankBankBank Particulars Particulars
Bank Bank Bank
Work
Project To To To To To To To
30 30 31 31 31
March 30 30 31 31
March March
31 March
31 31
1 1
March
Date 2022April 2023April Date 2022JuneSept.Dec. 2023 Date 2022JuneSept.Dec. 2023 2023 April Date 2022Dec. 2023April Date 2023 2023April
Dr. Dr. Dr. Dr. Dr.
551
134M
. 50.31
erneNi
hing
Alc ent
A/c Acce
A/c A/C Ac AC
 Particulars
Statements-CBSEYl
Financial
Analysis of C To BankA
a c h3 1
SUNDRYCREDITORSACCOUNT
P.28 Particulars
Date 20,00,000
Dr 2023 Purchases Ac To Balarn
Particulars By
Date 13,40,000March 31 20,00,000
2023 To Bank A/c 6,60 000
March 31 6,60,000
To Balance cd 20,00,000 Particular
March 31 2023 Balancebd
1 By
April
COMPUTERS ACCOUNT B¡nk
Particulars 31|To
Date rh
Dr. 15,000
Particulars 2023 Depreciation A/c 35,000
Date 31By
50,000| March 31By Balancecd 50,000 23 To Balan
2022 March 1
1
To Bank A/c
April
50,000

Cr Particul
2023 35,000
To Balance b/d
April 1 SALES ACCOUNT
Particulars
To Bar
Dr Date
35,00,000
Nch 31
Particulars 2023
Date
90,00,000 March
31By Bank A/c 55,00,000
2023 Debtors A/c
March 31 To Balance c/d 31 By Sundry
March 90,00,000 23
1 To Ba
Aor
90,00,000
2023 90,00,000
1By Balance b/d
April Cr. Partic
SUNDRY DEBTORS ACCOUNT
Dr. Particulars
Date
Date
Particulars
2023
March 31|To Be
40,00,000
2023
To Sales A/c
55,00,000 March 31 By Bank A/c 15.00,000
March 31 March 31 By Balance cd
55,00,000 23
55,00,000 Agr! 1 To E

2023 15,00,000
1 To Balance b/d
April Cr
FURNITURE AND FURNISHING ACCOUNT Part
Dr. Particulars
Particulars
Date 222
Date 2023
2022 35.000 pri 1 To
1 To Bank A/C 3,50,000 March 31 By Depreciation A/c 3,15,000
April March 31 By Balance dd
3,50,000 3,50,000

2023
To Balance b/d 3,15,000 To
April
ELECTRICITY EXPENSES ACCOUNT Cr.
Dr
Date Particulars
Date Particulars
2023
2023
March 31|To Bank A/c 1,20,000 March 31 By Balance c/d 120.000
1,20,000 120000
2023
1 To Balance b/d 1,20,000
April
 75,000
1,00,000 Cr. 75,000
75,000
Cr.
25,000
P.29 2,25,000 1,20,000 Cr. Cr. 1,00,000
1,00,000
Cr. 2,25,000 Cr. 1,20,000 50,000
50,000
A/c
Amotised
Charges
c/d cd
c/d dd c/d Balance Balance
c/d Balance Website
Particulars Particulars
Balance Balance
Particulars ACCOUNT
Particulars
ParticularsBalance Particulars ACCOUNT
DEVELOPMENT
WEBSITE ACCOUNT
EXPENSES
EXHIBITION By
ACCOUNT By By By
CARRIAGE By
ACCOUNT
INWARDS By 31
ACCOUNT By CONVEYANCE
31 31 31
31 31 31
1,00,000March 1.00,000March
March March
POSTAGE March Date 2023 Date 2023
2,25,000March March Date 2023
Date 2023 Date 2023 75,000
CHARGES
Date 2023 50,000| 75,000 75,000
1,00,0001,00,000 1,00,00075,000
1,20,000 1,20,000
1,20,000 50,000 50,000AND
2,25,000 2,25,000 AND
WORK COURIER TRAVELLING
JOB
b/d
Balance
To
bd
Balance
To
b/d
Balance
To b/d
Balance
To A/c
To
Balance
b/d
b/d
To
Balance
A/c A/c A/c
Bank
To
Particulars Particulars
Bank
A/c
BankAc
To Particulars Particulars
Bank
Particulars Bank
ParticularsBank To
To To
Work
Project To 31
31
31
March 31
1 1 March
31 March 1 2023April
March 2023April 2023April April 2023April Date 2023
2023 April
1 April Date 2023 Date 2022
Date 2023 March Date 2023 2023 Date 2023
Dr. Dr. Dr.
Dr. Dr.
Dr.
Debtors
Aic A
ton
 Dr. P.30
Dr. Date
2022 Date April 2023 March 2023
Dr. 2023 July
Dr. Dr. Dr. 2023 2023 Date
March 31 April
2023 Date April 2023 2023 Date
March 31 April 2023 MarchMarch 2023 Date April
April 2023 March 31
1 1 31|
1 1 1 1|
1 31 31 To Particulars
To
BankA/Particulars
cTo Balanceb/To
d BankA/Particulars
cTo
Balanceb/dTo cTo
BankA/Particulars Balanceb/dTo To
ToParticulars Balanceb/To
d
Balanceb/dTo To
Particulars Balance Bank
Website Outstanding Bank
A/c
A/c b/d
Development
Salary
WEBSITE A/c
REPAIRS
A/c TELEPHONE
EXPENSES
ACCOUNT INSURANCE
EXPENSES
ACCOUNT
AND
CHARGES ACCOUNT
SALARY
2,80,000 26,250 35,000
1,10,000 1,10,01,0010,000
1,80,000 1,80,000
1,80,000 ACCOUNT
RENT 3,05,000 3,05,00025,000 50,000 50,00050,000 35,000
25,000
25,000 25,000 MAINTENANCE
AMORTISED 2023 Date 2023 Date 2023 Date
March 2023 Date March March March March
March 2023 Date March 2023 Date
31
Analysis
31 31 31 31By31By
31 By ACCOUNT
| ACCOUNT | |
Particulars Particulars
By Particulars
Particulars
By Particulars
By By Particulars of
Balance Balance Balance Balance BalancePrepaid Balance Financial
c/d c/d c/d
Insurance c/d
c/d c/d

A/c Statements-CBSE
1,10,000
1,10,000
25,00025,000 1,80,000
1,80,000 3,05,000 3,05,000 50,00050,000 35,00026,250 8,750
Cr Cr. Cr. YI
Cr.

h31
ToB
anch 23 karch laxch31 02 123
larch Ma31|ch To 023
Ach 31
1 31 31 1 31 1
naject Work
31
Parti
To
B To
To To
ir Partie To
B Parti To
E Parti To
E To
E Parti To
E |
To Parti To
B Parti
 P.31
ProjectWork

INTERESTEARNED ACCOUNT
Patticulars Date Particulars
(iate
2023
12500
23
4arch 31 Jo Balance cd 12 500 March 31 By ACCrued Interest A/c 12500

12,500
2023 12.500
By Balance b'd
April
DEPRECIATION ACCOUNT
Particulars Date Particulars
Date
2023 2023 50.000
Narch 31 To Computers A/c 15,000| March 31By Balance cd
March 31 To Furniture and Furnishing AC 35,000 50000
50,000
2023
kpril To Balance b/d 50,000
Cr.
ARUNA'S DRAWINGS ACCOUNT
Date Particulars Date Particulars
2023 2023
By Balance c/d
1,44,000
March 31 To Bank A/c 1,44,000 March 31 1,44,000
1,44,000
2023
April 1 To Balance b/d 1,44,000
500. PARUL'S DRAWINGS ACCOUNT
Cr.
Dr
Particulars Date Particulars
Date
2023
2023 1,44,000March 31 By Balance c/d 1,44,000
March 31 To Bank A/c 1,44,000
1,44,000
2023
1 To Balance b/d 1,44,000
305 330
April Cr.
ACCRUED INTEREST ACCOUNT
Dr
Date Particulars
Date Particulars
2023
2023 12,500 March 31 By Balance c/d 12,500
March 31 To Interest Earned A/c
12,500 12,500

2023
12,500
kpril 1 To Balance b/d
PREPAID INSURANCE ACCOUNT Cr.

Date Particulars
18000 Date Particulars
2023
023 8,750 March 31|By Balance c/d 8,750
March 31To Insurance Expenses A/c
8,750 8,750
7023
To Balance b/d 8,750
Aprl 1
OUTSTANDING SALARY ACCOUNT Cr.
Date Particulars
ate Particulars
2023
25000

25000
2023 25,000|March 31 By Salary A/c 25,000
March 31 To Balance dd 25,000 25,000
2023
April 1 By Balance b/d
25,000
 Interest
A/c Heads of
P.32
Parul'A/sCourier A/Inwards
c A/c
c ComputersCarriage Bank
LoanA/Interest
c c Accounts
Alc BankA/Accrued
Development Telephone
A/c Travelling
TotalWebsiteWebsite ExpensesA/Debtors
cSundryCreditors Security c
A/c A/c SalesA/c SalaryA/Repairs
A/cSundryDeposits Purchases
Rent Insurance
A/Prepaid
Outstanding Drawings
c A/c Salary
A/Aruna'
c sA/c Earned
A/c Furniture
Insurance
Expenses Exhibition
Expenses
Fixed
A/c Deposit Expenses
A/c A/c Drawings
A/c Electricity
Depreciation
A/c Parul'A/scCapital
Capital
Aruna'A/sc JobInterest
A/c Work
and and
Charges and Charges and
Postage
Maintenance Furnishing
Conveyance
Amortised A/c Alc

A/c A/c
A/c A/c

TRIAL
BALANCE
as
at
31st
March,Analysis
2023 of
Financial
LE.

Statemnents-CBSE Dr. ()
1,24,97,500
1,24,97,500 70,00,000 1,44,000 2,25,000 3,15,000 1,11,011,0019,000 12,500
15,00,000| 3,05,0001,10,000180,000 26.250 5,00,000 75,0001,20,000 50,000144000 50,00035,000|1,20,000
25,000
1,00,000 50,000 97,000 8,750
75,000)
10,00,000 8,00,000
10,00,000
90,00,000 12,500
6,60,000 25,000 XI1

Mar Marc Ote

 00 00 00 00 50 0
1000 0
50 ) 000 O0/ ,0 0 0 0/ 10
00
20
12500
S0/1A 250

March March 2023 Date Project

Work
March 31
March March March
March

31 31 31 31 31
31
(Sales Closing StockA/c (Purchases
Sales Trading |Particulars
(Net Profit Profit(Gross Trading (Job Trading
(indirect Interest(Indirect To To To TradingA/c To PurchasesA/c To
To SalaryA/To
c ToRentA/cTo ToDepreciation
To To A/To To A/cTo
c Interest work
profit To & To To To
& Profit Carriage Job and A/c
Electricity
Exhibition Courier Loss profit A/c
expensesWebsite
Profit Lossincome ProfitEarned Telephone Repairs Insurance
Travelling c
A/charges
Work
A/c Closing transferred
transferred &A/c & A/c
transferred &
and and Loss
Loss Loss andInwardsCharges
transferred
A/c Charges and Expenses Expenses Expenses Postage A/c Stock
A/ctransferred ExpensesMaintenance carriage to
Appropriation
to Conveyance to A/c A/c Account Trading
Proht Amortised A/c A/c A/c A/c Profit
Loss &
to A/c inwards
& Profit to
Loss Profit A/c transferred Account)
A/c A/c A/c CLOSING
ENTRIES
& transferred
Appropriation Loss & Account)
Loss
Account) to
Account) to Trading
Trading
Account)
ACCount) Account)

..Dr. ...Dr. ..Dr ...Dr. ...Dr. .Dr. ..Dr. ...Dr

L.F.

30,15,250 12,02,250 42,05,000 25,50,000

90,00,000 70,00,000
3,45,000 Dr()
.
12,500

30,15,250 42,05,000 1,15,50,000 70,00,000

1,00,000 1,10,000
3,05,000 1,80,000 1,20,000 50,00050,0001,11,000 1,20,000
2,25,000 Cr()
.
12,500 25,000 50,000 26,250 75,000
P.33
 Outstanding
Salary Liabilities
CreditorsCurrent
Sundry Loan
Bank Loans
Aruna' Accounts
Capital
CapitalA/Capital
scParul'
A/cs Liabilities Dr
To
Aruna'sCapital
Parul'sTo
Particulars Total To To ToSalary Interest
ToA/cTo ToRent
A/cToA/cToDepreciation
ToTo ToA/To c ToTotal ToPurchases ToA/cTo
To Particulars
Dr. P.34
Website
NetTravelling
Telephone
ExpensesA/c Repairs InsuranceExhibition
ExpensesA/Electriity
c Courier Gross
Carriage Job
Profit Work
CapitalA/c Profit
Charges and and
(trfd. and Expenses
Expenses InwardsCharges
Maintenance Postage c/d
A/C Conveyance
to
Amortised
Profit A/c A/c TKADING,
A/c A/c A/c
&
Loss A/c
A/c A/c
App. PROFIT
PROFIT&
6,60,000 BALANCE
25,000 A/c)
for &
the LOSS
LOSS
62,12,250 Computers
23,63,625
23,63,625 30,15,250
15,07,625 year 42,17,500 1,15,50,000
6,85,000
Closing
Stock 8,00,000 SHEET 15,07,625 30,15,250
1,00,000 3,05,000 1,80,000
1,10,000 1,11,000 1,20,000 42,05,000 70,00,000 ACCOUNT
APPROPRIATION
ended 25,000 50,000 26,25075,000 50,000|
50,000| 1,20,000 2,25,000|
as
Accrued
Interest
Deposits
Security
Deposit Bank
Cash
Fixedlnsurance
Prepaid
atDebtors Current
Assets
SundryDevelopment
Website
Furnishing
Furniture
Fixed and Non-Current
FixedAssets Assets at Particulars
By 31st
31st ByBy Particulars
ByBy for
Profit March, Interest Gross the
Assets Assets March, Closing Sales Analysis
& ACCOUNT Profit A/c year
Loss 2023 Earned Sto ck
(Intangible) (Tangible) 2023 ended
A/c b/d of
(Net A/ A/c
3 Financial
1st
Profit) March,
2023
3,15,000
Statements--CBSE
35,000

|1,15,50,000
62,12,250 25,50,000
11,19,000 15,00,000 30,15,250 30,15,250 42,17,500 42,05,000 90,00,000
25,50,000
5,00,000 3,50,000
12,50097,000 8,750 75,000 12,500

Cr. Cr.
XII

4. Act 3 2 1.
 nentsCBSEXN
15,000350003
35.0 0 11550,0
42,17,500 42550
2530
015 30.15,250 12500
1901,
0 10
8 350 0 750 0 C
970
Dr.
Net 2. Profitability Ratios
1,Accounting Balance
c/dTo
Drawings A/To
c
Particulars Project
Work
Activity/Turnover Rat4.ios Operating
Ratio:3.
Inventory Revenue
from Revenue
from Gross Gross
(CostRevenue Sales)
(Net
Operations Profit
NetRatio: Operations
Sales)
(Net
Inventory
Average
Operations from Cost of Operations,
+Operating (Cost
Expenses Profit Profit ACcOUNTING
Revenue
Operations
from Cost of
of Revenue
from Profit
Goods Turnover of Ratio: Ratios
i.e., Goods x x100
Sold) Ratio: Net 100
Sold) RATIOS,
Sales
46.72% = Ratio
=65.40% =33.50%730,15,250
?90,00,000 90,00,000
42,05,000 COMPARISON 25,07,625 1,44,000 Parul()
25,07,625 23,63,625
58,86,250100
90,00, of
Times
1.88 = PARTNERS'CAPITAL
ACCOUNTS
the
25,747,
50,0 0 95,0 0
000 Enterprise
-x100 23,63,625
1,44,000 Aruna
x100
WITH ()
Times4.5 40.00% Standard
27.5°% INDUSTRY Balanceb/dBy By |
Particulars
By
75%
Profht Bank
-Share
Profhitof
|Profitagainst |M/s.
management.
|inventory
Industry Inventory
and of indicative general.
considered stock
In industry
firstthe operating lower
Operatingexpenses. be Athe M/s. on Net (ii) (i) ) A/c
management.
the
higher Loss &
because IndustryClothes sales Profit Closing Lower and/or
price;Higher may C4T STANDARDS
present Net by Industry has Approp.
Standard Turnover
year But, Standard
of Ratio Cost be Commentand
better more Ratio of
Profit
Standard 4 the Stock Salesbecause achieved Suggestion
the of it
higher Teens of
case, generating must is
enterprise. shows A/C
trend. the efficiently
Ratio Purchase;
is Realisation, Standard
as Ratio firm of
65.40o. overvalued. AND
ofratio
it be 75%. Gross of was of Gross
4.50 indicates is the
measures and kept better27.5%,33.50% The the COMMENTS
Profit and/or following
reasons: ofProfit 23,63,625
23,63,625
25,07,625 10,
10,00,000
00,000 Parul()
15,07,625
times. 1.88 is sales. one than It It net ie ., 40°%.
in means is for i.e., Net
efficient year mind the lower Ratio as margin Ratio
Ittimes the the higher
compared Profit
higher A
indicates High high of
movement that
data industry the along frm. Aruna ()
against than Ratio 46.72°%
Inventory ratio firm earned selling Gross P.35
is this It by
not the with may 6%.
to of r.
p0or the is is in is
 P.36
6. 5.
Curent
Liquidity
Ratio:10.Ratio "(In 9. Solvency
Ratios
Proprietary
Ratio:
8. 7. RatioTrode
Ratio:
Working Purchases
Credit
Net Trade Average
the Debt (CostRevenue Creditors
Average
DebtorsCredit
Sales
Net
Liabilities
CurrentCurrent (Shareholders'
Funds) Proprietor'
Fundss Operations
from Cost of
Assets present to Assets
Total Working
Capital Payables Recevables
Sales
Netor of
*Equity Debt Equity Goods Capital
case, Turnover
Ratio: Turnover Tunover
it Sold)
is Ratio:
capital
of
the T62,12,250 Times
3.03 = ? -3.67
?57,87,250
?6,85,0 0 47,27,250
8,00,000 47,27,250 =0.94
Times R6,60,000 20, R15,
Times0?55,00,000
0,000
partners) 51,02,25047,95,000 00,
000
=0.17 =0.76
=
8.45
Times 5
5
2 Times
1 Times
2 on
Analysis
It 3.67 Trade
|Proprietary |Working as the effiIncient used. Worki
ofngcreditors It 3.03 Trade its
of funds. total
he |Debt partly It lenders it the
paymentinsdicates
standard
is Inthe more dependingother company.is texternal shows 0.76 times indicates times times
he
idle tCurrent should industry A debt
more assets present higher Payables Recei vables of
fundsIndustry on
hand, to
financed is of A use workingCapital are by against
present funds Equity that lower the high Capital Financial
of
against collectioninefficiency
not longer
Ratio dependent Shareholders'of have Ratio have norm ratio debtors
and 1. low case, working Turnover pai d the
Standard. of Itcase,ratiomeans moreon A and Ratio by
assets than fund. ratio
been shows been. has of capital
is Turnover the Turnover
are the shows high the not the payment in and Indust policy.
Shareholders' of the provides In considered Industry t im e. inry
not firm on ratio Ratio measuresborrowed the financed 2.00 capital.
ratio of also
Equity thatof0.17 Fundsborrowings or the
Industry the been the Ratio Ratio
being It is times. is colltehection
present perio d
StaStteandardmentRats-ioCBSE
indicates very
assets enterprise means enterprise extent enterprise Standard
used than than satisfaction by utilised It0.94 good shows of frm of
is th e funds.
high lower Funds Standard the has arnd
External of external enterprise
thatproportions case, to indicates
as times as the that of the ofthe
efficiently. that it to
as the than debt.
is On invested have proprietor' s whi c h efficiently has
indicates number 5 frm delay times 5firm
compared
the depending the against means times XIL
enterprise of to been work in ie
that is
frm Equity. industryEquities. been 1.00. ratio the the
the in of
has to

Trade
Ratio Turne
Debt Payables Receivables Profit
Trade Tu
RatioNet Profit
Ratio Name ProjectWork
700 &00 $.00
Current
Operating Turnover
Iiventory
Working
Capital
Ratio Ratio Tur Proprietary Gross Comparis
Graphical
000 \00 2.00 3.00 4.00 S00 6.00
Gios Pro to of presenta ion Expeof
Equity the
Ratio 60,00,000
50,00,000 1,50,000
2,00,2,00050,03,0000,03,0050,000
et
Profit
Net 0OC 40,00,00C
10,020,0,000,30,00,00C 50,1,00000,000
Ratic
 On
tthe tihceh mber Means times. is m Work inayimes.
Equitya/ beenve 1.0of
0. ratiohe theto
brietors icienty Bgainst
thates dicates sbeen
t rtions of
nterprise vested in
him mphasred tonterprisenindustry Equitespending
Ratio
RatioNet Profit Name
Gross Graphical
Operating
0.00 1.00 2.00 3.00 400 005600 700 8.00 900Current Turnover
Inventory
Ratio Worki io Debt Ratio
ng RatProprietary Irade Trade Profit Presentation ProjWorectk
Gros Prof toReceivables
Payables of
Equity the
RatioCapital Comparison
Ratio 10,00,000
20,00,000 40,00,000
30,00,000 60,00,000
50,00,000 1,00,000 2,50,000
2,00,000
1,50,000 3,50,000
3,00,000
Net Proft RaRa tio Ratio Turnover 50,000 Expenses of
Turnover Turnover

Ratio Ratio of
Traudreno Reciva Expenses
Direct
Ratio Accounting
Trac in
Bar
Ratios Diagram
Expenses
Indirect
wiExpenses
thIndirect
Industry

Standards

Expenses
47,95,000
12,02,250
ExpensesDirect
Indirect
Standard
Industry

2.00 0.75 2.00 4.50 1.00 1.00 5.00 5.00 0.28 0.40

Curent Rati
Clothes
Teens 4
C4T
Standards
Industry
8.45 0.65 0.94 1.88 0.17 0.76 3.03 3.67 0.34 0.47

P.37