Mr. Chandru is a very poor person who decided to take up a start up project "Chandru Ice-cream" which will produce unique ice-creams for small children. He approached a bank to provide a loan of Rs. 10,00,000. But the bank asked him to contribute at least 30% from his own source. He sold his personal jewellery of Rs. 2,00,000 and to meet the difference of 30% he took a loan from his brother and diposited into the bank in the account opened in the name Chandru Ice-creams. Bank approved and disbursed a loan of Rs. 10,00,000 at 10 % interest per annum on 1.1.21 the day when Chandru deposited the margin money as asked by the bank. Chandru appointed his wife Mrs. Chandramani as his manager fixing a salary Rs. 10,000 per month. He made an agreement with universal machine manufacturer to supply ice-cream making machine on 15.1.21 to supply the machine at Rs. 2,50,000 immediately making an advance payment of Rs. 50,000. Universal machine manufacturing delivered the machine on 31.1.21 with invoice of Rs. 2,50,000 and the balance amount is paid by cheque on 5.2.21 . On 15.2.21 Rs. 50,000 deposited with TPWODL as security deposit for electricity connection. Rs. 25,000 is paid for purchase of sugar, colours, essence and other materials on 15.2.21 . 15 workers appointed by him at a salary of Rs. 1000 each per month from 15.2.21. Chandru sold Ice-creams on 20.2.21 supplying to Radhika Regency for Rs. 1,25,000 with immediate payment made of Rs. 1,00,000 by cheque. The balance amount is collected from Radhika Regency on 25.2.21 . On 28.2.21 1st installment of Rs. 15,000 is paid to bank along with interest . On 28.2.21 salary is paid for the month of February and on request, Rs. 2,000 is paid to workers as advance salary for the month of march. Rs. 5,000 is repaid against his brother's loan on 28.2.21 . He couldn't pay the salary to his wife for the month of February for which the provision is made on 28.2.21 . On the same date electricity for the month of February is paid Rs. 3000 and Rs. 2000 still to be paid.
Pass necessary journal entries for the month of January and February considering that all receipts and payments are made through cheque.
Sold goods on credit cost price 24000
ReplyDeleteMr. Chandru is a very poor person who decided to take up a start up project "Chandru Ice-cream" which will produce unique ice-creams for small children.
ReplyDeleteHe approached a bank to provide a loan of Rs. 10,00,000.
But the bank asked him to contribute at least 30% from his own source.
He sold his personal jewellery of Rs. 2,00,000 and to meet the difference of 30% he took a loan from his brother and diposited into the bank in the account opened in the name Chandru Ice-creams.
Bank approved and disbursed a loan of Rs. 10,00,000 at 10 % interest per annum on 1.1.21 the day when Chandru deposited the margin money as asked by the bank.
Chandru appointed his wife Mrs. Chandramani as his manager fixing a salary Rs. 10,000 per month.
He made an agreement with universal machine manufacturer to supply ice-cream making machine on 15.1.21 to supply the machine at Rs. 2,50,000 immediately making an advance payment of Rs. 50,000.
Universal machine manufacturing delivered the machine on 31.1.21 with invoice of Rs. 2,50,000 and the balance amount is paid by cheque on 5.2.21 .
On 15.2.21 Rs. 50,000 deposited with TPWODL as security deposit for electricity connection.
Rs. 25,000 is paid for purchase of sugar, colours, essence and other materials on 15.2.21 .
15 workers appointed by him at a salary of Rs. 1000 each per month from 15.2.21.
Chandru sold Ice-creams on 20.2.21 supplying to Radhika Regency for Rs. 1,25,000 with immediate payment made of Rs. 1,00,000 by cheque.
The balance amount is collected from Radhika Regency on 25.2.21 .
On 28.2.21 1st installment of Rs. 15,000 is paid to bank along with interest .
On 28.2.21 salary is paid for the month of February and on request, Rs. 2,000 is paid to workers as advance salary for the month of march.
Rs. 5,000 is repaid against his brother's loan on 28.2.21 .
He couldn't pay the salary to his wife for the month of February for which the provision is made on 28.2.21 .
On the same date electricity for the month of February is paid Rs. 3000 and Rs. 2000 still to be paid.
Pass necessary journal entries for the month of January and February considering that all receipts and payments are made through cheque.
Goods of Rs 12000 purchased from Mahindra at 6 % trade discount and paid cash.
ReplyDelete