Accountancy Project on Mobile Phones

In this post we are sharing with you Comprehensive Accountancy Project on the topic Mobile Phones . The project is based on Mobile Store .

STORY OF THE COMPREHENSIVE ACCOUNTANCY PROJECT

Mr. Ankit Sharma, Arts Graduate started the business of trading of mobile phones i.e. buying and selling of Mobile Phones. He thus decides to open his own Mobile store under the name and style of M/S MOBILE STORE a sole proprietorship concern.

He had a plot of land of 500sq feet in the outer area of the city which was gifted to him by his father. He sold that land for Rs 1000000/- which he brought in his business as capital. He also used his savings of Rs. 500000/-from his earlier job for his business.  He took a shop on rent in Rs 25000/- per month and a security of Rs 100000/- payable at the time of taking possession of the shop. The shop was not fully furnished as per his needs so a sum of Rs 500000/- was required for Furniture and lights.

In order to purchase furniture he approached to bank for loan. The Bank on security of his residence of which he was owner, granted him loan of Rs 500000/- @ 12%. The Loan is repayable in 5 annual installments of Rs 100000/- each.

Year	Principle Repayment	Interest Repayment
1	100000.00	60000.00
2	100000.00	48000.00
3	100000.00	36000.00

And so on.

He incurred some pre-operative expenses which include Security deposit for Rent Rs 100000/- .

The following information is extracted from is books of accounts for the year ending on 31st March, 2019

Purchases               (Including credit purchases of Rs. 9,00,000)	21, 00,000.00
Purchase Return	50,000.00
Cartage Inward	30,000.00
Packing Material	50,000.00
Sales     (including credit sales of Rs. 7,00,000)	27,00,000.00
Commission	35000.00
Discount Allowed	15,000.00
Rent	325,0000.00
Electricity Charges	50,000.00
General Expenses	25,000.00
Interest	60,000.00
Professional Charges	15,000.00
Salary	295000.00
Telephone Charges	15000.00

ADJUSTMENTS

Adjustments made in Balance Sheet are as follows

S.NO	ADJUSTMENTS
1.	Closing stock is valued at Rs 550000/-.
2.	Provision electricity charges for the month of march yet to be paid Rs 5000.
3.	Prepaid factory rent for the next year of Rs 25000/-
4.	Created Provision for Bad & Doubtful Debts for Rs 5000/-.
5.	Depreciation on fixed assets   A.C.                                15%   Furniture                       10%

    2.  JOURNAL BOOK

PARTICULARS		L.F.	AMOUNT	AMOUNT
Bank a/c	Dr		1,500,000.00
To Capital a/c				1,500,000.00
(Being Cash deposited in the bank)
Bank a/c	Dr		500,000.00
To Bank Loan a/c				500,000.00
(Being Term loan taken for thepurchase of furniture for the shop )
Air Conditioner a/c	Dr		100,000.00
To  Bank a/c				100,000.00
(Being AC purchased for the shop)
Furniture & Fittings a/c	Dr		500,000.00
To  Bank a/c				500,000.00
(Being Furniture & Fittings fitted in the shop)
Security Deposit for Rent a/c	Dr		100,000.00
To  Bank a/c				100,000.00
(Being Security Deposit paid for acquring shop on rent)
Cash a/c	Dr		100,000.00
To Bank a/c				100,000.00
(Being Cash withdrawn for business use)
Packing Material a/c	Dr		50,000.00
To Cash a/c				50,000.00
(Being Packing Material purchased in cash)
Purchase a/c	Dr		1,200,000.00
CGST Input a/c -14%	Dr		168,000.00
SGST Input a/c-14%	Dr		168,000.00
To Bank a/c				1,536,000.00
(Being purchases  made in cash from different wholesellers and agents)			–
Carriage Inwards a/c	Dr		30,000.00
To Cash a/c				30,000.00
(Being Carriage Inwards paid in cash)
Electricity Charges a/c	Dr		50,000.00
Telephone Charges a/c	Dr		15,000.00
To  Bank a/c				65,000.00
(Being Electricity & Telephone Charges paid )
Legal and Professional Expenses a/c	Dr		15,000.00
To  Bank a/c				15,000.00
(Being legal & professional charges paid )
Cash a/c	Dr		2,560,000.00
To Sales a/c				2,000,000.00
To CGST A/c-14%				280,000.00
To SGST Output A/c-14%				280,000.00
(Being cash sales made in cash during the year)
Bank Loan a/c	Dr		100,000.00
To  Bank a/c				100,000.00
(Being annual istallment of Rs 100000/- paid of bank loan)
Interest a/c	Dr		60,000.00
To  Bank a/c				60,000.00
( Being Interest paid on bank loan @ 12% p.a)
Rent a/c	Dr		325,000.00
To Bank a/c				325,000.00
(Being Factory Rent paid at 25000 per month for 12 months & 1 month
in advance for the next year)
Bank a/c	Dr		1,000,000.00
To Cash  a/c				1,000,000.00
(Being cash deposited in bank)
Sundry Debtors a/c	Dr		896,000.00
To Sales a/c				700,000.00
To CGST A/c-14%				98,000.00
To SGST Output A/c-14%				98,000.00
(Being credit sales made during the year)
Bank a/c	Dr		385,000.00
Discount allowed a/c	Dr		15,000.00
To Sundry Debtors a/c				400,000.00
(Being payment received from Debtors)
Purchase a/c	Dr		900,000.00
CGST Input a/c -14%	Dr		126,000.00
SGST Input a/c-14%	Dr		126,000.00
To Sundry Creditors a/c				1,152,000.00
(Being  stock purchased on credit from different wholesellers & agent)
Commission a/c	Dr		35,000.00
To Bank				35,000.00
(Being Fire insurance paid to Insurance Company)
Sundry Creditors a/c	Dr		700,000.00
To Cash a/c				700,000.00
(Being Payment made to Creditors partly during the year )
Salary a/c	Dr		295,000.00
To Bank a/c				295,000.00
(Being Salary paid to the 2 employees working at the shop)
Sundry Creditors a/c	Dr		64,000.00
To Purchase Return a/c				50,000.00
To CGST Input a/c -14%				7,000.00
To SGST Input a/c -14%				7,000.00
(Being purchase return made to the creditors during the year)
Drawing a/c	Dr		200,000.00
To  Cash a/c				200,000.00
( Being amount withdrawn from business for personal purposes)
General Expenses a/c	Dr		25,000.00
To  Cash a/c				25,000.00
( Being payment made for general expenses of business)

LEDGERS

TRIAL BALANCE

PROFIT AND LOSS STATEMENT

BALANCE SHEET

RATIO ANALYSIS

ALL THESE ARE INCLUDED IN PDF VERSION OF THE PROJECT