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    Adobe Scan Jan 15, 2022

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    Naman Gupta
    Mr. Tushar started a computer business by setting up a computer cafe. He invested Rs. 2,00,000 to construct the cafe floor and Rs. 73,50,000 total. He took a loan for 75% of the cost of 12 computers at Rs. 40,000 each. The loan is to be repaid in 4 annual installments. In the first year of business, the cafe had revenues of Rs. 2,70,000 from computer classes, Rs. 2,20,000 from internet access, and Rs. 1,60,000 from computer supplies. Expenses included wages of Rs. 12,000, electricity of Rs. 48,000, and telephone of Rs. 73,

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    Adobe Scan Jan 15, 2022

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    Naman Gupta
    54 views2 pages
    Mr. Tushar started a computer business by setting up a computer cafe. He invested Rs. 2,00,000 to construct the cafe floor and Rs. 73,50,000 total. He took a loan for 75% of the cost of 12 computers at Rs. 40,000 each. The loan is to be repaid in 4 annual installments. In the first year of business, the cafe had revenues of Rs. 2,70,000 from computer classes, Rs. 2,20,000 from internet access, and Rs. 1,60,000 from computer supplies. Expenses included wages of Rs. 12,000, electricity of Rs. 48,000, and telephone of Rs. 73,

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    Mr. Tushar started a computer business by setting up a computer cafe. He invested Rs. 2,00,000 to construct the cafe floor and Rs. 73,50,000 total. He took a loan for 75% of the cost of 12 computers at Rs. 40,000 each. The loan is to be repaid in 4 annual installments. In the first year of business, the cafe had revenues of Rs. 2,70,000 from computer classes, Rs. 2,20,000 from internet access, and Rs. 1,60,000 from computer supplies. Expenses included wages of Rs. 12,000, electricity of Rs. 48,000, and telephone of Rs. 73,

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    54 views2 pages

    Adobe Scan Jan 15, 2022

    Uploaded by

    Naman Gupta
    Mr. Tushar started a computer business by setting up a computer cafe. He invested Rs. 2,00,000 to construct the cafe floor and Rs. 73,50,000 total. He took a loan for 75% of the cost of 12 computers at Rs. 40,000 each. The loan is to be repaid in 4 annual installments. In the first year of business, the cafe had revenues of Rs. 2,70,000 from computer classes, Rs. 2,20,000 from internet access, and Rs. 1,60,000 from computer supplies. Expenses included wages of Rs. 12,000, electricity of Rs. 48,000, and telephone of Rs. 73,

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    PROJECT STATEMENT

    business. For this purpose he hu:t


    decided to start a computer
    Mr. Tushar
    tloor ofhis house at a cost of R2,00,000 and invested a further sum of 73.50 00irst
    this
    in
    business.
    40,000 cach. He approached
    He wanted to start with 12 computers costing ICC.
    ICI
    Bank and secured a loan to the extent of 75% of the cost of computers. It was aoro
    reed
    that the loan will be repaid in four annual instalments as follows
    At the end of First Year 790,000 +736,000 for interest
    At the end of Second Year R90,000+ 727,000 for interest
    At the end of Third Year 790,000 + 18,000 for interest
    At the end of Fourth Year 790,000 + 7 9,000 for interest

    He started business on lst April, 2017. On the same date he deposited 73,30,000o
    in the Bank. He purchased Computers and paid 25% of the value ofcomputers from his
    bank and 73,60,000 out of bank loan availed. He deposited 10,000 for the electric
    connection with the Electricity Board and also deposited F1,50,000 with the VSNL for
    internet and telephone connection.
    He spent40,000 for getting the Computer Cafe furnished and also spent7 6,000
    in getting the pamphlets printed and distributed.
    All payments were to be made by cheques and all the receipts were to be deposited
    in the bank on the same day.
    At the end of the year, the results were:losst sii oldzaog9voTe
    aneirSup gnolas vol loodae
    Purchases of Computer stationery like floppy discs, CDs et. enime9 92,000
    Revenue from fees received from students of Computer classes 2,70,000
    Revenue on Account of Internet Facility 2,20,000
    Revenue from sale of Computer Stationery alcobute d saob ho 1,60,000
    Wages paid to Servant o forexo orda12,000
    Electricity Charges bcws d iw hstealit rt o 48,000
    Telephone Charges 73,000
    Entertainment Expenses
    General Expenses
    7,000
    5,200
    He withdrew 5,000 by cheque each month for his
    paid the bank loan. personal expenses and duly
    You are required to
    beessbns inabu
    () Journalize the above transactions, post them into the
    trial balance Ledger and prepare a
    (i) Prepare Trading and Profit & Loss Account and Balance Sheet taking into
    consideration that a telephone bill of T6,800 is yet to be paid.
    (iii) Depreciate Building by 5%, furniture by 20% and computers by 30%.
    (iv) Calculate profitability ratios and comment on the efficiency of the business if
    the norms set for Gross Profit Ratio and Net Profit Ratio in similar type of
    business enterprises are 60% and 25% respectively.
    (v) Mr. Tushar wants to expand his business. He approached the bank for a further
    loan. Compute the ratios that the bank manager will take into consideration
    before granting the loan (Current ratio, Quick ratio and Debt Equity Ratio).

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