Journal Book Dr. Cr.

Date Particulars Amount Amount

01.04.2016 Cash A/c Dr. 600,000
To Arun's Capital
A/c 300,000
To Barun's Capital
A/c 300,000
(Being Cash introduced in the business)
01.06.2016 Building A/c Dr. 400,000
To Cash A/c 400,000
(Being a room purchased for cash)
Bank
01.07.2016 A/c Dr. 200,000
To Cash A/c 200,000
(Being opened a bank account with cash)

Bank
A/c Dr. 500,000
To Bank Loan A/c 500,000
(Being bank loan deposited into bank account)

31.03.2017 Furniture A/c Dr. 60,000

To Bank A/c 60,000

(Being furniture
Purchased)
Bank A/c Dr. 1,850,000
To Sales A/c 1,850,000
(Being sales receipts deposited into bank)
To Bank A/c 1,500,000
(Being purchased by
cheque)

Salary A/c Dr. 80,000

Electricity Charges A/c Dr. 17,000

Audit Feees A/c Dr. 7,000
Insurance Premium A/c Dr. 6,000
Travelling expenses a/c Dr. 3,500
To Bank A/c 113,500
(Being various expenses incurred and paid through bank)
Bank Loan A/c Dr. 100,000

Interest on Loan A/c Dr. 22,500

To Bank A/c 122,500
(Being installmemnt of bank loan & int. on loan paid)

Arun's Drawings A/c Dr. 24,000

Barun's Drawings A/c Dr. 18,000

To Bank A/c 42,000

(Being drawings made by partners)
Ledger Details

Dr Cash Account Cr

Date Particulars J.F Amount Date Particulars J.F Amount

1/Apr/16 To Arun's Cap A/c 300,000 1/Jun/16 By Building A/c 400,000

" Barun's Cap
A/c 300,000 1/Jul/16 " Bank A/c 200,000

600,000 600,000

Dr Bank Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

1/Jul/16 To Cash A/c 200,000 31/Mar/17 By Purchase A/c 1,500,000

" Bank Loan A/c 500,000 " Salary A/c 80,000

" Furniture A/c 60,000

31/Mar/17 " Sales A/c 1,850,000 " Audit Fees A/c 7,000

" Electricity Charges 17,000

" Insurance Premium A/c 6,000

" Travelling Expenses A/c 3,500

" Bank Loan A/c 100,000

" Interest on Loan A/c 22,500

" Arun's Drawing A/c 24,000

" Barun's Drawings A/c 18,000

" Balance C/d 712,000

2,550,000 2,550,000
Dr Bank Loan Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 100,000 1/Jul/17 By Bank A/c 500,000

" Balance c/d 400,000

500,000 500,000

Dr Interest on Loan Account Cr

Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 22,500 31/Mar/17 By Profit & Loss A/c 22,500

22,500 22,500

Dr Purchase Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 1,500,000 31/Mar/17 By Trading A/c 1,500,000

1,500,000 1,500,000

Dr Salary Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 80,000 31/Mar/17 By Profit & Loss A/c 80,000

80,000 80,000
Dr Electricity Charges Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 17,000 31/Mar/17 By Profit & Loss A/c 17,000

17,000 17,000

Dr Furniture Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 60,000 31/Mar/17 By Balance c/d 60,000

60,000 60,000

Dr Audit Fees Account Cr

Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 7,000 31/Mar/17 By Profit & Loss A/c 7,000

7,000 7,000

Dr Insurance Premium Account Cr

Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 6,000 31/Mar/17 By Profit & Loss A/c 6,000

6,000 6,000
Dr Travelling Expenses Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Bank A/c 3,500 31/Mar/17 By Profit & Loss A/c 3,500

3,500 3,500

Dr Sales Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

31/Mar/17 To Trading A/c 1,850,000 31/Mar/17 To Bank A/c 1,850,000

1,850,000 1,850,000

Dr Building Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount

1/Jun/16 To Cash A/c 400,000 31/Mar/16 By Balance c/d 400,000

400,000 400,000
Dr Capital Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount Amount
Amount

To
Balance By Cash
31/Mar/17 c/d 300,000 300,000 1/Apr/16 A/c 3,000,000 300,000

300,000 300,000 3,000,000 300,000

Dr Drawings Account Cr
Date Particulars J.F Amount Date Particulars J.F Amount Amount
Amount
To Bank By Balance
31/Mar/17 A/c 24,000 18,000 31/Mar/17 c/d 24,000 18,000

24,000 18,000 24,000 18,000

 Trial Balance as on 31st March 2017
Particulars L.F Debit Credit

Capitals A/c : - -

Arun - 300,000

Barun - 300,000

Bank A/c 712,000 -

Bank Loan A/c - 400,000

Interest on Loan A/c 22,500 -

Purchases A/c 1,500,000 -

Sales A/c - 1,850,000

Salary A/c 80,000 -

Electricity Charges A/c 17,000 -

Furniture A/c 60,000 -

Audit Fees A/c 7,000 -

Insurance Premium A/c 6,000 -

Travelling Expenses A/c 3,500 -

Drawings A/c: - -

Arun 24,000 -

Barun 18,000 -

Building A/c 400,000 -

- -

Total 2,850,000 2,850,000

 Trading and Profit and Loss Account for the year ended 31st March, 2017
Particulars Amount Particulars Amount

To Purchases A/c 1,500,000 By Sales A/c 1,850,000

" Gross Profit C/d 700,000 " Closing Stock 350,000

2,200,000 2,200,000

To Salary 80,000 By Gross Profit B/d 700,000

" Electricity Charges 17,000

" Audit Fees 7,000

" Insurance Premium 6,000

" Travelling expenses 3,500

" Int. on Loan 22,500

" Net Profit

Arun 282,000

Barun 282,000

564,000

700,000 700,000
 Balance Sheet 31st March, 2017
Liabilities Amount Assets Amount

Capital A/c : Arun 300,000 Building 400,000

Add : Net Profit 282,000

582,000 Furniture 60,000

Less: Drawings 24,000

558,000 Closing Stock 350,000

Capital A/c : Barun 300,000

Add : Net Profit 282,000 Bank Balance 712,000

582,000

Less: Drawings 18,000

564,000

Bank Loan 400,000

1,522,000 1,522,000
OPERATIONAL EFFICIENCY

1. Gross Profit Ratio = (Gross Profit /Net Sales) x 100

= (7,00,000/18,50,000) x 100
= 37.84%
2. Net Profit Ratio = (Net Profit/Net Sales) x 100
= (5,64,000/18,50,000) x 100
= 23.76%
3. Return on Capital Employed = (Profit before Interest/Capital Employed) x 100
= [(5,64,000+22,500)/15,22,000] x 100
= 35.58%
4. Capital Employed Turnover Ratio = Net Sales/Capital Employed
= 18,50,000/15,22,000
= 1.22 times
5. Fixed assets Turnover Ratio = Net Sales/ Net Fixed Assets
= 18,50,000/4,60,00
= 4.02 times
6. Debt-Equity Ratio = Debt/Equity
= 4,00,000/11,22,000
= 0.357 : 1