Business Story

8/3/2019 Business Story

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Business StoryMr. Britto retried at age of fifty five as teacher of the local school. The managementwanted him to continue for some more time, because he was a man of character andintegrity. But he felt it is time to put an end to the monotonous school life which only

added wealth only in terms of number of ex students. He was well known and respectedin the small town. Everybody liked him for his dedication and sincere commitment towork. He wanted to do something that would keep him busy. Thirty three long years ofteaching left him with no savings, no pension and no worthy experience. He thought of starting a small book shop to keep himself busy and earn some money tosurvive. His family supported the idea as his house was near the school and there wasan old garage in the compound which could be converted to a shop.On 1st October 20XX Mr.Britto somehow raised the initial capital of Rs.50,000 by sellingsome unused household items.The business took off beyond what he expected and generated enough income for himto live a decent life.But now there is only one regret. I should have thought of this earlier, he said.Given below is the list of transactions for the first three months of business as ithappened to be organized into systematic accounts. He wants the income statementand balance sheet at the end of December, 20XX.


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Class XIIAccountancy Project Work

Transactions October, November and December 20XXDate Transactions - October Rs.

Oct 01. Started busienss with Cash 50,000

05. Purchased furniture 500

08. Paid for sign board and book shelves 3,000

10. Bought telephone, computer 5,800

11. Opened bank account and deposited cash 30,000

13. SH Book shop supplied books on credit 15,000

16. Sultan Chand supplied books on credit 25,000

18. Kevin Store supplied on credit stationer items for sale 20,00022. Cash sale, deposited into bank 8,000

24. Supplied on credit to Holy Angels School 20,000

25. Cash sale, deposited into bank 12,000

26. Supplied to Grameen School on credit 18,000

28. Received Cash from Holy Angels School, deposited 15,000

29. Cash Sale, deposited into bank 10,000

30. Paid shop assitant's salary, by cheque 5,000

31. Paid for Telephone 800

31. Withdrew from bank for personal needs 10,000

Transactions - November

Nov 01. Paid to SH Book Shop, chq 15,000

05. Purchased from SH Book Shop 25,000

07. Cash Sale 6,000

11. Supplied Books to Holy Angels 25,000

13. Received from Grameen School, deposited 15,000

15. Sold to Garmin School 20,000

16. Paid to Sulthan Chand, cheque 15,000

19. Issued Cheque to Kevin Store 15,000

20. Cash sale 8,000

24. Paid shop assitant's salary by cheque 5,000

25. Received from Holy Angels, deposited 24,000

26. Paid to SH Books, by cheque 15,000


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30. Paid electricity charges 640


Transactons - December

Dec 01. Purchased from SH Books 20,000

04. Purchased new book shelf 1,800

16. Sultan Chand supplied books on credit 15,000

18. Purchased from Kevin Stores 15,000

22. Cash sale, deposited into bank 14,000

24. Supplied on credit to Holy Angels School 28,000

25. Cash sale, deposited 12,000

26. Supplied to Grameen School on credit 25,000

28. Received from Holy Angels, deposited 30,00029. Cash Sale, deposited into bank 11,000

30. Received from Garmeen School, deposited 20,000

30. Paid shop assitant's salary, by chq 5,000

30. Paid electricity charges 1,100




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Journal Entries - October

Date Particulars Dr. Cr.1 Cash Account Dr. 50,000

To Capital 50,000

2 Furniture Dr 500

To Cash 500

8 Fittings Dr. 3,000

To Cash 3,000

10 Office Equipment Dr. 5,800

To Cash 5,800

11 Bank Account Dr. 30,000

To Cash 30,000

13 Purchases Dr. 15,000

To SH Books 15,000

16 Purchases Dr. 25,000To Sultan Books 25,000


To Kevin Stores 20,000

22 Bank Dr. 8,000

To Sales 8,000

24 Holy Angels Dr. 20,000

To Sales 20,000

25 Bank Dr. 12,000

To Sales 12,000

26 Grameen School 18,000

To Sales 18,000


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28 Bank Dr. 15,000

To Holy Angels 15,000

29 Bank Account Dr, 10,000

To Cash 10,000

30 Salary Dr. 5,000

To Bank 5,000

31 Telephone Dr. 800

To Cash 800

31 Drawings Dr. 10,000

To Bank 10,000

Journal Entries - November

Date Particulars Dr. Cr.

1 SH Books Dr. 15,000

To Bank 15,000


To SH Books 25,000

7 Cash Dr. 6,000

To Sales 6,000

11 Holy Angels Dr. 25,000

To Sales 25,000

13 Bank Dr. 15,000

To Grameen School 15,000

15 Grameen School Dr. 20,000

To Sales 20,000

16 Sultan Books Dr. 15,000

To Bank 15,000

19 Kevin Store Dr. 15,000


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To Bank 15,000

20 Cash Dr. 8,000

To Sales 8,000

24 Salary Dr. 5,000

To Bank 5,000

25 Bank Dr. 24,000

Holy Angels 24,000

26 SH Books Dr. 15,000

To Bank 15,000

30 Telephone Dr. 700To Cash 700

30 Electricity Dr. 640

To Cash 640

30 Drawings Dr. 10,000

To Bank 10,000

Journal Entries - December

Date Particulars Dr. Cr.

Dec 01. Purchases Dr. 20,000

To SH Books 20,000

04. Furniture Dr. 1,800

To Cash 1,800

16. Purchases Dr. 15,000

To Sultan 15,000

18. Purchases Dr. 15,000

To Kevin Stores 15,000

22. Bank Dr. 14,000

To Sales 14,000


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24. Holy Angels Dr. 28,000

To Sales 28,000

25. Bank Dr. 12,000

To Sales 12,000

26. Grameen School Dr. 25,000

To Sales 25,000

28. Bank Dr. 30,000

To Holy Angels 30,000

29. Bank Dr. 11,000

To Sales 11,000

30. Bank Dr. 20,000

To Grameen School 20,000

30. Salary Dr. 5,000

To Bank 5,000

30. Electricity Charges Dr. 1,100

To Cash 1,100

31. Telephone Dr. 600

To Cash 600

31. Drawings Dr. 10,000

To Bank 10,000


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Ledger October, November and December 20XXCash Account Dr Cr. Furniture Fitt Dr Cr

1. To Capital 50,000 5. To Cash 500

5. By furnuiture 500 4. To cash 3,000

8. By furniture fitt 3,000 10. to cash 5,800

10. by Tel and Comp 5,800 31. Balnce c/d 9,300

11. Bank 30,000 9,300 9,300

31. Telephone 800 1. Balance b/d 9,300

31. Balance c/d 9,900 30. by bal c/d 9,300

50,000 50,000 9,300 9,300

1. Balance b/d 9,900 1. to bal b/d 9,3007. Cash Sale 6,000 04. Cash 1,800

20. Sale 8,000 31. balance c/d 11,100

30. Telephone 700 11,100 11,100

30. Electricity charges 640 01. Balance b/d 11,100

30. Balance c/d 22,560 SH Books Dr Cr

23,900 23,900 13. By Purchse 15,000

1. Bal b/d 22,560 31. Blance c/d 15,000

04. Book shelf furn 1,800 15,000 15,000

30. Electricity charges 1,100 1. Balance b/d 15,000

31. Telephone 600 1. Bank 15,000

31. Balance c/d 19,060 5. Purchases 25,000

22,560 22,560 26. Bank 15,000

19,060 30. bal c/d 10,000

Bank Account Dr Cr. 40,000 40,000

11. Cash 30,000 1. by bal b/d 10,000

22. To Cash sale 8,000 01. Purchase 20,000

25. Cash Sale 12,000 31. balance c/d 30,000

28.Holy Angels School 15,000 30,000 30,000

29.Sales 10,000 01. Balance b/d 30,000

30. Salary 5,000 Sultan Dr Cr

31. Drawings 10,000 16. By purchae 25,000

31. Balance c/d 60,000 31. balance c/d 25,000

75,000 75,000 25,000 25,000


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1. Balance b/d 60,000 1. balnce b/d 25,000

1. SH Books 15,000 16. Bank 15,000

13. Grameen School 15,000 30. bal c/d 10,000

16. Sulthan Chand 15,000 25,000 25,000

19. Kevin Store 15,000 1. balance b/d 10,00024. Salary 5,000 16. Purchase 15,000

25. Holy Anges 24,000 31. balance c/d 25,000

26. SH Books 15,000 25,000 25,000

30. Drawings 10,000 01. Balance b/d 25,000

30. balance c/d 24,000 Kevin Store Dr Cr

99,000 99,000 18. Kevin store 20,000

1. To balance b/d 24,000 31. Balnce c/d 20,000

22. Sales 14,000 20,000 20,000

25. Sales 12,000 1. bal b/d 20,00028. Holy Angels 30,000 19. Bank 15,000

29. Sales 11,000 30. bal c/d 5,000

30. Gram Sch 20,000 20,000 20,000

30. Salary 5,000 1. by bal b/d 5,000

31. Drawings 10,000 18. by purchase 15,000

31. Balance c/d 96,000 31. balance c/d 20,000

111,000 111,000 20,000 20,000

1. Bal b/d 96,000 01. Balance b/d 20,000

Capital Dr Cr. Holy Angels School Dr. Cr.1. By Cash 50,000 11. Sales 20,000

31. Balance c/d 50,000 28.Cash 15,000

50,000 50,000 31. bal c/d 5,000

1. Balance b/d 50,000 20,000 20,000

30. to bal c/d 50,000 1. bal b/d 5,000

50,000 50,000 11. Sales 25,000

1. by bal b/d 50,000 25. Bank 24,000

31. To Bal c/d 50,000 30. by bal c/d 6,000

50,000 50,000 30,000 30,000

1. by bal b/d 50,000 1. to bal b/d 6,000

Purchases Dr Cr. 24. Sales 28,000

13. To SH books 15,000 28. bank 30,000

16. Sultan 25,000 31. balance c/d 4,000

18. Kevin 20,000 34,000 34,000


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31. balace c/d 60,000 01. Balance b/d 4,000

1. balance b/d 60,000

5. 25,000 Grameen School Dr. Cr.

30. by bal c/d 85,000 26.Sales 18,000

85,000 85,000 31. bal c/d 18,0001. to bal b/d 85,000 18,000 18,000

1. SH Books 20,000 1. bal b/d 18,000

16. Sultan 15,000 13. Cash 15,000

18. Kevin 15,000 15. Garmin 20,000

135,000 30. by bal c/d 23,000

135,000 135,000 38,000 38,000

135,000 1. to bal b/d 23,000

Sales Dr Cr. 26. Sales 25,000

22. By bank 8,000 30. bank 20,00024. Holy Anges 20,000 31. balance c/d 28,000

25. Bank - cash sale 12,000 48,000 48,000

26. Grameen schoo' 18,000 01. Balance b/d 28,000

29. Bank - cash sale 10,000 Salary Account Dr. Cr.

31. Balance c/d 68,000 30. Cash 5,000

68,000 68,000 31. bal c/d 5,000

1. Balance b/d 68,000 5,000 5,000

7. Cash Sale 6,000 1. bal b/d 5,000

11. Holy Angels 25,000 24. Bank 5,000

15. Garmin 20,000 30. bal c/d 10,000

20. Sale 8,000 10,000 10,000

30. to bal c/d 127,000 1. to bal b/d 10,000

127,000 127,000 30. bank 5,000

01. by bal b/d 127,000 15,000

22. Cash 14,000 15,000 15,000

24. Holy Angels 28,000 15,000

25. Cash Sale 12,000 Telephone Dr. Cr.

26. Grameen Sch 25,000 31. Cash 800

29. Cash sale 11,000 31. bal c/d 800

31. Balance c/d 217,000 800 800

217,000 217,000 1. bal b/d 800

217,000 30. Cash 700

Electricity Charges Dr. Cr 30. by bal c/d 1,500


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30. to cash 640 1,500 1,500

30. by bal c/d 640 1. to bal b/d 1,500

640 640 31. Cash 600

1. To bal b/d 640 31. balance c/d 2,100

30. to cash 1,100 2,100 2,100

31. Balance c/d 1,740 01. Balance b/d 2,100

1,740 1,740 Drawings Dr. Cr.

1. Balance b/d 1,740 31. Cash 10,000

31. bal c/d 10,000

10,000 10,000

1. bal b/d 10,000

30. Drawings 10,000

30. by bal c/d 20,000

20,000 20,000

1. to bal b/d 20,000

31. bank 10,000

30,000

30,000 30,000

1. balance b/d 30,000


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Trial Balance

October November DecemberDetails Dr. Cr. Dr. Cr. Dr. Cr.

Cash 9,900 22,560 19,060

Bank 60,000 24,000 96,000

Capital 50,000 50,000 50,000

Purchases 60,000 85,000 135,000

Sales 68,000 127,000 217,000

Furniture 9,300 9,300 11,100

Supp1. SH book 15,000 10,000 30,000

Supp2. Sultan 25,000 10,000 25,000

Supp 3 Kevin 20,000 5,000 20,000

Cust 1. Holy Angels 5,000 6,000 4,000

Cust 2 Grameen 18,000 23,000 28,000

Salary 5,000 10,000 15,000

Telephone 800 1,500 2,100

Electricity charges 640 1,740

Drawings 10,000 20,000 30,000

178,000 178,000 202,000 202,000 342,000 342,000

Note: Stock on 31.12.20XX was valued at Rs.18,000

Britto Books

Income Statement for the year ended 31 - Dec - 20XX

Expenses Amount Incomes Amount

To Purchases 135,000 By Sales 217,000

To Salary 15,000 By Closing Stock 18,000

To Telephone 2,100

To Electricity Charges 1,740

To Net Profit 81,160

235,000 235,000


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Britto Books

Balance Sheet as on 31 Dec 20XX

Capital and Liabilities Amount Assets Amount

Suppliers (creditors) 75,000 Cash In hand 19,060

Capital 50,000 Cash at Bank 96,000

Add: Net Profit 81,160 Customers (debtors) 32,000

131,160 Cl. Stock 18,000

Less: Drawings 30,000 101,160 Furniture fittings and Equip 11,100

176,160 176,160

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