Assignment 1: Accounting and Financial Analysis PDF

Assignment 1: Accounting and Financial Analysis Q1. Mr. Agarwala started Agarwala Electricals shop with a capital of Rs. 1,00,000. As this amount is insufficient, he has borrowed Rs. 50,000 from Syndicate Bank. As he is not Keeping good health, he appointed Mr. Ram Naresh to look after the business...

Assignment 1: Accounting and Financial Analysis Q1. Mr. Agarwala started Agarwala Electricals shop with a capital of Rs. 1,00,000. As this amount is insufficient, he has borrowed Rs. 50,000 from Syndicate Bank. As he is not Keeping good health, he appointed Mr. Ram Naresh to look after the business on a salary of Rs. 1,000 per month. Pavan Electrical Works supplies electrical goods to Agarwala Electricals on credit. Mr. Mirchand, Mr. Sabir and Mr. Wilson are the other persons working in Agarwala Electricals, as salesmen. Mr. Agarwala wants to expand the business. But he is not in a position to invest more money. Mr. Shyamlal wants to join as a partner. From this, identify the names of the following parties and explain their relationship with MR Agarwala. Q2. Record the following transactions of the Moon and Star in Form of Accounting Equation. Jan 1 Assets: Cash in hand 500 Cash in bank 8,000, Stock of goods 4,000, Plant and Machinery 20,000, Furniture and fixtures 5,000, Mars & Co. 2,000, Venus & Co. 3,000 Liabilities: Loan from Geeta & Co. 10,000, Amount due to Brijesh & Co. 5,000. Jan. 2 Bought goods on credit from Shikha & Co. 2,000 Jan. 3 Sold goods for cash to K.K. & Co. 500 Jan. 4 Sold goods to Mars & Co. on credit 1,000 Jan. 5 Received from Mars & Co. in full settlement of amount due on January 1 1,900 Jan. 6 Payment made to Brijesh & Co. by cheque (Brijesh and Co. allowed discount of Rs. 50) 4,950 Jan. 10 Old furniture sold for caslj (book value Rs. 300) 350 Jan. 12 Bought goods for cash 1,000 Jan. 13 Received cheque from Venus & Co. deposited in bank 3,000 y Jan. 15 Paid for repairs to machinery 200 Jan. 16 Bought goods from Brijesh & Co. on credit 2,000 Paid cartage on these goods 100 Jan. 18 Received cheque from Mars & Co., deposited in bank (discount allowed to them Rs. 50) 950 Jan. 19 Paid cheque to Brijesh and Co. 2,000 Jan. 20 Bank intimates that cheque received from Mars & Co. 950 1 ^ has been returned unpaid Jan. 20 Sold goods for cash to Deol & Co. 2,000 Jan. 22 Cash deposited in bank 1,000 Jan. 23 Paid municipal taxes in cash 100 Jan. 25 Borrowed from Easy Investment Co., for erecting own premises (amount deposited with bank) 20,000 Jan. 28 Paid for advertisements 500 Jan. 30 Sold old newspapers 50 Jan. 31 Paid rent by cheque 500 Paid salaries for the month 1,000 Drawn by Moon and Star out of bank for personal use 50