Monopoly Game

Financial Accounting
Transactions, Journal, Ledger, Income Statement, Balance Sheet for Praveen & Co. Financial Year Apr 20X1 Mar 20X2 Praveen Bhagat 8/1/2010 Roll No 1011189 Section C

Transactions for Praveen & Co. for the financial year April 20X1 March 20X2
Praveen & Company (Mumbai Site) Transaction Details Description Praveen & Company (Mumbai Site) has taken State Govt. interest free loan for Mumbai Site and House Rs 8500(Site) and 7500(House) 01-Apr-20X1 Started the business with 22000 equity capital from shareholders Took a loan of Rs 10000 from Praveen Bhagat(Creditor) Paid Prepaid Insurance 600 for the House at Mumbai Site 2 4 5 6 8 10-Apr-20X1 30-Apr-20X1 01-May-20X1 10-May-20X1 30-May-20X1 01-Jun-20X1 10 10-Jun-20X1 Bought Chandigarh Site for 2500 in Cash Received Lodging Income for Chandigarh Site in Cash From Nitin Pvt Ltd. Rs 200 Paid Rs1000 as Supervisor Salary Bought Amritsar Site for 3300 in Cash Received Lodging Income from Amritsar Site in Cash From Nitn Pvt Ltd. Rs 300 Paid Rs1000 as Supervisor Salary Bought Kanpur Site for 4000 in Cash Build house at Chandigarh Site paid 3000 in Cash Paid insurance for the Chandigarh site House Rs 600 13 01-Jul-20X1 Paid Rs1000 as Supervisor Salary Paid 300 Interest to Praveen Bhagat(Creditor) By Cash 14 10-Jul-20X1 Received Commission Income 1000 for Community Chest from Piyush Priya and Nitin each 3300 300 1000 4000 3000 600 1000 300 3000 Piyush, Priya & Nitin Nitin 600 2500 200 Nitin 32000 Amount Player

Throw No

Date

17 18

01-Aug-20X1 10-Aug-20X1

Paid Rs1000 as Supervisor Salary Received Lodging Income for Mumbai Site with House 4000 from Priya Pvt Ltd. Paid Rs1000 as Supervisor Salary Bought Motor Boat for 5500 in Cash Received Lodging Income for Amritsar Site in Cash from Nitn Pvt Ltd. Rs 300

1000 4000 Priya

21 23

01-Sep-20X1 20-Sep-20X1

1000 5500 300

Praveen

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25 01-Oct-20X1 Bought Jaipur site for 4000 Received Management Fees 6000 in Cash 29 01-Nov-20X1 Paid Rs1000 as Supervisor Salary Bought Srinagar Site for 5000 in Cash 30 10-Nov-20X1 Paid Commission Expense to Priya Pvt Ltd. 4000 6000 1000 5000 1000

33 36 37

01-Dec-20X1 30-Dec-20X1 01-Jan-20X1

Paid Rs1000 as Supervisor Salary Billed Piyush Pvt Ltd for Lodging at Srinagar Site Rs 550 Paid Rs1000 as Supervisor Salary Paid interest 300 to Praveen Bhagat(Creditor) Bought Air India by borrowing money from Bank interest @12% Rs 10500

1000 550 1000 300 10500

40 41 42 43 45

30-Jan-20X1 01-Feb-20X1 10-Feb-20X1 20-Feb-20X1 1-Mar-20X1

Billed Rs 400 Piyush Pvt Ltd for Lodging at Kanpur site Paid Property Tax Rs 500 Billed Rs 250 to Priya Pvt Ltd for Lodging at Jaipur site Billed Rs 550 to Nitin Pvt Ltd. For Lodging at Srinagar site. Paid Rs1000 as Supervisor Salary Received Management income Rs 6000 Adjustment entries on 31st Mar 20X2

400 500

Piyush

Priya 550 1000 6000 Nitin

31-Mar-20X2 31-Mar-20X2 31-Mar-20X2 31-Mar-20X2 31-Mar-20X2 31-Mar20X2 31-Mar-20X2

Salary for the month of march to be paid to supervisor Rs 1000 Account for the depreciation of Building @ 12% PA Account for the insurance expanse and prepaid insurance Interest to be paid for the money taken from back for purchasing Air India @ 12% PA Interest to be paid for the money taken from Praveen Bhagat @ 12% PA Income tax paid @ 40% Dividend recommended @ 60% PAT

Journal Entries for Praveen & Co. for the financial year April 20X1 Mar 20X2
Journal Entries for Praveen & Company. Amount Date 01 Apr 20X1 Particulars Cash Share Capital (Started the Business with equity capital from shareholders) Cash Loan (Praveen Bhagat) (Took Loan from the Owner of the Company) Prepaid Insurance Cash (Insurance for the House at Mumbai Site) Chandigarh Site Cash (Bought Chandigarh Site) Cash Lodging Income (Received from Nitin Pvt Ltd) Salary Expenses Cash (Paid Salary to Supervisor) Amritsar Site Cash (Bought Amritsar Site) Cash Lodging Income (Rent for Amritsar site from Nitn Pvt Ltd) Salary Expenses Cash (Paid Salary to Supervisor) Kanpur Site Cash (Bought Kanpur Site) Chandigarh House Cash (Build House at Chandigarh Site) Prepaid Insurance Cash (Insurance for the House at Chandigarh site) Salary Expenses Cash (Paid Supervisor Salary) Interest Expense Cash Debit 22000 Credit 22000 10000 10000 600 600 2500 2500 200 200 1000 1000 3300 3300 300 300 1000 1000 4000 4000 3000 3000 600 600 1000 1000 300 300

01 Apr 20X1

1 Apr 20X1

10 Apr 20X1

30-Apr 20X1

1 May 20X1

10 May 20X1

30 May 20X1

1 Jun 20X1

10 Jun 20X1

10 Jun 20X1

10 Jun 20X1

1 Jul 20X1

1 Jul 20X1

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(Interest for the Loan taken from Praveen Bhagat) 10 Jul 20X1 Cash Commission Income (Community Chest income) 1 Aug 20X1 Salary Expenses Cash (Paid Supervisor Salary) 10 Aug 20X1 Cash Lodging Income 1 Sep 20X1 4000 4000 1000 1000 5500 Cash (Bought Motor Boat Firm) 20 Sep 20X1 Cash Lodging Income (Rent Charges for Amritsar Site with House received from Nitin Jaipur Site & Co.) Cash (Bought Jaipur site) Salary Expenses Cash (Paid Supervisor Salary) Interest Expense Cash (Interest for the Loan taken from Praveen Bhagat) Cash Management Fees Income 300 300 4000 4000 1000 1000 300 300 6000 6000 1000 Cash (Paid Supervisor Salary) 1 Nov 20X1 Srinagar Site Cash (Bought Srinagar Site) 10 Nov 20X1 Commission Expense Cash (Commission Expense given to Priya Pvt Ltd) 1 Dec 20X1 Salary Expenses Cash (Paid Supervisor Salary) 30 Dec 20X1 Debtors(Piyush Pvt Ltd) Lodging Income (Billed Piyush Pvt ltd for lodging at Srinagar house) 550 550 1000 1000 1000 1000 5000 5000 1000 5500 1000 1000 3000 3000

(Rent Charges for Mumbai Site with House received from Priya & co.) Salary Expenses
Cash (Paid Supervisor Salary)

1 Sep 20X1

Motor Boat

1 Oct 20X1

1 Oct 20X1

01 Oct 20X1

1 Oct 20X1

(Receive Management Fees for Completing Round)

1 Nov 20X1 Salary Expenses

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1 Jan 20X2 Salary Expenses Cash (Paid Supervisor Salary) 1 Jan 20X2 Interest Expense Cash (Interest for the Loan taken from Praveen Bhagat) 1 Jan 20X2 Cash Bank Loan (Took loan from Bank to purchase Air India) 1 Jan 20X2 Air India Cash (Purchase Air India) 30 Jan 20X2 Debtors(Piyush Pvt Ltd) Lodging Income (Billed Piyush Pvt ltd for lodging at Kanpur site) 1 Feb 20X2 Property Tax Cash (Paid property tax to bank) 1 Feb 20X2 Salary Expenses Cash (Paid Supervisor Salary) 10 Feb 20X2 Debtors(Priya Pvt Ltd) Lodging Income (Billed Priya for lodging at Jaipur Site) 20 Feb 20X2 Debtors(Nitin Pvt Ltd) Lodging Income (Billed Nitin Pvt Ltd for Lodging at Srinagar Site) Salary Expenses Cash (Paid Supervisor Salary) Cash Management Fees Income (Receive Management Fees for Completing Round) Total 550 550 1000 1000 6000 6000 250 250 1000 1000 500 500 400 400 10500 10500 10500 10500 300 300 1000 1000

1 Mar 20X2

1 Mar 20X2

116450

116450

Date 31 Mar 20X2 31 Mar 20X2

Adjusting Journal Entries for Praveen & Company. Particulars Salary Expenses Salary Payable (Salary Paid to Supervisor) Insurance Expense Prepaid Insurance (Insurance for Mumbai House)

Debit 1000

Credit

1000 600 600

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31 Mar 20X2 31 Mar 20X2 31 Mar 20X2 31 Mar 20X2 31 Mar 20X2 Interest Expense Interest Payable (Loan Interest for loan taken from Praveen Bhagat) Interest Expense Interest Payable (Loan from bank for purchasing Air India) Depreciation Expense Accumulated Depreciation, Building (For the Chandigarh House) Depreciation Expense Accumulated Depreciation, Building (Depreciation of Mumbai & Chandigarh House) Insurance Expense Prepaid Insurance (Insurance for Chandigarh House) 300 300 315 315 400 400 900 900 500 500

TOTAL

4015

4015

Closing Entries for Praveen & Co.

Closing Journal Entries for Praveen & Company. Amount
Date 31 Mar 20X2 Lodging Income Commission Income Management fees income Profit & Loss Account (To close the revenue accounts) 31 Mar 20X2 Profit & Loss Account Salary Expense Commission Expense Property Tax Insurance Expense Depreciation Expense (To close the expense accounts) 31 Mar 20X2 Profit & Loss Account Retained Earnings (To Close the profit & loss Account 31 Mar 20X2 Retained Earnings Dividends TOTAL 44587 1487 1487 44587 5650 5650 15900 12000 1000 500 1100 1300 Particulars Debit 6550 3000 12000 21550 Credit

General Ledger for Praveen & Co. for the financial year Apr 20X1 Mar 20X2
CASH A/C 1-Apr 22000 1-Apr 10000 1-Apr 10-Apr 30-Apr 1-May 10-May 30-May 1-Jun 10-Jun 10-Jun 10-Jun 1-Jul 1-Jul 10-Jul 1-Aug 10-Aug 1-Sep 1-Sep 20-Sep 1-Oct 1-Oct 1-Oct 1-Oct 1-Nov 1-Nov 10-Nov 1-Dec 1-Jan 1-Jan 1-Jan 1-Jan 1-Feb 1-Feb 1-Mar 1-Mar Total 6000 62300 9900 10500 10500 500 1000 1000 52400 Total 18800 BUILDING/HOUSE 10-Jun Total 8 3000 3000 Total 1000 COMMISION EXPENSE 10-Nov 1000 6000 5000 1000 1000 1000 1000 300 LAND/SITE 10-Apr 10-May 10-Jun 1-Oct 1-Nov 2500 3300 4000 4000 5000 MANAGEMENT FEES INCOME 1-Oct 1-Mar Total 6000 6000 12000 Total 5500 300 4000 300 1000 4000 1000 5500 PREPAID INSURANCE 1-Apr 10-Jun 31-Mar 31-Mar Total 100 600 600 600 500 MOTOR BOAT 1-Sep 5500 Total 3000 3000 1000 200 1000 3300 300 1000 4000 3000 600 1000 300 SHARE CAPITAL 1-Apr 22000 600 2500 LOAN(PRAVEEN BHAGAT) 1-Apr 10000 Total INTEREST EXP 1-Jul 300 1-Oct 300 1-Jan 31-Mar 31-Mar Total 300 300 315 1515 COMMISION INCOME 10-Jul 3000 10000 Total 22000 SALARY EXPENSE 1-May 1000 1-Jun 1000 1-Jul 1000 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 31-Mar Total 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

PIYUSH & CO(DEBTORS) 30-Dec 550 30-Jan 400

SALARY PAYABLE 31-Mar Total INSURANCE EXPENSE 31-Mar 600 31-Mar 500 Total 1100

1000 1000

Total

950

PRIYA & CO(DEBTORS) 10-Feb 250 Total 250

INTEREST PAYABLE 31-Mar 31-Mar Total

300 315 615

NITIN & CO. 20-Feb 550 Total 550

DEPRECIATION EXP 31-Mar 400 31-Mar 900 Total 1300 ACCU. DEP. BUILDING 31-Mar 400

BANK LOAN 1-Jan 10500 Total

31-Mar

900 1300

Total AIR INDIA 1-Jan Total 10500 10500

10500

LODGING INCOME 30-Apr 30-May 10-Aug 20-Sep 30-Dec 30-Jan 10-Feb 20-Feb Total 200 300 4000 300 550 400 250 550 6550

PROPERTY TAX 1-Feb 500 Total 500

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Trial Balance for Praveen & Co. as on 31 Mar 20X2

Praveen & Company Trial Balance, Mar 31 20X2 PERTICUALRS Cash Building Accumulated Depreciation, Building Prepaid Insurance Motor Boat Air India Piyush & Co(Debtors) Priya & Co(Debtors) Nitin & Co(Debtors) Land/Site Share Capital Loan(Praveen) Bank Loan Development Loan Salary Payable Interest Payable Lodging Income Commission Income Management fees income Salary Expense Interest Expense Commission Expense Property Tax Insurance Expense Depreciation Expense Income Tax Income Tax Payable 12000 1515 1000 500 1100 1300 1654 1654 100 5500 10500 950 250 550 27300 22000 10000 10500 16000 1000 615 6550 3000 12000 DEBIT 9900 10500 1300 CREDIT Adjustment Entries DEBIT CREDIT

Final Trial Balance DEBIT CREDIT

Total

84619

84619 10

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Profit & Loss statement for Praveen & Co.

Income Statement for Praveen & Company. 31st March 20X2
Revenue Lodging Income Commission Income Management fees income Total Revenues Expenses Salary Expense Commission Expense Property Tax Insurance Expense Depreciation Expense Total Expenses Profit Before Interest &Tax Interest Expense Profit before Tax Income Tax Net Profit 12000 1000 500 1100 1300 15900 5650 1515 4135 1654 2481 6550 3000 12000 21550

Statement of retained earnings for Praveen & Co.

Statement of Retained Earnings for the month ended Mar 31, 20X2
Net Profit/Available for Distribution Less Dividends Retained Earnings 2481 1489 992

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Balance sheet for Praveen & Co. for the financial year Apr 20X1 Mar 20X2
Balance Sheet for Praveen & Co. as on 31st Mar 20X2 As at 31st March, 20X2

Schedule Sources of Funds Shareholders Fund Shareholder's funds Capital Reserves and Surplus Loan Funds Secured Loans Unsecured Loans 1 2

22000 2481 24481 36500

60981 Application of Funds Fixed Assets Gross Block Depreciation and Impairment loss Net block 53800 -1300 52500 52500 Current Assets, Loans and Advances Sundry Debtors Cash & Bank Balance Other Current Assets Loans & Advances 5 6 7 1750 9900 100 11750

Less Current Liabilities & Provisions Liabilities Provisions 8 9 1615 1654 3269 Net Assets 60981

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Schedule to the balance sheet

1 Share Capital Particulars Issued, subscribed & paid up Share Capital: Equity Share Capital:2,200 shares of Rs 10 each Total 2 Retained Earnings Particulars Total Retained Earnings after distributing Dividends Total 3 Unsecured Loans Particulars 12% Bank Loan 12% Loan from Praveen Bhagat Interest free Development Loan-State Government Total
4. Net Assets

Amt(Rs)

22,000 22,000

Amt(Rs) 992 992

Amt(Rs) 10,500 10,000 16,000 36,500

(A)
Particulars Gross Block Accumulated Depreciation Net Block Value as on Value as on Value as Value as on As on 1st As on 31st 1st Additions Deductions 31st Additions Deductions on 1st Additions Deductions 31st April,20X2 March,20x2 April,20x1 March,20x2 April,20x1 March,20x2 27,300 10,500 27,300 10,500 1,300 1,300 27,300 10,500 1,300 Total 37,800 37,800 1,300 1,300 37,800 36,500 27,300 9,200

Land Building

(B) (C)

Motor Boat Air India

5500 10500

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14 5 Sundry Debtors Particulars Nitin & Company Piyush & Company Priya & Company Total 6 Cash & Bank Balances Particulars Cash in Hand Total Amt(Rs) 9,900 9,900 Amt(Rs) 550 950 250 1,750

7. Loan and Advances Particulars Prepaid Insurance Total Liabilities 8 Particulars Salary Payable Interest Payable Total Amt(Rs) 1,000 615 1,615 Amt(Rs) 100 100

Provisions 9 Particulars Income Tax Total Amt(Rs) 1,654 1,654

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Notes to Accounts

1. Assets are taken at cost. 2. Depreciation is calculated using straight line method. 3. Information about the acquired sites: Land Mumbai Land Chandigarh Land 2500 Amritsar Land Kanpur Land Jaipur Land Srinagar 4.Other Assets Motor Boat Air India Price 8500 2500 3300 4000 Building Mumbai House Chandigarh House Price 6000 4000

5500 10500

5. Provision for tax has been made as per the rule.

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