This problem has been detailed in Chapter 2, Mini Case 2.6.

Required:

Prepare the journal, ledgers, worksheet, and income summary for the period and a balance sheet as of end of the period.

Data from Chapter 2, Mini Case 2.6

Ram decides to start a business in the local vegetable market of Jamshedpur. The case below is completely based on your roll number (Z being the last three digits of your roll number) and day of birth (Y) as per your records.

Example 1: If your roll number is FB15008 and Date of Birth is 22-Jun-1748 then Z will be ‘008’ and Y will be ‘22’.

Example 2: If your roll number is O15023 and Date of Birth is 29-Feb.-2008 then Z will be ‘023’ and Y will be ‘29’.

Example 3: If your roll number is BM15209 and Date of Birth is 01-Dec-1899 then Z will be ‘209’ and Y will be ‘01’.

We provide the transactions and events against each date for Ram Traders below. You are required to prepare the position statement of the organization.

Based on the details above, please prepare the financial position as on 30th June. Please fill the table below.

Date 1-June Date 1-June Date 2-June Date 2-June Date 5-June Date 6-June Ram starts a trading entity (Ram Traders) with capital "2Z + 1" thousand. Ram Traders borrows "Y" thousand from Ms. Champa (interest will be at Simple Interest @ 12% p.a. payable at end of the month). Ram takes on hire a "small shop" (i.e., shed or gmooty) in Sakchi Sabji Bazaar (i.e., local vegetable market) on a daily rent of "Z + 1" per day (pays an adjustable deposit of "Z+1" hundred). Ram purchases "Y+ 1" Bags of Red Chillies (i.e., Lal Mirchi) from Pappu at the rate of "Z + 1" per Kilogram (remember 1 red Chilli bag = 20 Kg). Ram purchases "Z + 1" Bags of Green Chillies (i.e., Hari Mirchi) on Credit from Laddu at the rate of "Y+ 1" per Kilogram (remember 1 green Chilli bag = 40 Kg). Ram spends 1,000 on sales promotion (such as pamphlets, advertisement on local cable network).