Mittal \& Co Pvt Ltd. ('MCPL'), registered on April 5, 2013 as a private limited company, is primarily engaged in fabrication and sale of steel products. For the transactions undertaken during the first quarter of its operation, you are required to pass journal entries.

Transactions 1. April 5. MCPL commenced its operations with the capital contribution of ₹50 lakh each by the two shareholders Jay Mittal and Ajay Mittal.

2. April 7. MCPL entered into a lease agreement with DLF Ltd for office building and factory space for a monthly rent of ₹1 lakh payable on 25th of each month. The lease agreement is for the period of 10 years and the value of building and factory provided on lease is estimated at ₹1 crore.

3. April 8. MCPL entered into contract with the Advanced Machine Suppliers ('AMS') for purchase and installation of machine. The machine along with installation costed ₹25 lakh, ₹10 lakh payable as down payment and balance is payable at installation. Quarterly Maintenance contract is also entered into with AMS for ₹ 10,000 per quarter payable at the end of each quarter.

4. April 10. The machinery was installed at the factory premises and 20 permanent labours and 15 casual labours were employed and trained by Ajay Mittal. Time spent by Ajay on training was 20 hours.

5. April 10-15. MCPL purchased raw material worth ₹ 1 crore from Mittal Steel. ₹ 25 lakh were paid as down payment and balance on delivery i.e., April 20.

6. April 25. MCPL bid for and secured a ₹ 2 crore export sales order for fabricated utensils to a Middle East Company; \(50 \%\) of the contract value will be paid in advance and balance on delivery of goods. The delivery is due on June 15 .

7. Per month salary of Jay and Ajay amounted to ₹50,000 each on 30th of each month. The wages paid to workers for every month amounted to ₹5 lakh.

8. Sales, general and administrative expenses for every month amounted to ₹1 lakh.
9. May 5. MCPL bagged another sales order of ₹ 50 lakh from Kali Limited on credit. The delivery of goods were made on May 25.
10. May 10-May 16. Jay Mittal became seiously ill and was not able to attend the business actively. Ajay was also not able to concentrate on business either. The business of MCPL of adversely affected and during the period lost a potential sales order of ₹ 1 crore to Khanna \& sons.
11. May 20. Additional raw material was purchased on credit from Tata Steels for ₹ 50 lakh 12. May 25. MCPL obtained a loan of \(₹ 2\) crore from SIDBI at the annual interest rate of 8 percent. The interest is payable quarterly with the first payment due on June 30.
13. May \(25-28\). MCPL sold goods worth ₹50 lakh to local distributors for cash 14. May 28-30. usual expenses were paid off in cash 15. June 4. Kali Limited was declared insolvent and only 50 percent of the sales proceeds were recovered from Kali.
16. June 4. MCPL sold goods worth ₹ 1 crore to the local distributors on credit. MCPL expects that 2 per cent of the sales proceeds will not be recovered.
17. June 8. A small fire at factory damaged the machinery and stock. The damage caused by fire is estimated at ₹30 lakh. Machinery worth ₹5 lakh was scrapped and sold for ₹20,000 and additional \(₹ 10,000\) was incurred to restore the operations. The insurance claim of ₹20 lakh was paid on June 20.
18. June 25. MCPL was unable to fulfil order on time and, therefore, paid 1 percent of the contract value as damages to Middle-East Company.