delhi chemicals company(joint stock private rs ltd) in cr.

1. Issue of shares of 100 lacs of Rs. 10 each 2. Raising 12% Term Loan (5 equal annual installments commencing on 31/03/2014 3. working capital loan @10 p.a. 4. Machinery construction of buliding purchase of land equipment patent rights software license
5. Purchase of raw material 10,00,000 tons @ Rs. 16000 per ton excluding excise duty and VAT

1000 Interest 500 500 60 50 depreciation 800 38 100 2 100 100 9.5 200 20 50 10 1600 320 80 0.5 0.05 300 100 20 30 27 100 1 3 30 200 2 100

excise duty vat transportation insurance 6. employee benefits fringe benefits pf& pension fund tds deposit tds 7. factory expense 8. audit fees legal expense repairs and maintenance marketing and sales promotion insurance office expenses 9. Manufacturing waste 20% . Output 6,40,000 tons

10. Unsold goods 10000 tons cost of unsold goods comprises of proportionate cost of raw material ,

RM PROPORTIONATE EB PROPORTIONATE FE PROPORTINATE unsold goods

1280 210 100 1590 24.84375

14

15

16

17

18

19

20

21

22

JOURNAL ENTRY
S.NO. ACCOUNT 1 Bank A/c Dr. EQUITY SHARE CAPITAL A/C 2 BANK A/c Dr. TERM LOAN ACCOUNT 3 BANK CAPITAL LOAN

MACHINERY BANK TRADE PAYABLE

5 BUILDING BANK 6 LAND BANK 7 EQUIPMENT BANK 8 PATENT RIGHT BANK 9 SOFTWARE BANK

10 PURCHASE(RAW MATERIAL) BANK CR TRADE PAYABLES 11 PAYMENT OF TRADE PAYABLES BANK CR 12 EMPLOYEE BENEFITS SALARIES &WAGES OTHER FRINGE PF &PrF BANK a/c cr. TDS payable cr. 13 TDS PAYABLE DR. BANK A/C cr. 14 FACTORY EXPENSES BANK

15 MISCELLANEOUS EXPENSES EXPENSES(AUDIT,REPAIR,LEGAL,MARKETING,INS BANK CR TRADE PAYABLE(REPAIR&MAINTENANCE) 16 STOCK ON HOLD CLOSING STOCK OF FINISHED GOODS CHANGE IN INVENTORY 17 CLOSING STOCK OF RAW MATERIAL PURCHASE

18 SALES ON GOODS(6.3 LACS)

BANK DR TRADE RECEIVABLES 19 COLLECTION FROM Trade receivables cr. BANK a/c dr. 20 Doubtful debts provision for doubtful debt 21 ADVANCE TAX BANK CR

22 depreciation accumulated depreciation

URNAL ENTRY
TYPE OF ACCOUNT INCREASE IN ASSET EQUITY INCREASE INCREASE IN ASSET INCREASE IN LIABILITY INCREASE IN ASSET INCREASE IN LIABILITY 500 Dr. 1000

Account code Cr. 1 1000 2 1 3 1 4

500 500 500

INCREASE IN ASSET ASSET DECREASE INCREASE IN LIABILITY INCREASE IN ASSET DECREASE IN ASSET INCREASE IN ASSET DECREASE IN ASSET INCREASE IN ASSET DECREASE IN ASSET INCREASE IN ASSET DECREASE IN ASSET INCREASE IN ASSET DECREASE IN ASSET

800 600 200 100 100 100 100 100 100 200 200 50 50

5 1 6 7 1 8 1 9 1 10 1 11 1

EXPENSE DECREASE IN ASSET INCREASE IN LIABILITY SETTLEMENT IN LIABILITY DECREASE IN ASSET

1600.55 320.55 1280 1152 1152

12 1 6 6 1 13

EXPENSE EXPENSE EXPENSE DECREASE IN ASSET INCREASE IN LIABILITY SETTLEMENT IN LIABILITY DECREASE IN ASSET EXPENSE DECREASE IN ASSET EXPENSE DECREASE IN ASSET INCREASE IN LIABILITY

300 100 20 390 30 27 27 100 100 336 331 5 1 14 14 1 15 1 16 1 6

INCREASE IN ASSET DEC IN EXPENSE asset decrease in expense

24.84375 24.84375 320 320

17 26 18 12

INCOME

2646

19

INCREASE IN ASSET INCREASE IN ASSET ADJUSTMENT TO ASSET INCREASE IN ASSET EXPENSE ADJUSTMENT TO ASSET INCREASE IN ASSET DECREASE IN ASSET

1323 1323 1058.4 1058.4 5.292 5.292 300 300

1 20 20 1 21 22 23 1

expense equity adjustment

79.5 79.5

24 25

11419.58575 11419.58575

unt code