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Mr.arvind has good amount of savings he wanted to start a business which can give him a good margin of profit. He plan to start an auto agency to puchase and sales scooters and motor cycle. According to his calculation there was a capital requirement of 7500000 rs. So he decided to take a loan of 6000000 on the security of his own house. The loan was sentioned on 31 st March 2011. After the sanctioning of loan. He puchases 1. Office premises 3750000 2. Office equipment 360000 3. Furniture and fixtures 390000 . Mr. Arvind did all the transaction through bank all the sales were made on cash basis, and cash was deposited into bank all the expenses were made through cheques purchase made of March 2012 was done on credit basis following were the transactions during the year 1. cash purchase 3720000 2. credit puchase 300000 3. sales all on cash 4770000 4. water and electricity expenses 39000 5. mobile courier expenses 17700 6. salaries 190000 7. sales from moter expenses 18000 8. trade expenses 9000 9. miscellaneous expenses 52500 10. printing and stationary 6000 . some expenses for the month of mar 2012 were not paid. they were as follows :- water and electricity 2400, salaries 20100, mobile expenses 900. on March 31 st 2012 the stock in hand was rs. 870000. the stock for unused stationary was rs. 1500. 2% depreciation charged on office premises and 10% depreciation on office equipment and furniture. judge the short term solvency and efficiency to know overall profitability of auto business and to analysis the financial statements of this business.prepare journal entries and post then in ledger, prepare trial balance, trading p/l a/c and balance sheet from information
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