Accountancy Project On Bajaj

COMPREHENSIVE PROJECT

RAMA’S CYBER CAFE

Mr Rama decided to commerce a computer business in a building which was constrained at a cost of Rs 1,00,000 and contributed a further sum of Rs 2,50,000. He wanted to start with 10 computers. He went on to HDFC bank and put up his proposal and managed to get a loan to the extend of his 75 per cent of the cost of the computer Rs 4,00,000 with pointers it was agreed that the loan was rapid in three annual instalments as follows

• At the end of first year = Rs 1,00,000 + 30000 interest
• At the end of 2^nd year = Rs 1,00,000 + 20000 interest
• At the end of the 3^rd year = Rs 1,10,000 (Rs 1,00,000+10000 interest)

He started business on 1^st Apr 2019 on the same date he deposited Rs 2,40,000 in the bank. He gave Rs 1,00,000 to the computer company as 25 % of the values of computer purchase & Rs 3,00,000 out of bank loan availed. He deposited Rs 10000 0 with VENL for the telephone. Internet connection he got the computer code finished by paying Rs 25,000 and also spent Rs 4520 in getting pamphlets printed and distributed. All payments were to be made by cheques and all the receipts were in each to deposited in the bank on the same day. At the end of the year, their results showed the following.

• Revenue from fees from students of computer class                                 2,80,000
• Revenue an account of internet facility                                                      1,20,000
• Revenue from sale of computer stationary                                                 98,000
• Purchase of computer stationary like floppy disk CDs etc.                       55,000
• Telephone chargers                                                                                     34,000           
• Petty expenses                                                                                             12,000
• Entertainment expenses                                                                               10,000
• Miscellaneous expenses                                                                               10,000
• Wages paid to servant                                                                                  6,000

He withdraws 61,000 by cheque each month for their personal expenses. He paid the bank loan regularly.

REQUIRED

• Journalise the above transactions. But then into the edge and prepare trial balance
• Prepare profit loss and balance sheet after taking into account that electricity charges of Rs 124,000 yet to be paid.
• Charge depreciation at the rate of 25% on computers 10% on furniture and 5% on building
• Calculate profitability ratio and comment on the efficiency of the busines if the net profit ratio and cross profit in similar type of business concerns are 20% and 50% respectively.
• Mr Rama wants to expand his business. He approached that bank for further loan. Compose the ratio that the banker will require before granting the loan. Current ratio. Quick ratio and debt equity ratio.

JOURNAL ENTRY

LEDGER POSTING

CASH A/C

BUILDING   

CAPITAL A/C  

COMPUTER A/C

BANK A/C

  BANK LOAN A/C         

ELECTRICITY BOARD A/C

VSNL A/C

SALES A/C

PURCHASE A/C

FURNITURE A/C

ADVERTISEMENT A/C

TELEPHONE CHARGES A/C

INTEREST OF BANK LOAN A/C

ENTERTAINMENT EXPENSES A/C

 DRAWING A/C

PETTY EXPENSE

 WAGES A/C

DEPRECIATION

MISCELLANEOUS EXPENSES A/C

ELECTRICITY CHARGES  A/C

 ELECTRICITY PAYABLE A/C

TRIAL BALANCE

TRIAL BALANCE AS OF SLOT MAR, 2020

TRADING AND PROFIT AND LOSS

TRADING AND PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31MAR 2020

BALANCE SHEET

BALANCE SHEET AS OF 31 MAR 2020

CALCULATION OF PROFITABILITY RATIO

• Gross profit Ratio
  Gross profit/Net sake x100 =  4,37,000/4,98,000 x 100 = 87.75%
  
• Net profit Ratio
  Net profit/Net sake x 100 =  1,05,000/4,98,000 x 100 = 21.08%      
  Note:  efficiency of business is quite satisfactory because net profit ratio and gross profit ratio are higher than the normal rate for similar type pf business organisation       

Note:  efficiency of business is quite satisfactory because net profit ratio and gross profit ratio are higher than the normal rate for a similar type of business organisation

• Granting bank loan

Bank will see the following ratios before granting a loan :

• Current Ratio : current Asset/Current liabilities
  = cash + Bank/ Electricity payable + bank loan to repaid next year
  = 10,000+8,600/1,00,000 + 1,24,000 =1,88,500  = 84%
• Quick current ratio will be same on current ratio because there is neither closing stock nor prepaid expenses
• Debt equity Ratio
  Debt/Equity =   1,00,000/3,83,000   = 0.26:1

The bank therefore should grant the loan as the ratio are favourable.

SPECIFIC PROJECT

BAJAJ AUTO LTD

Bajaj Auto is a global two-wheeler and three-wheeler Indian manufacturing company. It manufacturing and sells motorcycles, scooter, and auto-rickshaws Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. it is based in Pune, Mumbai with plants in Chakan (Pune), Waliej (near Aurangabad ) and the patter is Uttaranchal. Bajaj Auto is the 6^th largest manufacturer of motorcycles in the world and 2^nd largest in India. It is the world’s largest three-wheeler is manufactured.

NET PROFIT RATIO

Net profit = profit/sales  x 100   

RETURN ON INVESTMENT

Return on Investment = profit/Capital employed   x 100                                  

SEGMENT PROFIT

Percentage = segment profit/Total profit x 100

Degree = percentage/100 x 360

SEGMENT PROFIT

Percentage = segment profit/Total profit x 100
Degree = percentage/100 x 360

SEGMENT REVENUE

Percentage = segment profit/Total profit x 100
Degree= percentage/100 x 360

CAPITAL EMPLOYED

Percentage = segment profit/Total profit  x 100
Degree = percentage/100 x 360

COMBINED ANALYSIS

OPERATING ACTIVITIES

MEANING
Operating activities are principal revenue-generating activities of an enterprise other than increasing financing activities. The amount of cash flow arising from operating is a key indicator of the eaten to which the operations of the enterprise have generated cash i.e. whether the cash. Generated is adequate to maintain operating activity of the enterprise pay dividend pay loan etc.
INFLOWS
Cash sales, cash received from debtors

FINANCING ACTIVITIES

Financing activities are the activities that result in a change in the size & composition of finance of the enterprise. The amount of cash flow arising from financing activities to useful & associating crime so future cash flows by procurement of funds to the enterprise

INFLOWS
The issue of future, issue of share

Comparative statement of operating activities for the year ended

31^st March 2018-19

Comparative statement of financing activities for the year ended

31 March 2018-19

Comparative statement of Investment activities for the year ended

2018-19

ACKNOWLEDGEMENT

I would like to give my heartfelt thanks to Mr Oevender Kumar Mourya My accountancy teacher who always gave valuable suggestions and guidance for the completion of this project. He helps to understand and remember the important details of this project. My project has been succeeded only because of his guidance. I would like to thank Mr. (principal of our school) for his capital support in the project. And I would also like to thank all those people who directly or indirectly support the completion of the project

Date  
Signature
Roll number :
Place: Delhi     

CERTIFICATE

This is herby to certify that, the original and genuine investigation work has been carried out to investigate the subject matter and the related data collection and investigation has been completed and solely sincerely and satisfactorily done by. Rakesh Rathore a student of class 12 under Roll No. for the academic session 2019-20Regarding the investigatory project entitled.AccountancyFor physics department under the direct supervision of the undersigned as per the requirement for the board examination.

Internal Examiner                             Principle                                         External