Liabilities Capital (Less : Drawings) Retained Earnings Current Liabilities Accrued Commission Advance rent received Accounts payable

for PRT

Dec 1999 4,800,000 183,500

Balance Sheet as on 31st Dec 2000 Dec 2000 4,700,000 455,340

170 60,000

3,800 5,000 60,000

Total

5,043,670

5,224,140

Balance Sheet as on 31st Dec 2000 Assets Fixed Assets Land Building (Less) Accumulated Depreciation on Building Current Assets Accounts Receivable Cash in Bank Pugree receivable Prepaid Insurance Premium Prepaid Commission (on Adv rent received) Deferred Exterior painting expenses Deferred Interior painting expenses Total

Dec 1999 1,200,000 3,600,000 1,200,000 2,520,000

Dec 2000 1,200,000 2,400,000

4,250 1,289,420

22,500 7,500 5,043,670

74,500 1,474,440 25,000 10,000 200 22,500 17,500 5,224,140

20 flats + 8 shops Dec 1990 acquisition cost by Mr. Acharya Building (Life = 30 years) life remaining = 20 year (purchase date being 30 dec 1990) Depreciation Accumulated Depreciation for 10 years

Rs. 4,800,000 Rs. 3,600,000 =(3600000 / 30)*20 120,000 1,200,000

2,400,000

25,200,000

Expenses Non Operating Expenses Rent Free Accommodation Insurance Premium (Life = 2 Years) Depreciation on Building Property Rates and Taxes Operating Expenses Building Repairs Painting Internal (Last yr's 9 months + this yr's Oct-Dec) External (Last yr's 9 months + this yr's Oct-Dec) Commission Expenses (Rent 609000 @ 4%) Printing & Stationery Postage and Telegram Bank Charges Profit Total

Income Statement for 31s Dec 2000 Amount (Rs.) 36,000 10,000 120,000 240,000

1,770 30,000 10,000

40,000 24,360 250 500 280 455,340 928,500

atement for 31s Dec 2000 Income Opening Profit Pugree Received Receivable Rental Income Accounts Receivable Rent Received

Amount (Rs.) 183,500 75,000 25000 74,500 570,500

Painting done in Oct 2000 Interior (done every 2 yrs) Exterior (done every year) Deferred Exterior Painting Deferred Interior Painting

100,000

645,000

Total

928,500

Previous Year's payment Jan-00 Apr-00 Jul-00 20000 2,500 2500 2500 30000 7,500 7500 7500 Rs. 3,600,000 Paid for next 3 months =(3600000 / 30)*20 =7500*3 2400000 Paid for next 7 months =2500*7 120000 1200000

Painted in Oct-00 2500 7500

This year's deferred painting Jan-01 Apr-01 2500 2500 7500 7500

r's deferred painting 1-Jul 2500 7500

Receipts Opening Bank Balance Previous year's rent Pugree received Current Year's Rent Advance Rent

Total

Cash Statement on 31st Dec 2000 Payment 1,289,420 Painting Bills 4,250 Interior 75,000 Exterior 534500 Building Repairs 5,000 Commission to Mr. Pandit Insurance Paid Printing & Stationery Postage and Telegram Bank Charges Property Rates and Taxes Drawings Closing Balance 1,908,170 Total

20000 30000

50,000 1,770 20,930 20,000 250 500 280 240,000 100,000 1,474,440 1,908,170

Commission Calculation Total Rent receivable (less) Mr. Pandit's flat Actual Rent receivable Commission @ 4% Commission Paid Commission on Advance rent Rent received but commission not paid Rent Outstanding but commission due Accrued Commission (to be paid) Accrued Commission to be paid in 1999

=53750*12 =3000*12

645,000 36,000 609,000 24,360 20,930 200 820 2,980 3,800 170

=5000*4% =20500*4% =74500*4%

=4250*4%