Gaurav Lal and Kanika Raj, both MBAs from the renowned FSM School of Management and having worked in the industry in various capacities for over ten years, called it a day and decided to be on their own. They enter into a partnership on 1st July 2006 and form a firm Kanika and Gaurav Management Consultants. They agree to bring in capital of Rs. Six Lacs in the ratio of Gaurav 3 and Kanika 2, maintain their personal drawings in that ratio and share the profits or losses of the firm also in the same proportion. They hire a furnished office at G-40, Fort, Mumbai @ Rs. 17,000 P.M. inclusive of electricity. They also get two telephones already connected for which they have to make monthly payment to the owner. They also appoint one financial analyst Pawan Sharma; research associate Neena Kapoor and peon Satish Rane. The following are the details of the transactions entered into by the firm during the month of July.
|
Date |
|
Transactions |
Amount |
|
July 1 |
1 |
Gaurav Lal brings his capital in cash. |
3,60,000 |
|
July 1 |
2 |
Kanika Raj brings her capital in cash. |
2,40,030 |
|
July 1 |
3 |
Opened a current account with ICICI Bank. |
5,75,000 |
|
July 2 |
4 |
Purchased an Esteem car. Paid cheque for Rs. 1, 40,000. Balance Rs. 3, 60,000 term loan from ICICI Bank, against security of car, repayable over 3 years In equal monthly installments with interest 012% PA payable monthly on reducing balance method. First installment to tall due on August 1. |
5,03,030 |
|
July 4 |
5 |
Purchased 4 computers with printers. Issued cheque. |
1,80,030 |
|
July 5 |
6 |
Subscribed to Capitaline plus database for a year. Issued cheque. |
1,25,000 |
|
July 5 |
7 |
Subscribed to five business magazines for a year. Issued cheque to the subscription agency. |
3.500 |
|
July 20 |
8 |
Raised bill for consulting fee on Moth Ventures ltd. |
75,000 |
|
July 27 |
9 |
Received cheque from Modi Ventures ltd. and deposited in ICICI Bank C/A. |
75,030 |
|
July 29 |
10 |
Raised bill for consulting fee on Bata and Tata Ltd. |
1,15,000 |
|
July 30 |
11 |
Paid cheque to the office owner towards telephones” use for the month. |
4.500 |
|
July 30 |
12 |
Salary paid to Pavan Sharma for the month by cheque. |
25,000 |
|
July 30 |
13 |
Salary paid to Neena Kapoor for the month by cheque. |
10,000 |
|
July 30 |
14 |
Salary paid to Satish Rane for the month in cash. |
4,000 |
|
July 30 |
15 |
Issued cheque for office rent for the month. |
17.000 |
|
July 30 |
16 |
Paid by cheque to petrol pump for the month”s consumption of Esteem. |
5,000 |
|
July 30 |
17 |
Cheque Issued to Gaurav for personal use. |
6,000 |
|
July 31 |
18 |
Cheque issued to Kanika for personal use. |
4,000 |
Required:
Analyses the above transactions with reference to rules of recording and dual aspect concept.
Record all the transactions in the journal of Kanika and Gaurav Management Consultants.