JM SOLUTION Ms. Jasleen Kaur and Mandeep kaur are very good friends. They have interested in computers. After getting a post graduation degree in computers. They want to start there in own software solution company as their idle bill gates. They got each Rs. 300000 from their parents to start their business, For their they search for a blue clip location to set up an office for client contact. They got it in a posh area monthly rent of Rs. 10000 per month along with earnest money of Rs. 10000. They set the partnership business in the name of JM solutions. They spent Rs 300000 on installing computers, printers, tele system for the business. They got team of 4 engineers of an amount package of Rs.25000 each. They deposit their money in a bank account opened under firm's name. They decided that all receipts and payment are made through cheques They got order from different clients for software development during the year as follows:- 1. S.B.I BANK 600000 2. HARPREET TOOLS 400000 3. ARVINDER SALES CROP 1000000 4. JASMEEN SOLUTION 300000 5. RAVNEET ENTERPRISE 4000000 6. SHUFLI SALES CROP. 100000 7. MISCELLANEOUS 400000 All the miscellaneous client paid in cash where as front other 80% of the amount due was received but one of the client Ravneet enterprise got bank receipts only 40% of the total amount could be recovered from gain. So they have work in progress of Rs. 100000. They also have to help front other software consultancy firms for which debtor. At the end of 31" march 2008 they have work in progress of Rs. 100000. They also have to get help front other software consultancy firms which deals are as under: Heobo solutions 80000 Simran software 100000 Prerna & co. 80000 Sukhpreet solution 10000 80% of the amount due was paid in times and balances to be later on. The details of their expenses are as follow:- Electricity 140000 Office Stationary 60000 Telephone 20000 Advertisement 10000 Hardware 20000 Office boy salaries 50000 Transportation charge 30000 Uniform expenses 40000 Medical expenses 20000 Staff insurance 10000 Employees provident fund 10000 Depreciation 60000 Taxes 30000 You are required to prepare financial statements for the year ending 31st March 2014. With journal entries, ledger and trial balance, profit and loss account and balance sheet
