accountancy class 12 project
Comprehensive Project - Raghu Steel Pipes
Project Problem
Raghu Prasad Yadav, 24 years, was a resident of Rampur Village in Bihar. He belonged to a middle class family and did his B.Com (Hons.) from Bihar University, Patna. He wanted to be a successful businessman but was unable to decide the line of business which would best suit him.
One day, while talking to his friend, he got convinced about starting the business and started a steel pipes and angles business at a backward area of Bihar on 1 st April, 2005. He invested cash of of
70,000 in the business and opened a current a/c with the bank for
20,000. He took a loan
2,00,000 for five years from ICICI Bank @ 10% p.a. against security of his property. He
purchased iron rods from Ram & Co. worth
10,000 and small piece of land for
50,000 on credit, machinery
40,000, furniture
1,00,000 on the same date. Raghu withdrew goods worth
4,000 for domestic use. He hired a worker on April 1 itself and agreed to pay him wages of
5,000 p.m. On April 12, Raghu returned goods worth
2,000 to Ram and Co. being defective.
On May 30, Raghu sold steel pipes to Gupta & Co. worth steel angle worth
55,000 on credit. On June 30, he sold
1,00,000 to Kumar & Co. who settled his payment as 25% in cash, 15%
through a cheque and drew a bill for balance for three months. However on July 4, Gupta & Co. discovered some defects in the pipes and returned the same worth
Raghu paid office and administrative expenses of
2,000 and selling and distribution expenses of
5,000 on July 6 and advertisement expenses of purchased iron rods worth
10,000.
10,000 on August 3. On September 4, he
25,000 from Khanna and Co. who drew a bill for 6 months on Raghu
which he duly accepted. Due to a theft on October 9, goods worth insurance company paid a claim of
On December 16, he received
10,000 were lost for which
5,000. On October 17, Raghu paid Ram and Co.
30,000.
10,000 from Gupta
Project Problem
Raghu Prasad Yadav, 24 years, was a resident of Rampur Village in Bihar. He belonged to a middle class family and did his B.Com (Hons.) from Bihar University, Patna. He wanted to be a successful businessman but was unable to decide the line of business which would best suit him.
One day, while talking to his friend, he got convinced about starting the business and started a steel pipes and angles business at a backward area of Bihar on 1 st April, 2005. He invested cash of of
70,000 in the business and opened a current a/c with the bank for
20,000. He took a loan
2,00,000 for five years from ICICI Bank @ 10% p.a. against security of his property. He
purchased iron rods from Ram & Co. worth
10,000 and small piece of land for
50,000 on credit, machinery
40,000, furniture
1,00,000 on the same date. Raghu withdrew goods worth
4,000 for domestic use. He hired a worker on April 1 itself and agreed to pay him wages of
5,000 p.m. On April 12, Raghu returned goods worth
2,000 to Ram and Co. being defective.
On May 30, Raghu sold steel pipes to Gupta & Co. worth steel angle worth
55,000 on credit. On June 30, he sold
1,00,000 to Kumar & Co. who settled his payment as 25% in cash, 15%
through a cheque and drew a bill for balance for three months. However on July 4, Gupta & Co. discovered some defects in the pipes and returned the same worth
Raghu paid office and administrative expenses of
2,000 and selling and distribution expenses of
5,000 on July 6 and advertisement expenses of purchased iron rods worth
10,000.
10,000 on August 3. On September 4, he
25,000 from Khanna and Co. who drew a bill for 6 months on Raghu
which he duly accepted. Due to a theft on October 9, goods worth insurance company paid a claim of
On December 16, he received
10,000 were lost for which
5,000. On October 17, Raghu paid Ram and Co.
30,000.
10,000 from Gupta