I wil need a trial balance (both Dr and Cr are same)

balance sheet

income statement

and 3 ratios with analyze

Transactions and journals entries

1.Xyz started business with cash $10000 and with building $15000.

2. Purchased machinery of $ 7500 on 2nd jan by availing overdraft from bank.

3. Sale of goods on cash of $5400 on 5th jan

4. Goods sold on account of receivable for $7900 on 7th jan

5. Purchase of material of material on 3 rd jan for$ 4000 , payment in cash.

7. Xyz immediately after cash purchase, purchased material of $5800 on account of payable.

8. Rent of $100 paid in the month

9. Salary for the is $900 paid

10. Commission received of $ 150 on 25th jan.

11. Received full amount on account of receivable.

12.Deposit of closing balance of cash in to bank

Journals entries.

	Journal entry	Debit	credit
1	Cash	10000
	Building	15000
	To capital		25000
	Machinery	7500
	To bank overdraft		7500
	Cash	5400
	To sale of goods		5400
	Account receivable	7900
	To sale of goods		7900
	Material	4000
	To cash		4000
	Material	5800
	To accounts payable		5800
	Cash	7900
	To accounts receivable		7900
	Rent	100
	Salary	900
	To cash		1000
	Cash	150
	To commission		150
	Bank	3050
	To cash		3050

Ledger accounts

Net profit ratio = profit sales =265013300=19.92%

Gross profit = sales- cost of goods sold

= 13300- 9800=3500

Gross profit ratio = 350013300= 26.32%

Current ratio = current assets current liabilities

Current assets= bank balance =10550

Current liabilities= accounts payable is 5800 and overdraft is 7500 , total = 13300

Current ratio = 1055013300= 0.79 times.

*Based on current ratio determined that companys current assets are not sufficient to pay current liabilities.

*Company required to increase in sales to increase in assets

* Net profit and gross profit shows good position

*Company required to generate more profits to increase capital balance