Question
UVW Ltd. has the following transactions for the year: Date Particulars Amount () Jan 1 Bank Loan Taken 7,00,000 Feb 10 Purchase of Inventory 4,00,000
UVW Ltd. has the following transactions for the year:
Date | Particulars | Amount (₹) |
Jan 1 | Bank Loan Taken | 7,00,000 |
Feb 10 | Purchase of Inventory | 4,00,000 |
Mar 15 | Sales Revenue | 9,00,000 |
Apr 20 | Payment to Creditors | 2,50,000 |
May 25 | Interest Paid | 30,000 |
- PREPARE the journal entries for the above transactions.
- POST the entries to the respective ledger accounts.
- PREPARE the trial balance as of 31st May.
- ANALYZE the effect of the bank loan on the company's leverage.
- DISCUSS the potential impact of interest payments on liquidity.
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Integrated Accounting
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
8th edition
1285462726, 1285462721, 978-1285462721
