After doing their graduation Arvind suggested to his class mate friend Bimal to form a partnership to sell low cost school uniform to the students belonging to low income group who have been admitted to the private schools of the city as per the provisions of Right to Education Act, 2009. Bimal agreed to the proposal and proposed the name of his friend Charu, a specially abled unemployed person having good knowledge of cost reduction method. However, it was agreed that Charu will not contribute any capital. Arvind agreed to it. They were in need of more capital. Arvind, therefore, persuaded a rich friend Deepak to be a partner. All of the formed a partnerhip on the following terms: 1. Name of the Firm: ABCD Kid Garments 2. Business: Manufcturing business of Kid Garments 3. Arvind will contribute ` 2,00,000; Bimal `80,000; Deepak `7,00,000 and Charu will be partner without capital. 4. Profits will be shared amongst Arvind, Bimal, Charu and Deepak 3:2:1:4 respectively. 5. Interest on capital will be allowed @ 5% p.a. 6. Charu gets commission ` 30,000 7. Bimal gets `40,000 as annual salary 8. Interest on drawings to be charged @ 10% p.a. 9. 10% of profits to be transferred to General Reserve 10.All the transactions should be made through Bank. They started business on 1st April, 2011 and deposited the whole amount of capital in ICICI Bank. They purchased a running factory of Kid Garments consisting of Factory Land and Building `4,00,000, Plant and Machinery `3,50,000, Furniture `50,000, Stock `90,000 but paid `9,50,000 as purchase consideration. They later approached his banker for a loan to meet the working capital requirement. Bank advanced loan amounting `4,00,000 @ 10 % p.a. Deepak is entitled to a rent of `3,000 per month for the use of his building by the firm. They purchased a computer for ` 30,000. Arvind advanced a ` 50,000 to0 the firm on 01-01-2012 in the form of loan @ 9 % p.a where as on same date loan taken by Bimal ` 40,000 from the firm @12% p.a. The other transactions for the year ending 31st March, 2012 were as follows: ` Total Purchases (`4,10,000 in cash) 12,40,000 Total Sales (`5,25,000 in cash) 20,87,125 Wages 2,30,000 Carriage inwards 20,500 Power and lighting 15,500 Salary of staff and manager 1,25,000 Postage and call 4,200 Printing and Stationery 3,800 Advertising 16,700 Debtors paid 12,10,000 10 % Fixed Deposit 5,00,000 Insurance premium 12,100 Conveyance charges 13,200 Paid to creditors 7,00,000 Bills Receivable received 1,00,000 Bills accepted in favour of creditors 80,000 Drawings during the year: Arvind : `2,500 at the beginning of each month: 30,000 Bimal: ~ 1,500 at the last of each month 18,000 Charu: ` 1,000 at the middle of each month 12,000 60,000 Adjustments: (i) Closing stock `1,10,000 (ii) Depreciate Land and Building by 5%, Plant and Machinery by 10% and Furniture by 10% and office equipments by 25%. (iii)Salary outstanding ` 8,000 and wages outstanding `15,000. (iv) insurance premium prepaid `1,200. (v) Accrued interest `25,000 (vi) Interest on bank loan due for a year You are required to : (1) Journalise these transactions and post them into ledger accounts and prepare Trial balance (2) Prepare Trading and Profit and Loss Account, Profit and Loss Appropriation Account and Balance Sheet. (3) Calculate relevant accounting ratios like liquidity, solvency, activity and profitability giving their formulae and computation.