manufacturing cable on 1st may. 2008 with Rs 1000000. 60% of the capital belonged to him while 40 % was given by a bank as loan. On10th june he talked with Mr. Ashish to take his house on rent as a store. On 20th june he took the house and paid advance rent of 2 months i.e. 3000/month On 1st july He paid salary to the employees Rs 45000. On the same date salary became due for some other employees but was not paid, the salary amounted to Rs 20000. On 10th july raw material was purchased for Rs 100000.
On 15th july due salary was paid.
On 25 july machines were purchased for Rs 90000. On 30 july insurance policy was purchased, premium was Rs 3000 4 Sep he paid into the Bank Rs 200000. 10 Sep he purchased goods for cash Rs 150000. 25 sep he sold goods for cash Rs 60000 3 Oct he purchased furniture and paid by cheque Rs 50000. 10 Oct he sold, goods to Arvind Rs 40000. 29 Oct he purchased goods from Amrit Rs 100000. 2 Nov he returned goods to Amrit Rs 50000. Nov, 16, he received from Arvind Rs 39000 in full settlement. Dec. 18, he withdrew goods for personal use Rs 10000 Dec. 20, he withdrew cash from business for personal use Rs 20000. Dec. 24, he paid telephone charges Rs 3000. Dec. 26, cash paid to Amrit in full settlement Rs 49000 Dec. 31, paid for stationery Rs 2000, rent Rs 3000and salaries to staff Rs 25000.