Professional Documents
Culture Documents
The loan repayment by Exeter wouldnt be possible and result into bad
debts in my books of accounting.
Misrepresentation of loss as profit will help Exeter sanction loan easily.
As a creditor there will loss of Interest as well principal amount.
Loss of opportunity in the market.
Might result into regulatory probe & surveillance.
Will affect goodwill & credibility of the creditor in the market.
Reduce liquidity of funds.
Incase of Debt syndication this might impose criminal action and penalty
by regulators.
Numerical P1 48B
ASSETS = Liability Qwners Equity
Account
Supplie
Cash Receivabl
s
e
20000 = 20000
Dec 1
20000+2200(ca
= 20000+2000
sh received)
Dec 2
22200 - 350
(paid for 350 = 22200
Dec 5 supplies)
4500
Dec 9 21850 350 = 22200+4500
( earning)
100 ( received
Dec 10 21850 4500 350 = invoice for 26700-100
utility)
Numerical P1 48B
Account
Cash Receiva Supplies Liabilities Owners Equity
ble
21850 - 475
Dec 15 4500 350 = 100 26600-475
( Expense)
21375 100
Dec 20 ( paid 4500 350 = 0 26125
liabilities)
Dec 25
21275+4500( r
0 350 = 0 26125
eceived cash)
Dec 28 25775 -
3000(rent
26125- 3000-
expense) 0 350 = 0
Dec 30 1500
1500 ( wages
expense)
Dec 31 21275+
2000( Received 0 350 = 0 21625+2000
Final cash)
Cash
23275 3500 23625-
TEAM MEMBERS
Nikhil Choudhary
Pooja Singhi
Prayrit Arora
Shashank Varma
Shivang Sah
Smitesh Shah