SECTION 2: CASE STUDY-PRACTICAL EXERCISE

The Company Creation

Name Mr. White Champion Industries
Address No 319/2, Waghere Colony, Pimpri Gaon, Pune,
Country India
State Maharashtra
Pin code 411017
e-Mail ID accounts@whitechampion.com
Website www.whitechampion.com
The Financial year begins 1-Apr-2019
from
Books beginning from 1-Apr-2019

Statutory Configuration
GST Configuration
State Maharashtra
Registration Type Regular
GSTIN / UIN 27AAACD3069K1ZJ
Applicable From 01-Apr-2019
Periodicity of GSTR 1 Monthly
e-Way Bill Applicable Yes
Set/Alter GST Rate
Yes
Details
HSN Description Erasers
HSN /SAC 4016
Taxability Taxable
Integrated Tax 5%

TDS Configuration
TAN No. DELA02603G
Set ‘Ignore IT exemption limit for TDS deduction = Yes’
 Item Master Creation

Stock
Stock Item Unit of Measure GST HSN
Group
Kg of 1000 gms
Rubber Raw Materials 5% 4001
(with 3 decimals)
Kg of 1000 gms
Pigments Raw Materials 18% 3212
(with 3 decimals)
Kg of 1000 gms
Sulphur Raw Materials 5% 2503
(with 3 decimals)
Finished
Mr. White Eraser – 1.5 Inch Nos 5% 4016
Goods
Mr. White Eraser – 2.5 Finished
Nos 5% 4016
Inch Goods

Note: Enable batches for Finished Goods stock items, not for Raw Materials

Bills of Materials Creation

Finished Goods/ Mr. White Eraser – 1.5 Inch Mr. White Eraser – 2.5 Inch
Raw Materials (To manufacture 1 No) (To manufacture 1 No)

BOM Name BOM 1 BOM 1

Rubber 15 Grams 25 Grams
Pigments 3 Grams 5 Grams
Sulphur 2 Grams 3 Grams

Price List Creation

The company offers a different price list for a different type of customers and addition to
that gives a discount on bulk buying.
 Slab Discount
Price for 50,001 1,00,001
Stock Item Name 0 to 1,50,001
Distributors to to
50,000 1,00,000 1,50,000 and
Nos above
Nos Nos

Mr. White Eraser – 1.5 Inch Rs. 3 / No Nil 2% 4% 6%

Mr. White Eraser – 2.5

Rs. 5 / No Nil 2% 4% 6%
Inch

Slab Discount
Price for 50,001 1,00,001
Stock Item Name 0 to 1,50,001
Retailers to to
50,000 1,00,000 1,50,000 and
Nos above
Nos Nos

Mr. White Eraser – 1.5 Inch Rs. 4 / No Nil 2% 4% 6%

Mr. White Eraser – 2.5

Rs. 6 / No Nil 2% 4% 6%
Inch

Salesman-wise Turnover and Commission, Department-wise expenses tracking

The Company has Sales Managers for different regions, each sale is tracked to
Salesman and every month 1% commission is paid on turnover achieved by each of
them. Further, they want to allocate expenses to departments to analyse spending
pattern. The Sales Managers working for the company are – Sagar Gore, Ramesh
Pendse, Alex Mathew.

TDS Nature of Payment Creation

Nature of Payment Additional Details
 Fees for Professional Or Rate = 10%, exemption limit = Nil
Technical Services

Budgets on ‘Indirect Expenses’

The company allocated budget amount of Rs. 25,00,000 on ‘Indirect Expenses’ as

Expenses Budget. It is set on ‘Closing Balances’ and for the whole financial year i.e.,
from 1st April 2019 to 31st March 2020.

Accounts Master Creation

Ledgers Group Under Additional Details
Plant and Machinery A/c Fixed Asset Is GST Applicable = Yes, GST Rate
= 18% Integrated Tax, Nature of
Transaction = Interstate Purchase
Taxable, Nature of Goods = Capital
Goods,
Input CGST Current Type of Duty = GST / Central Tax
Assets
Note: In Ledger Creation screen press F12
(Configure) and set set ‘Set ledgers to
behave as Duties & Taxes = Yes’, then you
can enable GST for ledger created under
Current Assets Group
Input SGST Current Type of Duty = GST / State Tax
Assets
Input IGST Current Type of Duty = GST / Integrated Tax
Assets
HDFC Bank A/c Bank Account Number = 151000987768222,
IFS Code = HDFC0000039,
Branch = Pune – Boat Club
Activate cheque book – 000001 to
000100

St. George Rubber Traders Sundry Maintain balance bill by bill = Yes
Creditors State = Kerala, PIN Code - 686578
GSTIN = 32AABCT3518Q1Z5
Polymer Colour Company Sundry Maintain balance bill by bill = Yes
Creditors State = Maharashtra, PIN Code - 411014
GSTIN = 27AAQPA7642G1ZL
 C. S. Industries Sundry Maintain balance bill by bill = Yes
Creditors State = Odisha, PIN Code - 751007
GSTIN = 24ALOPR2210G1ZB
MAKS Distributors Sundry Price List = Distributors
Debtors Maintain balance bill by bill = Yes
Credit Period = 30 days
Interest Calculation = Yes
Set - 20% per Calendar Year
State = Maharashtra, PIN Code - 411002
GSTIN = 27AAACB5343E1Z1

Orbit Solutions Sundry Price List = Retailers

Debtors Maintain balance bill by bill = Yes
Credit Period = 30 days
Interest Calculation = Yes
Set - 20% per Calendar Year
State = Maharashtra, PIN Code - 411001
GSTIN = 27AAATI1446A1Z7

Office Mate Ghana Sundry Maintain balance bill by bill = Yes

Limited Debtors Country = Ghana
Price List = Not Applicable
The currency of the ledger – Rs.
Secured Loan A/c Secured Interest Calculation = Yes
Loans Set - 14% per the Calendar Year
Joshi & Kulkarni Sundry Deductee Type = Partnership Firm
Creditors PAN = AABCJ8888G

Business Transactions

Record the following transactions for Mr. White Champion Industries:

 On 1-Apr-2019, Mr Vimal Khelkar introduced capital Rs.30,00,000 and deposited into

HDFC Bank A/c.

 On 3-Apr-2019, The Company purchased Plant & Machinery from C. S. Industries for
manufacturing Erasers for Rs. 16,00,000 + 18% IGST. Bill No. CS-005

 On 5-Apr-2019, Rs. 10,00,000 paid through HDFC bank to C. S. Industries via Chq No
000001 against Bill No. CS-005
 On 8-Apr-2019, took a secured loan of 10,00,000 and deposited in HDFC Bank A/c @
14% per the Calendar Year, interest payable every month.

 On 10-Apr-2019, The Company purchased the following raw materials from Polymer
Colour Company via Invoice No. 658/2019-20. All prices are excluding GST.

Stock Item Quantity Rate

Pigments 5,000 Kgs Rs. 75 / Kg
Sulphur 5,000 Kgs Rs. 20 /Kg

 On 10-Apr-2019, The Company purchased the following raw materials from St.
George Rubber Traders via Invoice No. 86. All prices are excluding GST.

Stock Item Quantity Rate

Rubber 20,000 Kgs Rs. 101.60/ Kg

 On 20-Apr-2019, Mr. White Champion Industries manufactured finished goods as per

the table below

Stock Item Quantity Batch No

Mr. White Eraser – 1.5 Inch 4,00,000 Nos Batch 01
Mr. White Eraser – 2.5
2,00,000 Nos Batch 01
Inch

 On 25-Apr-2019, received an order No. 112 from MAKS Distributors. All Price list
rates are exclusive of GST, add GST wherever applicable.
Note: Enable F11 Feature ‘Use separate discount column in invoices = Yes’ under
Inventory Features to calculate discount on Stock Items in Invoice.

Stock Item Quantity Batch No Rate

Mr. White Eraser – 1.5 As per price
1,25,000 Nos Batch 01
Inch list
Mr. White Eraser – 2.5 As per price
75,000 Nos Batch 01
Inch list
 On 27-Apr-2019, delivered all the materials against Order No. 112 to MAKS
Distributors.

Raised Sales invoice on the same day, The Company wants to have Invoice Number
format as 1/2019-20. Allocate the sales value to Sales Manager Sagar Gore.

Add e-way bill details only in Sales Invoice.

E-Way Bill No 181003355475

Distance 19 Kms
Vehicle No MH-02 B-8622
PIN No 411002

 On 28-Apr-2019, received an order No. 106 from Orbit Solutions. Price list rates are
exclusive of GST, add GST ledgers wherever applicable. Allocate this order to Sales
Manager Ramesh Pendse

Stock Item Quantity Batch No Rate

As per price
Mr. White Eraser – 1.5 Inch 85,000 Nos Batch 01
list
Mr. White Eraser – 2.5 As per price
25,000 Nos Batch 01
Inch list

 On 29-Apr-2019, delivered below materials against Order No. 106 to Orbit Solutions.
Allocate this Delivery Note to Sales Manager Ramesh Pendse

Stock Item Quantity Batch No Rate

As per the
Mr. White Eraser – 1.5 Inch 60,000 Nos Batch 01
order raised
As per the
Mr. White Eraser – 2.5 Inch 25,000 Nos Batch 01
order raised

E-Way Bill No 181008878787

Distance 18 Kms
Vehicle No MH-12 HK-1276
 PIN No 411001

 On 30-Apr-2019, paid office staff salaries of 1,02,500 from HDFC Bank A/c to
employees via Chq No 000002.

 On 30-Apr-2019, booked 15,000 Professional Service Fees to Chartered Accountants

Joshi & Kulkarni, deducted TDS @ 10% as per the Income Tax Act.

 On 01-May-2019, received 5,00,000 via Chq No 121222 drawn on AXIS Bank from
MAKS Distributors against Invoice No 1/2019-20 and deposited the same in HDFC
Bank

 On 02-May-2019, paid 4,00,000 from HDFC Bank A/c via Chq No 000003 to Polymer
Colour Company against Invoice No 658/2019-20

 On 05-May-2019, received an Order No. 475 from Office Mate Ghana Limited,
Ghana. Allocate this order to Sales Manager Alex Mathew.

Stock Item Quantity Rate

Mr. White Eraser – 1.5 Inch 1,50,000 Nos $ 0.07
Mr. White Eraser – 2.5 Inch 65,000 Nos $ 0.12

Today’s conversion rate 1 $ = 69 ₹

 On 05-May-2019, paid TDS 1,500 via HDFC Bank Chq No 000004 to Income Tax
Department

 On 10-May-2019, delivered below materials against Order No. 475 to Office Mate
Ghana Limited, Ghana.

Raised Export Invoice as ‘Export Exempt’ goods for GST. Allocate this sale to Sales
Alex Mathew.

Stock Item Quantity Batch No Rate

As per the
Mr. White Eraser – 1.5 Inch 1,50,000 Nos Batch 01
order raised
As per the
Mr. White Eraser – 2.5 Inch 65,000 Nos Batch 01
order raised

Today’s conversion rate 1 $ = 69 ₹

 Export Invoice Details
Shipping Bill No & Date 785542 / 10-May-2019
Port Code (Pune) INGRD6
Mode Ship
Distance 150 Kms
Bill of Lading No 18542587965
PIN No 400001

 On 20-May-2019, received $ 18,300 from Office Mate Ghana Limited, Ghana via
Swift Transfer to HDFC Bank against Invoice No 2/2019-20
Today’s conversion rate 1 $ = 70.00 ₹

On 31-May-2019, paid office staff salaries of 99,250 from HDFC Bank A/c to employees via
Chq No 000005.