🧾 Case Study: UrbanGear Traders

Background:
UrbanGear Traders began operations on April 1st. Over one month, they performed the following activities:

• ₹100,000 invested by the owner

• ₹20,000 worth of furniture purchased (5-year useful life)

• Inventory worth ₹30,000 purchased on credit

• Sales of ₹60,000 (₹40,000 cash, ₹20,000 credit)

• Salaries of ₹15,000 incurred (₹10,000 paid, ₹5,000 accrued)

• Rent of ₹6,000 paid in advance

• Monthly depreciation and interest expense applicable

🔍 Learner Tasks:

From the data provided:

1. Record all journal entries

2. Post them into ledger accounts

3. Prepare an unadjusted trial balance

4. Create adjusting entries (e.g., rent, depreciation, salary accrual)

5. Prepare:

   • Adjusted Trial Balance

   • Income Statement

   • Balance Sheet

   • Cash Flow Statement

   • Statement of Changes in Equity

6. Create a basic Bank Reconciliation and Petty Cash Summary (optional bonus)