LS0833: Chandana Brothers, is a chain of retail store located in Hyderabad. The company bought dress material worth Rs.10,00,000 from Pantaloon in March 2013 on credit basis and made the payment in April 2013. The accounting year for the companies, starts from 1st April and ends at 31st March every year

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Question: Chandana Brothers, is a chain of retail store located in Hyderabad. The company bought dress material worth Rs.10,00,000 from Pantaloon in March 2013 on credit basis and made the payment in April 2013. The accounting year for the companies, starts from 1st April and ends at 31st March every year.

a. How would the transaction impact the Income Statement and Balance Sheet of Chandana Brothers as on year end date?

b. How would the above transaction impact the income statement and balance sheet of Pantaloon as on year end date?


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