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Project on Accountancy class 11-12

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This is project of accountancy for class 11 and 12 students .Its ha the complete details about all accounting cycle.contains ledger,journal, trial balance and balance sheet.. Full solved question..

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Project on Accountancy class 11-12

  1. 1. ©Copyright Akhil Akhil Khanna 863 5.1 (A) PROJECT ON FINANCIAL ACCOUNTING
  2. 2. ©Copyright Akhil  JOURNAL  LEDGER  TRIAL BALANCE  TRADING & PROFIT & LOSS ACCOUNT  BALANCE SHEET
  3. 3. ©Copyright Akhil TRANSACTIONS Mr H.s Kochar decided to start a TRAVEL WORLD business named SAMSONITE Sales(p) ltd. A Trading Company On 1st April 2002 he invested a sum amount of ` 4,80,000 for this purpose ,he took a building costing ` 4,00,000 and spent`1,00,000 for its overhaul interior and fittings separately to purchase the opening stock which is almost amounted to `1,80,000 he appointed ICICI Bank and secured loan to the extent of 75% of the cost of stock It was agreed that the loan will be repaid I four equal instalment as follows At the end of 1st year: `90,000+`36,000 for the interest At the end of 2nd year: `90,000+`27000 for the interest At the end of 3rd year: `90,000+`18,000 for the interest At the end of 4th year `90,000+`9,000 for the interest After commencing the TRAVEL WORD on 1st April, 2002 he had spent some amount Of 10,000 for electric fittings on 5th April 2002 and on 16th April he placed on fixed deposit amount at bank by transferring from current account `100,000. on 18th April he spent `40,000 for getting pamphlets printed and distributed. on 18th April goods costing` 20,000 were Sold To Mr. kapoor at 40% trade discount on 10th July 2002 goods of` 500 were returned to Mr. Kapoor on 19th July 2002. Transportation charges for `100 octroi `150 was paid in cash on 28th July 2002 trade expense charged paid in cash `500. On 30th July 2002 miscellaneous expenses charged for newspaper, tea, coffee etc` 800. on 15th September 2002 for `10,000 furniture purchased bags from company for `5,000 on 1 October 2002 on credit on 10 October 2002 was made by cheque for` 800 was issued to petty cashier on 1st November 2002 and on 1st December 2002 the company gave 10% commission on sales up to` 4 lakhs on 15th January 2003 Mr. kapoor who owned us `10,000 were declared insolvent and 25 paisa in a rupee is received at the end of year i.e. on 31st march 2003 interest o loan is paid deprecation on building at 20% on` 4,00,000 salary paid to employees 10,000 cash sales for `4,00,000 on credit to debtors who paid` 90,000 cash and rest `80,000 are debtors
  4. 4. ©Copyright Akhil Journal is a book of original entry in which the transactions are recorded are recorded first of all as and when they take place .Transactions are originally recorded in a chronological order according to the principles of double entry system. Features of Journal  A journal records both debit and credit aspects of a transactions according to the double entry system of book keeping  Each entry in a journal is followed by a brief explanation of the transaction which is called ‘’Narration’’  A single entry is capable of recording more than one transaction involving more than two accounts .such an entry is called compound entry  It provides a basis for posting into ledger  It maintains a identity of each transaction by keeping a complete record of each transaction at one place on a permanent basis.
  5. 5. ©Copyright Akhil DATE 2002 April 1st April 1st April 5th April 16th April 18th April 18th April 28th April 30th May 1st May 5th May 8th PARTICULAR Cash A/c Dr. Stock A/c Dr. Building A/c Dr. To Capital A/c (commencement Of Business ) Furniture and Fitting A/c Dr. To Cash A/c (Interior furniture & Fitting for the office ) Electric Fittings A/c Dr. To cash A/c (Electric Fitting for the Office) Fixed Deposit A/c Dr. To Bank A/c (Fixed Deposit By the Bank) Advertisement Expense A/c Dr. To Cash A/c (Pamphlets Printed & Distributed) Cash A/c Dr. Discount Allowed A/c Dr. To Sales A/c (Cash Sales At 30% profit & 10% cash Discount) Purchases A/c Dr. To Bank A/c (Purchases Being Made By Bank) Bank A/c Dr. To Purchases Return A/c (Goods returned and payment to bank) Bank A/c Dr. To Cash A/c (Deposited Cash into bank) Loss by Theft A/c Dr. To Purchases A/c To Cash A/c ( Goods And Cash being loss by theft) Bank Charges A/c Dr. To Bank A/c (Bank Charges By Bank ) Carried Forward L.F AMOUNT(`) 3,00,000 4,80,000 4,00,000 1,00,000 10,000 1,00,000 40,000 23,400 2600 72,000 9,000 1,80,000 15,000 50 17,32,050 AMOUNT(`) 11,80,000 1,00,000 10,000 1,00,000 40,000 26,000 72,000 9,000 1,80,000 5,000 10,000 50 17,32,050
  6. 6. ©Copyright Akhil DATE 2002 May 10th May 10th May 15th May 20th May 21st May 30th June 5th June 5th June 12th July 7th July 10th PARTICULAR Brought Forward Investment A/c Dr. To Cash A/c (Investment in Reliance Shares) Salary A/c Dr. To Cash A/c (Salary Being Paid in Cash) Bank A/c Dr. Discount Allowed A/c Dr. To Sales A/c (Being Sales made at 10% T.D & 500 C.D) Drawings A/c Dr. To Cash A/c (Withdrawn for Life Insurance) Drawings A/c Dr. To Bank A/c (Being Income Tax paid) Interest A/c Dr. To Bank A/c (Interest Charged By bank ) Drawings A/c Dr. To Purchases A/c (Goods Withdrawn for Personal Use) Cash A/c Dr. To Sales A/c (Being Sales Made on Car) Advertising Expenses A/c Dr. To Bank A/c (Advertising Expenses Paid By Cheque) Mr. Kapoor A/c Dr. To Sales A/c (Goods sold on credit at 10% trade discount) Sales Return A/c Dr. To Mr. Kapoor A/c (Goods of list price 500 Return Back ) Carried Forward L.F AMOUNT(`) 17,32.050 50,000 5,000 8500 500 1500 500 1,000 1,000 5,000 1,000 9,000 450 18,15,500 AMOUNT(`) 17,32,050 50,000 5,000 9,000 1500 500 1,000 1,000 5,000 1,000 9,000 450 18,15,500
  7. 7. ©Copyright Akhil DATE July 19th Aug 30th Sep 15th Oct 1st Oct 10th Nov 1st Dec 1st Jan 15th March 31st March 31st March 31st PARTICULAR Brought Forward Transportation Charges A/c Dr. Octroi A/c Dr. To Cash A/c (Transportation & Octroi Charges in Cash) Miscellaneous Expenses A/c Dr. To Cash A/c (Miscellaneous expenses occurred ) Furniture & Fittings A/c Dr. To Cash A/c (Furniture Being Purchase in Cash ) Purchases A/c Dr. To Samsonite (Purchase From Company Credit) Samsonite A/c Dr. To Bank A/c (Payment To company by cheque) Petty Cashier A/c Dr. To Bank A/c (Issued A cheque to petty Cashier) Cash A/c Dr. To Commission A/c (company Gave 10% commission on sales) Cash A/c Dr. Bad Debts A/c Dr. To Mr. Kapoor A/c (Mr . Kapoor being insolvent & 25 % Received) Interest on loan A/c Dr. To Bank Loan A/c (Interest due on loan) Bank loan A/c Dr. To Bank A/c (Payment on 1st bank loan) Depreciation A/c Dr. To Building A/c (Depreciation charged on Building) Carried Forward L.F AMOUNT(`) 18,15,500 100 150 10,000 8,000 5,000 5000 800 40,000 2500 7500 36,000 1,26,000 30,000 20,86,550 AMOUNT(`) 18,15,500 250 10,000 8,000 5,000 5,000 800 40,000 10,000 36,000 1,26,000 30,000 20,86,550
  8. 8. ©Copyright Akhil DATE March 31st March 31st March 31st PARTICULAR Brought Forward Salary A/c Dr. To Cash A/c (Salary Being Paid To Employees ) Cash A/c Dr. Debtors A/c Dr. To Sales A/c (Sales on Cash & Credit Bases) Bank A/c Dr. To Bank Loan A/c (Bank Loan Taken to purchase of loan) L.F AMOUNT(`) 20,86,550 10,000 90,000 3,10,000 90,000 26,30,850 AMOUNT(`) 20,86,550 10,000 4,00,000 90,000 26,30,850
  9. 9. ©Copyright Akhil The Ledger is the chief book of accounts, and it is in this book that all the business transactions would ultimately find their place under their accounts in a duly classified manner. Rules of Posting 1. All the transactions relating to an account should be entered at one place. 2. The world To is used before the accounts which appear on the debit side of an account. Similarly, the world By is used before the accounts which appear on the credit side of an account. 3. If an account is debited in journal entry, the posting in the ledger should also be made on the debit side of such an account. 4. Similar account which has been posted on the debit side of an account should also be posted on the credit side of an account.
  10. 10. ©Copyright Akhil BANK A/c Loss by Theft A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 May 5th Mar 31st To purchases A/c To cash A/c 5,000 10,000 15,000 2002-03 Mar 31st By Profit & Loss A/c 15,000 15,000 BANK LOAN A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To bank A/c 1,26,000 1,26,000 2002-03 Mar 31st By interest on loan A/c By bank A/c 36,000 90,000 1,26,000 DEBTORS A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To sales A/c 3,10,000 3,10,000 2002-03 Mar 31st By Balance c/d 3,10,000 3,10,000 DIVIDEND A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To profit & loss A/c 1,000 1,000 2002-03 Jun10th By Bank A/c 1,000 1,000 DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 April 30th May 1st May 15th June 10th Mar 31st To Purchase Return A/c To Cash A/c To Sales A/c To Dividend A/c To Balance C/d 9,000 1,80,000 8500 1,000 1,09,350 3,07,350 2002 April 16th April 28th May 8th May 20th May 30th June 12th Oct 10th Nov 1st Mar 31st By Fixed Deposit A/c By Purchases A/c By Bank Charges A/c By Drawings A/c By Interest A/c By Advertisement A/c By Samsonite A/c By Petty Cashier A/c By Bank Loan A/c 1,00,000 72,000 50 2,000 500 1,000 5,000 800 1,26,000 3,07,350
  11. 11. ©Copyright Akhil DEPRICIATION A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To Building A/c 80,000 80,000 2002-03 Mar 31st By Profit & Loss A/c 80,000 80,000 CASH A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 April 1st April 18th June 5th Dec 1st 2003 5th Jan To Capital A/c To Sales A/c To Sales A/c To Commission A/c To Mr. Kapoor 3,00,000 23,400 5,000 40,000 2,500 4,60,900 2002 April 1st April 5th April 18th May 1st May 5th May 10th May 10th July 19th July 19th July 28th Aug 30th Sep 15th Mar 31st Mar 31st By Furniture A/c By Electric Fittings By Advertisement By Bank A/c By Loss By Theft A/c By Investment A/c By Salary A/c By Transportation A/c By Octroi A/c By Trade Expense A/c By Miss. Expense A/c By Furniture A/c By Salary A/c By Balance c/d 1,00,000 10,000 40,000 1,80,000 10,000 50,000 5,000 100 150 500 800 10,000 10,000 44,350 4,60,900 PURCHASES A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 2nd Oct 1st To bank A/c To samsonite A/c 72,000 5,000 77,000 2002 Apr 5th May 5th 2003 Mar 31st By Loss by theft A/c By drawings A/c By trading A/c 5,000 1,000 71,000 77,000 INTREST A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 May 30 Mar 31 To bank A/c To bank loan A/c 500 36,000 36,500 2002-03 Mar 31 By profit & loss A/c 36,500 36,500 SALARY A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 May 10th Mar 31st To cash A/c To cash A/c 5,000 10,000 15,000 2002-03 Mar 31st By profit & loss A/c 15,000 15,000
  12. 12. ©Copyright Akhil SALES RETURN A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Aug 10th To Mr. Kapoor 450 450 2002-03 Mar 31st By trading A/c 450 450 ADVERTISEMENT EXPENSES A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 18th Jun 12th To cash A/c To bank A/c 40,000 1,000 41,000 2003 Mar 31st By profit & loss A/c 41,000 41,000 TRADE EXPENSE A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 July 28th To cash A/c 500 500 2002-03 Mar 31st By profit &loss A/c 500 500 MISCELLANEOUS EXPENSE A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Oct 30th To cash A/c 800 800 2002-03 Mar 31st By profit & loss A/c 800 800 DISCOUNT ALLOWED A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 18th May 15th To sales A/c To sales A/c 2600 500 3,100 2003 Mar 31st By profit & loss A/c 3,100 3,100 PURCHASE RETURN A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To trading A/c 9,000 9,000 2002-03 Apr 30th By bank A/c 9,000 9,000
  13. 13. ©Copyright Akhil BANK CHARGES A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 May 8 To bank A/c 50 50 2002-03 Mar 31 By profit & loss A/c 50 50 OCTROI A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 July 19th To cash 150 150 2002-03 Mar 31st By profit & Loss A/c 150 150 OPENING STOCK A/C DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Apr 1 To capital A/c 4,80,000 4,80,000 2002-03 Mar 31st By trading A/c 4,80,000 4,80,000 SALES A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To trading A/c 4,49,000 4,49,000 2002-03 Apr 18th Apr 18th May 15th May 15th Jun 5th July 7th Mar 31st Mar 31st By cash A/c By discount allowed A/c By bank A/c By discount allowed A/c By cash A/c By Mr.Kapoor A/c By cash A/c By debtor 23,400 2600 8500 500 5,000 9,000 90,000 3,10,000 4,49,000 INVESTMENT A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 May 10th To cash A/c 50,000 50,000 2002-03 Mar 31st By balance c/d 50,000 50,000 DRAWINGS A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 May 20th May 21st Jun 5th To bank A/c To bank A/c To purchase A/c 1500 1000 1000 3,500 2003 Mar 31st By capital A/c 3500 3,500
  14. 14. ©Copyright Akhil BUILDING A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 1st To capital A/c 4,00,000 4,00,000 2003 Mar 31st Mar 31st By depreciation By balance c/d 80,000 3,20,000 4,00,000 CAPITAL A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To balance c/d 11,80,000 11,80,000 2002-03 Apr 1st Apr 1st Apr 1st By cash A/c By stock A/c By building A/c 3,00,000 4,80,000 4,00,000 11,80,000 SAMSONITE COMPANY A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Oct 10th To bank A/c 5,000 5,000 2002-03 Oct 1st By purchases A/c 5,000 5,000 PETTY CASHIER A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Nov 1st To bank A/c 800 800 2002-03 Oct 1st By balance c/d 800 800 COMMISSION A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Mar 31st To profit &loss A/c 40,000 40,000 2002-03 Dec 1st By cash A/c 40,000 40,000 BAD DEBTS A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 Jan 15th To Mr Kapoor A/c 7,500 7,500 2002-03 Mar 31st By profit & Loss A/c 7,500 7,500
  15. 15. ©Copyright Akhil FURNITURE AND FITTINGS A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 1st Sep 15th To cash A/c To cash A/c 1,00,000 10,000 1,10,000 2003 Mar 31st By balance c/d 1,10,000 1,10,000 ELECTRIC FITTINGS A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 5th To cash A/c 10,000 10,000 2003 Mar 31st By profit & loss A/c 10,000 10,000 FIXED DEPOSIT A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002 Apr 16th To bank A/c 1,00,000 1,00,000 2003 Mar 31st By balance c/d 1,00,000 1,00,000 MR. KAPOOR A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 July 7th Mar 31st To sales A/c To balance c/d 9,000 1,450 10,450 2002-03 July 10th Jan 15th Jan 17th By sales return A/c By cash A/c By bad debts A/c 450 2,500 7,500 10,450 TRANSPORTATION CHARGES A/c DATE PARTICULAR J.F AMOUNT(`) DATE PARTICULAR J.F AMOUNT(`) 2002-03 July 19th To cash A/c 100 100 2002-03 Mar 31st By profit & Loss A/c 100 100
  16. 16. ©Copyright Akhil The Trial Balance Is a statement Prepared with the help of ledger balances, at the end of financial year to find out whether debit total agrees with the credit total. Characteristics of Trial Balance It is a list of balances of all ledger accounts and the cash book It is just an statement not an account It can be prepared at any time during the accounting period , It is prepared to check the arithmetical accuracy of the ledger accounts It helps in preparation of the final accounts It is to obtain the summary of the ledger accounts
  17. 17. ©Copyright Akhil TRIAL BALANCE Of H.S KOCHAR AS ON 31st MARCH, 2003 Name Of Account Cash in hand Purchase account Building account Opening stock Capital account Furniture& fitting account Advertisement Account Bank account (overdraft) Electric fitting fixed deposit discount allowed account sales account return outward dividend account Mr. kapoor account Commission received Loss by theft Salary account Bank charges Investment account Drawings account Interest charged by bank Return inward account Transportation account Octroi charges trade expense account Miscellaneous Expense account Petty cashier account Bad debt account Bank loan account Depreciation account Debtor account Balance Dr. (`) 44,350 71,000 3,20,000 4,80,000 1,10,000 41,000 10,000 1,00,000 3100 15,000 15,000 50 50,000 3500 36500 450 100 150 500 800 800 7500 90,000 80,000 3,10,000 1699800 Balance Cr. (`) 11,80,000 19,350 4,49,000 9,000 1,000 1450 40,000 1699800
  18. 18. ©Copyright Akhil Trading and P/L accounts are a part of final accounts. It is also called the Income Statements It is divided into two parts 1. Trading Account 2. Profit & loss Account Trading Account Is prepared for calculating gross Profit or gross loss arising or incurred as a result of trading activities of a business. Profit & Loss Account is an account into which all gains and losses are collected, in order to ascertain the excess of gains over losses or losses over gains.
  19. 19. ©Copyright Akhil Trading & profit/loss A/c For the year ended 31st march, 2003 PARTICULAR To Opening Stock To Purchases 71,000 Less return outward 9000 Less loss by theft 5000 To octroi To balance c/d To work manager o/s commission To gross profit To discount Allowed To loss by theft 15,000 Add further 500 Salary 15,000 Less prepaid 5,000 To bank charges To interest by bank To transportation expenses To miscellaneous expense To trade expenses To bad debts 7500 Add new provision 1500 To depreciation To provision for discount on debtors To advertisement expenses To net profit transferred to Capital account AMOUNT(`) 4,80,000 57,000 150 1,85,000 18500 166,500 3100 15,500 10,000 50 36,500 100 800 500 23,000 80,000 5890 4100 42,689 2,22,229 PARTICULAR By sales 4,49,000 Less return inward 450 By closing stock By gross profit By interest on fixed deposit By interest on investment By interest on drawings By dividend By provision for discount on debtors By commission 40,000 Add accrued commission 1000 AMOUNT(`) 4,48,550 2,73,600 1,66,500 8,000 5,000 700 1,000 29 41,000 2,22,229
  20. 20. ©Copyright Akhil A Balance Sheet is a statement at a particular date showing on one side the trader property and possessions and on the other hand the liabilities Features Of balance sheet  A Balance Sheet is a part of final Accounts. This is the reason that trading & P/L A/c and the balance sheet are called Final Accounts. However Balance sheet is a statement not an account having assets and liabilities side that is why it is also called Position Statement  Balance is prepared on particular date and not on a fixed period.  It shows the financial position of the business according to the going concern concept.  The totals of the two sides of Balance Sheet must be equal. If the totals are not equal, there will be an error somewhere
  21. 21. ©Copyright Akhil BALANCE SHEET As on 31st march, 2003 LIABILITIES Capital `11,80,000 Add Net profit `42689 Less Drawings `4200 Creditors `1450 Less provision for discount `29 Workmen manager o/s commission Bank Overdraft AMOUNT(`) 12,18,489 1421 1850 19350 12,57,760 ASSETS Cash in Hand Investment `50,000 Add Interest `5000 Petty Cashier Debtors `3,10,000 Less Provision `15500 Less Discount `5840 Insurance Claim Closing stock Building Furniture & Fittings Electric Fittings Fixed Deposits `1,00,000 Add Interest `8,000 Accrued Commission Prepaid Salary AMOUNT(`) 44,350 55,000 800 2,88,610 4500 2,73,600 3,20,000 1,10,000 10,000 1,08,000 1000 5000 12,57,760

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