Professional Documents
Culture Documents
ACCOUNTING
Classification of Accounts
55,000 55,000
Cash Account
Date Particulars J.F. Amt Date Particular J.F Amt
4,00,000 4,00,000
Purchase Account
1,00,000 1,00,000
1,00,000 1,00,000
5,000 5,000
Softech Account
Date Particulars J.F. Amt Date Particular J.F Amt
1,00,000 1,00,000
Airways Account
Date Particulars J.F. Amt Date Particular J.F Amt
5,000 5,000
2003, Jan
1 Started Business with cash 6000 19 Sold goods for cash 350
4 Bought goods for resale 500 20 Bought stationeries 80
7 Bought stationary 50 21 Paid wages 100
10 Bought goods for resale 750 23 Bought goods for resale 200
12 Paid Wages 100 24 Sold goods for cash 600
15 Sold goods for cash 350 25 Paid Postage 80
16 Sold goods for cash 300 26 Paid for Advertisement 30
17 Paid electricity bill 70 31 Sold good for cash 700
31 Paid Wages 150
Cash A/c
Date Particulars J.F. Amt Date Particular J.F Amt
2003,Jan 2003,Jan
1 To Capital A/c 6,000 4 By Purchase A/c 500
15 To Sales A/c 350 7 By Stationary A/c 50
16 To Sales A/c 300 10 By Purchase A/c 750
19 To Sales A/c 350 12 By Wages A/c 100
24 To Sales A/c 600 17 By Electricity A/c 70
31 To Sales A/c 700 20 By Stationary A/c 80
21 By Wages A/c 100
23 By Purchase A/c 200
25 By Postage A/c 80
26 By Ad A/c 30
31 By Wages A/c 150
31 By Balance c/d 6,190
8,300 8,300
Purchase A/c
Date Particulars J.F. Amt Date Particular J.F Amt
2003,Jan 2003,Jan
4 To Cash A/c 500 31 By Balance c/d 1,450
10 To Cash A/c 750
23 To Cash A/c 200
1,450 1,450
Sales A/c
INTRODUCTION TO ACCOUNTING
ACCOUNTING : Accounting is an art of recording, classifying,
summarizing, and reporting of transaction with the aim of showing the
financial condition of a business organization or a co.
FUNCTIONS OF ACCOUNTING :
1. Resource Management.
2. Manages Claims and Interests.
3. Measure changes of those Resources, Claims and
interests.
4. Take Economic measures.
ADVANTAGES OF ACCOUNTING :
TYPES OF ACCOUNTING :
1. FINANCIAL ACCOUNTING .
2. COST ACCOUNTING.
3. MANAGEMENT ACCOUNTING.
TRIAL BALANCE
1. ASSETS.
2. EXPENSES.
3. LOSSES.
4. DRAWINGS.
5. DEBTORS.
1. LIABILITIES.
2. INCOME.
3. REVENUE.
4. GAIN.
5. CREDITORS.
Rs. Rs.
1. Opening Stock 18,300 13. Plant & m/c 7,500
2. Wages 10,000 14. Loose Tools 1,800
3. Sales 1,20,000 15. Lighting 2,300
4. Bank Loan 4,400 16. Creditors 8,000
5. Coal & Coke 3,000 17. Capital 40,000
6. Purchase 75,000 18. Misc. Receipt 600
7. Repair 2,000 19. Office Salaries 2,500
8. Carriage 1,500 20. Office Furniture 600
9. Income tax 1,500 21. Patents 1,000
10.Debtors 20,000 22. Goodwill 15,000
11.Leasehold premises 6,000 23. Cash In Bank 5,100
12.Cash In hand 200 24. Closing Stock 6,000
Trial Balance as at 30th June , 2003
SL No. Heads Of Account LF Debit Balance Credit
Balance
1 Opening Stock 18,000
2 Wages 10,000
3 Sales 1,20,000
4 Bank Loan 4,400
5 Coke & Coal 3,000
6 Purchase 75,000
7 Repairs 2,000
8 Carriage 1,500
9 Income Tax 1,500
10 Debtors 20,000
11 Leasehold Premises 6,000
12 Cash In hand 200
13 Plant & Machineries 7,500
14 Loose Tools 1,800
15 Lighting 2,300
16 Creditors 8,000
17 Capital 40,000
18 Masc. Receipt 600
19 Office Salaries 2,500
20 Office Furniture 600
21 Patents 1,000
22 Goodwill 15,000
23 Cash In Bank 5,100
DEBIT : CREDIT:
ASSETS. LIABILITIES.
EXPENSES. INCOME.
LOSSES. REVENUE
DRAWINGS. GAIN.
DEBTORS CREDITORS.
2006 WBUT QUESTION ON TRIAL BALANCE
5,00,000 5,00,000
To Wages *****
(Add) Outstanding ***
******
To Freight & Carriage ******
To Other Factory
Expenses ******
To Customs &
Insurance ******
To Royalty on
Production ******
TOTAL TOTAL
( All Direct Expenses) ( All Direct Income)
FORMAT FOR PROFIT & LOSS A/c
In the book of Profit & Loss a/c
For the year ended ……….
( All Indirect Expense) (All Indirect Income)
Dr. Cr.
Particulars Rs. Rs Particulars Rs. Rs.
To Rent
By Gross Profit
To Salaries (Transferred from
(Add)Outstanding Trading A/c)
To General Expenses
By Commission Received
To Carriage Outward
By Discount Received
To Sundry Expenses
By provision for Bad
To Insurance Premium Debt (Recovered)
To Advertisement
By Interest on fixed
To Stationeries Deposit
To Office Maintenance
To Interest on Capital
To Discount Allowed
To Interest on Loan
To Commission Paid
To Bad Debts
To Net Profit
FORMAT FOR BALANCE SHEET
Bills Receivable
Cash In Hand or
Bank
Prepaid
Expenses
TOTAL TOTAL
P-1. The following balances are extracted from the books of a trader on 31st
December, 2002, prepare a Trading Accounts And a P/L A/c for the year
ended 31st December, 2002 and a Balance Sheet as at that date :
To Opening 10,500
By Sales 64,000
To Purchase 28,500
By Closing Stock 15,000
To Wages 6000
(Add) Outstanding 300
6,300
To Carriage Inward 500
79,000 79,000
Dr. Profit & Loss A/C for the year ended 2003 Cr.
400
To Advertisement
200
To Discount
Allowed
To Depreciation 1,750
On m/c & plant
500
On Furniture
2180
To Trade Expense 180
(Less)Prepaid 2000
320
To Insurance
33,200 33,200
Balance Sheet as on 31.12.2003
Prepaid Trade
Expenses 180
79,230
79,230
WORKING NOTES :
Dr. Cr.
Rs. Rs.
Prepare a Trading and P/L account and a Balance Sheet as on that date.
In the books of ……………
Dr. Trading A/C Cr.
Particulars Rs. Rs. Particulars Rs. Rs.
To Wages 24,000
Add: Outstanding 1,000 Closing Stock 5,000
25,000
2,79,000 2,79,000
Profit & Loss A/C for the year ended 31/12/98
Dr. Cr.
Particulars Rs. Rs. Particulars Rs. Rs.
1,000
To Bad Debts
2,000
To Traveling
Expense
1,500
To Electric
Charges
2,500
To Telephone
Charges
100
To General
Expense
2,900
To postage & Tel
To Insurance 1,500
premium
To Dep on 1,000
Furniture &
Fittings
(10,000 * 10/100)
4,000
To Dep on Plant
& Machineries
(40,000 * 10/100)
47,550
Net Profit
85,000 85,000
Balance Sheet as on 31.12.02
LIABILITIES Rs. Rs. ASSETS Rs. Rs.
P-1. Mr. Mitra started a business on 1st Jan , 2010 with cash Rs. 80,000, Furniture Rs.
20,000 and a delivery van Rs. 50,000.
Following information were obtained from the book of Mr. Mitra during Jan
2010. Prepare a Journal and Ledger .......