A project work on ‘Recording Financial Transactions’

Submitted by kubindra bhattarai Submitted to:

(Katmandu model secondary school, Bagbazar)
Roll. No: signature:
Section:

For the partial fulfillment of ‘Accounting Practical’

NEB board, Grade –XI, Subject code: 103
 Table of contents

 Meaning of book keeping

 Meaning of journal

 Meaning of ledger

 Meaning of trial balance

Meaning of book keeping

Bookkeeping is a process of recording

and organizing all the business
transactions that have occurred in the
course of the business.  Bookkeeping
is an integral part of accounting and
largely focuses on recording day-to-
day financial transaction of the
business.
All the financial transactions such as
sales earned revenue, payment of
taxes, earned interest, payroll and
other operational expenses, loans
investments etc. are recorded in books
of accounts.
The way the bookkeeping is managed
determines the accuracy of the overall
accounting process that is been
followed by the business. Thus,
bookkeeping ensures that the record of
financial transactions are up-to-date
and more importantly, accurate
Meaning of journal
Accounting process starts with the
identification of financial transactions of a
business. Such financial transactions are
recorded permanently in the books of
accounts systematically in different
specialized books. These books of
accounts are called journal.

The journal is an important book under

the double entry book keeping system.
Journal is the first book of systematic
record of the financial transactions of the
business. Journal is called the book of
original or prime entry, because its
financial transactions are first of all
recorded in this book as and when they
take place. Journal is also called a
subsidiary book as it is maintained to help
prepare the main book called the ledger.
The journal is prepared with the help of
memorandum or waste book, which is a
rough and temporary record of the
financial transactions of the business.

A journal is a detailed account that

records all the financial transactions of
a business, to be used for the future
reconciling of accounts and the transfer
of information to other accounting
records, such as the general ledger.
Meaning of ledger

Definition: A ledger is a written or

computerized record of all the
transactions a business has
completed. These transactions are
recorded in the ledger in different
accounts. This list of accounts is
most often called the chart of
accounts. Large companies tend to
have many accounts in their chart
of accounts while smaller
companies might only have a few
accounts listed.
Meaning of trial balance
Trial Balance refers to a schedule, in
which the balances of all ledger books
are assembled into debit and credit
columns, to check the arithmetical
accuracy of the entries posted in
the ledger accounts.
Trial Balance is a tabular statement,
containing a specified date on which it
is prepared, indicated at the top of the
statement. The balances of all the
assets, expenses, losses, drawings,
cash and bank account are taken to the
debit column whereas the balances of
all the liabilities, incomes, gains,
capital are transferred to the credit
column.
questions
On 1st March 2020 JSMR started a business with
cash Rs 20,00,000.

March 3 Cash deposited into the bank Rs.

15,00,000.

March 6 Goods purchased for cash Rs 5,00,000 at

20% trade discount .

March 8 Machinery Purchased Rs.2,50,000 and

installation expenses paid Rs. 50,000. Amount paid
by cheque.

March 12 Computer Purchased paid by cheque Rs.

30,000.

March 16 Goods sold for Cash Rs. 6,00,000 and

deposited in to the bank same day.

March 18 Carriage paid Rs. 10,000.

March 20 Goods Sold on credit to  Mohit & Brother

Rs.2,00,000 at 25% trade discount .

March 25 Furniture Purchased for office use  paid

by cheque Rs. 50,000.

March 26 Cheques received from Mohit and

brother Rs 1,00,000 and deposited into Bank  same
day.

March 27 Cash withdrawn from bank for office use

Rs.40,000.

March 28 Advertisement Expenses paid by cheque

Rs. 20,000.

March 29Commission Received Rs. 10,000.

March 31 Bank charges charged by bank  Rs.

5,000.
 Trial Balance
As on 31st  March, 2020

Debit Credit
Name of Accounts L.F Balance Balance
(Amount)   (Amount)

  Rs. Rs.
Cash Account 1,40,000 —————

Capital Account ————- 20,00,000

Bank Account 17,55,000 ————-

Purchase Account 4,00,000 ————-

Machinery Account 3,00,000 ————-

Computer Account 30,000 ————-

Sales Account ———— 7,50,000

Mohit &Company(Debtors) 50,000 ————-

Furniture Account 50,000 ————-

Commission Received Account ———– 10,000

Carriage Account 10,000 ———–

Advertisement Account 20,000 ———–

Bank Charges                                      5,000 27,60, ————- 2

TOTAL 000 7,60,000