National Law University Odisha: (Basic Principles of Accounting)

[Basic Principles of Accounting]
NATIONAL LAW UNIVERSITY ODISHA
BASIC PRINCIPLES OF ACCOUNTING
“ACCOUNTS OF A STATIONARY SHOP”
SUBMITTED BY:
ARYAN PARASHAR (2019/B.A.LL.B./033)
AVANI GARGAVA (2019/B.A.LL.B./038)
(Batch of 2024/ 3rd Semester)
SUBMITTED TO:
Mr. AB DEBASIS ROUT
1
2
ACKNOWLEGMENT
I would like to express my gratitude and appreciation to my subject teachers

of BASIC PRINCIPLES OF ACCOUNTING, AB DEBASIS ROUT, who
gave us the opportunity to work on this project of “Accounts of a Stationary
Shop”. We would like to thank the teachers for stimulating suggestions and
encouragement which helped me in completing this project successfully. Their
constant guidance and support, not only helped me in completing this project,
but also expanded my knowledge in the area.
3
INTRODUCTION
Ms. Gotu started a stationary shop named “Shivaji Traders”. This Business
would be conducted on a small scale. This stationary deals with the products
such as Journals, magazines, stapler and stapler pins, adhesive & gums, Ink
ribbon, digital scale, books etc. The customers of this shop vary from private
coaching to private schools and colleges, it also includes publication houses
and retailers. The financial year of the business is from 1st April to 31st March.
4
TRANSACTIONS
DATE LIST OF TRANSACTIONS
April
Ms. Gotu, the owner, started the business with cash of

1 ₹ 20,00,000.
Loan taken from SBI bank 10,00,000.
Goods brought for cash ₹ 1,00,000.

3
Furniture bought ₹ 10,000.

5
Tables & Chairs brought ₹ 40,000.

10
Cheque received from Rakesh for goods sold ₹

13 10,000.
Sold on credit to Ramesh for ₹ 20,000.

16
Purchased notebooks ₹ 50,000, pens ₹ 60,000 on

17 credit from Mr. Madhur.
Paid for wiring and lightening ₹ 10,000.
5
20
Paid for transportation ₹ 20,000.

23
Purchased CCTV worth ₹ 30,000.

May 2
Paid rent for the shop ₹ 10,000 per month.

3
Hired a person as help, salary paid ₹ 20,000 per

9 month.
Withdrawn from capital for personal use ₹30,000.

12
Telephone expenses ₹ 5,000 and fixture expenses ₹

13 10,000 paid in cash.
Goods ₹ 10,000 returned to Mr. Madhur.

15
Cheque received from Rakesh deposited into bank.

16
Paid to Mr. Madhur from Bank.

19
6
Ramesh paid 90 paisa in a rupee for his amount ₹

22 20,000.
Photocopy machine purchased ₹ 1,00,000 discount

23 received 20,000.
29
Newspaper sold ₹ 100.
Goods sold for ₹ 90,000 half in cash, half in credit to

June 5 Shlok enterprises.
Goods returned by Shlok enterprises worth ₹ 2,000.

6
Shlok enterprises paid ₹ 40,000 in full settlement.

7
Cash withdrawn from office use ₹ 30,000.

10
Purchased goods from ₹ 40,000 at 10% Trade

11 Discount and 5% Cash Discount paid at the time of
purchase.
Sold goods to Ajay for ₹ 50,000 allowing 5% cash

14 discount 10% trade discount. Half the amount was
received by cheque within time.
Additional capital introduced ₹ 10,00,000.
7
18
Goods withdrawn for personal use ₹ 30,000.

21
Received cash for a bad debt within off last year ₹

25 1,000.
Goods costing ₹ 10,000 given as charity.

26
Goods distributed as advertisement to increase sales ₹

30 5,000.
July
Goods lost by fire ₹ 2,000.
1
Paid electricity expenses with ₹ 7000 month per

4 month.
Water can expenses paid ₹ 5,000 month per month.

5
Earned ₹ 6,000 by sale of a digital meter.

8
Opened a bank account in Bank of Baroda of ₹

11 3,00,000.
8
Purchased highlighters and sketch pens from Mr.

17 Joseph worth ₹ 30,000 on credit.
22
Mr. Joseph account was settled by assuring a cheque.
Sold a bookshop worth ₹ 5000 in cash and

24 depreciation charged 10%.
Mr. withdrawn the notebook for personal use.

25
Notebook worth ₹ 5,000 were sold in cash.

28
Purchased magazines worth ₹ 1,000 for cash.

30
Sold magazines worth ₹ 500 in cash.

31
August
Paid ₹ 2,000 for refreshments.
6
Purchased adhesives and gums worth ₹ 20,000 in

7 cash.
Sold adhesives worth for ₹ 23,000 in cash.
9
12
Invested in non-current investment worth ₹ 5,00,000.
Interest on investment received worth ₹ 5,00,000.

15
Deposited cash ₹ 2,00,000 in account of business.

19
Sold notebooks, pens, covers, to Ms. Avinash Ltd

20 worth ₹ 40,000
Paid ₹ 10,000 in cash for repairing expenses.

21
Purchased stapler and stapler pins worth ₹ 10,000

26 from Mr. Suresh.
A cheque was issued to Mr. Suresh for stapler and

31 stapler pins.
September
Depreciation on furniture charged ₹ 3,000.
4
Paid ₹ 4,000 for cleaning charges.

5
10
Goods ₹ 1,00,000 were sold for cash.

9
Goods ₹ 1,50,000 were sold on credit to Mr. Tanmay.

14
Mr. Tanmay paid the amount by cheque.

21
Purchased printer for ₹10,000.

22
Depreciation charged on photocopy machine ₹1,000

27
October
Journals worth ₹ 10,000 were sold for cash.
3
Purchased diaries for ₹ 20,000.

4
Diaries sold for ₹ 25,000.

10
Purchased stamps and inks worth ₹ 40,000.

11
Sold photocopies worth ₹ 300.

18
11
Bad debt written off ₹ 500.

21
Bad debt recovered ₹ 300.

23
Goods given as free sample ₹ 20,000.

26
Goods sold to Mr. Manish on credit worth ₹ 60,000.

27
Goods returned to Mr. Manish worth ₹ 5,000.

30
November
Mr. Manish paid half of amount in cash and half by
2 cheque.
Expenses paid for repairing photocopy machines ₹

7 5,000.
Purchased ink ribbons for printer ₹ 5,000.

8
Sold notebooks worth ₹ 60,000 in cash.

11
Opened a fixed deposit in bank for ₹ 1,00,000.

12
12
Interest on fixed deposits received ₹ 10,000.

15
Profit on sale of printer ₹2,000 total selling price ₹

18 12,000.
Purchased on sale of printer ₹ 2,000 total selling price

22 ₹ 12,000.
Purchased binders worth ₹40,000.

23
Sold binders for ₹ 50,000.

28
December
Purchased goods in bulk for ₹ 1,00,000 discount
1
received @ 10%.
Goods sold of ₹50,000 discount @ 5%.

2
Brought printer for ₹ 7,500.

4
Purchased ink ribbons for printer worth ₹ 1,000.

10
Money withdrawn from bank for personal use ₹
13
13
3,000.
Received rent from tenants ₹ 30,000.

17
Sold goods worth ₹ 20,000 on credit to Mr. Shailesh.

22
Mr. Shailesh was declared insolvent and paid ₹

27 15,000.
January
Bank charges worth ₹ 2,000.
3
Notebooks costing ₹ 4,000 were lost by fire.

6
Sold notebooks ₹ 70,000 by amount received in the

9 bank.
Expenses on printer repair ₹1,000.

10
Goods ₹ 20,000 sold to Mr. Sanjeev on credit.

15
Mr. Sanjeev paid by cash.

22
14
Purchased highlighters worth ₹ 10,000 in cash.

28
February
Purchased notebooks in credit from Mr. Ram ₹
1 60,000.
Paid to Mr. Ram in cheque.

5
Interest on Fixed deposit received ₹ 10,000.

9
15
JOURNAL ENTRY
JOURNAL OF SHIVAJI TRADERS
Date Particulars L.F Debit ₹ Credit ₹

April 1 Cash A/c………………. Dr 20,00,000 -
To capital A/c - 20,00,000
3 Bank A/c….…….……... Dr 10,00,000 -

To SBI loan A/c - 10,00,000
5 Purchase A/c…………… Dr 10,000 -
To cash A/c - 10,000
10 Furniture A/c…………… Dr 30,000 -
13 Table & chair A/c………. Dr 40,000 -

16 Rakesh A/c……………... Dr 10,000 -
To sales A/c - 10,000
17 Cheques in hand A/c……. Dr 10,000 -
To Rakesh A/c - 10,000
20 Ramesh A/c……………. Dr 20,000 -
23 Notebooks A/c………… Dr 50,000 -
Pens A/c…………….…. Dr 60,000 -
To Me. Madhur A/c - 1,l0,000
May 2 Wiring & lightening exp. A/c Dr 10,000 -
- 10,000
To cash A/c
16
3 Transportation exp. A/c…Dr 20,000 -

9 CCTV A/c………….... Dr 30,000 -
12 Rent paid A/c………... Dr 1,20,000 -
To cash A/c - 1,20,000
13 Salary A/c……………... Dr 2,40,000 -
To cash A/c - 2,40,000
15 Drawing A/c…….…...…Dr 30,000 -
16 Fixture exp. A/c…….… Dr 10,000 -
19 Telephone exp. A/c….... Dr 5,000 -
To cash A/c - 5,000
22 Mr. Madhur A/c………. Dr 10,000 -
To pens A/c - 10,000
23 Bank A/c……………… Dr 10,000 -

To cheque in hand A/c - 10,000
29 Mr. Madhur A/c………. Dr 1,00,000 -

To bank A/c - 1,00,000
June 5 Cash A/c………………. Dr 18,000 -

Bad debt A/c……...…... Dr 2,000 -
To Ramesh A/c - 20,000
17
6 Photocopy machine A/c…… Dr 1,00,000 -

To discount received A/c - 20,000
To cash A/c Dr - 80,000
7 Cash A/c………………….Dr 100 -

To sundry received - 100
8 Cash A/c……………… Dr 45,000 -
Shlok enterprises A/c… Dr 45,000 -
10 Sales return A/c………. Dr 2,000 -

To shlok enterprise A/c - 2,000
11 Cash A/c………….…. Dr 40,000 -
Bad debt A/c………… Dr 3,000 -
To shlok ent. A/c - 43,000
14 Cash A/c……………. Dr 30,000 -
To bank A/c - 30,000
18 Purchase A/c……….. Dr 36,000 -
To discount received A/c Dr - 1800
21 Ajay A/c……………………. Dr 22,500 -
Bank A/c…………………… Dr 21,375 -
Discount allowed A/c………. Dr 1,125 -
25 Cash A/c……………………. Dr 10,00,000 -

To capital A/c - 10,00,000
18
26 Drawing A/c………………… Dr 30,000 -

To purchase A/c - 30,000
30 Cash A/c……………………. Dr 1,000 -
To bad debt recovered A/c - 1,000
July 1 Charity A/c…………………. Dr 10,000 -
4 Advertisement A/c………… Dr 5,000 -
5 Loss by fire A/c…………… Dr 2,000 -
8 Electricity exp. A/c…………. Dr 84,000 -
11 Water can exp. A/c…………. Dr 60,000 -
17 Cash A/c……………………. Dr 6,000 -
To digital scale A/c - 6,000
22 Bank A/c………………….… Dr 3,00,000 -
To cash A/c - 3,00,000
24 Highlights A/c……………… Dr 15,000 -
Sketch pens A/c……………... Dr 15,000 -
To Mr. Joseph A/c - 30,000
25 Mr. Joseph A/c……………… Dr 30,000 -
To bank A/c - 30,000
28 Cash A/c……………………. Dr 5,000 -
Depreciation A/c……………. Dr 5000 -
To book shelf A/c - 5,500
19
30 Drawing A/c………………… Dr 2,000 -

To notebook A/c - 2,000
31 Cash A/c……………………. Dr 5,000 -
To notebook A/c Dr - 5,000
Aug 6 Magazines A/c………………. Dr 1,000 -
To cash A/c - 1,000
7 Cash A/c……………………. Dr 500 -
To magazines A/c - 500
9 Refreshment exp. A/c……… Dr 2,000 -
To cash A/c - 2,000
12 Adhesives & gums A/c……... Dr 20,000 -
15 Cash A/c………………...….. Dr 23,000 -

To adhesives A/c - 23,000
19 Noncurrent investment A/c… Dr 5,00,000 -
To bank A/c - 5,00,000
20 Bank A/c……………………. Dr 50,000 -
To interest on investment A/c - 50,000
21 Bank A/c……………………. Dr 2,00,000 -

To cash A/c Dr - 2,00,000
26 Notebooks A/c……………… Dr 20,000 -

Pens A/c……………………. Dr 20,000 -
To Mr. Avinash Ltd. - 40,000
31 Repairing exp. A/c…………. Dr 10,000 -
20

Sept. 4 Stapler and pins A/c…….…. Dr 10,000 -
To Mr. Suresh A/c - 10,000
5 Mr. Suresh A/c ……………. Dr 10,000 -
To Bank A/c - 10,000
9 Depreciation A/c…………. Dr 3,000 -
To furniture A/c - 3,000
14 Depreciation A/c……………... Dr 4,000 -
To tables and chairs, A/c - 4,000
21 Cleaning exp. A/c ……………Dr 4,000 -
To cash A/c - 4,000
22 Cash A/c……………………... Dr 1,00,000 -

To sales A/c - 1,00,000
27 Mr. Tanmay A/c…………….... Dr 1,50,000 -
To sales A/c - 1,50,000
October 3 Bank A/c………………….…. Dr 1,50,000 -
To Mr. Tanmay A/c - 1,50,000
4 Printer A/c…………………… Dr 10,000 -

10 Depreciation A/c……………. Dr 1,000 -
To photocopy machine A/c - 1,000
11 Cash A/c……………………. Dr 10,000 -
18 Diaries A/c ………………….Dr 20,000 -
21

21 Cash A/c………………….... Dr 25,000 -
To diaries A/c - 25,000
23 Stamps &inks A/c……….… Dr 40,000 -
26 Cash A/c……………………. Dr 300 -
To sales A/c - 300
30 Cash A/c …………………...Dr 300 -
To bad debt recovered A/c - 300
Nov. 2 Sample A/c……………….. Dr v -
To purchase A/c 20,000
7 Mr. Manish A/c…………….. Dr 60,000 -
8 Sales return A/c……………. Dr 5,000 -
To Mr. Manish A/c - 5,000
11 Cash A/c……………………. Dr 22,500 -
Bank A/c…………………… Dr 22,500 -
To Mr. Manish A/c - 55,000
12 Repair A/c………………….. Dr 5,000 -
To cash A/c - 5,000
15 Ink ribbons A/c………………. Dr 5,000 -
To cash A/c - 5,000
18 Cash A/c……………………… Dr 60,000 -
To notebook A/c - 60,000
22 FD A/c……………………… Dr 1,00,000 -
To bank A/c - 1,00,000
23 FD A/c………………………. Dr 10,000 -
22
To interest on FD A/c - 10,000

28 Binders A/c…………………. Dr 40,000 -
December Cash A/c……………………. Dr 12,000 -
1
To printer A/c - 12,000
2 Cash A/c……………………. Dr 50,000 -
To binder’s A/c - 50,000
4 Purchase A/c………………... Dr 1,00,000 -
discount received A/c………..Dr - 10,000
10 Cash A/c……………….….... Dr 47,500 -
Discount allowed A/c………. Dr 2,500 -
13 Printer A/c…………………. Dr 7,500 -
To cash A/c - 7,500
17 Ink ribbons A/c……………. Dr 1,000 -
To cash A/c - 1,000
22 Drawing A/c………………. Dr 3,000 -
To bank A/c - 3,000
27 Cash A/c……………….…. Dr 30,000 -
To rent received A/c - 30,000
Jan 3 Mr Shailaish A/c…………… Dr 20,000 -
6 Cash A/c……………………. Dr 15,000 -
Bad debts A/c……………….. Dr 5,000 -
To Shailaish A/c - 20,000
9 Loss by fire A/c…………….. Dr 4,000 -
23
To notebooks A/c - 4,000

10 Bank charges A/c…………… Dr 1,000 -
To bank A/c - 1,000
15 Bank A/c……………………Dr 70,000 -
To notebooks A/c Dr - 70,000
22 Repair A/c………………….. Dr 1,000 -
To cash A/c - 1,000
28 Mr. Sanjeev A/c…………… Dr 20,000 -
Feb 1 Cash A/c………………….. Dr 20,000 -
To Mr. Sanjeev A/c - 20,000
Highlighters A/c………….. Dr 10,000 -
2 To cash A/c - 10,000
Notebooks A/c……………. Dr 60,000 -
5 To Mr. Ram A/c - 60,000
Mr. Ram A/c……………… Dr 60,000 -
6 To bank A/c - 60,000
FD A/c……………………. Dr 10,000 -
9 To interest on FD A/c - 10,000
24
25
LEDGER ACCOUNT
FURNITURE A/c
Date Particulars JF Dr ₹ Date Particulars J Cr ₹
F
1 To cash A/c 30,000 9 By Depreciation A/c 3,000
Apri Aug.
l
31st By balance c/d 27,000

March
30,000 30,000
TABLES AND CHAIRS A/c

F
Apri Aug.
l

March
40,000 40,000
26
RAKESH’S A/c
F
16 To sales A/c 10,000 17 By Check in hand A/c 10,000
Apri April
l
10,000 10,000
RAMESH’S A/c
F
20 To sales A/c 20,000 5 June By Cash A/c 18,000
Apri
l
By Bad debt A/c 2000
20,000 20,000
CCTV A/c
F
20 To cash A/c 30,000 31st By balance c/d 30,000
27
April March
30,000 30,000
RENT PAID A/c

Date Particulars JF Dr ₹ Date Particulars JF Cr ₹
12 To cash A/c 1,20,000 31st By balance c/d 1,20,000

May March
1,20,000 1,20,000
SALARY A/c
13 To cash A/c 2,40,000 31st By balance c/d 2,40,000

May March
2,40,000 2,40,000
28
PHOTOCOPY MACHINE A/c


June Oct

Marc
h
80,000 80,000
PRINTER A/c
4 To cash A/c 10,000 1 By Cash A/c 1,000

Oct
Dec.
29
13 To cash A/c 7,500

Dec
March
17,500 17,500
INK RIBBON A/c

F
15 To cash A/c 5,000 31st By balance c/d 6,000
Nov. Marc
h
17 To cash A/c 1,000
Dec
6,000 6,000
FD A/c
22 To Bank A/c 1,00,000 31st By balance c/d 1,20,000

Marc
Nov.
h
23 To Interest on FD 10,000
A/c
30
Nov.
9 To Interest on FD 10,000
Feb. A/c
1,20,000 1,20,000
INTEREST ON FD A/c
31st To balance c/d 20,000 23 By FD A/c 10,000

March
Nov.
9 Feb. By FD A/c
20,000 10,000
BANK CHARGES A/c

10 To Bank A/c 1,000 31st By balance c/d 1,000

Jan. March
1,000 1,000
LOSS BY FIRE A/c

5 To Purchase A/c 2,000 31st By balance c/d 6,000

July March
31
9 To Notebook A/c 4,000

Jan
6,000 6,000
WATER CAN A/c

10 To Cash A/c 60,000 31st By balance c/d 60,000

Jan March
60,000 60,000
ELECTRICITY A/c
8 To Cash A/c 84,000 31st By balance c/d 84,000

July March
84,000 84,000
DIGITAL SACLE A/c

31st To Balance c/d 6,000 17 By Cash A/c 6,000

March
July
32
6,000 6,000
ADVERTIZMENT AND SAMPLE A/c

12 To Cash A/c 20,000 By Cash A/c 23,000

Aug.
31st To balance c/d 3,000
March
23,000 23,000
STAPLER AND PINS A/c

4 To Mr. Suresh A/c 10,000 31st By Balance c/d 10,000

March
Sep.
10,000 10,000
NONCURRENT INVESTMENT A/c
33
19 To Bank A/c 5,00,000 31st By Balance c/d 5,00,000

Aug. March
5,00,000 5,00,000
INTEREST ON INVESTMENT A/c

31st To Balance c/d 6,000 20 By Bank A/c 50,000

March Aug.
6,000 50,000
DIARIES A/c
5 July To Cash A/c 20,000 21 By Bank A/c 25,000

Oct.
March
25,000 25,000
34
STAMP AND INK A/c

23 To Cash A/c 40,000 31st By Balance c/d 40,000

Oct. March
40,000 40,000
BINDERS A/c
28 To Cash A/c 40,000 2 By Cash A/c 50,000

Nov.
Dec.
March
50,000 50,000
RENT RECEIVED A/c


March
Dec.
30,000 30,000
35
MR. SHAILAISH A/c

3 Jan. To Sales A/c 20,000 6 Jan. By Cash A/c 15,000
By Balance c/d 5,000
20,000 20,000
SALES RETURN A/c

10 To Shlok Enterprise 2,000 31st By Balance c/d 7,000

June A/c March
8 To Mr. Manish A/c 5,000
Nov.
7,000 7,000
SUNDRY RECEIPT A/c

31st To Balance c/d 100 7 June By Cash A/c 100

March
100 100
36
SHLOK ENTERPRISE A/c

8 June To Sales A/c 45,000 10 By Sales Return A/c 2,000

June
11 By Cash A/c 40,000

June
By Bad debt A/c 3,000
45,000 45,000
AJAY A/c
21 To Sales A/c 22,500 31st By Balance c/d 22,500

June March
22,500 22,500
HIGHLIGHTER A/c
24 To Mr. Joseph A/c 15,000 31st By Balance c/d 25,000

July March
22 Jan To Cash A/c 10,000
37
22,500 22,500
MR. RAM A/c

6 Feb To Bank A/c 60,000 31st By Balance c/d 60,000

March
60,000 60,00
SANJIV A/c
28 To Sales A/c 20,000 31st By Balance c/d 20,000

Jan. March
20,000 20,000
TANMAY A/c
30 To Sales A/c 1,50,000 3 Oct. By Bank A/c 1,50,000

Oct.
38
1,50,000 1,50,000
MR. MANISHA/c
8 June To Sales A/c 60,000 8 By Sales Return A/c 5,000

Nov.
11 By Cash A/c 27,500
Nov.
By Bank A/c 27,500
60,000 60,000
AVINASH A/c
31st To Balance c/d 40,000 26 By Notebook A/c 20,000

March Aug.
By Pens A/c 20,000
40,000 40,000
MR. SURESH A/c

5 Sep. To Bank A/c 10,000 4 By Stapler and 10,000

Sept. Stapler pin A/c
39
10,000 10,000
DEPRECIATION A/c
28 To Book Shelf A/c 500 31st By Profit and Loss, 13,000

July March A/c
4 Sep. To Table & Chair 4,000
A/c
9 Sep. To Furniture A/c 3,000
10 To Photocopy A/c 1,000

Oct.
13,000 13,000
BAD DEBT A/c

5 June To Ramesh A/c 2,000 31st By Profit and Loss, 10,000

March A/c
11 To Shlok enterprise 3,000
June A/c
6 Jan To Shailaish A/c 5,000
10,000 10,000
40
BAD DEBT RECOVERED A/c


March Sept.
26 By Cash A/c 3,000
Oct.
1,300 10,000
MR. JOSEPH A/c

25 To Bank c/d 30,000 24 By highlighters A/c 15,000

July July
By Pens A/c 15,000
30,000 30,000
DISCOUNT RECEIVED A/c

31st To Balance c/d 31,800 18 By Purchase A/c 10,800

March June
6 June By Photocopy 21,000
Machine A/c
31,800 31,800
41
DISCOUNT ALLOWED A/c

31st To Sales A/c 1,125 31st By Balance c/d 3,625

March March
To Sales A/c 2,500
3,625 3,625
SUNDRY EXPENSES A/c

2 May To Cash A/c 10,000 31st By Balance c/d 63,000

March
3 May To Cash A/c 20,000
16 To Cash A/c 10,000

May
19 To Cash A/c 5,000
May
9 To Cash A/c 2,000
Aug.
31st To Cash A/c 10,000
Aug.
21st To Cash A/c 5,000
Sept.
Jan.
42

Nov.
67,000 10,000
MADHUR A/c
22 To Pens A/c 10,000 23 By Notebook A/c 50,000

May April
29 To Bank A/c 1,00,000 2 May By Pens A/c 60,000
May
1,10,000 1,10,000
CHEQUE IN HAND A/c

17 To Rakesh A/c 10,000 23 By Bank A/c 10,000

April May
10,000 10,000
NOTEBOOKS A/c
23 To Mr. Madhur 50,000 30 By Drawing A/c 2,000
43
April A/c July

26 To Mr. Avinash 20,000 By Cash A/c 5,000
Aug. A/c
5 Feb. To Mr. Ram A/c 60,000 By Cash A/c 60,000
By Loss by fire 4,000

A/c
By Bank 70,000
31st By Balance c/d 11,000

March
1,41,000 1,41,000
PENS A/c
23 To Mr. Madhur A/c 20,000 22 By Mr. Madhur A/c 10,000

April
May
26 To Mr. Avinash A/c 60,000 31st By Balance c/d 70,000
Aug. March
80,000 80,000
PURCHASE A/c
44
5 To Cash A/c 1,00,000 26 By Drawing A/c 30,000

April May
18 To Cash A/c 20,000 1 July By Charity A/c 10,000
June
To Discount A/c 80,000 4 July By Advertisement 5,000
A/c
4 To Discount 10,000 5 July By Loss by fire 2,000
Dec. Received A/c A/c
To Cash 90,000
31st By Balance c/d 1,33,000

Marc
h
2,36,000 2,36,000
SALES A/c
16 By Rakesh A/c 10,000

April
20 By Ramesh A/c 20,000
April
22 By Cash A/c 1,00,000
Sep.
By Shlok A/c
22 By Ajay A/c
July
By Bank A/c
45
By Discount A/c
22 By Cash A/c
Sept.
27 By Tanmay A/c 1,50,000
Sept.
11 By Cash A/c 10,000
Oct.
26 By Cash A/c 300
Oct.
7 By Manish A/c 60,000
Nov.
10 By cash A/c 47,500
Dec.
By Discount 2,500
allowed A/c
3 Jan. By Shailaish A/c 20,000
28 By Sanjeev A/c 20,000

Jna
4,40,300 4,40,300
CASH A/c
1 To Capital A/c 20,00,000 5 By Purchase A/c 1,00,000

April April
5 To Ramesh A/c 18,000 10 By Furniture A/c 30,000
June April
7 To Sundry 100 13 By Table A/c 40,000
June Receipt A/c April
11 To Shlok A/c 40,000 2 By wiring A/c 10,000
46
June May
14 To Bank A/c 30,000 2 By Transport A/c 20,000
June May
28 To Sales A/c 45,000 9 By CCTV A/c 30,000
June May
25 To Capital A/c 10,00,000 12 By Rent A/c 1,20,000
June May
30 To Bad Debt 1,000 13 By Salary A/c 2,40,000
June recovered A/c May
17 To Digital Scale 15 By Drawing A/c 30,000
July A/c May
18 To Book Shelf 6,000 16 By Fixture A/c 10,000
June A/c May
31 To Notebooks 5,000 19 By Telephone A/c 5,000
July A/c May
7 To Magazines 5,000 26 By Phototcopy A/c 80,000
Aug A/c June
15 To Gums A/c 500 18 By Purchase A/c 34,200
Aug. June
22 To Sales A/c 23,000 8 By Electricity A/c 84,000
Sept. July
11 To Sales A/c 1,00,000 11 By Water can A/c 60,000
Oct. July
21 To Diaries A/c 10,000 22 By Bank A/c 3,00,000
Oct. July
26 To Sales A/c 25,000 6 By Magazine A/c 1,000
Oct. Aug.
30 To Bad Debt A/c 300 9 By Refreshments 2,000
Oct. Aug. A/c
11 To Mr. Manish 300 12 By Gums A/c 20,000
Nov. A/c Aug.
47
12 To Notebook A/c 27,500 21 By Bank A/c 2,00,000

Nov. Aug.
1 To Printer A/c 60,000 31 By Repair A/c 10,000
Dec. Aug.
2 To Binders A/c 12,000 21 By Cleaning A/c 4,000
Dec. Sept.
10 To Sales A/c 50,000 4 By Printer A/c 10,000
Dec. Oct.
27 To Rent received 47,500 8 By Diaries A/c 20,000
Dec. A/c Oct.
6 Jan. To Shailaish A/c 30,000 23 By Stamp A/c 40,000
Oct.
1 To Mr. Sanjeev 15,000 12 By Repair A/c 5,000
Feb. A/c Nov.
15 By Ink Ribbons 5,000
Nov.
28 By Binder 40,000
Nov.
20,000 4 By Purchase A/c 90,000
Dec.
13 By Printer A/c 7,500
Dec.
17 By Ink Ribbons A/c 1,000
Dec.
22 By Repair A/c 1,000
Jan.
2 By Highlighters 10,000
Feb.
Total To balance c/d 19,11,500
35,71,200 35,71,200
48
BANK A/c
3 To SBI Loan A/c 10,00,00 29 By Mr. Madhur 1,00,000

April 0 May A/c
23 To Cheque in 10,000 14 By Cash A/c 30,000
May hand A/c June
21 To Sales A/c 21,375 25 By Joseph A/c 30,000
June July
22 To Cash A/c 3,00,000 19 By NCI A/c 5,00,000
July Aug.
20 To Increase on 50,000 5 By Suresh A/c 10,000
Aug. Investment A/c Sept.
21 To Cash A/c 2,00,000 22 By FD A/c 1,00,000
Aug. Nov.
11 To Manish A/c 2,75,000 22 By Drawing 3,000
Nov. Dec.
15 To Notebook A/c 7,000 10 By Bank Charges 1,000
Jan. Jan.
6 Feb. By Mr Ram A/c 60,000
31st By Balance c/d 8,44,875

March
1678875 1678875
DRAWING A/c
49
15 To Cash A/c 30,000 By Capital A/c 63,000

May
26 To Bank A/c 30,000
June
22 To Bank A/c 3,000
Dec.
63,000 63,000
CAPITAL A/c
15 To Drawing A/c 63,000 1 By Cash A/c 2,00,000

May April
31st To Balance c/d 29,37,000 25 By Cash A/c 10,00,000
March June
30,00,000 30,00,000
SBI LOAN A/c

31st To Balance c/d 10,00,00 3 By Bank c/d 10,00,000

March 0 April
50
10,00,00 10,00,000
0
51
TRIAL BALANCE
Trial Balance as on 31st March, 2021.
S.no Particular Debit Credit
1. Cash 19,11,500 -
2. Bank 84,875 -
3. Furniture 27,000 -
4. Table & Chair 36,000 -
5. CCTV 30,000 -
6. Rent Paid 1,20,000 -
7. Salary 2,40, ,000 -
8. Photocopy Machine 79,000 -
9. Printer 5,500 -
10. Ink Ribbon 6,000 -
11. FD 1,20,000 -
12. Interest on FD - 20,000
13. Bank Charges 1,000 -
14. Loss by fire 6,000 -
15. Water Can 60,000 -
16. Electricity Expenses 84,000 -
17. Digital Scale - 6,000
18. Advertisement 25,000 -
19. Charity 10,000 -
20. Magazines 500 -
21. Stapler 10,000 -
22. NCI 5,00,000 -
23. Interest on NCI - 50,000
24. Stamp and Ink 40,000 -
25. Rent Received - 30,000
26. Sales Return 7,000 -
27. Sundry Receipt - 100
28. Ajay 22,500 -
29. Highlighters 25,000 -
30. Mr. Ram 60,000 -
31. Sanjeev 20,000 -
32. Mr. Avinash - 40,000
33. Bad Debt Received - 1,300
34. Discount Received - 31,800
35. Discount Allowed 3,625 -
36. Sundry Expenses 67,000 -
52
37. Pens 70,000 -

38. Purchase 1,69,000 -
39. Sales - 5,75,300
40. Capital - 29,37,000
41. Loan - 10,00,000
42. Bad Debt 10,000 -
43. Depreciation 13,000 -
44. Suspense 79,200
TOTAL 46,59,700 46,59,700
53
FINAL ACCOUNTS
Trading Account for the year ended at 31st March 2021.
Particulars ₹ ₹ Particulars ₹ ₹
Purchase 2,36,00 By Sales 5,75,300
0
Less Goods given in 10,000 Less Sales Return 7,000
charity A/c
Less Goods given as 25,000 5,68,300
free sample
2,01,000
To rent paid A/c 1,20,000
To electricity A/c 84,000
To gross profit 1,63,000
TOTAL 5,68,300 5,68,300
P&L account for the year ended at 31st March 2021.

Particulars ₹ Particulars ₹
To Discount Allowed A/c 3,635 By Gross Profit A/c 1,63,300
To Sundry Exp. A/c 67,000 By Rent Allowed A/c 30 ,000
To Depreciation A/c 13,000 By Interest on 50,000
Investment A/c
To Bank Charges A/c 1,000 By Interest on FD A/c 20,000
To Loss by fire A/c 6,000 By Bad Debt 1,300
Recovered A/c
To Bad Debt A/c 10,000 By Digital scale A/c 6,000
To Net profit A/c 2,01,875 By discount received 31,800
A/c
By Sundry Receipt A/c 100
TOTAL 3,02,500 3,02,500
54
Balance sheet of Shivaji traders as at 31st March 2021.
Liabilities ₹ ₹ Asset ₹
Mr. Avinash 40,000 Cash 19,11,500
Loan 10,00,000 Bank 8,44,875
Capital 2937000 Furniture 27,000
Add Net Profit 201875 Table 36,000
31,38,875 Photocopy 79,000
Machine
Printer 5,500
Ribbon 6,000
FD 1,20,000
Ajay 22,500
Mr. Ram 60,000
Sanjeev 20,000
Pens 70,000
Magazines 500
Stamp 40,000
Stapler 10,000
NCI 5,00,000
Suspense 3,46,800
TOTAL 41,78,875 41,78,875
55

National Law University Odisha: (Basic Principles of Accounting)

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[Basic Principles of Accounting]

NATIONAL LAW UNIVERSITY ODISHA

BASIC PRINCIPLES OF ACCOUNTING

“ACCOUNTS OF A STATIONARY SHOP”

ARYAN PARASHAR (2019/B.A.LL.B./033)

AVANI GARGAVA (2019/B.A.LL.B./038)

(Batch of 2024/ 3rd Semester)

I would like to express my gratitude and appreciation to my subject teachers

DATE LIST OF TRANSACTIONS

Ms. Gotu, the owner, started the business with cash of

Loan taken from SBI bank 10,00,000.

Goods brought for cash ₹ 1,00,000.

Furniture bought ₹ 10,000.

Tables & Chairs brought ₹ 40,000.

Cheque received from Rakesh for goods sold ₹

Sold on credit to Ramesh for ₹ 20,000.

Purchased notebooks ₹ 50,000, pens ₹ 60,000 on

Paid for wiring and lightening ₹ 10,000.

Paid for transportation ₹ 20,000.

Purchased CCTV worth ₹ 30,000.

Paid rent for the shop ₹ 10,000 per month.

Hired a person as help, salary paid ₹ 20,000 per

Withdrawn from capital for personal use ₹30,000.

Telephone expenses ₹ 5,000 and fixture expenses ₹

Goods ₹ 10,000 returned to Mr. Madhur.

Cheque received from Rakesh deposited into bank.

Paid to Mr. Madhur from Bank.

Ramesh paid 90 paisa in a rupee for his amount ₹

Photocopy machine purchased ₹ 1,00,000 discount

Goods sold for ₹ 90,000 half in cash, half in credit to

Goods returned by Shlok enterprises worth ₹ 2,000.

Shlok enterprises paid ₹ 40,000 in full settlement.

Cash withdrawn from office use ₹ 30,000.

Purchased goods from ₹ 40,000 at 10% Trade

Sold goods to Ajay for ₹ 50,000 allowing 5% cash

Additional capital introduced ₹ 10,00,000.

Goods withdrawn for personal use ₹ 30,000.

Received cash for a bad debt within off last year ₹

Goods costing ₹ 10,000 given as charity.

Goods distributed as advertisement to increase sales ₹

Paid electricity expenses with ₹ 7000 month per

Water can expenses paid ₹ 5,000 month per month.

Earned ₹ 6,000 by sale of a digital meter.

Opened a bank account in Bank of Baroda of ₹

Purchased highlighters and sketch pens from Mr.

Sold a bookshop worth ₹ 5000 in cash and

Mr. withdrawn the notebook for personal use.

Notebook worth ₹ 5,000 were sold in cash.

Purchased magazines worth ₹ 1,000 for cash.

Sold magazines worth ₹ 500 in cash.

Purchased adhesives and gums worth ₹ 20,000 in

Sold adhesives worth for ₹ 23,000 in cash.

Interest on investment received worth ₹ 5,00,000.

Deposited cash ₹ 2,00,000 in account of business.

Sold notebooks, pens, covers, to Ms. Avinash Ltd

Paid ₹ 10,000 in cash for repairing expenses.

Purchased stapler and stapler pins worth ₹ 10,000

A cheque was issued to Mr. Suresh for stapler and

Paid ₹ 4,000 for cleaning charges.

Goods ₹ 1,00,000 were sold for cash.

Goods ₹ 1,50,000 were sold on credit to Mr. Tanmay.

Mr. Tanmay paid the amount by cheque.

Purchased printer for ₹10,000.