The schram academy

Accounts project

By: VaRShini Kumar

11-C
Index:-
 Transitions
 Journal entry
 Ledger
 Trial balanced
 Alex decided to start a new business on April 1,
2019. He stared his business with RS 50,000 cash, RS
10,00,000 in bank and RS 20,000 worth machines. He has
spent some amount during the year and now the year gas
come to an end so he wants journal entry, ledger and trial
balance of the following transaction.

Date (2019) Particulars Amount

April 1 Started a business with cash 50,000
Bank 10,00,000
Machine 20,000
April 2 Paid electricity bill 1,500
April 20 Brought good from Rahul and 20,000
received trade discount of 10%
May 13 Goods distributed as sample 2,000
May 29 Took loan from bank 2,00,000
June 9 Sold good costing 10,000
Discount allowed 1,000
June 10 Amount due from Rakesh was 11,000
not recovered
June 30 Amount transfer to fixed 6,00,000
deposited
July 10 Interest charged by bank 5,000
August 5 Goods given as donation 9,000
August 19 Brought goods from kiran 12,000
October 20 Goods returned 6,000
October 30 Brought good pulse IGST 10% 3,000
paid by cheque
December 2 Bank charges 100
December 20 Brought new furniture and paid 10,000
by cheque
January 15 Withdrawn for personal use 10,000
February 28 Paid for advertisement 6,000
Journal entry:-
A journal entry records a business transaction in
the accounting system for an organization. Journal entries
form the building blocks of the double-entry accounting
method that has been used for centuries to keep financial
records. They make it possible to track what a business
has used its resources for, and where those resources
came from.

A journal entry has these components:

 The date of the transaction
 The names of the accounts impacted plus the account
number, where relevant
 The amounts to be credited and debited
 A reference number that serves as a unique identifier
for the transaction 
 A description of the transaction

Date Particular L. Debit Credit

F
2019 In RS In RS
Apr 1 Cash a/c 50,000
Bank a/c 10,00,000
Machine a/c 20,000
To capital a/c 10,70,00
Apr 2 Electricity a/c 1,500
To cash a/c 1,500
April 20 Purchase a/c 18,000
To Rahul a/c 18,000
May 13 Free sample a/c 2,000
To purchase a/c 12,000
May 29 Bank a/c 2,00,000
To loan a/c 2,00,000
June 9 Cash 9,00
Discount allowed 1,000
To sales a/c 10,000
June 10 Bad debts a/c 11,000
To rakes a/c 11,000
June 30 Fixed deposited a/c 6,00,000
To bank a/c 6,00,000
July 20 Interest a/c 500
To bank a/c 500
Aug 5 Donation a/c 9,000
To purchase a/c 9,000
Aug 19 Purchase a/c 12,000
To kiran 12,000
Oct 20 Kiran 6,000
To purchase return a/c 6,000
Oct 30 Purchase a/c 3,000
Input IGST 300
 To bank a/c 3,300
Dec 2 Bank charges a/c 1,000
To bank a/c 1,000
Dec 20 Furniture’s a/c 10,000
To bank a/c 10,000
Jan 15 Drawing a/c 10,000
To cash a/c 10,000
Feb 28 Advertisement a/c 6,000
To cash a/c 6,000
Ledger:-
A ledger is a book containing accounts in which the
classified and summarized information from the journals is
posted as debits and credits. It is also called the second book of
entry. The ledger contains the information that is required to
prepare financial statements. It includes accounts for assets,
liabilities, owners’ equity, revenues and expenses. This
complete list of accounts is known as the chart of accounts. The
ledger represents every active account on the list.

dr Cash a/c cr
Date Particular Amount Date Particular Amoun
t
Apr To capital 50,000 Apr By electricity 1,500
1 2 a/c
Jun To sales 9,000 Jan By drawing a/c 10,000
9 15
Feb By 6,000
28 advertisement
a/c
Mar By Balance a/c 41,500
31
59,000 59,000
Date Particular Amount Date Particular Amoun
t
Apr To capital a/c 20,000 Mar By balance a/c 20,000
1 31
20,000 20,000

dr Bank a/c cr
Date Particular Amount Date Particular Amoun
t
Apr To capital 10,00,0 Oct By Purchase a/c 3,300
1 00 30
May To loan 2,00,00 Jun By Fixed 6,00,0
29 0 30 deposit a/c 00
July By Interest a/c 5,000
20
Dec By bank 1,000
2 charges a/c
Dec By furniture 10,000
20
Mar By balance a/c 5,85,2
31 00
12,00,000 12,00,000

dr Machine a/c cr
dr Capital a/c cr
Date Particular Amount Date Particular Amoun
t
Mar To balance 10,70,0 Apr 1 By Cash 50,000
31 00
Apr 1 By Bank 10,00,
000
Apr 1 By machine 20,000
10,70,000 10,70,000

dr Electricity a/c cr
Date Particular Amount Date Particular Amoun
t
Apr To cash 1,500 Mar By balance 1,500
2 31
1,500 1,500

dr Purchase a/c cr
Date Particular Amount Date Particular Amoun
t
Apr To Rahul 18,000 Apr By free sample 2,000
20 13 a/c
Aug To kiran 12,000 Aug By donation 9,000
19 5
Oct To bank 3,000 Mar By balance 22,000
30 31
33,000 33,000

dr Rahul cr
Date Particular Amount Date Particular Amoun
t
Mar To balance 18,000 Apr By purchase 18,000
31 a/c 20 a/c
18,000 18,00

dr free sample cr
Date Particular Amount Date Particular Amoun
t
May To purchase 2,000 Mar By balance a/c 2,000
13 a/c 31
2,000 2,000

dr Bank loan a/c cr

Date Particular Amount Date Particular Amoun
t
May To balance 2,00,00 Mar By bank a/c 2,00,0
29 0 31 0
2,00,000 2,00,000

dr Discount allowed a/c cr

Date Particular Amount Date Particular Amoun
t
Jun To sales a/c 1,000 Mar By balance a/c 1,000
9 31
1,000 1,000

dr Bad debts a/c cr

Date Particular Amount Date Particular Amoun
t
Jun To Rakesh 11,000 Mar By balance a/c 11,000
10 31
11,000 11,000

dr Rakesh a/c cr
Date Particular Amount Date Particular Amoun
t
Mar To balance 11,000 Jun By bad debts 11,000
31 10
11,000 11,000

dr Fixed deposit a/c cr

Date Particular Amount Date Particular Amoun
t
Jun To bank a/c 6,00,00 Mar By balance 6,00,0
30 0 31 00
6,00,000 6,00,000

dr Donation a/c cr
Date Particular Amount Date Particular Amoun
 t
Aug To purchase 9,000 Mar By Balance 9,000
5 a/c 31
9,000 9,000

dr kiran a/c cr
Date Particular Amount Date Particular Amoun
t
Oct To purchase 6,000 Aug By purchase 12,000
20 return a/c 19 a/c
Mar To balance 6,000
31
12,000 12,000

dr Purchase return a/c cr

Date Particular Amount Date Particular Amoun
t
Mar To balance 6,000 Oct Kiran 6,000
31 a/c 20
6,000 6,000

dr Input IGST a/c cr

Date Particular Amount Date Particular Amoun
t
Oct To bank a/c 300 Mar By balance 300
30 31
300 300
dr Bank charges a/c cr
Date Particular Amount Date Particular Amoun
t
Dec To bank a/c 1,000 Mar By balance a/c 1,000
2 31
1,000 1,000

dr Furniture a/c cr
Date Particular Amount Date Particular Amoun
t
Dec To cash a/c 10,000 Mar By balance ac 10,000
20 31
10,000 10,000

dr Drawing a/c cr
Date Particular Amount Date Particular Amoun
t
Jan To cash a/c 10,000 Mar By balance a/c 10,000
15 31
10,000 10,000

dr Advertisement a/c cr
Date Particular Amount Date Particular Amoun
t
Feb To cash a/c 6,000 Mar By balance a/c 6,000
28 31
6,000 6,000

dr Interest a/c cr
Date Particular Amount Date Particular Amoun
t
July To bank a/c 500 Mar By balanced 500
20 31 a/c
500 500

dr Sales a/c cr
Date Particular Amount Date Particular Amoun
t
Mar To balance 10,000 Jun 9 By cash 10,000
31 a/c
10,000 10,000
Trial balance:-
A trial balance is a bookkeeping worksheet
in which the balance of all ledgers are compiled into
debit and credit account column totals that are equal.
A company prepares a trial balance periodically,
usually at the end of every reporting period. The
general purpose of producing a trial balance is to
ensure the entries in a company's bookkeeping
system are mathematically correct.

Head of account L.F Debit Credit

Cash a/c 41,500
Bank a/c 5,85,200
Machine a/c 20,000
Capital a/c 10,70,000
Electricity a/c 1,500
Purchase a/c 22,000
Rahul a/c 18,000
Free sample a/c 2,000
Bank loan a/c 2,00,000
Discount allowed a/c 1,000
Bad debts a/c 11,000
Rakesh a/c 11,000
Fixed deposits a/c 6,00,000
Donation a/c 9,000
Kiran a/c 6,000
Purchase return a/c 6,000
Input IGST a/c 300
Bank charges a/c 1,000
Furniture a/c 10,000
Drawing a/c 10,000
Advertisement a/c 6,000
Interest a/c 500
Sales a/c 10,000
Total 13,21,000 13,21,000