KARAN.J.

DEVTALLA

PROJECT

ACCOUNTS
ACKNOWLEDGMENT
I WOULD LIKE TO EXPRESS MY
SPECIAL THANKS TO MY ECONOMICS
TEACHER MR. SHIVAM MISHRA AS
WELL AS OUR PRINCIPAL MRS. NEETU
GANDHI FOR GIVING ME THIS GOLDEN
OPPORTUNITY TO DO THIS
WONDERFUL PROJECT. IT HELPED ME
IN GAINING MORE KNOWLEDGE
ABOUT THE TOPIC OF THE
ECONOMICS

I WOULD ALSO LIKE TO THANK MY

PARENTS FOR PROVIDING ME
WITH ALL THE REQUIRED
FACILITIES TO COMPLETE MY
PROJECT WITHIN THE GIVEN TIME
PERIOD.
 INDEX
____________________________________
____________________________________

____________________________________
PREPARE VOUCHER
ACCOUNTING EQUATION
____________________________________
____________________________________
CATEGORISE THE TRANSACTIONS

____________________________________
TRANSACTIONAL RECORD

____________________________________
FINANCIAL STATEMENT
____________________________________
BENEFITS AND DRAWBACKS
 VOUCHER
________________________________________
001
Kotn.LTD
02/05/2020

MACHINE EXPENSE 50,000

ONLINE [BANK] 50,000

002
Kotn.LTD
03/05/2020

RAW MATERIAL 1,00,000

COMPUTERS 50,000

CASH 1,50,000
 003
Kotn.LTD 04/05/2020

50,000
Organic Linen
25,000
Recycled Polyester

75,000
CHECK

004
Kotn.LTD
05/05/2020

Recycled and Organic Cotton 30,000

20,000
Organic Hemp

50,000
CASH
ACCOUNTING EQUATION
TRANSACTIONAL RECORD
FINANCIAL STATEMENT
 BENEFITS AND DRAWBACKS

Maintaining accounts in a systematic

manner involves keeping detailed and
organized financial records. This practice
has several benefits and drawbacks:
Benefits

1. Accuracy and Reliability:

Systematic accounting ensures
that financial records are
accurate and reliable, reducing
the risk of errors and
discrepancies.
2. Compliance:
Helps in complying with legal and
regulatory requirements, such as
tax filings and financial reporting
standards.
Financial Analysis and Decision-
Making:
Provides a clear picture of the
financial health of the business,
aiding in strategic planning and
informed decision-making.
Efficiency:
Streamlines financial processes,
saving time and resources in
tracking and managing finances.
Accountability and
Transparency:
Enhances accountability and
transparency within the
organization, building trust
among stakeholders.
 DRAWBACKS

Time-Consuming:
Maintaining systematic accounts
can be time-consuming,
especially for small businesses
with limited resources.
Cost:
Requires investment in
accounting software, training, and
possibly hiring professional
accountants, which can be costly.
Complexity:
The complexity of accounting
standards and regulations can be
challenging to navigate, requiring
specialized knowledge.
 Risk of Over-Reliance on
Technology:
Dependence on accounting
software can lead to issues if the
system fails or is compromised.
Potential for Human Error:
Despite systematic processes,
there is still a risk of human error
in data entry and interpretation.

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