ACCOUNTANCY PROJECT WORK

TITLE: PROJECT REPORT ON JOURNAL, LEDGER, TRIAL

BALANCE AND PREPARATION OF FINANCIAL
STATEMENT OF ANY ORGANISATION

A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF ANNUAL PROJECT REPORT

FOR +2 2ND YEAR IN COMMERCE, CHSE BOARD, ODISHA, 2022-23

DEPARTMENT OF COMMERCE
CHRIST HIGHER SECONDARY
SCHOOL, CUTTACK

Name : AFIFA WASIM

College roll number : IC-21-057

Examination year : 2022-23

Regd. No : CA10C21057

CHSE roll number :

Sign of Student Date of Submission

Sign of Internal Examiner Sign of External Examiner

 DECLARATION

I do hereby declare that the project titled “STATEMENT OF COST AND PROFIT FOR

A MANUFACTURING CONCE PROJECT REPORT ON JOURNAL, LEDGER, TRIAL

BALANCE AND PREPARATION OF FINANCIAL STATEMENT OF ANY

ORGANISATION” submitted to Christ Higher Secondary School, Cuttack, Odisha for the Annual

Project Report for +2 2nd Year in Commerce, is an original piece of work done by me and it has not

been published elsewhere or submitted for any other Degree or Diploma in full or in part.

Place:
Date: Signature of Student
 CERTIFICATE

This is to certify that the project entitled “PROJECT REPORT ON JOURNAL,

LEDGER, TRIAL BALANCE AND PREPARATION OF FINANCIAL STATEMENT OF

ANY ORGANISATION” submitted by Afifa Wasim of +2 2nd Year Commerce Bearing Roll No

_______________ is a record of an independent research work carried out by her under my guidance

and supervision. Her work is original. This has not been submitted elsewhere for the award of any

Degree or Diploma.

Place:
Date: Signature of the Guide
 ACKNOWLEDGEMENT

I would like to express my gratitude to my teacher Mr. Subrat Bal as well as our Principal

Mrs. Madhumita Patra who gave me the opportunity to do this ( Cost Accounting ) project on the

topic (PROJECT REPORT ON JOURNAL, LEDGER, TRIAL BALANCE AND

PREPARATION OF FINANCIAL STATEMENT OF ANY ORGANISATION). I would like

to thank them for encouraging my research and allowing me to grow like a researcher.

A special thanks to my family, words cannot be express how grateful I am to my parents who

helped me a lot in finalizing this project within the limited time frame. At the end I would like to

thank all my friends who supported me in writing and inspired me to strive towards my goal.
 ABSTRACT

The accounting process starts with the recording of transactions

in the form of journal entries. After recording the transactions these are
posted in ledger accounts . A trial balance is a statement of showing the
balances of all ledger accounts as on a particular date . It is prepared
to ascertain the arithmetical accuracy of the ledger accounts . then this
particulars are transferred to final accounts to prepare the trading
account , profit and loss account and balance sheet. This project include
the Mr. Rahul account , ledger account , trial balance, trading and profit
and loss account , balance sheet and at last pie-chart which provide
complete analytical data about the organisation . This compressive project
gives data on the business whether the benefited with profit or suffer with
loss. By the preparation of compressive project we can know about the
credit worthiness of the organisation

CONTENT
SL NO PARTICULARS PAGE NO

1 INTRODUCTION

2 TRANSACTION

3 JOURNAL

4 LEDGER

5 TRAIL BALANCE , FINAL ACCOUNTS

6 CONCLUSION

7 BIBLIOGRAPHY
 INTRODUCTION

Accounting :

Accounting is the art of recording , classifying and summarising in a

significant manner and in terms of money . accounting is the analysis and
interpretation of book- keeping records.

Definition :

“Accounting system is a means of collecting ,summarising ,analysing

and reporting inmonetary terms the information of business” ------- Robert
N. Anthony.

Journal:

Journal means a daily record . It is called a book of original entry

because every business transaction is first recorded in this book.

Definition :

“The journal is a book of original entry in which transactions are recorded not provided
for in specialised journals “ --------- ERIC .L. KOHLER .

FORMAT OF JOURNAL

DATE PARTICULARS L.F. DR. CR.

JAN.1 PURCHASE A/C DR. xxx

TO CASH A/C CR. xxx

(BEING PURCHASE GOODS FOR CASH)

 LEDGER:

Ledger is a principle or primary book of accounts. It is the most important

book in accounting system . it contains all the accounts to which the transactions
recorded in the books of original entry are transferred .

Definition :

“Ledger is the permanent store house of all the transactions” --------field house arther.

Pro forma of ledger

account
DATE PARTICULARS J.F. AMT DATE PARTICULARS J.F. AMT
TO , NAME OF THE CREDIT BY,NAME OF THE DEBIT
JAN.1 A/C IN JOURNAL A/C IN JOURNAL

TRIAL BALANCE :

In order to check the arithmetic accuracy of books of account a schedule of

accounting balances is prepared which is known as trial balance .

Definition :

“The final statement of balances , joint and mixed , is called trial balance “ -
Rowlland

PROFORMA OF TRIAL BALANCE AS SO

ON
[Link]. LEDGER A/C L.F. DR. CR.
FINAL ACCOUNTS

After the preparation of trial balance, the trader wants to know the
trading results of the business . the trading results of business mean whether
the business has earned profits or suffered losses during the accounting period
.

The final account consist of : (a) treading account , (b) profit and loss account, (c) balance
sheet

TRADING ACCOUNT :

Trading account is prepared for ascertaining the gross profit or gross

loss of the business for an accounting period . the difference between the net
sales and the cost of goods sold is either gross profit or gross loss .

PRO FORMA OF TRADING ACCOUNT

PARTICULARS AMT PARTICULAR AMT
TO,OPENING STOCK TO, BY,SALES
PURCHASES LESS: LESS: SALES RETURN BY,
RETURNS CLOSING STOCK
TO, DIRECT EXPENSES
TO, GROSS PROFIT

PROFIT AND LOSS ACCOUNT :

The profit and loss account with a view to ascertain net profit or net loss
during an accounting period . it is a nominal account income and
expenses relating to current year are shown in it.

pro forma of profit and loss account

Particulars amt particulars amt
To ,gross loss b/d By, gross profit b/d
To, office expenses By, interest incomes
To, Selling & distribution expenses
To ,financial expenses
To ,repairs & depreciation
To, miscellaneous expenses
To, NET PROFIT
BALANCE SHEET:

This statement is prepared to know the financial status of the

business concern . the capital and liabilities of the business are shown on

the left hand side , whereas assets and other items of debit balance are shown

on the right hand side.

Pro forma of balance sheet

Liabilities amt Assets amt
 TRANSACTION

2015

April 1. Rahul commenced business with cash 200000

And building 120000

April 4. Deposited in to bank 50000

May 10. Bought furniture for office use 50000

May 30. Purchase goods for cash 90000

June 5 trade expenses 500

June 15 wages paid 10000

July 28 rent paid 2500

Sep.10 interest on capital 200

Dec.27 cash sales 150000

Feb. 18 carriage inward 100

Feb .21 sundry expenses paid 250

Feb .26 miscellaneous income 50000

1.4.2015
Cash A/C Dr. 200000
Building A/C Dr. 120000
To Rahul's A/C 620000
( being started business with cash and building )

4.4.15 Bank A/C Dr. 50000

To cash A/C 50000
(being cash deposited in to bank )
10.5.15 Furniture A/C Dr. 50000
To cash A/C 50000
(being purchase furniture for cash )
30.5.15 Purchase A/C Dr. 90000
TO cash A/C 90000
(being Purchase goods for cash )
5.6.15 Trade expenses A/C Dr. 500
TO cash A/C 500
(being purchase goods for cash)
15.6.15 Wages A/C Dr. 10000
To cash A/C 10000
(Being wages paid )
27.7.15 Rent A/C Dr. 2500
To cash A/C 2500
(Being rent paid )
10.9.15 Interest on capital A/C Dr. 200
To rahul’s capital A/C 200
(Being interest on capital is provided to proprietor)
27.12.15 Cash A/C Dr. 150000
To sales A/C (Being 150000
cash sales )
18.2.16 Carriage inward a/c Dr. 100

TO cash A/C 100

(Being carriage inward expenses are paid cash)
21.2.16 Sundry expenses A/C Dr. 250
To cash A/C 250
(Being sundry expenses paid in cash)
26.2.16 Cash A/C Dr. 50000
To miscellaneous income A/C 50000

(Being received miscellaneous expenses ) 723550 723550

 LEDGER ACCOUNTS

CASH ACCOUNT
DR. CR.
J.F AMOUNT J.F AMOUNT
DATE PARTICULARS . DATE PARTICULAR .
S
1.4.15 TO RAHUL'S CAPITAL 200000 4.4.15 BY BANK 50000

27.10.15 TO SALES 150000 10.5.15 BY 50000

FURNITURE
TO MISCELLANEOUS
26.2.16 EXPENSES 50000 30.5.15 BY 90000
PURCHASES

5.6.15 BY TRADE
EXPENSES 500

15.6.15 BY WAGES 10000

28.7.15 BY RENT 2500

18.2.16 BY
CARRIAGE
INWARD 100
21.2.16 BY SUNDRY
EXPENSES 250

31.3.16 BY BALANCE 196650

C/D
400000 400000
1.4.16 TO BALANCE B/D 196650

BUILDING ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
1.4.15 TO RAHUL'S CAPITAL 120000 31.3.16 BY BALANCE C/D 120000
120000 120000
1.4.16 TO BALANCE B/D 120000
 RAHUL'S CAPITAL ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
31.3.16 TO BALANCE C/D 320200 1.4.15 BY CASH 120000
1.4.15 BY BUILDING 120000
10.9.15 BY INTEREST ON CAPITAL 200
320200 320200
1.4.16 BY BALANCE B/D 320200

BANK ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
4.4.15 TO CASH 50000 31.3.16 BY BALANCE C/D 50000
50000 50000
1.4.16 TO BALANCE B/D 50000

FURNITURE ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
10.5.15 TO CASH 50000 31.3.16 BY BALANCE C/D 50000
50000 50000
1.4.16 TO BALANCE B/D 50000

PURCHASE ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
30.5.15 TO CASH 90000 31.3.16 BY BALANCE C/D 90000
90000 90000
1.4.16 TO BALANCE B/D 90000

TRADE EXPENSES ACCOUNT

DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
5.6.15 TO CASH 500 31.3.16 BY BALANCE C/D 500
500 500
1.4.16 TO BALANCE B/D 500
 WAGES ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
15.6.15 TO CASH 10000 31.3.16 BY BALANCE C/D 10000
10000 10000
1.4.16 TO BALANCE B/D 10000

RENT ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
28.7.15 TO CASH 2500 31.3.16 BY BALANCE C/D 2500
2500 2500
1.4.16 TO BALANCE B/D 2500

INTEREST ON CAPITAL ACCOUNT

DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
10.9.15 TO RAHUL'S CAPITAL 200 31.3.16 BY BALANCE C/D 200
200 200
1.4.16 TO BALANCE B/D 200

SALES ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
31.3.16 TO BALANCE C/D 150000 27.12.15 BY CASH 150000
150000 150000
1.4.16 BY BALANCE B/D 150000

CARRIAGE INWARD ACCOUNT

DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
18.2.16 TO CASH 100 31.3.16 BY BALANCE C/D 100
100 100
1.4.16 TO BALANCE B/D 100
 SUNDRY EXPENSES ACCOUNT
DR. CR.
DATE PARTICULARS [Link] DATE PARTICULARS J.F. AMOUNT
21.2.16 TO CASH 250 31.3.16 BY BALANCE C/D 250
250 250
1.4.16 TO BALANCE B/D 250
MISCELLANEOUS INCOME ACCOUNT
DR. CR.
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F. AMOUNT
31.3.16 TO BALANCE C/D 50000 31.3.16 BY CASH 50000
50000 50000
1.4.16 BY BALANCE B/D 50000

TRIAL BALANCE as on MARCH 30.6.2016

[Link] LEDGER ACCOUNTS L.F. DEBIT CREDIT

1 CASH 196650
2 BUILDING 120000
3 BANKRAHUL’S CAPITAL 320200
4 BANK 50000
5 FURNITURE 50000
6 PURCHASE 90000
7 TRADE EXPENSES 500
8 WAGES 10000
9 RENT 2500
10 INTEREST ON CAPITAL 200
11 SALES 150000
12 CARRIAGE INWARD 100
13 SUNDRY EXPENSES 250
MISCELLANEOUS
14 INCOME 50000
520200 520200
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING
30.3.2016

particulars amount particulars amount

To purchase 90000 By sales 150000
To wages 10000
To carriage inward 100
To gross profit (c/d) 49900
150000 150000
To trade expenses 500 By gross profit(b/d) 49900
To rent 2500 By miscellaneous income 50000
To interest on capital 200
To sundry expenses 250
To net profit 96450
99900 99900

BALANCE SHEET at the year ending MARCH 30, 2016

liabilities amount assets amount

fixed liabilities fixed assests
capital 320200 furniture 50000
add:net profit 96450 building 120000
current assets
bank 50000
cash 196650
416650 416650
200000

103550

96450

416650

Asset Capital
 CONCLUSION

A comprehensive project which include journal entries , ledger

accounts , trail balance , trading and profit and loss account , balance sheet
and at last bar diagram helps give complete idea about organisation
financial strength and credit worthiness of an organisation . it provide
complete data at a certain given prior or at a certain given data .
 BIBLIOGRAPHY

C. Mohan Juneja , J.S. Arora ,R.C .Chawla , P .C. Sahoo :2016 ( 1ST YEAR
BOOK) , DOUBLE ENTRY BOOK KEEPING , PAGE: 1.7,4.1,5.1,9.1.

C. Mohan Juneja ,[Link] , [Link] :2017 (2nd year book)

,DOUBLE ENTRY BOOK KEEPING , PAGE: 1.2,1.8,1.18.

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