Journal : Journal is derived from the French word “Jour” which means a day.

Journal means
daily record. It is a book of original record where every transaction is recorded in the first
instance and then it is posted to the ledger. The form in which it is recorded is called journal
entry and recording or entering a transaction in the journal is known as journalizing.

Date Particulars L/F Debit Credit

1 By Cash 50,000
To Ram 50,000
(Being Received Cash from Ram)
2 By Goods 2500
To Cash 2500
(Being Purchased goods for Cash)
3 By Hari 3200
To Goods 3200
(Being Sold Goods to Hari)

Assets/Debtor/Debit Balance= Dr
Liabilities /Creditor /Credit Balance = Cr
Dat Particulars L./F Debit Credit
e
1 By Cash 20,000
By Stock 25,000
By Khanna Bros 20,000
By Nirman & Co. 15,000
To Kripal Bros. 10,000
To Mitrasen & Co 5,000
To Capital 65,000
By Karmakar 9000
To Sales 9000
By Nirman 14,500
To Cash 14500
By Nirman 500
To Discount 500
2 By Mitra Sen 4750
To Cash 4750
By Mitra Sen 250
To Discount 250
By Stationary
To Cash
By Rent
To Cash
By Purchase
To S K & Co.
 By Kripal Bros
To Cash
By Kripal Bros
To Discount
By Drawings
To Cash
By S.K. & Co
To Return Outword
By SK & Co
To Cash
By SK
To Discount
By Cash
To Sales
By Salaries
To Cash
13 By
To
By
To
By
To
By
To
By Purchase
To Ajay Kumar
 By Cash
To Sales
By Himansu
To Bank
10 By Bank
To Cash
13 By Mukesh
To Sales
15 By Postage
To Cash
16 By Cash
To Rakesh
16 By Telephone Charges
To Cash
25 By Purchase
To Cash
27 By Railway Authority
To Purchase
By Cash 1000
To Suresh 1000
By Discount 1000
To Suresh 1000
18 By Cash
To Sales
20 By Govt. Security
To Cash
22 By Purchase 12,800
To Discount 640
To Cash 12,160
22 By Ramesh 14,400
To Sales 14,400
28 By Horse 2600
To Cash 2600
By Carriage 1200
To Cash 1200
30 By Cash 100
By Loss on Horse 2500
To Horse 2600
31 By Interest 2200
To Capital 2200
By Salary 1500
To Cash 1500
By Rent 600
To Cash 600
14 By Purchase 8000
To Discount 400
To Cash 7600
By Cash 5292
To Vijay 5292
By Discount 108
To Vijay 108
By Bharat Share 3060
 To Cash 3060
By Railway Authority
To Purchase
By Anand
To Cash
By Anand
To Discount
By Cash
To Railway Authority
By Cash 1800
To Anupam 1800
By Discount 1800
To Anupam 1800
By Cash 1410
To Bharat Share 1410
By Horse
To Cash
By Carriage
To Cash
By Charity 202
By Postage 400
By Stationary 398
To Cash 1000
By Interest 200
To Mrs. Loan 200
By Cash 100
 By Loss on Horse 3900
To Horse 4000
By Cash 6000
By Travelling Exp 300
To Sales 6300
By Salary
To Cash
By Rent
To Cash
By Cash 18000
To Sales 18000
15 By Depreciation 400
To Office Furniture 400
15 By Depreciation 400
To Office Furniture 400
15 By Depreciation 8000
To Machinery 8000
15 By Depreciation 10000
To Factory Building 10000
By Insurance Premium
To Cash
By Tel Rent
To Cash
By Interest
To Capital
By Wages 300
 By Trade Exp 215
By Salaries 305
To Liabilities Payable 820
By New Machinary 5000
To Old Machinary 800
To Creditor 4200
By Depreciation 4200
To Old Machinary 4200

Iv By Bank 19600
By Discount 400
To Sales 20,000
By Purchase 45,000
To Ram & Co. 45,000
By Purchase 45,000
To Discount 900
To Cash 44100
By Sohan 12,350
To Sales 12,350
By Drawings 5,000
 To Purchase 5,000
By Loss on Fire 10,000
To Purchase 10,000

By Salary Outstanding
To Liabilities Payable
By Charity
To Cash
By Stock
To Capital
By Depreciation 1000
To Machinary 1000
By Cash
To Interest from Debtor
By Interest 3000
To Capital 3000
By Drawings 1000
To Interest 1000
No 18 By S C Puri
To Bank
 By Bank 930
To Naresh 930
By Discount 20
To Naresh 20
By Naveen 1750
To Bank 1750
By Naveen 50
To Discount 50
By Wages 350
To Cash 350
By Rent 200
To Cash 200

LEDGER
A ledger account may be defined as a summary statement of all
the transactions relating to a person, assets, expense or income
which have taken place during a given period of time and shows
their net effect.
op 920 book 320
f 300 veg 90
m 590 petrol 100
eb 500 medicine 65
yb 1250 gupchup 30
ys 1800 cycle rep 55
es 2200 pent 700
shirt 340
boot 1200
f&l 65
By bal c/d 4595
7560 7560
to bal
b/d 4595

CASH L E D G E R

Dat Particulars Amoun Dat Particulars Amoun

e t e t
1 To Capital 10,000 2 By Bank 9000
15 By Machinery 100
31 By Wages 350
31 By Rent 200

By balance c/d 350

10,000 10,000
To balance b/d 350

BANK L E D G E R
Dat Particulars Amoun Dat Particulars Amoun
e t e t
2 To Cash 9000 By Machinery 5000
To Naresh 930 By Naveen 1750
 By balance c/d 3180
9930 9930
To balance b/d 3180

CAPITAL LEDGER
Dat Particulars Amoun Dat Particulars Amoun
e t e t
To Balance C/d 10,000 1 By Cash 10,000

10,000 10,000
By Balance B/d 10,000

TRIAL BALANCE
Sl.No Name of Particulars Debit Credit
1 Cash a/c 12,220
2 Capital 45,000
3 Bank 14,000
4 Purchase 22,000
5 Furniture 5000
6 Sales 12,500
7 Return Inword 200
8 Return Outword 1,000
9 Discount 20
10 Drawings 1,000
11 Tel Rent 400
12 Stationary 200
13 Rent 1000
14 Salary 2500
58,520 58,520
 Final Accounts :

Final accounts are prepared to achieve these objectives of

accountancy in order to know the profit or loss earned by a firm,
Income statement or Trading and Profit and loss account
prepared. Balance Sheet or Position statement will portray the
financial condition of the firm on a particular date. These two
statements, i.e. Trading and Profit and Loss account and Balance
Sheet are prepared to give the final results of the business that is
why both these are collectively called as final accounts. Thus Final
accounts include the preparation of
1. Trading A/c Gross Profit
2. Profit & Loss A/c Net Profit
3. Balance Sheet Position
 TRADING A/C
Particulars Amount Particulars Amount
Opening Stock Xxx Cash Sales xxx
Cash Purchase xxx Credit Sales xxx
Credit Purc xxx (-) Sales Ret xx xxx
(-) Purc Ret xx Xxx

Direct Expence Xxx

Direct Expence Xxx
Direct Expence Xxx
Direct Expence Xxx Closing Stock Xxx
Gross Profit yyyy Gross Loss Yyyy

xxxx Xxxx

No7
Amount Particulars Amount
Particulars
Opening Stock Xxx Cash Sales xxx
Cash Purchase +xxx Credit Sales xxx
Credit Purc +xxx (-) Sales Ret xx xxx
(-) Purc Ret -xx
(-) Free Sample -xx
(-) Personal Use -xx
(-) Stock Damage -xx Xxx

Direct Expence Xxx Xxx

Direct Expence Xxx Yyyy
Direct Expence Xxx Closing Stock
Direct Expence Xxx Gross Loss
Gross Profit yyyy
xxxx Xxxx
Particulars Amount Particulars Amount
Opening Stock Xxx Cash Sales xxx
Cash Purchase xxx Credit Sales xxx
Credit Purc xxx (-) Sales Ret xx xxx
(-) Purc Ret xx Xxx

Direct Expence Xxx

Direct Expence Xxx
Direct Expence Xxx
Direct Expence Xxx Closing Stock Xxx
Gross Profit yyyy Gross Loss Yyyy
xxxx Xxxx

PROFIT & LOSS ACCOUNT

Particulars Amount Particulars Amount
Gross Loss Xxx Gross Profit Xxx

Indirect Expence [Dr] Xxx Indirect Income [Cr] Xxx

Indirect Expence Xxx Indirect Income Xxx
Indirect Expence Xxx Indirect Income Xxx
Indirect Expence Xxx Indirect Income Xxx
Indirect Expence Xxx Indirect Income Xxx

Net Profit xxx Net Loss Xxx

XXXX XXXX
 BALANCE SHEET
Liabilities Amount Assets Amount
Current Liabilities Current Assets
Sundry Creditor Xxx Cash in Hand Xxx
Bills Payable Xxx Cash at Bank Xxx
Bank O/D Xxx Sundry Debtor Xxx
Loan Liability Xxx Bills Receivable Xxx
Secured Loan Xxx Investment Xxx
UnSecured Loan Xxx Deposit (Assets) Xxx
Provision Xxx Misc Expence (Assets) Xxx
Loan & Advance (Asset) Xxx
Long Term Liabilities Xxx Closing Stock Xxx
Long Term Loan Xxx Branch/Division Xxx
Debenture Fixed Assets
Capital xxxx Furniture & Fixture Xxx
+ Net Profit xxx xxx Plant & Machinary Xxx
- Drawings xxx Land & Building Xxx
Moter & Vehicle Xxx
GoodWill, Patents …. xxx
Xxxxx xxxxx