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Accounts Group Assignment

Brijwasi Sweet Shop operates within the culturally significant Indian sweet industry, which thrives on traditions and festivals. The business has an initial capital of ₹1,500,000 and maintains various accounts including current assets, liabilities, and equity. The document outlines key accounting rules and provides journal entries for transactions such as owner investment, purchases, sales, and payments.

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kavyachhajer23
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3 views

Accounts Group Assignment

Brijwasi Sweet Shop operates within the culturally significant Indian sweet industry, which thrives on traditions and festivals. The business has an initial capital of ₹1,500,000 and maintains various accounts including current assets, liabilities, and equity. The document outlines key accounting rules and provides journal entries for transactions such as owner investment, purchases, sales, and payments.

Uploaded by

kavyachhajer23
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Brijwasi Sweet Shop

Aastik Gupta - 02
Kavya Chhajer - 33
Mahi Gandhi - 38
Business Overview
Brijwasi Sweets
The Indian sweet business is a culturally signi cant and thriving industry,
driven by traditions, festivals, and celebrations. Sweets are central to
religious o erings and social occasions like weddings and festivals such as
Diwali and Eid. The industry features a wide range of sweets, from
traditional items like ladoos, bar s, and rasgullas to modern innovations
blending Indian and international avors. The business operates on various
scales, from local sweet shops to large chains, with seasonal demand
spikes during festive times, making it a key segment of India's food
industry.

Initial Capital: ₹ 1,500,000 (INR)


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Classi ication of Accounts
• Current Assets Cash: ₹ 150,000
• Inventory (Milk and Dairy Products): ₹ 100,000
• Accounts Receivable: ₹ 75,000 (Money owed by customers)
• Prepaid Expenses: ₹ 50,000 (e.g., Rent, utilities)
• ₹ 4500,000 Furniture and Fixtures:
• ₹ 60,000 Liabilities:
Obligations owed by the business Current Liabilities
• Accounts Payable: ₹ 50,000 (Money owed to suppliers)
• Salaries Payable: ₹ 25,000 (Unpaid employee salaries)
• Long-term Liabilities Loan Payable: ₹ 50,000 (Loan from bank)Equity:
• Owner's investment in the business Capital: ₹ 500,000 (Initial
investment)
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Rules of Debit and Credit

The Three Rules of Accounting are:

1. Real Account : Debit what comes in Credit what goes out


2. Personal Account : Credit the giver and Debit the Receiver.
3. Nominal Account : Credit all income and debit all expenses.
Pass The Journal Entries For The
Following:

1. Owner invests ₹ 500,000 in the business


2. Purchase of Raw Materials from a Parth for ₹ 20,000 on
credit
3. Sale of spice blends for ₹ 40,000 in cash.
4. Paid rent for the month ₹ 25,000.
5. Paid ₹ 20,000 to Parth for the previous purchase.
Amount
D te P rticul r L.F Amount Cr.
Dr.

C sh A/c Dr.
01/01/2022 To c pit l A/c 5,00,000
500,000
(Being :c pit l invested.)

Purch se A/c Dr.


05/01/2022 To P rth’s A/c 20,000
20,000
(Being : Purch se of spices from P rth on credit.)

C sh A/c Dr.
10/01/2022 To S les A/c 40,000
40,000
(Being : spice sold.)

Rent A/c Dr.


24/01/2022 TO C sh A/c 25,000
25,000
(Being : P id rent )
P rth A/c Dr.
31/01/2022 To C sh A/c 20,000
20,000
(Being : c sh p id to P rth )
Tot l 6,05,000 6,05,000
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Thank You

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