ACCOUNTS PROJECT

- INDEX
BUSINESS INTRO
TRANSACTIONS
JOURNAL INTRO
JOURNAL
LEDGER INTRO
LEDGER
TRIAL BALANCE INTRO
TRIAL BALANCE

BUSINES INTRODUCTION
Paper and ink is a stationary shop
inaugurated on 4th April 2024. From
beautiful crafted notebooks and elegant
pens to unique paper accessories we
offer everything you need to bring your
idea to life. Paper and ink is your go to
destination for stationary where your
words find a home

TRANSACTIONS
S.NO DATE TRANSACTIONS AMT.
.
1. 4\4\24 Started business with cash 1,00,00
0
2. 5\4\24 Bought stationary items from Amit 22,000
3. 6\4\24 Paid shop rent 3,000
4. 9\4\24 Sold bulk order of notebooks for cash 5,000
5. 11\4\24 Sold bulk order of papers for
Cash 200
Credit 3,000
6. 18\4\24 Bought stationary items for cash 8,000
7. 20\4\24 Paid back Amit 22,000
8. 22\4\24 Sold pencils on credit to sandy 2,800
9. 29\4\24 Payment for advertisement in local 600
newspaper
10. 1\5\24 Paid electricity bills 600

11. 12\5\24 Purchased stationary from Kriti & co. 2,000

12. 20\5\24 Returned defective stationary to Kriti 1,200

& co.
13. 24\5\24 Sold bulk orders of stationary kits 10,000

14. 30\5\24 Paid to Kriti & co. 800

15. 5\6\24 Sold art kit to john for cash 8,000

16. 10\6\24 Paid outstanding rent 2,500

17. 13\6\24 Paid water bill 800

18. 14\6\24 Paid salaries 3,000

19. 20\6\24 Lost stationary due to embezzlement 5,000

20. 25\6\24 Sale returns from john 6,000

21. 15\7\24 Withdrew money from bank for 10,000

personal use
22. 24\7\24 Receive cheque from customers 20,000

23. 28\7\24 Loan from bank 2,00,00

0
24. 14\8\24 Purchased stationaries 60,000

25. 20\8\24 Receive cheque from sandy 2,800

26. 29\8\24 Deposited cheques in bank 20,000

2,800
27. 6\9\24 Paid back loan 2,00,00
0
JOURNAL INTRODUCTION
A journal is a book that records a company's
financial transactions in chronological order.
It's also known as the book of prime entry or
the original entry.
Journal entries are recorded using double-
entry bookkeeping, which means that every
transaction is recorded in at least two
accounts. Each entry includes the date, the
amount of the debit and credit, and the
accounts being debited and credited. This
process is known as journalizing.

JOURNAL
Debit Credit
Date Particulars
(₹) (₹)
1,00,00
4/4/24 Cash A/c
0
1,00,00
To Capital A/c
0
 Debit Credit
Date Particulars
(₹) (₹)
(Business started with cash)
5/4/24 Stationery A/c 22,000
To Amit A/c 22,000
(Stationery purchased from Amit)
6/4/24 Rent A/c 3,000
To Cash A/c 3,000
(Shop rent paid)
9/4/24 Cash A/c 5,000
To Sales A/c 5,000
(Sold notebooks for cash)
11/4/24 Cash A/c 200
Debtors A/c (Credit sales) 3,000
To Sales A/c 3,200
(Sold papers for cash and credit)
18/4/24 Stationery A/c 8,000
To Cash A/c 8,000
(Purchased stationery for cash)
20/4/24 Amit A/c 22,000
To Cash A/c 22,000
(Paid Amit for previous purchase)
 Debit Credit
Date Particulars
(₹) (₹)
22/4/24 Debtors A/c (Sandy) 2,800
To Sales A/c 2,800
(Sold pencils on credit to Sandy)
29/4/24 Advertisement A/c 600
To Cash A/c 600
(Paid for newspaper
advertisement)
1/5/24 Electricity Expense A/c 600
To Cash A/c 600
(Electricity bill paid)

12/5/24 Stationery A/c 2,000

To Kriti & Co. A/c 2,000
(Stationery purchased on credit)
20/5/24 Kriti & Co. A/c 1,200
To Purchase Returns A/c 1,200
(Returned defective stationery)
24/5/24 Cash A/c 10,000
To Sales A/c 10,000
(Sold bulk order of stationery kits)
30/5/24 Kriti & Co. A/c 800
 Debit Credit
Date Particulars
(₹) (₹)
To Cash A/c 800
(Paid Kriti & Co.)
5/6/24 Cash A/c 8,000
To Sales A/c 8,000
(Sold art kit to John for cash)
10/6/24 Rent A/c 2,500
To Cash A/c 2,500
(Paid outstanding rent)

13/6/24 Water Expense A/c 800

To Cash A/c 800
(Paid water bill)
14/6/24 Salaries A/c 3,000
To Cash A/c 3,000
(Paid salaries)
20/6/24 Loss by Embezzlement A/c 5,000
To Stationery A/c 5,000
(Stationery lost due to
embezzlement)
25/6/24 Sales Returns A/c 6,000
 Debit Credit
Date Particulars
(₹) (₹)
To Cash A/c 6,000
(Sales return from John)
15/7/24 Drawings A/c 10,000
To Cash A/c 10,000
(Withdrew money for personal
use)
24/7/24 Bank A/c 20,000
To Debtors A/c 20,000
(Received cheque from
customers)

2,00,00
28/7/24 Bank A/c
0
2,00,00
To Bank Loan A/c
0
(Loan received from bank)
14/8/24 Stationery A/c 60,000
To Cash A/c 60,000
(Purchased stationeries)
20/8/24 Bank A/c 2,800
To Sandy A/c 2,800
 Debit Credit
Date Particulars
(₹) (₹)
(Received cheque from Sandy)
29/8/24 Bank A/c 22,800
To Cash A/c 22,800
(Deposited cheques in bank)
2,00,00
6/9/24 Bank Loan A/c
0
2,00,00
To Cash A/c
0
(Loan repaid to bank)

LEDGER INTRODUCTION
A ledger is a book that records all of a
company's transactions and financial
information. It's also known the book of final
entry, or the principal book of
accounts. Ledgers are used to create
financial statements. Ledgers contain all
accounts related to a company's assets,
liabilities, capital, expenses, and
revenues. The total debit and credit balance
for each transaction in a ledger must match.
The process of transferring journal
transactions into ledger accounts is known
as posting

LEDGER
1. Cash Account
Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
1,00,0 1,00,00
4/4/24 To Capital A/c
00 0
6/4/24 By Rent A/c 3,000 97,000
1,02,00
9/4/24 To Sales A/c 5,000
0
11/4/2 To Sales A/c 1,02,20
200
4 (Cash) 0
18/4/2 By Stationery
8,000 94,200
4 A/c
20/4/2
By Amit A/c 22,000 72,200
4
By
29/4/2
Advertisement 600 71,600
4
A/c
 Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
By Electricity
1/5/24 600 71,000
Expense A/c
24/5/2
To Sales A/c 10,000 81,000
4
30/5/2 By Kriti & Co.
800 80,200
4 A/c
5/6/24 To Sales A/c 8,000 88,200
10/6/2
By Rent A/c 2,500 85,700
4
13/6/2 By Water
800 84,900
4 Expense A/c
14/6/2
By Salaries A/c 3,000 81,900
4
25/6/2 By Sales Returns
6,000 75,900
4 A/c
15/7/2
By Drawings A/c 10,000 65,900
4
29/8/2
To Bank A/c 22,800 43,100
4
By Bank Loan 2,00,0 (1,56,90
6/9/24
A/c 00 0)
2. Capital Account
Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
1,00,0 1,00,00
4/4/24 By Cash A/c
00 0

3. Stationery Account
Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
22,00
5/4/24 To Amit A/c 22,000
0
18/4/2
To Cash A/c 8,000 30,000
4
12/5/2
To Kriti & Co. A/c 2,000 32,000
4
20/6/2 By Loss by
5,000 27,000
4 Embezzlement
14/8/2 60,00
To Cash A/c 87,000
4 0
-----------------------------------------------------------------
---------------
4. Sales Account
 Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
9/4/24 By Cash A/c 5,000 5,000
11/4/2 By Cash A/c
200 5,200
4 (Cash)
11/4/2 By Debtors A/c
3,000 8,200
4 (Credit)
22/4/2
By Sandy A/c 2,800 11,000
4
24/5/2
By Cash A/c 10,000 21,000
4
5/6/24 By Cash A/c 8,000 29,000

5. Rent Account
Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
6/4/24 To Cash A/c 3,000 3,000
10/6/2
To Cash A/c 2,500 5,500
4

6. Advertisement Account
 Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
29/4/2
To Cash A/c 600 600
4

7. Electricity Expense Account

Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
1/5/24 To Cash A/c 600 600

8. Debtors Account
Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
11/4/2 By Sales A/c
3,000 3,000
4 (Credit)
22/4/2
By Sandy A/c 2,800 5,800
4
24/7/2
To Bank A/c 20,000 (14,200)
4

9. Amit Account
Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
5/4/24 By Stationery A/c 22,000 22,000
 Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
20/4/2 22,00
To Cash A/c -
4 0

10. Kriti & Co. Account

Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
12/5/2
By Stationery A/c 2,000 2,000
4
20/5/2 To Purchase
1,200 800
4 Returns A/c
30/5/2
To Cash A/c 800 -
4

11. Water Expense Account

Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
13/6/2
To Cash A/c 800 800
4

12. Salaries Account

 Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
14/6/2
To Cash A/c 3,000 3,000
4

13. Loss by Embezzlement Account

Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
20/6/2
To Stationery A/c 5,000 5,000
4

14. Sales Returns Account

Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
25/6/2
To Cash A/c 6,000 6,000
4

15. Drawings Account

Debit Credit Balanc
Date Particulars
(₹) (₹) e (₹)
15/7/2 10,00
To Cash A/c 10,000
4 0

16. Bank Account

 Debit Credit Balanc
Date Particulars
(₹) (₹) e (₹)
24/7/2
To Debtors A/c 20,000 20,000
4
28/7/2 To Bank Loan 2,00,00 2,20,00
4 A/c 0 0
20/8/2 2,22,80
To Sandy A/c 2,800
4 0
29/8/2 2,00,00
By Cash A/c 22,800
4 0
By Bank Loan 2,00,0
6/9/24 -
A/c 00

17. Bank Loan Account

Debit Credit Balance
Date Particulars
(₹) (₹) (₹)
28/7/2 2,00,00 2,00,00
By Bank A/c
4 0 0
2,00,00
6/9/24 To Cash A/c -
0

TRIAL BALANCE
INTRODUCTION
A trial balance is a bookkeeping worksheet
that lists the balances of a company's
general ledger accounts at a specific date. A
trial balance is a list of debit and credit
balances for all major accounting items,
such as assets, liabilities, equity, revenues,
expenses, gains, and losses. A trial balance
is used to ensure that a company's
bookkeeping is mathematically correct. It's
also used to identify errors and make
adjusting entries to the general ledger. A
company usually prepares a trial balance at
the end of each reporting period.

TRIAL BALANCE
Trial Balance as of 6th September 2024
Debit Credit
Account Name
(₹) (₹)
Cash A/c 43,100
 Debit Credit
Account Name
(₹) (₹)
2,22,80
Bank A/c
0
1,00,00
Capital A/c
0
Stationery A/c 87,000
Sales A/c 29,000
Rent A/c 5,500
Advertisement A/c 600
Electricity Expense A/c 600
Debtors A/c 5,800
Water Expense A/c 800
Salaries A/c 3,000
Loss by Embezzlement A/c 5,000
Sales Returns A/c 6,000
Drawings A/c 10,000
2,00,00
Bank Loan A/c
0
 Debit Credit
Account Name
(₹) (₹)
Purchase Returns A/c 1,200
| Total 3,90,800
3,90,800
1. Cash A/c (Asset): Closing balance
₹43,100.
2. Bank A/c (Asset): Closing balance
₹2,22,800.
3. Capital A/c (Equity): Credit balance
₹1,00,000.
4. Stationery A/c (Expense): Total
₹87,000.
5. Sales A/c (Revenue): Credit total
₹29,000.
6. Rent, Advertisement, Water,
Electricity, and Salaries A/cs (Expenses):
Individual balances listed.
7. Debtors A/c (Asset): Closing balance
₹5,800.
8. Sales Returns A/c (Contra-Income):
Total ₹6,000.
9. Bank Loan A/c (Liability): Credit total
₹2,00,000.
10. Purchase Returns A/c (Contra-
Expense): Credit total ₹1,200.
11. Amit A/c and Kriti & Co. A/c: Net
balances are zero, excluded.