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THIS IS TO CERTIFY THAT SAMBIT KUMAR MOHANTY AT +2, 2ND YEAR COMMERCE
HAS SUCCESSFULLY COMPLETED THE ACCOUNTING PROJECT AS PER THE
GUIDELINES AT +2, 2ND YEAR AT HIGHER SECONDARY EXAMINATION, BJB JUNIOR
COLLEGE, BHUBANESWAR FOR CONSIDERATION IN PARTIAL FULLFILMENT OF
THE REQUIREMENT CHSE, ODISHA FOR AWARD OF +2 CERTIFICATES IN
COMMERCE.
SIGNATURE:
ACKNOWLEDGEMENT
A ledger (general ledger) is the complete collection of all the accounts and transactions of
a company. The ledger may be in loose-leaf form, in a bound volume, or in computer
memory. The chart of accounts is a listing of the titles and numbers of all the accounts in the ledger.
The chart of accounts can be compared to a table of contents.
A trial balance is a listing of all accounts (in this order: asset, liability, equity, revenue,
expense) with the ending account balance. It is called a trial balance because the information on
the form must balance.
INTRODUCTION
The word ‘journal’ has been derived from the French word ‘jour’ which means day.
Therefore, journal means daily records. It is called a book of original entry because every business
transaction is first recorded in this book. In case of small business journal is the only book of
original entry.
Ledger is principle book or primary book of accounts. It is the most important accounting
system. It contains all the accounts (assets, liabilities, capital, revenue and expenses) to which the
transactions recorded in the books of original entry are transferred and posted.
The main objective of accounting is to ascertain profit and loss of the business and the
financial position of the business. In order to check the arithmetic accuracy of books of account a
schedule of accounting balances is prepared which is known as trial balance.
The final accounts prepares on the basis of balances of various accounts in the ledger. The
final accounts prepares at the end of the accounting period to ascertained the profit & loss and find
out the financial position of the business.
MEANING OF JOURNAL ENTRIES
Journal entries are an important part of accountancy. A journal entry, into accounting, is the
logging of a transaction in accounting journal items. The journal entry can consist of several
recordings, each of which is either a debit or a credit. The total of the debits must equal the total of
the credits or the journal entry is said to be "unbalanced". Journal entries can record unique items
or recurring items such as depreciation or bond amortization. In accounting software, journal
entries are usually entered using a separate module from accounts payable, which typically has its
own sub ledger that indirectly affects the general ledger. As a result, journal entries directly change
the account balances on the general ledger.
MEANING OF LEDGER
A ledger[1] is the principal book or computer file for recording and totaling economic
transactions measured in terms of a monetary unit of account by account type, with debits and
credits in separate columns and a beginning monetary balance and ending monetary balance for
each account.
A ledger is a written or computerized record of all the transactions a business has completed.
These transactions are recorded in the ledger in different accounts. This list of accounts is most
often called the chart of accounts. Large companies tend to have many accounts in their chart of
accounts while smaller companies might only have a few accounts listed.
The general ledger or ledger is a record of all the accounts that the company uses. In all
modern accounting systems, the general ledger is computerized. A general ledger divides accounts
into three account types: assets, liabilities, and equity accounts. Most companies have many of the
same general accounts like cash, accounts payable, and retained earnings, but some companies have
specialized accounts specific for their operations.
A trial balance is a list of all the general ledger accounts (both revenue and capital)
contained in the ledger of a business. This list will contain the name of each nominal ledger account
and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit
balance or a credit balance. The debit balance values will be listed in the debit column of the trial
balance and the credit value balance will be listed in the credit column. The trading profit and loss
statement and balance sheet and other financial reports can then be produced using the ledger
accounts listed on the same balance.
A trial balance is a list of all general ledger accounts and their balances at a point in time.
In essence, its summary of all of the t-account balances in the ledger.
The term "final accounts" includes the trading account, the profit and loss account, and
the balance sheet.
METHODOLOGY:
The study is based on only secondary data. These data’s are basically collected from
internet and from various books related to subject matter.
At this stage of the preparation of the accounting information these are just intermediary
steps and schedules which all come together so all balances can be seen. The trial balance is then
converted to two statements one is the profit and loss account and the balance sheet
Final account is an essential practice for every enterprise to know the actual performance of
the organization. All mature organization should necessary prepare final accounts of the
organization for the effectiveness of business organization.
REFERENCES
1. WWW.GOOGLE.CO.IN.
2. WWW.WIKIPEDIA.COM.
(1) Introduction 1
(3) Ledger 2
(6) Methodology 3
LEDGER ACOUNTS
Cash Account:
Date Particulars Amount Date Particulars Amount
(i) To Capital A\C 5,00,000 (i) By Purchase A\C 40,000
(vi) To Sales A\C 25,500 (i) By Purchase A\C 50,000
(vii) To Sales A\C 2,400 (ii) By Building A\C 1,00,000
(xii) To Bank A\C 5,000 (iii) By Purchase A\C 30,000
(xv) To Mahendra’s A\C 3,000 (v) By Cartage A\C 200
(ix) By Freight A\C 120
(x) By Bank A\C 8000
(xi) By Salary A\C 4,600
- By Balance c\d 30,298
5,35,900 5,35,900
Capital Account:
Date Particulars Amount Date Particulars Amount
- To Balance c\d 5,12,500 (i) By Cash A\C 5,00,000
(xiv) By interest on capital A\C 12,500
5,12,500 5,12,500
Purchase Account:
Date Particulars Amount Date Particulars Amount
(i) To Cash A\C 40,000
(iii) To Cash A\C 30,000
(iv) To Sundry Creditors A\C 2,500 - By Balance c\d 72,500
72,500 72,500
Furniture Account:
Date Particulars Amount Date Particulars Amount
(i) To Cash A\C 50,000 - By Balance c\d 50,000
50,000 50,000
Building Account:
Date Particulars Amount Date Particulars Amount
(ii) To Cash A\C 1,00,000 - By Balance c\d 1,00,000
1,00,000 1,00,000
Sundry Creditors Account;
Date Particulars Amount Date Particulars Amount
- To Balance c\d 2,500 (iv) By purchase A\C 2,500
2,500 2,500
Cartage Account:
Date Particulars Amount Date Particulars Amount
(v) To cash A\C 200 - By Balance c\d 200
200 200
Sales Account:
Date Particulars Amount Date Particulars Amount
(vi) By Cash A\C 25,500
(vii) By Cash A\C 2,400
- By Balance c\d 32,550 (viii) By Mahendra’s A\C 4,650
32,550 32,550
Mahendra’ Account:
Date Particulars Amount Date Particulars Amount
(viii) To Sales A\C 4,650 (xv) By Cash A\C 3,000
(xv) By Bad debt A\C 1,650
4,650 4,650
Freight Account:
Date Particulars Amount Date Particulars Amount
(ix) To cash A\C 120 - By Balance c\d 120
120 120
Bank Account:
Date Particulars Amount Date Particulars Amount
(x) To Cash A\C 8,000 (xii) By Cash A\C 5,000
(xiii) By Drawings A\C 3,000
8,000 8,000
Salary Account:
Date Particulars Amount Date Particulars Amount
(xi) To Cash A\C 4,600 - By Balance c\d 4,600
4,600 4,600
Drawings Account;
Date Particulars Amount Date Particulars Amount
(xiii) To Bank A\C 3,000 - By Balance c\d 3,000
3,000 3,000
Interest on Capital Account:
Date Particulars Amount Date Particulars Amount
(xiv) To Capital A\C 12,500 - By Balance c\d 12,500
12,500 12,500
Bad Debt Account:
Date Particulars Amount Date Particulars Amount
(xv) To Mahendra’s A\C 1,650 - By balance c\d 1,650
1,650 1,650
TRIAL BALANCE
DR. CR.
Accounts
Balance Balance
Cash AC 3,02,980 -
Capital A\C - 5,12,500
Purchase A\C 72,500 -
Furniture A\C 50,000 -
Building A\C 1,00,000 -
Sundry Creditors A\C - 2,500
Cartage A\C 200 -
Sales A\C - 32,550
Freight A\C 120 -
Salary A\c 4,600 -
Drawings A\C 3,000 -
Interest on capital A\C 12,500 -
Bad debt A\C 1,650 -
5,47,550 5,47,550
FINAL ACCOUNTS:
Trading and Profit & Loss Accounts
Particulars Amount Particulars Amount
To purchase A\C 72,500 By Sales A\C 32,550
T Cartage A\C 200 By Closing A\C 2,500
To Freight A\C 120 By Gross Profit c\d 37,770
72,820 72820
56,520 56,520
Balance Sheet
4,55,480
4,55,480
PIE CHART
Expenses
Nil
Loss
BAR DIAGRAM
56,520 Expenses
15,000
Loss
56,520