accounting cycle transaction journal entries ledger trial balance trading and profit & loss...
TRANSCRIPT
Accounting Cycle
Transaction
Journal Entries
Ledger
Trial Balance
Trading and Profit & Loss Account
Balance Sheet
illustration
• T- 1: Bharath started business with the investment of Rs.1,00,000
• Journal Entries in the Books of Bharath Enterprises
• Debit Credit• J-1:By.Cash A/C Dr. 1,00,000• To. Capital A/C 1,00,000• (Being money invested in business by
Mr.Bharath by cash)
Continue….2
• T-2: On the next day he has deposited Rs.50,000 in the Bank.
» Debit Credit
• J-2: Bank A/C Dr. 50,000
• To. Cash A/C 50,000
Continue….3
• T-3: He has purchased a machinery for Rs.10,000 and paid cash immediately
• J-3: Machinery A/C Dr. 10,000
• To.Cash A/C 10,000
Continue…..4
• T-4: He has purchased another machiery for Rs.5,000 and issued cheque immediately.
• J-4: Machinery A/C Dr. 5,000
• To. Bank A/C 5,000
Continue…5
• T-5: Purchased furniture for Rs.2,000 and paid Cash immediately.
• J-5: Furniture A/C Dr. 2,000
• To.Cash A/C 2,000
Continue ..6
• T-6: Purchased a building for Rs.20,000 and issued cheque immediately.
• J-6: Building A/C Dr. 20,000
• To.Bank A/C 20,000
Continue…7
• T-7: Purchased Rawmaterial for Rs.3000 and paid Cash immediately.
• J-7: Purchase A/C Dr. 3,000
• To. Cash A/C 3,000
Continue…8
• T-8: Purchased Rawmaterial from Ravi&Co. for 1,000
• J-8: Purchase A/C Dr. 1,000
• To.Ravi&Co.A/C 1,000
Continue…9
• T-9: Paid Cash to Ravi & Co Rs.990 towards full and final settlement.
• J-9: Ravi & Co A/C Dr. 1000
• To.Cash A/C 990
• To.Discount A/C 10
Continue…10
• T-10: Bought a Second hand computer for Rs.2000 and paid Cash immediately
• J-10: Office
• Equipment A/C Dr. 2,000
• To.Cash A/C 2,000
Continue..11
• T-11: Purchased 4 tube lights each Rs.200
• And 4 fans each Rs.800 from Rathna Fans House and paid cash immediately.
• J-11: Fixtures A/C Dr. 4,000
• To.Cash A/C 4,000
Continue..12
• T-12: Goods Sold to Rathna Stores for Rs.20,000 and received cash immediately.
• J-12: Cash A/C Dr. 20,000
• To.Sales A/C 20,000
Continue..13
• T-13: Goods sold to Saravana Stores for Rs.25,000 and received cheque immediately.
• J-13: Bank A/C Dr. 25,000
• To. Sales A/C 25,000
Continue..14
• T-14: Goods sold to Vivek & Co for Rs.20,000
• J-14: Vivek & Co A/C Dr. 20,000
• To.Sales A/C 20,000
Continue..15
• T-15: Telephone Charges Paid Rs.1000
• ( Since the mode of payment is not mentioned here we have to treat this as cash payment)
• J-15: Telephone
• Charges A/C Dr.1,000
• To.Cash A/C 1,000
Continue..16
• T-16: Salary paid to Mr.Kumar Rs.1000
• J-16: Salary A/C Dr. 1,000
• To. Cash A/C 1,000
Continue…17
• T-17: Wages paid to Mr.Ravi Rs.500
• J-17: Wages A/C Dr. 500
• To.Cash A/C 500
Continue…18
• T-18: Received Commission Rs.500 from Sekar.
• J-18: Cash A/C Dr. 500
• To.Commission A/C 500
LedgerCash A/c
To. Capital 1,00,000 By. Bank 50,000
To. Sales 20,000 By. Machinery 10,000
To. Commission 500 By. Furniture 2,000
By. Purchase 3,000
By. Ravi& Co 990
By. Equipment 2,000
By. Fixtures 4,000
By. Tel. Charges 1,000
By. Salary 1,000
By. Wages 500
By. Bal. C/d 46,010
--------------- --------------
1,20,500 1,20,500
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To. Bal. B/d 46,010
LedgerCapital A/c
By. Cash 1,00,000 Next Step
Capital A/c
To. Bal. C/d 1,00,000 By. Cash 1,00,000 Next Step
Capital A/C
To. Bal. C/d 1,00,000 By. Cash 1,00,000
------------ ------------
1,00,000 1,00,000
By. Bal. B/d 1,00,000
Ledger
Bank A/c
To. Cash 50,000 By. Machinery 5,000
To. Sales 25,000 By. Building 20,000
By. Bal. C/d 50,000
------------- -----------
75,000 75,000
------------------------------------------------------------------
To. Bal. B/d 50,000
Ledger
Machinery A/c
To. Cash 10,000 By. Bal. C/d 15,000
To. Bank 5,000
------------- --------------
15,000 15,000
To. Bal. B/d 15,000
Furniture A/c
To. Cash 2,000 By. Bal. C/d 2,000
----------- -----------
2,000 2,000
-------------------------------------------------------------------------------------
To. Bal. B/d 2,000
Trial Balance
Trial Balance
To.Cash 46,010 By. Capital 1,00,000
To. Bank 50,000 By. Sales 65,000
To. Machinery 15,000 By. Commission 500
To. Furniture 2,000 By. Discount 10
To. Building 20,000
To. Office Equipment 2,000
To. Fixtures 4,000
To. Vivek & Co 20,000
(Debtors)
To. Salary 1,000
To. Wages 500
To. Tele. Charges 1,000
To. Purchases 4,000
--------------------------------------------------------------------------
1,65,510 1,65,510
Trading & Profit and Loss A/c
Trading Account
To. Op.Stock By.Sales 65,000
To. Purchases 4,000 By. Cl.Stock
To. Gross Profit 61,000
--------------------------------------------------
65,000 65,000
-----------------------------------------------------------------------
Profit and Loss
By.Gross Profit 61,000
Profit and Loss A/c By.Gross Profit 61,000
To. Salary 1,000 By. Commission 500
To. Wages 500 By. Discount 10
To. Tele 1,000
To. Net Profit 59,010
---------------------------------------------------------------
61,510 61,510
Balance SheetLiabilities AssetsCapital 1,00,000 Fixed Assets
Net Profit 63,010 1,63,010 Building 20,000
Machinery 15,000
Furniture 4,000
Office Equipment 2,000
Fixtures 4,000
Current Assets
Cash 46,010
Bank 50,000
Debtors 20,000