Project related guidance Accountancy

As per our discussion in the class also project in accountancy will be made during the summer break in the following manner:

1: Introduction of project work.
2: Transaction details of a business selected by you.
3: Preparation of Journal entries.
4: Preparation of  Ledgers.
5: Preparation of Trial Balance
6:  Preparation of Trading Profit & Loss A/c
7:  Preparation of Balance Sheet.
First complete comprehensive project as you have knowledge about financial statements . As some of you have already selected & shown to me ,business & financial details of such business for project.
Start the project & complete it as per the above requirements.

Sample project is as follows: 

Index

S.R.No	Topic	Source	Time period	Teacher’s remarks
1)	Comprehensive Project	.Internet .Newspaper .D.K.Goel .Together with ,Tulsans	1 Month
2)	Specific Problem-1 (Ratio Analysis)	.Internet .Newspaper .D.K.Goel .Together with, Nisha Gupta	15 days
3)	Specific Problem-2 (Cash Flow    Statement)	.Internet .Newspaper .D.K.Goel .Together with Nisha Gupta	15 days

                                                 Comprehensive Project

On first April 2011 Mr Raj started a business of General store with the capital of Rs 100000/- entire amount deposited into bank. He made contract with whole seller of his locality; whole seller gave his free consent to Mr Raj & also agrees to give him credit of one month.

During the year details of purchase, sale, and expenses were as follows:

(i)Goods purchased from Ram Rs 2000/-

(ii)Insurance premium paid Rs1000/-

(iii)Goods Sold Rs20000/-

(iv) Goods sold to Mohan Rs1000/-

(v)Goods Purchased Rs5000/-

(vi)Stationary purchased Rs 2000/-

(vii)Furniture purchased Rs 5000/-

(viii) Fan & other equipments purchased Rs2000/-

(ix) Salary paid Rs1000/-

(x) Wages paid Rs 500/-

(xi) Electricity charges Rs 1500/-

(xii)Telephone & postage expenses Rs 2500/-

Other Information: Mr Raj wants to know about his financial position so with the help of the following details a project over his business is made.

Solution:

Introduction of project: Under this project work following steps will bbe followed

(i)Preparation of journal  entries.

(ii) Preparation of ledger accounts

 (iii) Preparation of trial balance

(iv) Preparation of Income statement

(v) Preparation of position statement

(vi)Calculation of current ratio, quick ratio, gross profit ratio, net profit ratio,& return of capital employed to analyse short term financial position & profitability of business.

                                           Journal entries in the book of Mr Raj

Date	Particulars	Lf	Amount	Amount
1 April 2011	Bank a/c                                                         Dr           To Raj’s Capital a/c (Business Started by him )		100000	100000
	Purchase a/c                                                Dr                   To Ram (Goods purchased on credit from Ram)		2000	2000
	Insurance premium a/c                              Dr                                    To Bank a/c (insurance premium paid)		1000	1000
	Bank   a/c                                                       Dr             To Sales a/c (Goods sold)		20000	20000
	Mohan’s a/c                                                  Dr                To sales a/c (Goods sold to Mohan on credit)		1000	1000
	Purchase  a/c                                               Dr                  To Bank a/c (Goods purchased)		5000	5000
	Stationary  a/c                                            Dr                   To Bank   a/c ( Stationary purchased)		2000	2000
	Furniture   a/c                                            Dr                 To Bank   a/c ( Furniture purchased)		5000	5000
	Fan & Other Equipments  a/c                 Dr                                      To Bank    a/c (Fan & other equipments purchased)		2000	2000
	Salary   a/c                                            Dr            To Bank   a/c ( Salary paid)		1000	1000
	Wages    a/c                               Dr              To Bank a/c (Wages paid)		500	500
	Electricity charges a/c                      Dr                         To Bank a/c (electricity charges paid)		1500	1500
	Telephone & postage expenses a/c   Dr                            To Bank a/c (telephone & postage expenses paid)		2500	2500
			143500	143500

                                      Bank A/c

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
1 April 2011	To Raj’s capital a/c To Sales a/c		100000  20000		By Insurance premium By Purchase By Stationary By Furniture By Fan & Other Equipments By salary By Wages   By Electricity charges By Telephone & postage expenses To Balance		1000 5000 2000 5000 2000 1000 500 1500 2500 99500
			120000				120000

                                                  Raj’s Capital A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
1 April2011	To Bank a/c		100000		By Balance		100000
			100000				100000

                                                 Fan & other equipments A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		2000		By Balance		2000
			2000				2000

                                                     Furniture A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		5000		By Balance		5000
			5000				5000

                                Salary A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		1000		By Balance		1000
			1000				1000

                                          Wages A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		500		By Balance		500
			500				500

                                           

Stationary A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		2000		By Balance		2000
			2000				2000

                                                        Purchase A/C          

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c To Ram		5000 2000		By Balance		7000
			7000				7000

Sales A/c

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Balance		21000		By Bank a/c By Mohan		20000 1000
			21000				21000

Mohan’s A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Sales		1000		By Balance		1000
			1000				1000

                                                               Ram’s A/c

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Purchase a/c		2000		By Balance		2000
			2000				2000

Insurance Premium A/c

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		1000		By Balance		1000
			1000				1000

Electricity charges A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		1500		By Balance		1500
			1500				1500

Telephone & postage expenses A/C

Date	Particulars	Jf	Amount	Date	particulars	Jf	Amount
	To Bank a/c		2500		By Balance		2500
			2500				2500

                                                       Trial Balance as on 31 march 2011

Particulars	Amount Rs	Particulars	Amount Rs
Purchase(5000+ 2000 credit purchase) Insurance premium Stationary Furniture Fan & other equipments Salary Wages Debtors (Mohan) Cash at Bank Electricity charges Telephone & postage expenses	7000 1000 2000 5000 2000 1000 500 1000 99500 1500 2500	Sales (20000 + 1000 credit sales) Capital a/c Creditors(Ram)	21000 100000 2000
	123000		123000

Additional information:

(i)                  Closing stock as on 31 march 2011 Rs 6000/-

(ii)                Outstanding wages Rs 500/- & outstanding electricity charges Rs 500/- & Rs 500 was prepaid telephone & postage.

Liabilities

Amount

Assets

Amount

                  Trading profit & loss account for the year ended 31 March 2011

Particulars	Amount	Particulars	Amount
To Purchase To wages                500 Add: outstanding  500 To Gross profit	7000 1000 19000	By Sales By Closing Stock	21000 6000
	27000		27000
To Insurance premium To salary To Stationary To Electricity charges  1500 Add: outstanding            500 To Telephone & postage expenses                    2500 Less: Prepaid                500 To net profit(transferred to capital a/c)	1000 1000 2000 2000 2000 11000	By Gross Profit	19000
	19000		19000

                            Balance sheet as on 31 March 2011

Liabilities	Amount	Assets	Amount
Capital                 100000 Add: Net profit 11000 Creditors Outstanding expenses(Wages & Electricity charges)	111000       2000      1000	Furniture Fan & other equipments Closing stock Cash at bank Debtors Prepaid Telephone & postage expenses	5000 2000 6000 99500 1000 500
	114000		114000