ACCOUNTS

PROJECT

2020

SUBMITTED BY:

MANAN MULLICK

XI-C
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher

Mrs Manju as well as our principal Dr Deepak Arora who gave me the

opportunity to do this wonderful project, which also helped me in doing a lot

Of research and I came to know about so many new things, I am really

Thankful to them. Secondly I would also like to thank my parents & friends

Who helped me a lot in finalising this project within limited time frame
 INDEX

1) Journal

2) Ledger

3) Cashbook

4) Final Accounts
 TOPIC:-

“ Journal, Ledger, Trial Balance,

Trading & Profit & Loss Account
& Balance Sheet
(With Adjustments)
 JOURNAL:

What Is A Journal?

A journal is a detailed account that records all the financial transactions of a

business, to be used for future reconciling of and transfer to other official

accounting records, such as the general ledger. A journal states the date of a

transaction, which accounts were affected, and the amounts, usually in

a double-entry bookkeeping method.

For accounting purposes, a journal is a physical record or digital document

kept as a book, spreadsheet or data within accounting software. When a

business transaction is made, a bookkeeper enters the financial transaction

as a journal entry. If the expense or income affects one or more business

accounts, the journal entry will detail that as well. Journaling is an essential

part of objective record-keeping and allows for concise review and records-

transfer later in the accounting process. Journals are often reviewed as part

of a trade or audit process, along with the general ledger.

Examples:- (QUESTION)
(ANSWER):-
 LEDGER:
What Is A Ledger?

A ledger is a book containing accounts in which the classified and

summarised information from the journals is posted as debits and credits. It

is also called the second book of entry.

The ledger contains the information that is required to prepare financial

statements. It includes accounts for assets, liabilities, owners’ equity,

revenues and expenses. This complete list of accounts is known as the chart

of accounts. The ledger represents every active account on the list.

The accounting ledger contains a listing of all general accounts in the

accounting system’s chart of accounts.

Here are the primary general ledger accounts:

• Asset accounts include fixed assets, prepaid expenses, accounts receivable

and cash
• Liability accounts which include notes payable, lines of credit, accounts
payable and debt
• Stockholders’ equity accounts
• Revenue accounts
• Expense accounts
• Revenue and loss accounts such as interest, investment, disposal of an asset

These transactions are recorded throughout the year by debiting and

crediting these accounts. The transactions are caused by normal business

activities such as billing customers or through adjusting entries.

The ledger account may be in the form of a written record if accounting is

done by hand or in the form of electronic records when accounting software

packages are used.
Examples:- ( *THE SAME JOURNAL QUESTION*)
 TRIAL BALANCE:
What Is A Trial Balance?

A trial balance is a bookkeeping worksheet in which the balance of

all ledgers are compiled into debit and credit account column totals that are

equal. A company prepares a trial balance periodically, usually at the end of

every reporting period. The general purpose of producing a trial balance is to

ensure the entries in a company's bookkeeping system are mathematically

correct.

• A trial balance is a worksheet with two columns, one for debits and one
for credits, that ensures a company’s bookkeeping is mathematically
correct

• The debits and credits include all business transactions for a company
over a certain period, including the sum of such accounts as assets,
expenses, liabilities, and revenues.

• Debits and credits of a trial balance being equal ensure there are no
mathematical errors, but there could still be mistakes or errors in the
accounting systems
.
Example:- (Trial Balance Of H.S
KOCHAR)
 TRADING ACCOUNT:
What Is A Trading Account?

A trading account can be any investment account containing securities, cash

or other holdings. Most commonly, trading account refers to a day trader’s

primary account. These investors tend to buy and sell assets frequently, often

within the same trading session, and their accounts are subject to special

regulation as a result. The assets held in a trading account are separated

from others that may be part of a long-term buy and hold strategy.

1. It is a Nominal Account.
2. It is prepared on the last day of an accounting year.
3. It is the first stage of the Final Account of a trader and the second stage
of the Final Accounts Of a manufacturer.
4. Only revenue transactions are included in it. No capital item is taken
into account.
5. It has no opening balance. In the case of a manufacturing concern, it
starts with the balance of Manufacturing Account.
6. It is debited with the cost of goods sold and all the expenses connected
with the purchase of goods and credited with sale proceeds of goods.
Expenses concerning sale of goods (operating expenses) are not
recorded here — these are included in Profit or Loss Account.
7. All expenses relating to the current year — whether paid in cash or not
— are taken into account. But expenses relating to past or next year
are not included in it.
8. All revenues relating to the current year — whether received in cash or
not — are taken into account. But revenues relating to past or next year
are not included in it.
9. Its balance indicates gross profit or gross loss. Credit balance
represents gross profit, while debit balance represents gross loss.
10. Gross profit or gross loss is transferred to Profit or Loss
Account.
 BALANCE SHEET:

What Is A Balance Sheet?

A balance sheet is a financial statement that reports a company's assets,

liabilities and shareholders' equity at a specific point in time, and provides a

basis for computing rates of return and evaluating its capital structure. It is a

financial statement that provides a snapshot of what a company owns and

owes, as well as the amount invested by shareholders.

The balance sheet is used alongside other important financial

statements such as the income statement and statement of cash flows in

conducting fundamental analysis or calculating financial ratios.

 CONCLUSION:

I would now like to conclude my project on “ Final Accounts, Journal”

I learnt a lot about Accounts and Its Impact on the companies

Process of exploring the topic for making my project helped me learn

and

Understand the basic concept of the topic. I am happy with my

Learning experience of this project.