Accounting Cycle Transaction Journal Entries Ledger Trial Balance Trading and Profit & Loss Account...
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Transcript of Accounting Cycle Transaction Journal Entries Ledger Trial Balance Trading and Profit & Loss Account...
![Page 1: Accounting Cycle Transaction Journal Entries Ledger Trial Balance Trading and Profit & Loss Account Balance Sheet.](https://reader035.fdocuments.in/reader035/viewer/2022081504/56649f155503460f94c29bfb/html5/thumbnails/1.jpg)
Accounting Cycle
Transaction
Journal Entries
Ledger
Trial Balance
Trading and Profit & Loss Account
Balance Sheet
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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)
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• 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
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• T-16: Salary paid to Mr.Kumar Rs.1000
• J-16: Salary A/C Dr. 1,000
• To. Cash A/C 1,000
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• T-17: Wages paid to Mr.Ravi Rs.500
• J-17: Wages A/C Dr. 500
• To.Cash A/C 500
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• T-18: Received Commission Rs.500 from Sekar.
• J-18: Cash A/C Dr. 500
• To.Commission A/C 500
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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
-----------------------------------------------------------------------------------
To. Bal. B/d 46,010
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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
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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
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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
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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
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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
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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
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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