Financial Accounting

Assignment: Pulkit Enterprises

Submitted To: Prof. Hemant Kaushik

Submitted By:
Dheeraj Kumar Ankit Phartiyal Santosh Laishram Arnold Nitish Goyal

BASIC OF ACCOUNTING
Assets :- It can be anything that increases the value of a firm or benefit the firm's operation. E.g.--land, building, furniture etc. Types of Assets:-

Fixed Assets- Property which is expected to convert into cash not sooner than at least 1 year. E.g.-- Furniture, building. Current Assets- Property which is expected to convert into cash within 1 year in normal course of time. E.g.--Cash, AC receivable.

Liability :- A company's legal debts or obligations that arise during the course of business operations E.g.:- Loan payable, Rent payable.

Owner equity:-Amount invested by the owner of the company.

E.g.:- Share Capital.

Expense :- Using an asset of the company to provide goods or services.

E.g.:- Salary Expense, Telephone Expense.

Revenue:- Earned from providing goods or services in exchange for an asset.

E.g.:- Sales Revenue.

JOURNAL ENTRY
Journal entry is an entry to the journal. Journal is a record that keeps accounting transactions in chronological order, i.e. as they occur.

The journal entry can consist of several items, each of which is either a debit or a credit.

Nature Of Account Assets

Debit Increase

Credit Decrease

Expenses
Dividend Liabilities Owner Equity

Increase
Increase Decrease Decrease

Decrease
Decrease Increase Increase

Revenue

Decrease

Increase

JOURNAL ENTRY
Date April 1 Voucher No. Account Heads And Transactions Amount (Rs.) Debit Credit

Dr. Cash 7,50,000 Cr. Owners Equity 7,50,000 (Contribution towards capital by Pulkit Agarwal)

April

April

15

Dr. Office Equipments 9,500 Cr. Cash (1 Samsung Cell Phone from Mobile Corner.) Dr Vehicles 57,600 Cr PNB C/A 209 (Cheque 223403 to Sawhney Motor Co. for 1 Motor Cycle.)

9,500

57,600

JOURNAL ENTRY CONTD

Date Voucher No 25 Account Heads And Transactions Amount (Rs. Debit Credit 42,500

April

Dr. Computers 42,500 Cr. Cr.PNB C/A-209 (Cheque 223405 to Taneja Computers for 1 computer.)

May

10

Dr. Purchases Cr. PNB C/A-209 (Cheque 223406 to BCA Ltd. for 150 units of B vide BCA/INV/0004.)
Dr. PNB C/A 209 Cr. Sales (Cheque 334501 from FED & Co. for 30 units of B vide PE/INV/0001.)

3,04,500
3,04,500

June

25

69,600 69,600

LEDGER ENTRY
A written record of a commercial transaction.

Ledger is a record that keeps accounting transactions by accounts.

The Accounting Equation: Must always stay in balance

Assets = Liability + Owners equity

TRIAL BALANCE

A balance statement of all debits and credits in a double-entry account book, with any disagreement indicating an error.

TRIAL BALANCE
Serial Number Trial Balance as on 30-06-2006 Accounts Head
Owners Equity Office Equipments Vehicles 9,500 57,600

Aunt

Debit
1 2 3

Credit
7,50,000

Computers

42,500

Purchases

3,04,500

Sales

69,600

DEPRECIATIONS
Account Name
1. Depreciation on Office Equipments

Depreciate %
25%

Calculation

Amount

9500 * 25/100 * 3/12 593.75 = 594

2. Depreciation on Vehicles

25%

57600 * 25/100 * 3/12

3600

3. Depreciation on Computers

60%

42,500 * 60/100* 3/12

6375

ADJUSTMENT ENTRY
Trial Balance Account Heads Debit
Owners Equity Office Equipments 9,500

Adjustments Debit Credit

Adjustments Trial Balance Debit Credit

7,50,000

Anal ysis

Credit
7,50,000

594
Vehicles 57,600 3600

8906

54,000

Computers

42,500
6375 36125 3,04,500 69,600

Purchases Sales

3,04,500

69,600

THANK YOU