Bookkeeping - Accounting Cycle (Miniature Model)

 Bookkeeping  - Accounting Cycle

 (Miniature Model) 

Five Stages

1.       Transactions

2.       Journal Entries

3.       Ledger

4.       Trial Balance

5.       Final Accounts

 

1.        Transactions in ABC Ltd.

 

·         Started Business with Rs. 100

·         Cash Purchases – Rs. 50 (50 units)

·         Cash Sales  -  Rs. 60  (40 units)

·         Wages – Rs. 5

·         Salaries – Rs. 5

·         Furniture purchased – Rs. 20

·         Depreciation on Furniture – Rs. 5

·         Loan from Krishna – Rs. 20

·         Interest on Loan – Rs. 2

             Adjustments: Closing Stock – Rs. 10

2.       Journal Entries

Date	Particulars	LF	Dr	Cr
	Cash A/c Dr   To Capital		100	100
	Purchases A/c Dr   To Cash		50	50
	Cash A/c Dr   To Sales		60	60
	Wages A/c Dr   To cash		5	5
	Salaries A/c Dr   To Cash		5	5
	Furniture A/c Dr   To cash		20	20
	Depreciation A/c Dr   To Furniture		5	5
	Cash A/c Dr   To Krishna		20	20
	Interest A/c  Dr   To Cash		2	2

 

3.       Ledger

 

Capital A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Balance c/d		100			By Cash		100
	Total		100			Total		100
						By Balance b/d		100

 

Cash A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Capital		100			By Purchases		50
	To Sales		60			By Wages		5
	To Krishna		20			By Salaries		5
						By Furniture		20
						By Interest		2
						By Balance c/d		98
	Total		180			Total		180
	To Balance b/d		98

 

Purchases A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Cash		50
	Total		50

 

Sales A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
						By Cash		60
						Total		60

 

Wages A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To cash		5
	Total		5

 

Salaries A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To cash		5
	Total		5

 

Furniture A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Cash		20			By  Depreciation		5
						By Balance c/d		15
	Total		20			Total		20
	To Balance b/d		15

 

Depreciation A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Furniture		5
	Total		5

 

Krishna A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Balance c/d		20			By Cash		20
	Total		20			Total		20
						By Balance b/d		20

 

Interst A/c

Dr					Cr
Date	Particulars	JF	Amount		Date	Particulars	JF	Amount
	To Cash		2
	Total		2

 

 

4.       Trial Balance

                                                                                Trial Balance

SN	Particulars	LF	Dr	Cr
1	Capital			100
2	Cash		98
3	Purchases		50
4	Sales			60
5	Wages		5
6	Salaries		5
7	Furniture		15
8	Krishna			20
9	Depreciation		5
10	Interest		2
	Total		180	180

 

5.       Final Accounts

                                               Trading A/c of ABC ltd for the year ending______

Dr					Cr
SN	Particulars		Amount		SN	Particulars		Amount
	To Purchases		50			By Sales		60
	To Wages		5			By Closing Stock		10
	To Gross Profit (c/d to P & L A/c)		15
	Total		70			Total		70

 

                                                                  Profit & Loss A/c of ABC Ltd for the year ending____

Dr					Cr
SN	Particulars		Amount		SN	Particulars		Amount
	To Salaries		5			By Net Profit (b/d from Trading A/c)		15
	To Depreciation		5
	To Interest		2
	To Net Profit (C/d to Capital)		3
	Total		15			Total		15

 

 

 

 

 

                                                         Balance Sheet of ABC ltd as on 31^st March _____

Liabilities					Assets
SN	Particulars		Amount		SN	Particulars		Amount
	Capital	100				Furniture		15
	+ Net Profit	3	103			Cash		98
	Sundry Creditors		20			Closing Stock		10
	Total		123					123