Railway Accounts Department Examinations

Showing posts with label Trial Balance. Show all posts
Showing posts with label Trial Balance. Show all posts

Wednesday, April 7, 2021

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 31st 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