A PROJECT REPORT ON PREPARATION OF PROFIT AND LOSS

STATEMENT AND BALANCE SHEET FROM TRAIL BALANCE

OF DIAGRAMMATICAL REPRESENTATION

ACCOUNTING

NAME : NABIN KUMAR SING

NAME OF THE EXAMINATION :

CHSE ROLL NO. :

REGD.NO. :

SIGNATURE OF THE STUDENT :

DATE(SUBMISSION) :

SIGNATURE OF INTERNAL SIGNATURE OF EXTERNAL

 GUIDECERTIFICATE

This is to certify that ____________________________bearing Roll No. _________, CHSE Roll

No.___________________ a student of +2 2nd year commerce of Fakir Mohan Higher Secondary School;
Balasore has completed the project under my supervision. She/He is taken keen interest in completion of the
project. She/He has successfully completed the project of business studies and management.

DATE: MS.PRIYANKA PATI

PLACE: PGT IN COMMERCE
FAKIR MOHAN HIGHER SECONDARY SCHOOL
BALASORE

ACCOUNTING
 ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and
assistance from many individual and I am extremely fortunateto have got this all
along the completion of my project work. Whatever I have done is only due to
such guidance and assistance.

Firstly, Iwould liketothank mysupervisor Miss.PriyankaPatima’am for her

continuous support in this project for pinpointing the error sand suggesting
necessary measures to debug them. I would also use this platformto express my
deep regards for Head of Department. Infract I was fortunate enough to get
constant encourage, support and guidance from all teaching staff of the
Commerce Department.

A part from this I would like to thank my friends, who gave suggestions and
advices to do this project. Last but not theleast I would like thank my family, my
parents for educating me with the aspects of commerce, for their unconditional
support and encouragement to pursue my interest. I like to thank God for giving
me strength and capability, and also for helping complete my projects in high
perfection.

NAME :

ROLLNO.:

SIGNATURE

ACCOUNTING
 ABSTRACT

A sole proprietorship, also known as a sole trader ship, individual

entrepreneurship or proprietorshipis a type of enterprise owned and run by one person and
in which there is no legal distinction between the owner and the business entity. A sole
trader does not necessarily work alone and mayemployother people.

The sole trader receives all profits (subject to taxation specific to the business) and
has unlimited responsibility for all losses and debts. Every asset of the business is owned
by the proprietor, and all debts of the businessare that of the proprietor; the business is not
a separate legal entity. The arrangement is a "sole" proprietorship in contrast with a
partnership, which has at least two owners.

Sole proprietors may use a trade name or business name other thantheiror its legal
name.They mayhavetotrademark theirbusinessname legallyifitdiffers fromtheirown
legalname,with theprocessvaryingdependingupon country ofresidence.

ACCOUNTING
 CONTENTS

1. INTRODUCTION

2. ACCOUNTINGTERMS

3. DEFFINATIONWITHFORMAT--------------------------

4. CASHSTUDY

5. JOURNAL

6. TRAILBALANCE

8.SUMMERY&CONCLUSION------------------------------

Bibliography

ACCOUNTING
 INTRODUCTION

Accounting is the process of recording financial transactions pertaining to a

business. The accounting process includes summarizing, analyzing, and reporting
these transactions to oversight agencies, regulators, and tax collection entities. The
financial statements used in accounting are a concise summary of financial
transactions over an accounting period, summarizing a company's operations,
financial position, and cash flows.

Accounting is one of the key functions for almost any business. It may be
handled by a bookkeeper or an accountant at a small firm, or by sizable finance
departments with dozens ofemployees at larger companies. Thereports generatedby
various streams of accounting, such as cost accounting andmanagerial accounting,
are invaluable in helping management make informedbusiness decisions.

 Regardless of the size of a business, accounting is a necessary functionfor

decision making, cost planning, and measurement of economic
performance measurement.

 A bookkeeper can handle basic accounting needs, but a Certified Public

Accountant (CPA) should be utilized for larger or more advanced
accounting tasks.
 Two important types of accounting for businesses are managerial
accounting and cost accounting. Managerial accounting helps
management teams make business decisions, while cost accounting helps
business owners decide how much a product should cost.

 Professional accountants follow a set of standards knownasthe Generally

Accepted Accounting Principles (GAAP) when preparing financial
statements.

ACCOUNTING
 ACCOUNTING TERMS

1. Capital;-It istheaboveofitems investedbytheproprietorintobusiness.It may be in

cash or in kind.

2. Drawing;-Itistheamountorbenefitwithdrawnbytheownerfromthebusiness for
respondents ordomestic case. It maybe in formcash, goods or assets.

3. Debtors;-Thecustomers fromwhomsome amountisduetogoodsaresoldon

credits or services rendered on credits are known as debtors.

4. Creditors;-Thesupplierstowhomsomeamount isduetogoodsarepurchasedon credit

is known as credit.

5. Purchase;-Itisatermwhichis usedforpurchaseofgoodsonly.

6. Sales;-Itisatermwhichisused forsaleofgoodsonly.

7. Expenses;-Expensesreferstocashofconductingbusiness.

8. Profit;-Excessoftotalrevenueoverexpensesofanaccountingperiod istermedas profit.

Profit always increases owners’ equity.

9. Assets;-Assetsareresourceswitheconomicwhichcomparesexcepttoprovide
future benefit.

10. Liabilities;-Aliabilitiesiswhensomeoneowessomeoneelsemoney.Throughthe
transfer of money, service, gods.

ACCOUNTING
 FORMAT
JOURNAL
A journalisa detailed account that record sall the financial transaction so
business, to
beusedforfuturereconcilingofandtransfertootherofficialaccountingrecords,such
as the general ledger.

Date Particulars L/F Debit Credit

Amount Amount

LEDGER
It is also knownas the principalbook ofaccounts as wellas the book of finalentry. It is a
book in which all ledger accounts and related monetary transactions are maintained in a
summarized and classified form. All accounts combined together make a ledger and form
a permanent record of all transactions.

Date Particulars J.F. Amount Date Particulars J.F. Amount

TRIALBALANCE
Atrialbalance isabookkeepingworksheet inwhichthebalancesofallledgers 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.
Thegeneralpurposeofproducingatrialbalanceistoensuretheentries in a
company's bookkeeping systemare mathematically correct.

AccountName L.F. DebitBalance CreditBalance

ACCOUNTING
TRADINGANDPROFITANDLOSSACCOUNT
Tradingaccountisprepared forascertainingthegrossprofitorgrosslossofthe
business for an accounting period.

Thepurposeofpreparingprofitand lossaccountistofindoutthenetprofitornet loss of a

business during a year.

TradingandP/LA/Cof fortheyearended

Particulars Amount() Particulars Amount()

BALANCESHEET
Balancesheetisastatementpreparedtoknowtheexact financialpositionofthe
business on the last date of the financial year.

Balancesheetof as on

Liabilities Amount () Assets Amount()

ACCOUNTING
 CASESTUDY

Journalisethefollowingtransactions
:-
ChanderMohanhadthefollowingbalance 0n1stApril,2020:
Cash in hand 2500, Bank balance 15300, Stock 5700, Land & Building 25000, Plant and
machinery 10700, Amount due from Durga Prashad 600, Faqir Chand 1800, Amountdue to
Gopal 1200, Hardyal 700. Transactions during April 2020 were as under;
2020
Apr. 1 Received from Durga Prashad Rs.585 in full settlement of his
account.
Apr. 2 Purchased goods from Lal for Rs. 300 against cash.

Apr. 3 Paid telephone rent Rs. 500

Apr. 4 Drew for personal

use Rs.320
Apr. 5 Drawn cash from bank for office use
Rs. 1000
Apr. 6 Purchased goods from Gurinder Rs.500
on credit.
Apr.7 Return goods worth Rs.50 to Gurinder,being not as per the sample.

Apr. 9 Received cheque from Fakir Chand for Rs.1720 in full settlement of his
account, sent to the bank.

Apr. 11 Bank informs that Fakir cheque was

dishonored.
Apr.12 Sold goods to Sohana Singh for Rs,800 on
credit.
Apr. 13 Sold goods to Manohar Lal for Rs. 500 on
cash.
Apr.17 Sohan Singh returned goods worth Rs.100, as the goods were damaged in
transit.
Apr. 30 Paid salary to the manager Rs, 5000 by cheque.
 JOURNALENTRIES
In the books of happy trade

JOURNAL:-
Date Particulars L/F Debit Credit
2020 CashA/c Dr. 2500
Apr-01 BankA/c Dr. 15300
StockA/c Dr. 5700
LandandBuildingA/c Dr. 25000
PlantandMachineryA/c Dr. 10700
DurgaPrashadA/C Dr. 600
FakirChand'sA/C Dr. 1800
ToGopalA/c 1200
ToHardyal'sA/c 700
ToCapitalA/c 59700
(BeingOpeningentrypassed)
Apr-01 CashA/c Dr. 585
DiscountAllowedA/c Dr. 15
ToDurgaPrasad'sA/c 600
(Being cash received from DurgaPrashad)
Apr-02 PurchasedA/c Dr. 300
ToCashA/c 300
(Beinggoodspurchasedagainstcash)
Apr-03 TelephoneRentA/c Dr. 500
ToCashA/c 500
(Beingpaidtelephonerent)
Apr-04 DrawingA/c Dr. 320
ToCashA/c 320
(Beingdrewfrompersonaluse)
Apr-05 CashA/c Dr. 1000
ToBankA/c 1000
(Beingdrewfrombankforofficeuse)
Apr-06 PurchasedA/c Dr. 500
ToGurinder's A/c 500
(BeingpurchasedgoodsfromGurinderoncredit)
Apr-07 Gurinder'sA/c Dr. 50
ToPurchaseReturnA/c 50
(BeinggoodsreturntoGurinder)
Apr-09 BankA/c Dr. 1720
DiscountAllowedA/c Dr. 80
ToFakirChand'sA/c 1800
(BeingchequereceivedtoGurinder)
Apr-11 FakirChand'sA/C Dr. 1800
ToBankA/c 1720
ToDiscountAllowedA/c 80
(beingFakir Chandschequedishonoured)
Apr-12 SohanSingh'sA/c Dr. 800
ToSalesA/c 800
(Beingwithdrewforpersonal use)
Apr-13 CashA/c Dr. 500
ToSalesA/c 500
(Beinggoods soldforcash)
Apr-17 SalesReturnA/c Dr. 5000
ToBankA/c 5000
(BeingpaidforSalary)
TOTAL 75070 75070
 LEDGER A/C

Cash A/c
Date Particulars J/F Amount Date Particulars J/F Amount
1.4.20 ToBalanceb/d 2500 2.4.20 ByPurchaseA/c 300
1.4.20 ToDurgaPrasadA/c 585 3.4.20 ByTelephoneRentA/c 500
5.4.20 ToBankA/c 1000 4.4.20 ByDrawing A/c 320
13.4.20 ToSalesA/c 500 30.4.20 ByBalancec/d 3465
4585 4585
1.5.20 ToBalanceb/d 3465

BANKA/C
Date Particulars J/F Amount Date Particulars J/F Amount
1.4.20 ToBalanceb/d 15300 5.4.20 ByCashA/c 1000
9.4.20 ToFakirChandsA/c 1720 11.4.20 ByFakirChandsA/c 1720
27.4.20 BySalaryA/c 5000
30.4.20 ByBalancec/d 9300
17020 17020
1.5.20 ToBalanceB/d 9300

STOCKA/C
Date Particulars J/F Amount Date Particulars J/F Amount
Bybalance
1.4.20 ToBalanceb/d 5700 30.4.20 c/d 5700

5700 5700
1.5.20 ToBalanceb/d 5700

LANDANDBUILDINGSA/C
Date Particulars J/F Amount Date Particulars J/F Amount
1.4.20 ToBalanceb/d 25000 30.4.20 ByBalancec/d 25000

25000 25000
1.5.20 ToBalanceb/d 25000
 PLANTAND MACHINERYA/C

Date Particulars J/F Amount Date Particulars J/F Amount

1.4.20 ToBalanceb/d 10700 30.4.20 ByBalancec/d 10700

10700 10700
1.5.20 Tobalanceb/d 10700

DURGA PRASHADA/C
Date Particulars J/F Amount Date Particulars J/F Amount
1.4.20 ToBalanceb/d 600 1.4.20 ByCashA/c 600

600 600

FAKIR CHANDS A/C

Date Particulars J/F Amount Date Particulars J/F Amount

1.4.20 ToBalanceb/d 1800 9.4.20 ByBankA/c 1720
ByDiscountallowed
11.4.20 ToBankA/c 1720 A/c 80
ToDiscountAllowedA/c 80 30.4.20 ByBalancec/d 1800
3600 3600
ToBalanceb/d 1800

GOPALSA/C
Date Particulars J/F Amount Date Particulars J/F Amount
30.4.20 ToBalancec/d 1200 1.4.20 ByBalanceb/d 1200

1200 1200
1.5.20 ByBalanceb/d 1200

HARDYALSA/C
Date Particulars J/F Amount Date Particulars J/F Amount
30.4.20 ToBalancec/d 700 1.4.20 ByBalanceb/d 700

700 700
1.5.20 ByBalanceb/d 700
CAPITALA/C
Date Particulars J/F Amount Date Particulars J/F Amount
30.4.20 ToBalancec/d 59700 1.4.20 ByBalanceb/d 59700

59700 59700
1.5.20 ByBalanceb/d 59700
 DISCOUNTALLOWEDA/C
Date Particulars J/F Amount Date Particulars J/F Amount
1.4.20 ToDurgaPrasadsA/c 15 11.4.20 ByFakirChandsA/c 80
9.4.20 ToFakirChandssA/c 80 ByBalancec/d 15
95 95
1.5.20 ToBalanceb/d 15

PURCHASEA/C
Date Particulars J/F Amount Date Particulars J/F Amount
2.4.20 ToCashA/c 300 30.4.20 ByBalancec/d 800
6.4.20 ToGurindersA/c 500
800 800
1.5.20 ToBalancec/d 800
TELERPHONERENTA/C

Date Particulars J/F Amount Date Particulars J/F Amount

3.4.20 ToCashA/c 500 30.4.20 ByBalancec/d 500

500 500
1.5.20 ToBalanceb/d 500

DRAWINGA/C
Date Particulars J/F Amount Date Particulars J/F Amount
4.4.20 ToCashA/c 320 30.4.20 ByBalanceC/d 320

320 320
1.5.20 ToBalanceb/d 320

GURINDERA/C

Date Particulars J/F Amount Date Particulars J/F Amount

7.4.20 ToPurchaseReturnA/c 50 6.4.20 ByPurchaseA/c 500
30.4.20 ToBalancec/d 450
500 500
1.5.20 ByBalanceb/d 450

PURCHASERETURNA/C

Date Particulars J/F Amount Date Particulars J/F Amount

30.4.20 ToBalancec/d 50 7.4.20 ByGurindersA/c 50

50 50
1.5.20 ByBalanceb/d 50
 SOHANSINGHSA/C
Date Particulars J/F Amount Date Particulars J/F Amount
12.4.20 ToSalesA/c 800 17.4.20 BySalesreturnA/c 100
30.4.20 ByBalancec/d 700
800 800
1.5.20 ToBalanceb/d 700
SALESA/C

Date Particulars J/F Amount Date Particulars J/F Amount

30.4.20 ToBalancec/d 1300 12.4.20 BySohanSinghA/c 800
13.4.20 ByCashA/c 500
1300 1300
30.4.20 ByBalanceC/d 1300

SALESRETURNA/C

Date Particulars J/F Amount Date Particulars J/F Amount

17.4.20 ToSohanSinghA/c 100 30.4.20 ByBalancec/d 100
100 100
1.5.20 ToBalanceb/d 100

SALARYA/C

Date Particulars J/F Amount Date Particulars J/F Amount

27.4.20 ToBankA/c 5000 30.4.20 ByBalancec/d 5000

5000 5000
1.5.20 ToBalanceb/d 5000
 TRIALBALANCEOFCHANDRAMOHAN

SI.NO NameOfAccounts L/F Debit Credit

1 Cash 3465
2 Bank 9300
3 Stock 5700
4 Landandbuilding 25000
5 PlantandMachinery 10700
6 FakirChand 1800
7 Gopal 1200
8 Hardyals 700
9 Capital 59700
10 DiscountAllowed 15
11 Purchase 800
12 TelephoneRent 500
13 Drawing 320
14 Gurinders 450
15 Purchasereturn 50
SohanSingh 700
Sales 1300
Sales Return 100
Salary 5000
TOTAL 63400 63400
 SUMMARYAND CONCLUSION

A sole trading concern is the enterprises which are invested

and managed by a single person. In this business, sole-proprietor
takes all risk and responsibilityof business. The profit ofa business
is also enjoyed bya single person.
A sole proprietor ship is solely dependenton its owner and
thus comes to an end with the death or incapacitation of the sole
proprietor. Both Sole Proprietorships and Partnership are popular
choices in the market; let us discuss some of the major points. A
Sole Proprietorship is a business entity formed in the name of a
single person called the Proprietor who must be a Citizen and
Resident of India. In the US, an LLC is a specific form of a private
limited company. A Sole Proprietorship is easy to start but can
hamper your growth. The main burdens with a sole proprietor ship
are that it is harder to get business related finance in grand the tall
debts, obligations and legal issues fall on the owner. Sole
Proprietorship to Partnership. The sole proprietorship is a business
that is owned and operated by one person. Good custom Essay
Website. 1.5 Conclusion. Conclusion. The business may come to an
end at the owner’s death, it does not continue unless transferred to
heirs, but when it is transferred to family or heirs a new sole
proprietorship is created. The only similarity is that the registration
is optional in both cases. The sole proprietorship has only one
member, and the partnership has multiple. Youdon’t have to
incorporate to start a business. Generalpartnership:

18 | P a g e
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1. Name of the Book: Double Entry Book

KeepingPublisher :KalyaniPublisher
2. Year 2017
Author : MohanJuneja,J.SArora, P.C.Sahoo
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3. Name of the book : Double Entry Book

KeepingPublisher:VKGlobalPubliCations
Year 2018
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4. NameoftheBook: DoubleEntryBook
KeepingPublisher :NanoPublisher
5. Year : 2017
Authors : SaratKu.
Sahoo
Nalinikanta
Swain
Page : 12.1to12.16

6. www.google.comww
www.wikipedia.com