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Financial Accounting

Assignment: Pulkit Enterprises

Prof. Hemant

KaushikDheeraj Kumar

Ankit Phartiyal

Santosh

Laishram Arnold

Nitish Goyal

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BASIC OF ACCOUNTING

Assets It can be anything that increases the value of a firmor 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 cashwithin 1 year in normal course of time.

E.g.--Cash, AC receivable.

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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 thecompany.

E.g.:- Share Capital.

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JOURNAL ENTRY

Journal entry is an entry to the journal.

Journal is a record that keeps accounting transactions inchronological order, i.e. as they occur.

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

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Increase Decrease

Increase Decrease

Increase Decrease

Decrease Increase

Decrease Increase

Decrease Increase

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April 1 Cash

Owners Equity

(Contribution towards capital

by Pulkit Agarwal)

7,50,000

7,50,000

April 5 Office Equipments

Cash

(1 Samsung Cell Phone from

Mobile Corner.

9,500

9,500

April 15 Dr Vehicles

Cr PNB C/A 209

(Cheque 223403 to Sawhney

Motor Co. for 1 Motor

Cycle.)

57,600

57,600

JOURNAL ENTRY

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April 25 Dr. Computers

Cr. Cr.PNB C/A-209

(Cheque 223405 to Taneja

Computers for 1 computer.)

42,500

42,500

May 10 Dr. Purchases

Cr. PNB C/A-209

(Cheque 223406 to BCA

Ltd. for 150 units of B vide

BCA/INV/0004.)

3,04,500

3,04,500

June 25 Dr. PNB C/A 209

Cr. Sales

(Cheque 334501 from FED

& Co. for 30 units of B vide

PE/INV/0001.)

69,600

69,600

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A written record of a commercial transaction.

Ledger is a record that keeps accountingtransactions by accounts.

The Accounting Equation: Must always stay inbalance

Assets = Liability + Owners equity

LEDGER ENTRY

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TRIAL BALANCE

A balance statement of all debits and

credits in a double-entry account book,

with any disagreement indicating an

error.

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1 Owners Equity 7,50,000

2 Office Equipments 9,500

3 Vehicles 57,600

4 Computers 42,500

5 Purchases 3,04,500

6 Sales 69,600

TRIAL BALANCE

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1. Depreciation on

Office Equipments

25% 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

DEPRECIATIONS

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Owners Equity 7,50,000 7,50,000

Office Equipments 9,500

594 8906

Vehicles 57,600

3600 54,000

Computers 42,500

6375 36125

Purchases 3,04,500 3,04,500

Sales 69,600 69,600

ADJUSTMENT ENTRY

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