PREPARATION OF BOOK OF ACCOUNTS

NATIONAL LAW UNIVERSITY ODISHA, CUTTACK

BASIC PRINCIPLES OF ACCOUNTING

TOPIC: PREPARATION OF BOOK OF ACCOUNTS

UNDER THE GUIDANCE: PROF. A. B. DEBASIS ROUT

SUBMITTED BY:

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CONTENTS
ACKNOWLEDGEMENT.........................................................................................................3

FINANCIAL TRANSACTIONS...............................................................................................4

JOURNAL ENTRIES................................................................................................................8

LEDGERS AND CASH BOOK..............................................................................................17

TRIAL BALANCE..................................................................................................................35

FINAL ACCOUNTS...............................................................................................................37

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ACKNOWLEDGEMENT

First of all, we would like to express our sincere gratitude to our subject teacher Professor AB
Debasis Rout for giving us the opportunity to work on our project topic. We thank him for his
stimulating suggestions and encouragement and it was only under his guidance and constant
mentoring that we were able to complete our research work successfully.

We also acknowledge the IT Department of NLUO, for providing us with subscriptions to

Valuable sources which helped us to get necessary information needed for the project.

At last, but not the least, we would like to thank all those who encouraged us to complete this
project.

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FINANCIAL TRANSACTIONS

S.No Date Transaction

1. 3.4.2024 Started a medicine shop by bringing in the capital of Rs. 50,00,000.
2. 5.4.2024 Opened a bank account by depositing Rs. 1,00,000.
3. 6.4.2024 Purchased furniture worth Rs. 50,000.
4. 10.4.2024 Rented a premise for Rs. 6,000 per month.
5. 11.4.2024 Paid two months’ rent in advance.
6. 12.4.2024 Bought an air conditioner worth Rs. 25,000 through cheque.
7. 15.4.2024 Miscellaneous expenses Rs. 9,000 in cash.
8. 16.4.2024 Renovation cost Rs. 30,000 in cash.
9. 17.4.2024 Withdraw Rs. 15,000 in cash
10. 18.4.2024 Installation of telephone at Rs. 1,000 by cash.
11. 19.4.2024 Purchased good worth Rs. 1,00,000.
12. 22.4.2024 Monthly salary paid to staff of Rs. 8,000.
13. 25.2024 Goods sold to Payal Hospital worth Rs. 70.000 on credit.
14. 27.4.2024 Sold to Mr. Verma Medico goods worth 50,000.
15. 28.4.2024 Purchased 4 surveillance cameras for store applications worth Rs.
50,000 from Soumya Electric.
16. 29.4.2024 Sold surgical masks and hand sanitizers in bulk worth Rs. 10,000 to
Khaitan & Co.
17. 1.5.2024 Payal Hospital paid Rs. 15,000 through cheque and Rs. 5,000 in cash.
18. 2.5.2024 Purchased goods from Samu Medicine Co. Ltd. Worth Rs. 90,000 in
cash.
19. 3.5.2024 Purchased goods worth Rs. 1,50,000 from M/s Satya Co. in credit.
20. 6.5.2024 Returned goods to Sanu Medicine Co. Ltd. worth Rs. 30,000.
21. 8.5.2024 Hired a staff for assistance whose salary is Rs. 8,000 per month.
22. 15.5.2024 Payal Hospital paid Rs. 23,000 after a 10% discount on the total
amount.
23. 17.5.2024 Printer was installed at Rs. 10,000 from Haldwani Electronics on credit.
24. 19.5.2024 Monthly salary paid to staff of Rs. 8,000.
25. 20.5.2024 Repair and maintenance cost worth Rs. 25,000.
26. 22.5.2024 Paid monthly rent in cash.

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27. 25.5.2024 Paid 4 months advanced salary to the new staff assistance.
28. 26.5.2024 Returned goods worth 20,000 to M/s Satya.
29. 28.5.2024 Goods returned to Mr. Verma Medico worth Rs. 10,000.
30. 30.5.2024 Mr. Verma Medico settled their account with a 10% discount.
31. 1.6.2024 Bought goods worth Rs. 20,000 with discount of 20% in cash.
32. 4.6.2024 Goods purchased worth Rs. 2,00,000 from Lily Cole Co. in credit.
33. 5.6.2024 Settled Payal Hospital’s account through cheque after 20% discount.
35. 8.6.2024 Wages worth Rs. 2,000 paid in cash.
36. 13.6.2024 Donated money for orphans Rs. 11,000.
37. 15.6.2024 Purchased new furniture worth 1,50,000. Paid 50,000 in cash and rest
in credit from Mr. Basu.
38. 17.6.2024 Bank Loan Rs. 2,00,000, interest @ 2% to be paid monthly.
39. 21.6.2024 Monthly salary paid to staff of Rs. 8,000.
40. 22.6.2024 Paid M/s Satya in cheque, worth 30,000.
41. 24.6.2024 The rest payment due to M/s Satya was done in cash with a 10%
discount in the leftover amount.
42. 25.6.2024 Rent paid through cheque.
43. 26.6.2024 Owner withdrew Rs. 2,500 cash from the bank for personal use.
44. 28.6.2024 Sold goods worth Rs. 80,000 on credit to Sunrise Hospital.
45. 29.6.2024 Advertisement cost paid to newspaper Rs.15,000 via cheque.
46. 1.7.2024 Amount paid to Mr. Basu in cheque 60,000.
47. 4.7.2024 Sold goods to Kakar Medicine Co. on credit worth Rs. 1,00,000.
48. 5.7.2024 Monthly salary paid to staff of Rs. 8,000.
49. 10.7.2024 Mr. Basu’s account settled after receiving 10% a discount on the total
amount.
50. 11.7.2024 Kakar Medico Co. paid Rs 50,000 in cash.
51. 15.7.2024 Monthly rent paid in cash.
52. 18.7.2024 The rest amount was paid by Kakar Medico Co. through cheque, which
was deposited after two days.
53. 21.7.2024 Monthly salary paid to staff of Rs. 8,000.
54. 22.7.2024 Purchase of goods worth Rs. 40,000 in cash.
55. 29.7.2024 Repair and maintenance Rs. 25,000 in cash.

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56. 30.7.2024 Renewed Wi-Fi Rs. 4,000 paid in cash.

57. 1.8.2024 Won prize money worth Rs. 9,00,000 in cheque.
58. 2.8.2024 Monthly rent for 2 months paid in advance.
59. 3.8.2024 Installed solar panel for Rs. 4,80,000 paid halves in cash and half
through cheque.
60. 5.8.2024 Diwali party expenses Rs. 10,000.
61. 11.8.2024 Manager hired at salary of Rs. 30,000 per month.
62. 17.8.2024 Interest paid for the last three months.
63. 21.8.2024 Newspaper subscription bought at Rs.600 per month. Amount for three
months paid in advance.
64. 23.8.2024 Installed two refrigerators for Rs. 15,000 each.
65. 24.8.2024 Salary paid to the assistant.
66. 27.8.2024 Salary paid to staff.
67 29.8.2024 Electricity bill paid worth Rs. 8,000 in cash.
68. 3.9.2024 Purchase a motor vehicle of worth Rs. 7,50,000 in cash.
69. 5.9.2024 Investment of Rs. 25,000 for online delivery of medicines from bank
account.
70. 9.9.2024 Inauguration cost to Planners via cheque Rs. 50,000
71. 14.9.2024 Drawings worth Rs 10,000.
72. 17.9.2024 Rent paid in cash
73. 20.9.2024 Salary paid to manager.
74. 22.9.2024 Good sold worth Rs. 3,00,000 in credit to Sum Hospital Pvt. Ltd.
75. 21.9.2024 Salary paid to the assistant and staff.
76. 2.10.2024 Purchase goods worth Rs. 1,00,000 in cash.
77. 6.10.2024 Purchased stationary for Rs. 4,000 in cash.
78. 7.10.2024 Petty expenses of Rs. 2,000.
79. 21.10.2024 Motor vehicle repairs Rs. 5,000.
80. 24.10.2024 Sales good worth Rs 50,000 in cash.
81. 30.10.2024 Salary paid worth Rs. 16,000.
82. 2.11.2024 Paid cartage Rs. 5,000.
83. 11.11.2024 Won prize money worth Rs 100000 in cheque.
84. 19.11.2024 Electricity bill paid worth Rs. 7,500 in cheque.

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85. 21.11.2024 Paid salary to the manager.

86. 22.11.2024 Purchase goods worth Rs. 50.000 in cash.
87. 26.11.2024 Sales for the month are Rs 8,00,000.
88. 6.12.2024 New year bonus to staffs Rs. 10,000.
89. 14.12.2024 Rent paid in cheque.
90. 22.12.2024 Electricity bill worth Rs. 5,000 paid.
91. 25.12.2024 Bank loan interest paid.
92. 1.1.2025 Received bonus of Rs.10,000.
93. 3.1.2025 Legal expenses of Rs 8,000 paid to C and Associates
94. 5.1.2025 Amount of Rs. 5,000 given as donation to NGO
95. 13.1.2025 Old newspapers and magazines sold for Rs. 1500.
96. 14.1.2025 Event Organization expenses Rs.20,000.
97. 22.1.2025 Paid charity Rs 2,000
98. 28.1.2025 Received commission Rs 2,500
99. 1.2.2025 Goods sold for cash Rs 11,000 of which Rs 6,000 deposited into bank
100. 4.2.2025 Paid audit fees Rs 2,00,000
101 5.2.2025 Salary paid to staff 10,000
102 10.2.2025 Purchase of goods worth Rs. 20,000 in cash.
103 11.2.2025 The manager was hired at a salary of Rs. 20,000 per month.
104 15.2.2025 Amount paid to Mr Raman in cheque 20,000.
105 18.2.2025 Paid monthly rent in cash Rs 10,000
106 19.02.2025 Repair and maintenance cost worth Rs. 15,000.
107 22.02.2025 Donated money for orphans Rs. 5,000.
108 23.02.2025 Legal expenses of Rs 1,000 paid to C and Associates
109 25.02.2025 Sold goods worth Rs. 10,000 on credit to Lakshaya.
110 27.02.2025 Purchased goods worth Rs. 2,50,000 from Mr Kapoor in credit
111 01.03.2025 Wages worth Rs. 1,000 were paid in cash.
112 05.03.2025 Renewed Wi-Fi Rs. 2,000 paid in cash.
113 07.03.2025 Goods sold to Payal Hospital worth Rs. 30,000 on credit.
114 10.03.2025 Withdraw Rs. 100 in cash
115 11.03.2025 Goods lost by fire Rs. 20,000
116 15.03.2025 Purchase goods worth Rs. 40,000 in cash.
117 22.03.2025 Hired a staff for assistance whose salary is Rs. 2,000 per month.
118 25.03.2025 Petty expenses of Rs. 1,000.

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119 26.03.2025 Electricity bill worth Rs. 10,000 paid.
120 30.03.2025 Paid charity Rs 500

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JOURNAL ENTRIES

DATE PARTICULAR L.F. DEBIT CREDIT

03.04.2024 Cash A/C Dr 50,00,000
To Capital A/C 50,00,000
(Being business started with cash of 50,00,000)

05.04.2024 Bank A/C Dr 1,00,000

To Cash A/C 1,00,000
(Being bank account opened with cash of 1,00,000)

06.04.2024 Furniture A/C Dr 50,000

To Cash A/C 50,000
(Being furniture purchased of 50,000)

10.04.2024 Rent A/C Dr 6,000

To Cash A/C 6,000
(Being rent to be paid of 6,000 per month)

11.04.2024 Prepaid Rent A/C Dr 12,000

To Cash A/C 12,000
(Being rent paid in advance)

12.04.2024 Air Conditioner A/C Dr 25,000

To Bank A/C 25,000
(Being air conditioner purchased worth 25,000)

15.04.2024 Miscellaneous Expenses A/C Dr 9,000

To Cash A/C 9,000
(Being Miscellaneous Expenses Paid in Cash)

16.04.2024 Renovation Cost A/C Dr 30,000

To Cash A/C 30,000
(Being renovation cost incurred in cash)

17.04.2024 Cash A/C Dr 15,000

To Bank A/C 15,000
(Being Cash Withdrawn)

18.04.2024 Telephone A/C Dr 1,000

To Cash A/C 1,000
(Being installation of telephone paid in cash)

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19.04.22024 Purchase A/C Dr 1,00,000

To Cash A/C 1,00,000
(Being Goods Purchase Worth 1,00,000)

22.04.2024 Salary A/C Dr 8,000

To Cash A/C 8,000
(Being Salary Paid)

25.04.2024 Payal Hospital A/C Dr 70,000

To Sales A/C 70,000
(Being Goods Sold on Credit)

27.04.2024 Mr. Verma Medico A/C Dr 50,000

To Sales A/C 50,000
(Being Goods Sold of Worth 50,000)

28.04.2024 Miscellaneous Expenses A/C Dr 2,00,000

To Soumya Electric A/C 2,00,000
(Being 4 Surveillance Cameras Bought Worth
50,000)
29.04.2024 Khaitan & Co A/C Dr 10,000
To Sales A/C 10,000
(Being Goods Sold Worth 10,000)

01.05.2024 Bank A/C Dr 15,000

Cash A/C Dr 5,000
To Payal Hospital A/C 20,000
(Being Payment Received Through Cheque and
Cash)

02.05.2024 Purchase A/C Dr 90,000

To Cash A/C 90,000
(Being Goods Purchased in Cash)

03.05.2024 Purchase A/C Dr 1,50,000

To M/S Satya Co A/C 1,50,000
(Being Good Purchased)

06.05.2024 Cash A/C Dr 30,000

To Purchase A/C 30,000
(Being Returned Goods Worth 30,000)

08.05.2024 Salary A/c Dr 8,000

To Cash A/c 8,000
(Being Salary Paid)

15.5.2024 Cash A/C Dr 23,000

Discount allowed 7,000
A/C To Payal hospital 30,000
A/C
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(Being payment received after 10% discount on
total amount)

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17.05.2024 Printer A/C Dr 10,000

To Cash A/C 10,000
(Being Printer Installed At 10,000)

19.05.2024 Salary A/C Dr 8,000

To Cash A/C 8,000
(Being Salary Paid)

20.05.2024 Repair And Maintenance A/C Dr 25,000

To Cash A/C 25,000
(Being Repair expenses paid)

22.05.2024 Rent A/C Dr 6,000

To Cash A/C 6,000
(Being Rent Paid in Cash)

25.05.2024 Advanced Salary A/C Dr 32,000

To Cash A/C 32,000
(Being 4 months advanced salary paid)

26.05.2024 M/S Satya A/C Dr 20,000

To Purchase A/C 20,000
(Being Goods Returned To M/S Satya)

28.05.2024 Sales A/C Dr 10,000

To Mr Verma Medico A/C 10,000
(Being Goods Returned Worth 10,000)

30.05.2024 Cash A/C Dr 36,000

Discount Allowed A/C Dr. 4,000
To Mr. Verma Medico 40,000
A/C
(Mr. Verma Medico settled with a 10% discount)

01.06.2024 Purchase A/C Dr 20,000

To Cash A/C 16,000
To Discount Received A/C 4,000
(Being Goods Brought Worth 20,000 With 20%
Discount)

04.06.2024 Purchase A/C Dr 2,00,000

To Lily Cole Co. A/C 2,00,000
(Being Goods Purchased in Credit)

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05.06.2024 Bank A/C Dr 18,000

Discount Allowed A/C Dr 2,000
To Payal Hospital A/C 20,000
(Being Payal Hospital Account closed with 20%
discount)

08.06.2024 Wages A/C Dr 2,000

To Cash A/C 2,000
(Being Wages Paid in Cash)

13.06.2024 Donation A/C Dr 11,000

To Cash A/C 11,000
(Being Money Donated for Orphans)

15.06.2024 Furniture A/C Dr 1,50,000

To Cash A/C 50,000
To Mr. Basu A/C 1,00,000
(Being furniture purchased)

17.06.2024 Bank Loan A/C Dr 2,00,000

To Bank A/C 2,00,000
(Bank Loan taken)
21.06.2024 Salary A/C Dr 8,000
To Cash A/C 8,000
(Being Salary Paid)

22.06.2024 M/S Satya A/C Dr 30,000

To Bank A/C 30,000
(Being Satya Paid in Cheque)

24.06.2024 M/S Satya A/C Dr 1,00,000

To Cash A/C 90,000
To Discount Received A/C 10,000
(Being M/S Satya Account settled)

25.06.2024 Rent A/C Dr 6,000

To Bank A/C 6,000
(Being Rent Paid Through Cheque)

26.06.2024 Drawing A/C Dr 2,500

To Cash A/C 2,500
(Being Cash Withdrawn for Personal Use)

28.06.2024 Sunrise Hospital A/C Dr 80,000

To Sales A/C 80,000
(Being Goods Sold on Credit)

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29.06.2024 Advertisement Cost A/C Dr 15,000

To Bank A/C 15,000
(Being Advertisement Cost Paid Through Cheque)

1.07.2024 Mr Basu A/C Dr 60,000

To Bank A/C 60,000
(Being Paid Mr Basu in Cheque)

04.07.2024 Kakar Medicine Co. A/C Dr 1,00,000

To Sales A/C 1,00,000
(Being Goods Sold on Credit)

05.07.2024 Salary A/C Dr 8,000

To Cash A/C 8,000
(Being Salary Paid to Staff)

10.07.2024 Mr Basu A/C Dr 40,000

To Cash A/C 36,000
To Discount Received A/C 4,000
(Being Mr Basu account settled)

11.07.2024 Cash A/C Dr 50,000

To Kakar Medico Co. A/C 50,000
(Being Payment Received)

15.07.2024 Rent A/C Dr 6,000

To Cash A/C 6,000
(Being Rent Paid in Cash)

18.07.2024 Bank A/C Dr 50,000

Cheque in hand A/C 50,000
(Being cheque deposited in the bank)
Cheque in hand A/C Dr 50,0000
To Kakar Medico Co. A/C 50,000
(Being Kakar Medico Co. paid in cheque but not
deposited)

21.07.2024 Salary A/C Dr 8,000

To Cash A/C 8,000
(Being Salary Paid)

22.07.2024 Purchase A/C Dr 40,000

To Cash A/C 40,000
(Being Goods Purchase in Cash)

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29.07.2024 Repair And Maintenance A/C Dr 25,000

To Cash A/C 25,000
(Being Paid Repair and Maintenance in Cash)

30.07.2024 Miscellaneous Expenses A/C Dr 4,000

To Cash A/C 4,000
(Being Paid Wi-Fi Renew in Cash)

01.08.2024 Prize A/C Dr 9,00,000

To Bank A/C 9,00,000
(Being prize won in cheque)

02.08.2024 Prepaid Rent A/C Dr 12,000

To Cash A/C 12,000
(Being Rent Paid in Advance)

03.08.2024 Solar Panel A/C Dr 4,80,000

To Cash A/C 2,40,000
To Bank A/C 2,40,000
(Being Solar Panel Installed)

05.08.2024 Staff Welfare A/C Dr 10.000

To Cash A/C 10,000
(Being Diwali Party Expense Incurred)

11.08.2024 Salary A/c Dr 30,000

To Cash A/c 30,000

17.08.2024 Interest A/C Dr 12,000

To Bank A/C 12,000
(Being Bank loan interest paid for last 3 months)

21.08.2024 Newspaper A/C Dr 1,800

To Cash A/C 1,800
(Being Newspaper subscription availed and
advanced paid)
23.09.2024 Refrigerator A/C Dr 30,000
To Cash A/C 30,000
(Being Two Refrigerators Installed For 15,000
Each)

24.08.2024 Salary A/C Dr 8,000

To Cash A/C 8,000
(Being Salary Paid to Assistant)

27.08.2024 Salary A/C Dr 8,000

To Bank A/C 8,000
(Being Salary Paid to Staff)

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29.08.2024 Electricity Bill A/C Dr 8,000
To Cash A/C 8,000
(Being Electricity Bill Paid in Cash)
03.09.2024 Motor Vehicle A/C Dr 7,50,000
To Cash A/C 7,50,000
(Being Motor Vehicle Purchased in Cash)

5.09.2024 Investment A/C Dr 25,000

To Bank A/C 25,000
(Being Invested 25,000 For Online Delivery of
Medicines)

09.09.2024 Inauguration Cost A/C Dr 50,000

To Bank A/C 50,000
(Being Paid Inauguration Cost Through Cheque)

14.09.2024 Drawing A/C Dr 10,000

To Cash A/C 10,000
(Being Withdrawn Cash for Personal Use)

17.09.2024 Rent A/C Dr 6,000

To Cash A/C 6,000
(Being Rent Paid in Cash)

20.09.2024 Salary A/C Dr 30,000

To Cash A/C 30,000
(Being Salary Paid to Manager)

21.09.2024 Sum Hospital Pvt. Ltd A/C Dr 3,00,000

To Sales A/C 3,00,000
(Being Goods Sold Worth 3.00.000 In Credit)

22.09.2024 Salary A/C Dr 16,000

To Cash A/C 16,000
(Being Salary Paid to assistant and staff)

02.10.2024 Purchase A/C Dr 1,00,000

To Cash A/C 1,00,000
(Being goods purchased)

06.10.2024 Stationery A/C 4,000

Dr To Cash A/C 4,000
(Being Stationery Bought in Cash)

07.10.2024 Petty Expenses A/C Dr 2,000

To Cash A/C 2,000
(Being petty expenses occurred)

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22.11.2024 Repair and Maintenance A/C Dr 5,000

To Cash A/C 5,000
(Being motor vehicle repairing work expense)

25.11.2024 Cash A/C Dr 50,000

To Sales A/C 50,000
(Being Goods Sold in Cash)

30.10.2024 Salary A/C Dr 16,000

To Bank A/C 16,000
(Being Salary Paid)

02.11.2024 Cartage A/C Dr 5,000

To Cash A/C 5,000
(Being Cartage paid)

11.11.2024 Prize A/C Dr 1,00,000

To Cash A/C 1,00,000
(Being prize paid in cheque)

19.11.2024 Electricity Bill A/C Dr 7,500

To Bank A/C 7,500
(Being Electricity Bill paid through bank)

21.11.2024 Salary A/C Dr 30,000

To Cash A/C 30,000
(Being Salary Paid in Cash)

22.11.2024 Purchase A/C Dr 50,000

To Cash A/C 50,000
(Being purchase of goods in cash)

26.11.2024 Cash A/C Dr 8,00,000

To Sales A/C 8,00,000
(Being Sales of the month of 8,00,000)

06.12.2024 Bonus A/C Dr 10,000

To Cash A/C 10,000
(Being New Year’s Bonus Paid)

14.12.2024 Rent A/C Dr 6,000

To Bank A/c 6,000
(Being rent paid)

22.12.2024 Electricity Bill A/C Dr 5,000

To Cash A/C 5,000
(Being Electricity Bill paid in cash)

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25.12.2024 Interest A/C Dr To 4,000

Bank A/C 4,000
(Being bank loan interest paid)

01.01.2025 Cash A/C Dr To 10,000

Bonus A/C 10,000
(Being bonus received)

03.05.2025 Legal Expenses A/C Dr To 8,000

Cash A/C 8,000
(Being Legal Expenses paid to C and associates)

13.05.2025 Donation A/C Dr To 5,000

Cash A/C 5,000
(Being donation done to NGO)

14.01.2025 Cash A/C Dr 1,500

To Newspaper A/C 1,500
(Being old newspapers sold)

22.01.2025 Staff Welfare A/C To 20,000

Cash A/C 20,000
(Being expense occurred due to organising event)

28.01.2025 Charity a/c dr To 2,000

cash a/c 2,000
(Being charity paid)

28.01.2025 Cash a/c dr 4,000

To commission a/c 4,000
(Commission received)

01.02.2025 Bank a/c dr 6,000

Cash a/c To 5,000 11,000
sales a/c
(Goods sold)
04.02.2025 Audit fees a/c dr To 2,00,000
cash a/c 2,00,000
(Being audit fees paid)

05.02.2025 Salary A/c Dr 10,000

To Cash A/C 10,000
(Being salary paid)

10.02.2025 Cash A/c Dr 20,000

To Purchases 20,000
(Purchases of goods)

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11.02.2025 Salary A/c Dr 20,000
To Cash A/C 20,000
(Being salary paid)

15.02.2025 Mr Raman A/C Dr 20,000

To Bank A/c 20,000
(Cheque paid to Mr
Raman)
18.02.2025 Rent A/c Dr 10,000
To Cash A/c 10,000
(Rent being paid)

19.02.2025 Repairs and 15,000

Maintenance A/c
To Cash A/c
(Rent and 15,000
Maintenance being
done)

22.02.2025 Donations A/c Dr 5,000

To Cash A/c
5,000

23.02.2025 Legal Expenses A/c 1,000

Dr
To Cash A/c 1,000

25.02.2025 Lakshaya A/c Dr 10,000

To Sales A/c
10,000

27.02.2025 Purchases A/c Dr 2,50,000

To Kapoor A/c
2,50,000

01.03.2025 Wages A/c Dr 1000

To Cash A/c 1000

05.03.2025 Wifi A/c Dr 2,000

To Cash A/c 2,000

07.03.2025 Payal A/c D 30,000

To sales A/c 30,000

10.03.2025 Drawings A/c Dr 100

To Cash A/c
100

21 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS
11.03.2025 Loss by fire A/c Dr 20,000
To purchases A/c
20,000

15.03.2025 Purchases A/c Dr 40,000

To Cash A/c
40,000

22.03.2025 Salary A/c Dr 2,000

To Cash A/c 2,000

25.03.2025 Petty Expenses A/c 1,000

Dr
To Cash A/c 1,000

26.03.2025 Electricity Bill A/c 10,000

Dr
To Cash A/c 10,000

30.03.2025 Charity A/c Dr 500

To purchase A/c 500

22 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

LEDGERS AND CASHBOOK

DOUBLE-COLUMN CASH BOOK IN

THE BOOKS OF MEDICINE SHOP

Date Particulars LF Cash Bank Date Particulars LF Cash Bank

03.04.2024 To Capital 50,00,000 05.04.2024 By Bank A/C C 1,00,000

A/C
05.04.2024 To Cash C 1,00,000 06.04.2024 By Furniture 50,000
A/C A/C
17.04.20 To Bank C 15,000 10.04.2024 By Rent A/C 6,000
A/C
27.04.2024 To Sales 50,000 11.04.2024 By Prepaid 12,000
A/C Rent A/C
29.04.2024 To Sales 10,000 12.04.2024 By Air 25,000
A/C Conditioner
A/C
01.05.2024 To Payal 5,000 15,000 15.04.2024 By 9,000
A/c Miscellaneous
Expenses A/C
06.05.2024 To Sanu 30,000 16.04.2024 By 30,000
A/c Renovation
Cost A/C
15.05.2024 To Payal 17.04.2024 By Cash C 15,000
A/c A/C

26.05.2024 To Purchase 20,000 18.04.2024 By Telephone 1,000

A/C
Return A/c

28.05.2024 To Purchase 10,000 19.04.2024 By Purchase 1,00,000

A/C
Return A/c

O5.06.2024 To Payal 20,000 22.04.2024 By Salary A/C 8,000

A/c
17.06.2024 To Loan 2,00,00 28.04.2024 By Soumya 2,00,000
Electrics A/C
A/C

11.07.2024 To Kakar 50,000 28.04.2024 By Soumya 2,00,000

Electrics A/C
Medico Co.
A/C
18.07.2024 To Cheque 50,000 28.04.2024 By Soumya 2,00,000
Electrics A/C
in Hand
A/C
11.11.2024 To Prize 9,00,000 28.04.2024 By Soumya 2,00,000
A/C Electrics A/C
24.10.2024 To Sales 50,000 28.04.2024 By Soumya 2,00,000
A/C Electrics A/C
26.11.2024 To Sales 8,00,000 28.04.2024 By Soumya 2,00,000
Electrics A/C
A/C
01.01.2024 To Bonus 10,000 28.04.2024 By Soumya 2,00,000
A/C Electrics A/C
 PREPARATION OF BOOK OF ACCOUNTS

513.01.2025 To 1,500 02.05.2024 By Purchase 90,000

Newspaper A/C
A/C
28.01.2025 To 2,500 03.05.2024 By M/S Satya 1,50,000
Co A/C
commission
a/c
01.02.2025 To sales 5,000 6,000 08.05.2024 By Salary A/c 8,000

08.05.2024 By Purchase 30,000

A/C
17.05.2024 By Printer 10,000
A/C
19.05.2024 8,000
By Salary A/C

20.05.2024 By Repair 25,000

And
Maintenance,
A/C
22.05.2024 By Rent A/C 6,000

25.05.2024 By Advance 32,000

Salary A/C
01.06.2024 By Purchases 20,000
A/c
04.06.2024 By Lily A/c 2,00,000
08.06.2024 By Wages 2,000
A/C
13.06.2024 By Donation 11,000
A/C
15.06.2024 By Furniture 50,000
A/C
21.06.2024 8,000
By Salary A/C

22.06.2024 By M/S Satya 30,000

A/C
25.06.2024 6,000
By Rent A/C

26.06.2024 By Drawing 2,500

A/C
29.06.2024 15,000
By
Advertisment
Cost A/C
01.07.2024 By 60,000
Mr Basu A/C
PREPARATION OF BOOK OF ACCOUNTS

05.07.2024 By Salary A/C 8,000

15.07.2024 By Rent A/C 6,000
21.07.2024 By Salary A/C 8,000
22.07.2024 By Purchase 40,000
A/C
29.07.2024 By Repair 25,000
And
Maintenance
A/C
30.08.2024 By 4,000
Miscellaneous
Expenses A/C
02.07.2024 By Prepaid 12,000
Rent A/C
03.08.2024 By Solar Panel 2,40,000 2,40,000
A/C
05.08.2024 By Staff 10,000
Welfare A/C
11.08.2024 By Salaries 30,000

17.08.2024 By Interest 12,000

A/C
21.08.2024 By Newspaper 1,800
A/C
23.08.2024 By 30,000
Refrigerator
A/C
24.08.2024 By Salary A/C 8,000
27.08.2024 By Salary A/C 8,000
29.08.2024 By Electricity 8,000
Bill A/C

19 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
PREPARATION OF BOOK OF ACCOUNTS

03.09.2024 By Motor 7,50,000

Vehicle A/C
05.09.2024 By Investment 25,000
A/C
09.09.2024 By 50,000
Inauguration
Cost A/C
14.09.2024 By Drawing 10,000
A/C
17.09.2024 By Rent A/C 6,000
20.09.2024 By Salary A/C 30,000
22.09.2024 By Salary A/C 16,000
02.10.2024 By Purchase 1,00,000
A/C
06.10.2024 By Stationery 4,000
A/C
07.10.2024 By Petty 2,000
Expenses A/C
21.10.2024 By Repair 5,000
And
Maintenance
A/C
30.10.2024 By Salary A/C 16,000
02.11.2024 By Cartage 5,000
A/C
10.12.2024 By Prize A/C 1,00,000
19.11.2024 By Electricity 7,500
Bill A/C
21.11.2024 By Salary A/C 30,000
22.11.2024 By Purchase 50,000
A/C
06.12.2024 By Bonus A/C 10,000
14.12.2024 By Rent A/C 6,000

20 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
djebd

Ledger
PURCHASE ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount

6.04.2024 To Cash A/C 50,000 28.05.2024 By Cash A/c 10,000

12.04.2024 To Bank A/c 25,000

19.04.2024 To Cash A/c 1,00,000

28.04.2024 To Cash A/c 50,000

02.05.2024 To Cash A/c 90,000

03.05.2024 To M/s Satya 1,50,000

04.06.2024 To Lily Co 2,00,000

15.06.2024 To Cash A/c 1,50,000

22.07.2024 To Cash A/c 40,000

03.08.2024 To Cash A/c 4,80,000

21.08.2024 To Cash A/c 600

03.09.2024 To Cash A/c 7,50,000

02.10.2024 To Cash A/c 10,000

06.10.2024 To Cash A/c 4,000

22.11.2024 To Cash A/c 50,000

10.02.2025 To Cash A/c 20,000

27.02.2025 To Mr 2,50,000

Kapoor A/c

15.03.2025 To Cash A/c 40,000

By Bal C/d 24,49,600

24,59,600

By Bal b/d 24,59,600

 PREPARATION OF BOOK OF ACCOUNTS

FURNITURE ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
6.4.2024 To Cash A/C 50,000 31.3.2025 By Bal C/d 2,00,000
15.6.2024 To Cash A/C 50,000
15.6.2024 To Mr. Basu A/C 1,00,000

2,00,000 2,00,000
1.4.2025 To Bal B/d 2,00,000

RENT ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
10.4.2024 To Cash A/C 6,000 31.3.2025 By Bal C/d 36,000
22.5.2024 To Cash A/C 6,000
25.6.2024 To Bank A/C 6,000
15.7.2024 To Cash A/C 6,000
17.09.2024 To Cash A/C 6,000
14.12.2024 To Cash A/C 6,000

36,000 36,000
1.4.2025 To Bal B/d 36,000

PREPAID RENT ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
11.4.2024 To Cash A/C 12,000 31.3.2025 By Bal C/d 24,000
02.8.2024 To Cash A/C 12,000

24,000 24,000
1.4.2025 To Bal B/d 24,000

22 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

AIR CONDITIONER ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
12.4.2024 To Bank A/C 25,000 31.3.2025 By Bal C/d 25,000
25,000 25,000
1.4.2025 To Bal B/d 25,000

CAPITAL ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
31.3.2025 To Bal C/d 50,00,000 3.4.2024 Cash A/C 50,00,000
50,00,000 50,00,000
1.4.2025 By Bal B/d 50,00,000

MISCELLANEOUS EXPENSES ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
15.4.2024 To Cash A/C 9,000 31.3.2025 By Bal C/d 2,13,000
28.4.2024 To Soumya Electric 2,00,000
A/C
30.7.2024 To Cash A/C 4,000

2,13,000 2,13,000
1.4.2025 To Bal B/d 2,13,000

RENOVATION ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
16.4.2024 To Cash A/C 30,000 31.3.2025 By Bal C/d 30,000

30,000 30,000
1.4.2025 To Bal B/d 30,000

23 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

TELEPHONE ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
18.4.2024 To Cash A/C 1,000 31.3.2025 By Bal C/d 1,000
1,000 1,000
1.4.2025 To Bal B/d 1,000

SALARY ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
22.4.2024 To Cash A/C 8,000 31.3.2025 By Bal C/d 1,48,000
19.5.2024 To Cash A/C 8,000
21.6.2024 To Cash A/C 8,000
21.7.2024 To Cash A/C 8,000
11.8.2024 To Cash A/C 8,000
24.8.2024 To Cash A/C 8,000
27.8.2024 To Bank A/C 8,000
20.09.2024 To Cash A/C 30,000
30.10.2024 To Cash A/C 16,000
30.11.2024 To Bank A/C 16,000
05.2.2025 To Cash A/C 30,000

1,48,000 1,48,000
1.4.2025 To Bal B/d 1,48,000

PRINTER ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
14.5.2024 To Cash A/C 10,000 31.3.2025 By Bal C/d 10,000

10,000 10,000
1.4.2025 To Bal B/d 10,000

24 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

PAYAL HOSPITAL ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
21.4.2024 To Sales A/C 70,000 2.5.2024 By Bank A/C 15,000
2.5.2024 By Cash A/C 5,000
12.5.2024 By Cash A/C 23,000
12.5.2024 By Discount 7,000
Allowed A/C
12.5.2024 By Bank A/C 18,000
12.5.2024 By Discount 2,000
Allowed A/C
70,000 70,000

MR VERMA MEDICO ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
23.4.2024 To Sales A/C 50,000 29.5.2024 By Sales A/C 10,000
31.5.2024 By Cash A/C 36,000
31.5.2024 By Discount 4,000
Allowed A/C
50,000 50,000

KHAITAN & CO. ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
8.4.2024 To Sales A/C 10,000 31.3.2025 By Bal C/d 10,000

10,000 10,000
1.4.2025 To Bal B/d 10,000

25 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

REPAIR AND MAINTENANCE ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
20.5.2024 To Cash A/C 25,000 31.3.2025 By Bal C/d 1,25,000
19.8.2024 To Cash A/C 25,000
22.11.2024 To Cash A/C 25,000
1,25,000 1,25,000
1.4.2025 To Bal B/d 1,25,000

ADVANCED SALARY ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
23.5.2024 To Cash A/C 32,000 31.3.2025 By Bal C/d 32,000

32,000 32,000
1.4.2025 To Bal B/d 32,000

M/S SATYA ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
26.5.2024 To Purchase A/C 20,000 5.5.2024 By Purchase A/C 1,50,000
21.6.2024 To Bank A/C 30,000
25.6.2024 To Cash A/C 90,000
25.6.2024 To Discount 10,000
Received A/C
1,50,000 1,50,000

LILY COLE CO. ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
31.3.2025 To Bal C/d A/C 2,00,000 3.6.2024 By Purchase A/C 2,00,000
2,00,000 2,00,000
1.4.2025 By Bal B/d 2,00,000

26 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

WAGES ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
9.6.2024 To Cash A/C 2,000 31.3.2025 By Bal C/d 2,000

2,000 2,000
1.4.2025 To Bal B/d 2,000

DONATION ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
12.6.2024 To Cash A/C 11,000 31.3.2025 By Bal C/d 18,000
28.2.2025 To Cash A/C 5,000
19.3.2025 To cash a/c 2,000 18,000
1.4.2025 To Bal B/d 18,000

SUNRISE HOSPITAL ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
5.7.2024 To Sales A/C 80,000 31.3.2025 By Bal C/d 80,000

80,000 80,000
1.4.2025 To Bal B/d 80,000

ADVERTISEMENT COST ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
10.7.2024 To Bank A/C 15,000 31.3.2025 By Bal C/d 15,000

15,000 15,000
1.4.2025 To Bal B/d 15,000

27 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

MR BASU ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
14.7.2024 To Bank A/C 60,000 13.6.2024 By Furniture A/C 1,00,000
28.7.2024 To Cash A/C 36,000
28.7.2024 To Discount 4,000
Received A/C
1,00,000 1,00,000

KAKAR MEDICINE CO. ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
18.7.2024 To Sales A/C 1,00,000 30.7.2024 By Cash A/C 50,000
9.8.2024 Cheque in Hand 50,000
A/C
1,00,000 1,00,000

CHEQUE IN HAND ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
9.8.2024 To Kakar Medicine 50,000 11.8.2024 By Bank A/C 50,000
Co. A/C

50,000 50,000

PRIZE ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
25.8.2024 To Bank A/C 9,00,000 31.3.2025 By Bal B/d 10,00,000
10.12.2024 To Cash A/C 1,00,000

10,00,000 10,00,000
1.4.2025 To Bal C/d 10,00,000

28 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

SOLAR PANEL ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
3.9.2024 To Cash A/C 2,40,000 31.3.2025 By Bal C/d 4,80,000
3.9.2024 To Bank A/C 2,40,000
4,80,000 4,80,000
1.4.2025 To Bal B/d 4,80,000

INTEREST ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
18.9.2024 To Bank A/C 12,000 31.3.2025 By Bal c/d 16,000
3.2.2025 To Bank A/C 4,000

16,000 16,000
1.4.2025 To Bal b/d 16,000

NEWSPAPER ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
20.9.2024 To Cash A/C 1,800 5.3.2025 By Cash A/C 1,500
31.3.2025 By Bal C/d 300
1,800 1,800
1.4.2025 To Bal B/d 1,800

REFRIGERATOR ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
22.9.2024 To Cash a/c 30,000 31.3.2025 By Bal c/d 30,000
30,000 30,000
1.4.2025 To Bal b/d 30,000

29 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

ELECTRICITY BILL ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
30.9.2024 To Cash a/c 8,000 31.3.2025 By Bal c/d 20,500
18.12.2024 To Cash a/c 7,500
27.12.2024 To Cash a/c 5,000
20,500 20,500
1.4.2025 To Bal b/d 20,500

MOTOR VEHICLE ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
2.10.2024 To Cash a/c 7,50,000 31.3.2025 By Bal c/d 7,50,000
7,50,000 7,50,000
1.4.2025 By Bal b/d 7,50,000

INVESTMENT ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
5.10.2024 To Bank a/c 25,000 31.3.2025 By Bal c/d 25,000
25,000 25,000
1.4.2025 To Bal b/d 25,000

BANK LOAN ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount

15.6.2024 To Bank a/c 2,00,000 31.3.2025 By Bal c/d 2,00,000

2,00,000 2,00,000
1.4.2025 To Bal b/d 2,00,000

30 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

INAUGURATION ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
10.10.2024 To Bank a/c 50,000 31.3.2025 By Bal c/d 50,000
50,000 50,000
1.4.2025 To Bal b/d 50,000

DRAWING ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
3.7.2024 To Cash A/c 2,500 31.3.2025 By Bal c/d 12,500
15.10.2024 To Cash A/c 10,000
12,500 12,500
1.4.2025 To Bal b/d 12,500

STAFF WELFARE ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
7.9.2024 To Cash a/c 10,000 31.3.2025 By Bal c/d 30,000
12.3.2025 To Cash a/c 20,000
30,000 30,000
1.4.2025 To Bal b/d 30,000

SUM HOSPITAL PVT LTD ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
25.10.2024 To sales a/c 3,00,000 31.3.2025 By Bal c/d 3,00,000
3,00,000 3,00,000
1.4.2025 To Bal b/d 3,00,000

31 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

STATIONARY ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
5.11.2024 To cash a/c 4,000 31.3.2025 By Bal c/d 4,000
4,000 4,000
1.4.2025 To Bal b/d 4,000

PETTY EXPENSES ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
14.11.2024 To cash a/c 2,000 31.3.2025 By Bal c/d 2,000
2,000 2,000
1.4.2025 To Bal b/d 2,000

CARTAGE ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
3.12.2024 To cash a/c 5,000 31.3.2025 By Bal c/d 5,000
5,000 5,000
1.4.2025 To Bal b/d 5,000

LEGAL EXPENSES ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
22.2.2025 To cash a/c 8,000 31.3.2024 By Bal c/d 8,000
8,000 8,000
1.4.2025 To Bal b/d 8,000

32 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

DISCOUNT ALLOWED ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
12.5.2024 To Payal 30,000 31.3.2025 By Bal c/d 90,000
hospital a/c
31.5.2024 To Mr Verma 40,000
medico a/c
12.6.2024 To Payal 20,000
hospital a/c
90,000 90,000
1.4.2025 To Bal b/d 90,000

DISCOUNT RECEIVED ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
31.3.2025 To Bal c/d 1,20,000 2.6.2024 By purchase a/c 20,000
25.6.2024 By M/S Satya 1,00,000
1,20,000 1,20,000
1.4.2025 By Bal b/d

COMMISSION ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
31.3.2025 To Bal c/d 4,000 22.3.2025 By cash a/c 4,000
4,000 4,000
1.4.2025 By Bal A/c 4,000

33 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

AUDIT FEES ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
31.3.2025 To Cash a/c 2,00,000 31.3.2025 By Bal c/d 2,00,000

2,00,000 2,00,000
1.4.2025 To Bal b/d 2,00,000

SALES ACCOUNT
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
31.3.2025 To Bal c/d 14,71,000 21.4.2024 By Payal hospital a/c 70,000
23.04.2024 By Mr Verma medico 50,000
a/c
30.4.2024 By Khaitan & co a/c 10,000
5.7.2024 By sunrise hospital 80,000
a/c
18.7.2024 By Kakar medicine 1,00,000
co. a/c
25.10.2024 By sum hospital Pvt 3,00,000
ltd a/c
25.11.2024 By cash a/c 50,000
27,12,2024 By cash a/c 8,00,000
31.3.2024 By bank a/c 6,000
By cash a/c 5,000
14,71,000 14,71,000
1.4.2025 By Bal b/d 14,71,000

34 | P a g e
BASIC PRINCIPLES OF ACCOUNTING
 PREPARATION OF BOOK OF ACCOUNTS

SALES RETURN ACCOUNT

Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
29.5.2024 To Mr Verma 10,000 31.3.2025 By Bal c/d 10,000
medico a/c
10,000 10,000
1.4.2025 To Bal b/d 10,000

TRIAL BALANCE

TRIAL BALANCE AS ON 31.3.2025

PARTICULARS L.F DEBIT AMOUNT CREDIT AMOUNT

Capital A/C 50,00,000
Furniture A/C 2,00,000
Rent A/C 36,000
Prepaid Rent A/C 24,000
Air Conditioner A/C 25,000
Misc Expenses A/C 2,13,000
Renovation A/C 30,000
Telephone A/C 1,000
Purchase A/C 7,00,000
Salary A/C 1,48,000
Khaitan & Co A/C 10,000
Discount Allowed A/C 90,000
Discount Received A/C 1,20,000
Printer A/C 10,000
Repair And Maintenance A/C 1,25,000
Advanced Salary A/C 32,000
Lily Cole Co A/C 2,00,000
Wages A/C 2,000
Donation A/C 18,000

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Sunrise Hospital A/C 80,000

Advertisement Cost A/C 15,000
Prize A/C 10,00,000
Solar Panel A/C 4,80,000
Interest A/C 16,000
Newspaper A/C 1,800
Refrigerator A/C 30,000
Electricity Bill A/C 20,500
Motor Vehicle A/C 7,50,000
Investment A/C 25,000
Bank Loan A/C 2,00,000
Inauguration Cost A/C 50,000
Drawing A/C 12,500
Staff Welfare A/C 30,000
Sum Hospital A/C 3,00,000
Stationery A/C 4,000
Petty Expenses A/C 2,000
Cartage A/C 5,000
Legal Expenses A/C 8,000
Commission A/C 4,000
Audit fees A/C 2,00,000
Cash A/C 34,73,700
Bank A/C 5,37,500
Sales A/C 14,71,000
Sales return A/C 10,000
Suspense A/C 46,000
TOTAL 78,87,000 78,87,000

Value of Opening Stock as of 1st April 2024 is Rs. 30,000

Value of Closing Stock as of 31st March 2025 is Rs 50,000

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FINAL ACCOUNTS
Trading Account of Medical Shop
For the year of 31st March 2025
Dr Cr
Particulars Amount Particulars Amount
To Opening Stock 30,000 By Sales 14,71,000
To Purchases 7,00,000 (-) Sales Return (10,000) 14,61,000
To Wages 2,000 By Closing Stock 50,000
To Cartage 5,000
To Gross Profit c/d 7,74,000
15,11,000 15,11,000

Profit and Loss Account

For the year of 31st March 2025
Dr Cr
Particulars Amount Particulars Amount
To Salaries 1,48,000 By Gross Profit 7,74,000
To Rent 36,000 By Discount Received 1,20,000
To Legal Expenses 8,000 By Net Loss transferred to Capital 1,00,300
To Renovation 30,000
To Telephone 1,000
To Misc Expenses 2,13,000
To Discount Allowed 90,000
To Repair and Maintenance 1,25,000
To Advertisement Cost 15,000
To Interest 16,000
To Newspaper 1,800
To Electricity Bill 20,500
To Inauguration Cost 50,000
To Staff Welfare 30,000
To Stationery 4,000
To Petty Expenses 2,000

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To Audit fees 2,00,000

To Commission 4,000

9,94,300 9,94,300

Balance Sheet on Medical Shop

As on 31st March 2025
Liabilities Amount Assets Amount
Capital 50,00,000 Cash in Hand 34,76,000
(-) Net Loss (1,30,000) Cash in Bank 5,37,500
(+) Suspense 46,000 49,16,000
Sundry Creditor 2,00,000 Sundry Debtors 10,000
Bank Loan 2,00,000 (+) 80,000
Drawings 12,500 (+) 3,00,000 3,90,000
Furniture 2,00,000
Closing Stock 50,000
Prepaid Rent 24,000
Air Conditioner 25,000
Printer 10,000
Donation 18,000
Prize 10,00,000
Advanced Salary 32,000
Solar Panel 4,80,000
Refrigerator 30,000
Motor Vehicle 7,50,000
Investment 25,000
53,28,500 53,28,500

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