Chapter 2

Accounting ProcesS
INTRODUCTION
means the sequence
Accounting Process- Accounting process or Accounting cycle business transactio.
accounting procedures used to record, classify and summarise the
1. JOURNAL:
According to Professor Carter, the journal as originally used, is a book of prime enb
or waste bogi
in which transactions are copied in order of date froma memorandm
to facilits
The entries as they are copied are classified into debits and credits, so as
their being correctly posted afterwards in the ledger.
Therefore, Journal is the first stage of book keeping. Under this stage, transactions a:
recorded in a chronological order of dates after knowing the debit and credit account
transactions with explanation.
Journal Entry. A journal entry is the recording of a business transaction in the journa
A journal entry shows all the effects of a business transaction as expressed ìn debits
and credit(s) and may include an explanation of the transaction. A transaction is entere
in a journal before it is entered in ledger accounts. Because each transaction is initial1
recorded in a journal rather than directly in the ledger, a journal is called a book d
a
original entry. t
Features of Journal Entry. The Chief features of journal may be stated as under:
() Journal is a book in which the transactions are recorded first of all, as and whe
they take place.
(i) Journal is only a book of primary (Original) entry.
(iii) A Journal is a daily accounting record.
(iv) It records both debit and Credit aspeets of a transaction.
(o) Each entry in the journal is followed by Narration.
(vi) It may be asingle journal entry or compound journaB erntry. C

The format of journal is as follows: JOURNAL

LE. Dr. ) Cr. L
Date Particulars 85,000
Z's Capital Ac Dr. 5,00
ToCash/Bank Ac 80.000
To Z's Loan Ac
(Amount due to Z on his retirement transferred to his Loan
Account after payment of 75,000)
2. LEDGER:
bei
The book in which all the accounts are kept /s called a ledger'. Aledger may
a bound or loose leaf form. It is the principal book of accounting. Ledger plays
balances
important function in accounting, When a balance sheet is prepared, the profit andlos
assets, liabilities and capital accounts are taken from the ledger. When fromth
account is prepared, the balances of expenses, and revenue account are taken
ledger. In this way, it performs many important functions.
T-8
 important
clharacteristics of Ledger have
been
Accounting Process T9
()
Books of Secnndary
because second step
Entry. Ledger
of
i: also explained below:
known as books of
ledger. processing of financial secondary inentry,
transactions is performed
Keeps the
) Ledger also the Accouuts. Ledger keeps the
ledger is described as
Classification of ledger accounts. accounts of all heads. Therefore
Related & RelevántTransactions. Ledger is used to classify the financial
matter inforrvation.
in one place. Ledger account gathers all relatedtransactions-
(ir) subject
on a
aparticular head of açcount.
Thus ledger provides the detailedinformation
activity in
(p) Closing balance information. Ledger provides
information is not only used tor payments and closing balance information. This
prepared from the closing balances of general receipts, but trial balance is also
i Facilitates ledger accounts.
Reporting. Ledger
nrenare financial reports directlyfacilitates reporting. It is technically impossible to
book for preparing the financial from the journal. Thus ledger is an important
a Tist of statements.
Characteristics
listed below
of ledger. Some
important characteristics of ledger are
(aLedger is used to classify information.
(bLedger keeps all related information at one place.
Ledger facilitates reporting.
a) Aedger facilitates timely
3. TRIAL BALANCE:
payments & receipts.
It is a statement which
and the cash and bank showsItnàmes and balances of all the
accounts in the ledger
balances.
taking the balances of various
is not an account. It is
prepared on a specific date by
The format of trial balance isaccounts as on that date.
Trial balance as as follows:
on......
S.No.
Particulars tLF. Dr. ) Cr. )
I all the transactions are
ascertained, the total of thecorrectly
'Debit-
recorded in the ledger and the balances are
eeBumn correctly
case, the trial balance will be
Q1. Write a short note on considered appropriate.
andereditcotumnwill be same. In this

Ans, Accounting Process orAccounting Process.

Procedures used to record, classify Accounting cycle refers to the sequence of accounting
and summarise the business
tollowing are the steps inolved in accounting transactions.
() Recording. Recording the
financial
process:
is the first step. It is also called transactions in the primary book, i.e., Journal
Cash Book, Purchase Book, Sales Journalising. Journal may be sub-divided into
Book, Purchase Return Book, Sales Return
Book, Bills Receivable Book, Bills Payable Book and Journal Proper.
) Classifying. Transactions recorded in
the Journal are classified into various
accounts in the secondary book called Ledger. In other
recorded in the Journal are transferred to the respective words, transactions
Ledger. This process in known as Posting. accounts opened in the
(iin)
Summarising.After preparing ledger, the açcounts are balanced and list of allthe
accounts with their balance is prepared. The list prepared is called
Trial Balance.
T-10 Shiv Das DELHI UNIVERSITY SERIES
(ir) Preparing final accounts. It is the last step of accounting process. It includes
preparing Trading and Profit &Loss Aceount and Balance Sheet. These are alse
called Income statement and Position statement respectively.
Q.2. What is Double Entry System? What are its advantages?
Ans. Every business transaction has two aspects, viz (i) receiving of value and () giving
of valye. To have a complete record of abusiness transaction, both these
reeonded in the boaks of accounts. Therefore, two entries are required to aspects must be
be made. These
two entries are made in the two accountson the debit side of one account and on the
credit side of another account. In other words, forevery debit there is a
credit and every debit has à corresponding credit) The recording of the two correspotn8
in the books is known as "Double Entry 5ystem The Double fold effect
Entry
since it records both the aspects of a transaction. We may define the system is so named
as: "The double entry system is that system which records both the aspects double entry system
of atransaction".
For example,whern trader A purchases goods worth 20,000from B oncredit, two
are affected at the same time which are (1) Purchase Account and (2) B's accounts
when purchased are coming into the business and so Purchase Account isAccount. Goods
to be debited.
This account is receiving the benefit. On the other hand, B's
because he is supplying the goods, thus giving the benefit. Account will be credited
Advantages of Double Entry System:
() Complete record of transactions. It maintains a
complex record of all business
transactions.
(i) A check on Arithmetical accuracy of accounts. t helps to
and thereby to test the-arithmetical accuracy of the books. prepare a trial balance
(üi) Ascertainment of financial results. The profit earned or
period can be ascertained by preparation of-Profit-&& Loss loss suffered during a
Account.
(iv) Ascertainment of financial position. It helps to
position of the business at the end of the accountingascertain the exact financial
period, through
of the Balance Sheet. preparation
() Details about every account. This
detail as necessary and, therefore, system
offers
permits accounts to be kept in as much
account. significant information regarding every
(vi) Less possibility of fraud. As the system
mistakes can be avoided and frauds can becontains
easily
checks and counter checks,
detected.
Q.3. Explain the classification of Accounts with
Ans. Modern Classification or based examples.
on Accounting equation. In this
accounts are classified as followvs: approach
() Asset Accounts. Assets indicate the resources
accounts may be in the form of cash, cash at bank,which the firm enjoys. These
stock of goods, debtors, land,
building, machinery etc.
(i) Liability Accounts. Liabilities indicate the
amounts which the firm owes to
outsiders. These accounts iniude creditors, bills
(in Capital Accounts. Capital indicates the amount payable, overdraft, loan etc.
against the firm. This account includes capital which the proprietor can claim
accounts. (proprietorship)
and drawings
(iv) Expenses Accounts. Expenses indicate
or even lost in carrying on business the-amounts which have been spent
operations. These accounts include rent,
salaries, wages, interest, discount, commission
(v) Revenue Accounts. Revenues etc.
indicate the amounts which, as a result of
operations, are earned by the firm. These accounts include sales, rent receivedr
interest received etc.
 Accounting Process T-11
Traditional classification of accounts. In this approach accounts may be classified as
under:
Personal Accounts. These accounts are related to persons, debtors, or creditors.
Fxamples of these accounts are: Ram'sAccount, Shyam's Account, Satish & Co»s
Account etc.
Real Accounts. These accounts relate to the tangible or intangible realas_ets.
Tangible -Land Account, Intangiiie-Goodwill AAcCOunt.
3Nominal Accounts. These accounts relate to Expenses, losses, profits &gains.
Expenses: Purchase Account, Loss: Loss. by fire Account,
Profits & Gains: Sales Account, Discount received Account.
0. 4. Give the rules of debit and credit with examples.
Ans. Rules of Debit and Credit are as follows: decrease. When
() For any asset account. Debit means increase and credit means
if there
there is an increase in the amount of an asset its account is debitedand
its account will be credited.
is a decrease in the amount of the asset concerned,
furniture
For exanple, a business concern purchases furniture for 725,000 the
increased by the same amount.
account will be debited by 25,000 as the asset
means increase. If
(ii) For any liability account. Debit means decrease and çredit credited andif there
account is
there is an increase in the amount of liability, its account will be debited.
is a decrease in the amount of the liability. concerned, its Ram's account will
from Ram.
For exanple, a business concern borrows 750,000 later, the business concern
be credited since Z50,000,are now owed to him. If
debited as the liability is decreased.
repays the loan, Ram's account will be
decrease and credit means increase. If there
(i) For capital account. Debit means
its account is credited and if there is a
is an increase in the amount of capital, account is debited. For example, the
decrease in the amount of capital, the capital
contributes additional capital 20,000. The
proprietor of the business concern
he withdraws 8,000from business,
capital account willbe credited by 20,000. If
amount because the amount of capital
the capital account will be debited by this
is decreased. means increase. Thus.
revenue account. Debit means decrease and.credit
(iv) For any
revenue decreases, it is debited, By an
and if
if revenue increases it is cred+ted capital also increases. Therefore,
the rule
revenue, the proprietor's
increase in example, if goods worth
regarding capital account is also applicable here. For revenue account
sold, it results in an increase in revenue, therefore
2.000 are
will be credited. credit means decrease.
account. Debit means increase and is a
(v) For any expense
the expense then it will be debited and if there
in
If there is an increase will be credited. The expense results in a decrease in
expense, it example. if
decrease in
in capital is also recorded on the debit side. For of salary
capital. A decrease debit side
amount will be recorded on the
10.000 is paid for salary, this
reduces the capital.
account, because it sumnarised below:
are being
Rules given above assets are debits; decreases are credits.
(i) Increases in liabilities are credits; decreases are debits
(ii) Increases in decreases are debite
Increases in owner's capital are credits;
decreases are credits
(iii) expenses are debits;
(iv) Increases in credits: decreases are debits.
in revenue are follows:
(v) Increases
may be stated as the
Theabove rules Credit the giver or Debit the debtor and Credit
Debit the receiver and
() creditor.
T-12 Shiv Das DELHI UNIVERSITY SERIES
(i) Debit what comes in and Credit what goes out.
(iii) Debit all expenses and losses and Credit all gains and incomes.
Q. 5. State briefly the subsidiary books, normally used in the Double Entry System.
Ans. The following subsidiary books are used in Double Entry System:
() Purchase Book. Purchase book is used to record credit purchase of goods only.
(i) Sales Bòok. lt is used to record credit sale of goods only.
(ii1) Returns Outward Book. It is used to record all goods returned by the trader to
his supplier. This book is also called Purchase Return Book.
(i) Returns Inward Book. It is used to record all goods returned-to us by our
customers. This book is also called Sales Return Book.
() Bills Receivable Book. It is used to record Bills Receivable received by us.
(vi) Bills Payable Book. It is used to record bills accepted by us.
(vin) Cash Book. It is used to record Cash transacians only i.e, cash received and
paid.
(oiü) Journal Proper. Journal proper is used to record all transactions for which there
is no special subsidiary book. This book records opening entry, closing entry,
adjusting entry,credit purchase and sale of assets, entries of dishonour etc.
Q.6. What is ledger? How would you post the journal into ledger.
Ans. The book in which all the accounts are kept is ealleda ledger'. A ledger may be
in a bound or loose-leaf form. It is the pincipal bookof accounting.
Ledger plays very important functions in accounting. When a Balance Sheet is prepared,
the balances of Assets, Liabilities and Capital Accounts are taken from the Ledger. When
Profit & Loss Account is prepared, the balances of expenses and revenue accounts are
taken from the Ledger. In this way, it performs many important functions.
Posting the entries into Ledger, Posting is the process whereby the debits and credits
of the journal entries are entered into the Ledger. The Journal indicates the accounts to be
debited and credited and also the amounts involved.
The following are the rules for posting transactions:
() The debit side of the journal entry is posted to the debit side. of the Ledger
account. In particulars column reference is given of that fact which is put on the
credit side of the journal entry.
(i) The credit side of the journal entry is posted on the credit side of the account. In
partieulars column reference isgiven of that fact which is put on the deb:t side
of the journal entry.
Example, Consider the following journal entry.
Date Particulars LIF. Dr. ) Cr. (3)
2022 Furniture Account Dr. 10,000
Mar. 16 To D. Saran &Co. 10,000
In the above case, the amount of 10,000 i l be debited to the Furniture Account
and credited to D. Saran & Co. In *- Furniture Acuount in the particulars column we
shall wríte "D. Saran & Co." In the account of D. Saran & Co. will be written "Furniture
Account."
The two accounts willappear as follows:
Dr. Furniture Account Cr.
Date Particulars LF. ) Date Particulars L.F. )
2022
Mar. 16D. Saran & Co. 10,000
 Accounting Process T-13
M/S D, Saran & Co. Cr.
Particulars Date Particulars L.E. R)
2022
Mar. 16 Furniture Alc 10,000
07.What is aTrial Balance. What are the objectives of preparing a trial balance.
Ans. Trial Balance is a statenent which shows names and balances of all the accounts in
the ledger and the cash and bank balances. It is yof an accouih It is prepared on a specific
date by taking the balances of various accounts as on that date.
The format of the trial balance is given below:
Date Particulars LE. Dr, ) Cr. )

t all transactions are correctly recorded in the ledger and the balances are correctly
ascertained, the total of the 'Debit Column' and 'Credit Column' will be same. In this case,
the. trial balance is said to agree.
Objectives of Preparing Trial Balance. The main objectives of preparing atrial balances
are as follows:
a To cheque the arithmetical accuracy of the books of accounts.
( To help in detecting the errors.
To facilitate the preparation of financial statements i.e, Trading and Profit &Loss
Account and Balance Sheet.
Q. 8. Explain the limitations of trial balance.
Or, Explain the errors which are not disclosed by trial balances.
Ans. It is true that the agreemert of trial balance is notaconclusive proofof the accuracy
of the books of accounts since certain types of errors are not disclosed by the trial balance.
The following types of errors are not disclosed by the trial balance:
(i) Errors of principle, i.e., errors which arise due to incorrect application of the
principles of accournting.
(ii) Compensating errors, i.e., group of errors which are committed in such a way
that one mistake is compensated by the other or others and the trial balance still
agrees.
(ii Errors of complete omission, i.e., an entry has not at all been posted in the ledger.
ioi Posting correct amount and on the correct side but in the wrong account.
(e) Recording wrong amount in the book_ of original entry ie., journal.
the books of accounts.
(vi) Recording both aspects of a transction twice in balance
which are.disclosedaby trial
Q.9. Mention the errors
trial balances:
Ans. Following errors are disclosed by
AWrong balancing of an account.
wrong side.
Ail) Posting an account on the books.
(uWrong totalling ofthe subsidiary
(iv) Wrong posting.e, recording the wrong amount.
o) Omitting to post an amount from asubsidiary
( Omitting to post the totals of subsidiary books into ledger.
Omnitting to enter the cash book balance inthe trial balance.
recordthe balance of an account in the trial balance.
(ie Omittingtobalance in the wrong column of the trial balance.
(i Entering a
Totallingthe trial balance wrongly.
f a short note on Suspense Account.
Q. 10. Write
Ans. Asuspense account is an account in which the amountof difference in trial balance
Puttillsuch time that errors are located and rectified. If the debit side of trial balance
T-14 Shiv Das DELHI UNIVERSITY SERIES
is more than the credit side, then the difference is put on the credit side of the suspense
account. If the credit side of trial balance is more than the debit side then the difference
is put on the debit side of the suspense account. Debit balance in the suspense
account
is shown on the assets side of the balance sheet, while the credit balance is
the liabilities side. After opening this account, one-sided errors are
shown on
rectified by passing
journal entay arough suspense account. Posting of these entries is made in
account when all the errors leading to disagreement of the trial balance are the suspense
rectified and
the suspense account-is autematically closed..
0. 11. What are final accounts? How are they prepared?
Ans. Final Accounts. After the preparation of a Trial. Balance the next
the preparation of Final Accounts also known as Financial Accounts. level of work is
The preparation of final accounts involves the following:
Preparation of aTrading Account;
2r Preparation of a Profit &Loss Account;
3. Preparation of a Balance Sheet.
1. Trading Account. Preparation of
of the preparation of final accounts. It Trading Account is the first stage in the process
is prepared to find out gross profit or gross
Gross Profit or Gross Loss is the difference between the 'Cost of loss.
If the sales are more than cost of goods sold, the goods sold' and 'Sales'
Profit. On the other hand, if the cost of goods sold isdifference
more than
between the two is Gross
is Gross Loss. Opening stock, Purchases, Direct the sales, the difference
Expenses
the Trading Account and items shown on the right side are entered.on the- debit side of
are entered on the credit side of the Trading Account. If thenamely, Sales- and elosing Stock
than that of the debit side, the difference is Gross Profit total of the credit side is more
of the Trading Account. If the total of the debit side is which is entered on the debit side
the difference is Gross Loss which is entered on the more than that of the credit side,
credit side of the Trading Account.
Gross. Profit or Gross Loss.will be transferredto Profit and Loss
2. Profit & Loss Account. Gross Profit or Account.
Gross Loss is taken to Profit & Loss-Account.
All the remaining expenses, and losses which h¡ve not
are shown on the debit side. Income and gains, otherbeen entered into Trading Account
credit side The difference between the two SIdes is eitherthanNetsales, will be shown on the
Profit or
takenr to the capital account of the proprietor. Net Profit s added to theNet Loss which is
Loss is deducted from the Capital. Capital and Net
3. Balance Sheet. Balance sheet may be defined as
'A statement which sets out the
assets and liabilities of a firm as at a certain date. It is true only on
later. All assets and liabilities are shown in the Balance Sheet. On the that date and not
shown the various_assete-end on the left hand side are shown the liabilities, right handside are
the firm. Balance Sheet is prepared to.ascertain the financial position of the and capital of
end of the financial year. business at the
Q. 12 What are the qualitative characteristics of accounting
information?
Ans. Qualitative characteristics of Accounting information. Accounting information
must p0ssess some qualitative characteristics. These are the attributes that make the
information provided in financial statement useful to users.
The four main qualitative characterisics are:
A. Reliability. Accounting informatigh must be reliable. It should be free from bias and
personal influenco OE jMdgement. However, it is not possible to record all transactions
in this manner. For example, an entry for the provision for doubtful debts, In this case,
a provision is made for debts that are considered doubtful for recovery båt the exact
amount of bad debts can never be determined in advance.
2. Relevance. Accounting information must be releyant to the user. Information 1s
relevant if it meets the needs of the user in decision making, For example, dividend paid by
 Accounting Process T-15
a comparnyin the relevant information
previous year is
for the
and investorS. This aisreview
itprovides basis for forecasting dividends in
a future years also provides becauseof
the past performance of the company. Thus, the accountants must
and determine which study thà reeds of the
various users
decision makers.
information is relevant to the
existing and potential
11derstandability.It Accounting intormation must be presented is a manner for the
understand. is assumed that the users have a basic
eactions and they devote time and effort in analysing knowledge of business
the financial statements.
aever, the accountant has a basic responsibility to describe business
clearly and concisely. transactions
AComparability. Accounting information is more useful when it is comparable with
similar information for the same ernterprisein different periods; It is also useful when
similar information across different enterprises during the same period can be
compared.
Comparability is therefore a useful quality of accounting information. To achieve
comparability, consistency and disclosure of accounting policies are necessary.
0. 13. Distinguish between Capital Expenditure and Revenue Expenditure.
Ans. Capital Expenditure and Revenue Expenditure:
Capital expenditüre relates to the acquisition of fixed assets and revenue
expenditure relates to the acquisition of current assets.
(iDCapital expenditure is meant for enduring profit i.e., for more than one accounting
period. Revenue expenditure is meant for currernt accounting period only.
(tin Capital expernditure is of non-recurring nature while revenue expenditure is of
recurring nature,
oy Capital expenditure helps to increase the earning capacity of the business or
to reduce the operating cost. Revenue expenditure is incurred to maintain the
existing earning capacity of the business.
0) Capital expenditure is capitalised while revenue expenditure is transferred to the
Trading or Profit & Loss Account, In other words, capital expenditure is entered
into the Balance Sheet and revenue expenditure is entered into the Trading and
Profit & Loss Account.
( Capital expenditure is not matched againstcapitalzeceipts. Revenue expenditure
is matched against revenue receipts.
Pn) capitalexpenditure may be incurred before the commencemani of the business.
Revenue expenditure is incurred only after the commencement of business.
Q14. Write a short note on: Deferred Revenue Expenditure. How is if different from
Capital Expenditure?
Ans. Deferred Revenue Expenditure. Deferred revenue expenditure is revenue
expenditure by nature but it is not treated as revenue expenditure on the grounds
that its benefif is not fully exhausted inthe accounting period in which it is
The Guidance Note on "Terms used in Financial Statements', issued by the incurred. Instttute
of Chartered Accountants of India, ((CA), defines "deerred revenue
expenditure as those
expenditures for which payment has been made or aliability incurred but which is carried forward
on Deferred
the presumption that it will benefit over a subsequent period or periods."
revenue expenditure is tor the time being deferred from being charged against
revenue or to income. The unWritten oOT portion of the deterred revenue
shown on Hheassets side of the Balance Sheet under the head expenditure is
Tnles of deferred revenue "Miscellaneous Expenditure",
camnaion to launch a new product expenditure include cost of heavy advertisement
or to explore a new market, and research ant
development expenditure.
OWNrite a short note on Capital Receipts and Revenue Receipts.
 T-16 Shiv Das DELHI UNIVERSITY SERIES
Ans. Capital Receipts. Receipts of anon-recurring-nature
purpose are known as capital receipts. They are shown in and meant for
some specific
the Balance
receipts are in the form of contribution from owner, loans
sand proceeds Sheet. Capital).
assets of the business. from sale of fixed
Revenue Receipts. Receipts that are obtained in the course of
normal
known as revenue receipts. Cash from sale of goods,
rent received, businesS activities are
are regafded as revenue receipts. They are shown in
Q. 16. Distinguish between Prepaid the Profit &,Loss
commission received etc,
Ans. Both prepaid expenses and deferred Expenses annd Account.
Deferred Revenue
these are different. The are of revenueExpenditure.
nature of benefit to be available from revenue expenditure
can be recisely estimated but that 1s not so in nature but the
advertising te launeh a new case of deferredbenefits
revenue
from prepaid expenses
the next three to five produetis
deferredexpenditure, the expenditure. Heavy
On the other- hand,years but we carnot say precisely howlong. bernefit from it will'be over
when an accounting yearinsurance
ends on
premium paid say for the year ending 30th
to the extent of premium 31 March,2022, will be an example of June, 2022,
2022. Moreover, deferred relating to three prepaid
months i.e., from 1st April, 2022 to 30th expense
revenue expenses
expenses are considered as current assets. are considered June,
Q. 17. What is
fictitious assets but prepaid
meant by Grouping and
these done? Marshalling connection with the Balance
Sheet of a business? How are in
Ans. Balance Sheet is
This given date is the date statement of the financial position of a
firm at a
of close of the financial
Assets side and the Liabilities side. It is year. Balance Sheet has twogivensides:
date.
the
done by Grouping and not an account but is only a
statement.
Marshalling of the various items in the Balance Sheet. The termis This
"Grouping" means putting together various items of the same or common nature
one heading. However
assets and liabilities are"Marshalling" means or refers to the order in which the under
_tated in the Balance Sheet. This may be done various
of the two methods: acording to either
() Liquidity order (ii) Permanence order
Under the liquidity order method, assets are
liquid assets (such as Cash, Bank) are shown arranged in the order of liquidity i.e., most
or listed first and the least liquid àsset is
shown in the last. Similarly liabilities are also arranged in
Under the permanence order of placement of items in the order of the urgency of payment.
almost reversed. Balarnce Sheet, this very order is
According to the liquidity order, the form of Balance Sheet would be like this:
Liabilities ) Assets
Bank Overdraft XXX Cash XXX
Bills Payable XX*
Bank XXX
Creditors XXX Bills Receivable XXX
Outstanding Expenses XXX
Debtors XXX*
Incomes Received in Advance XXX
Inventories XXX
Long-term Liabilities (e.g. Bank Loans) XXX
Prepaid Expenses (if any) XXX
Borrowings (e.g. Debentures etc.) XXX
Accrued Incomes XXX
Capital. XXX
Investments XXX

Plant and Machinery XXX

Buildings XXX

Furniture XXX
Land XXX

Deferred Revenue expenditures (if any) XXX

 side con assets the andcapitalthe
side side
liabilitiesassets
side
liabilitie on
Accounting Process T-i7
on sundry.
side
side assets the the capital drawingson debtors
assets
Sheet
Balance fromloan assets
1m
the the fromon
the the
Treatmment
the
on on on
asset theside thededucted
liabilities theside
liabilitiesthe fromthe
fromside
assets
on Deducted
on Shown Shown Shown Shown to to to
Shown
cerned Added Added Added Deducted Deducted on
debtors
side then
respective debit respectiverespec-
respec- credit
side side
debit the side side side side (given the the
Alc
&
Loss credit the
the the debit on
debit credit debit Bad-debts on
Treatment
in
the on
the fromexpensethe the fromon
the Balance)Bad-debts
on re-Deductedon income the the the
to expense to Deducted on on
Profit
Added income
Added on
Shown Shown Shown on
side debitto side
Shown to Trialside debit
tiveside tive Added Added
Adjustmentsside the|
respective
side
in
credit
debitthe on
in Trading
Ac
Treatnent expense
the the from
the
on
on Deducted
to expense side
debit
spective
Shown
Various |Added

Dr. Dr. |
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3. 10. 11.
7. 8. 9.
T-18 Shiy Das
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12. 13. 14. 15. 18. 19. 20.