ISC ACCOUNTANCY PROJECT

(ROUGH DRAFT)

● Introduction to Agarwal Electronics -

Agarwal Electronics is a sole proprietorship business engaged in the trading
of electronic goods and appliances. The business deals in a wide variety of
products such as home appliances, gadgets, and electronic accessories. It is
managed and controlled by the sole proprietor, who invests the capital,
takes decisions, and enjoys the profits of the business. By combining
personalized service with a wide variety of products, Agarwal Electronics
continues to meet the growing demands of customers and strives to expand
its reach in the competitive electronics market.
The accounts of Agarwal Electronics are maintained systematically to record
all business transactions. On the basis of these records, a Trial Balance is
prepared at the end of the accounting period to check the arithmetical
accuracy of the books of accounts and to facilitate the preparation of final
accounts.
_________________________________________________________
● Journal Entry Transactions -
➔ For the month of January 2025 -
1. January 1 – The proprietor introduced capital into the business in the form
of Cash ₹3,00,000 and deposited ₹20,000 into the Bank.
2. January 3 – Purchased Furniture for business use for ₹80,000 in cash.
3. January 5 – Made Cash Purchases ₹20,000.
4. January 7 – Made Cash Sales ₹28,000.
5. January 10 – Made Cash Purchases ₹32,000.
6. January 12 – Made Cash Sales ₹10,000.
7. January 15 – Made Cash Purchases ₹18,000.
8. January 18 – Made Cash Sales ₹37,000.
9. January 20 – Made Cash Purchases ₹30,000.
[Link] 22 – Made Cash Sales ₹23,000.
11. January 26 – Made Cash Sales ₹52,000.
12. January 28 – Paid Rent ₹8,000.
 13. January 30 – Made Cash Sales ₹39,000.
[Link] 31 – Paid Salary ₹12,000.

➔ For the month of February 2025 -

1. February 2 – Made Cash Purchases ₹28,000.
2. February 5 – Made Cash Sales ₹30,000.
3. February 6 – Purchased goods on credit from Gupta Traders ₹32,000.
4. February 7 – Sold goods on credit to Sharma Brothers ₹25,000.
5. February 8 – Made Cash Purchases ₹22,500.
6. February 12 – Purchased goods on credit from Mehta Electronics ₹45,000.
7. February 13 – Sold goods on credit to Verma Electronics ₹30,000.
8. February 14 – Made Cash Sales ₹25,000.
9. February 17 – Sold goods on credit to Patel Traders ₹12,000.
[Link] 20 – Purchased goods on credit from Kumar & Sons ₹35,000.
11. February 22 – Made Cash Sales ₹30,000.
12. February 23 – Sold goods on credit to Rao & Co. ₹28,000.
13. February 27 – Sold goods on credit to Singh Electronics ₹25,000.
[Link] 28 – Paid Rent ₹8,000.
[Link] 28 – Paid Salary ₹12,000.

➔ For the month of March 2025 -

1. March 1 – Insurance premium of ₹75,000 paid for one year, covering the
period from 1st March 2025 to 28th February 2026.
2. March 4 – Made Cash Purchases ₹16,000.
3. March 6 – Purchased goods on credit from Gupta Traders ₹20,000.
4. March 10 – Made Cash Purchases ₹14,000.
5. March 15 – Purchased goods on credit from Mehta Electronics ₹22,000.
6. March 20 – Settled account of Gupta Traders by paying ₹50,000 in full
settlement of ₹52,000 (received a discount of ₹2000).
7. March 25 – Settled account of Mehta Electronics by paying ₹65,000 in full
settlement of ₹67,000 (received a discount of ₹2,000).
8. March 31 – Rent for the month of March ₹8,000 remained outstanding.
9. March 31 – Salary for the month of March ₹12,000 remained outstanding.
● JOURNAL ENTRIES -

Date Particulars Debit Credit

Jan 1 Cash A/C Dr 3,00,000 -

Bank A/C Dr 20,000 -
To Capital A/c - 3,20,000
(Being business commenced)

Jan 3 Furniture A/C Dr 80,000

To Cash A/C 80,000

Jan 5 Purchases A/c Dr 20,000

To Cash A/C 20,000
(Being goods purchased for cash)

Jan 7 Cash A/C Dr 28,000

To Sales A/c 28,000
(Being goods sold for cash)

Jan 10 Purchases A/c Dr 32,000

To Cash A/C 32,000
(Being goods purchased for cash)

Jan 12 Cash A/C Dr 10,000

To Sales A/c 10,000
(Being goods sold for cash)

Jan 15 Purchases A/c Dr 18,000

To Cash A/C 18,000
(Being goods purchased for cash)

Jan 18 Cash A/C Dr 37,000

To Sales A/c 37,000
(Being goods sold for cash)

Jan 20 Purchases A/c Dr 30,000

To Cash A/C 30,000
(Being goods purchased for cash)
Jan 22 Cash A/C Dr 23,000
To Sales A/c 23,000
(Being goods sold for cash)

Jan 26 Cash A/C Dr 52,000

To Sales A/c 52,000
(Being goods sold for cash)

Jan 28 Rent A/C Dr 8,000

To Cash A/C 8,000
(Being rent paid)

Jan 30 Cash A/C Dr 39,000

To Sales A/c 39,000
(Being goods sold for cash)

Jan 31 Salary A/C Dr 12,000

To Cash A/C 12,000
(Being salaries paid)

Feb 2 Purchases A/c Dr 28,000

To Cash A/C 28,000
(Being goods purchased for cash)

Feb 5 Cash A/C Dr 30,000

To Sales A/c 30,000
(Being goods sold for cash)

Feb 6 Purchases A/C Dr 32,000

To Gupta Traders A/C 32,000
(Being purchased goods on credit)

Feb 7 Sharma Brothers A/C Dr 25,000

To Sales A/C 25,000
(Being goods sold on credit)

Feb 8 Purchases A/C Dr 22,500

To Cash A/C 22,500
(Being goods purchased for cash)
Feb 12 Purchases A/C Dr 45,000
To Mehta Electronics A/C 45,000
(Being purchased goods on credit)

Feb 13 Verma Electronics A/C Dr 30,000

To Sales A/C 30,000
(Being goods sold on credit)

Feb 14 Cash A/C Dr 25,000

To Sales A/c 25,000
(Being goods sold for cash)

Feb 17 Patel Traders A/C Dr 12,000

To Sales A/C 12,000
(Being goods sold on credit)

Feb 20 Purchases A/C Dr 35,000

To Kumar & Sons A/C 35,000
(Being purchased goods on credit)

Feb 22 Cash A/C Dr 30,000

To Sales A/C 30,000
(Being goods sold for cash)

Feb 23 Rao & Co. A/C Dr 28,000

To Sales A/c 28,000
(Being goods sold for credit)

Feb 27 Singh Electronics A/C Dr 25,000

To Sales A/C 25,000
(Being goods sold for credit)

Feb 28 Rent A/C Dr 8,000

To Cash A/C 8,000
(Being rent paid)

Feb 28 Salary A/C Dr 12,000

To Cash A/C 12,000
(Being salaries paid)

Mar 1 Insurance premium A/C Dr 75,000

To cash A/C 75,000
(Being Insurance premium paid)

Mar 4 Purchases A/c Dr 16,000

 To Cash A/C 16,000
(Being goods purchased for cash)

Mar 6 Purchases A/C Dr 20,000

To Gupta Traders A/C 20,000
(Being purchased goods on credit)

Mar 10 Purchases A/c Dr 14,000

To Cash A/C 14,000
(Being goods purchased for cash)

Mar 15 Purchases A/C Dr 22,000

To Mehta Electronics A/C 22,000
(Being purchased goods on credit)

Mar 20 Gupta Traders A/C Dr 52,000

To Cash A/C 50,000
To Discount received A/C 2,000
(Being Gupta Traders account settlement)

Mar 25 Mehta Electronic A/C Dr 67,000

To Cash A/C 65,000
To Discount received A/C 2,000
(Being Mehta Electronic account settlement)

Mar 31 Rent A/C Dr 8,000

To Outstanding rent A/C 8,000
(Being rent paid)

Mar 31 Salary A/C Dr 12,000

To Outstanding salary A/C 12,000
(Being salaries paid)

● LEDGERS -
Cash A/C
Date Particulars Amount Date Particulars Amount

Jan 1 To Capital 3,00,000 Jan 3 By Furniture 80,000

Jan 7 To Sales 28,000 Jan 5 By Purchases 20,000

Jan 12 To Sales 10,000 Jan 10 By Purchases 32,000

Jan 18 To Sales 37,000 Jan 15 By Purchases 18,000

Jan 22 To Sales 23,000 Jan 20 By Purchases 30,000

Jan 26 To Sales 52,000 Jan 28 By Rent 8,000

Jan 30 To Sales 39,000 Jan 31 By Salary 12,000

Jan 31 By Balance c/d 2,89,000

4,89,000 4,89,000

Feb 1 To balance b/d 2,89,000 Feb 2 By Purchases 28,000

Feb 5 To Sales 30,000 Feb 8 By Purchases 22,500

Feb 14 To Sales 25,000 Feb 28 By Rent 8,000

Feb 22 To Sales 30,000 Feb 28 By Salary 12,000

Feb 28 By balance c/d 3,03,500

3,74,000 3,74,000

Mar 1 To balance b/d 3,03,500 Mar 1 By Insurance premium 75,000

Mar 4 By Purchases 16,000

Mar 10 By Purchases 14,000

Mar 20 By Gupta Traders 50,000

Mar 25 By Mehta Electronics 65,000

Mar 31 By balance c/d 83,500

June 1 To balance b/d 83,500

 Capital A/C
Date Particulars Amount Date Particulars Amount

Jan 31 To balance c/d 3,20,000 Jan 1 By cash 3,00,000

Jan 1 By Bank 20,000

3,20,000 3,20,000

Feb 1 By balance b/d 3,20,000

Furniture A/C
Date Particulars Amount Date Particulars Amount

Jan 1 To Cash 80,000 Jan 31 By balance c/d 80,000

80,000 80,000

Feb 1 To balance b/d 80,000

Purchases A/C
Date Particulars Amount Date Particulars Amount

Jan 5 To cash 20,000 Jan 31 By Balance c/d 1,00,000

Jan 10 To cash 32,000

Jan 15 To cash 18,000

Jan 20 To cash 30,000

1,00,000 1,00,000

Feb 1 To balance b/d 1,00,000

Feb 2 To cash 28,000 Feb 28 By balance c/d 2,62,000

Feb 6 To Gupta Traders 32,000

Feb 8 To Cash 22,500

Feb 12 To Mehta Electronics 45,000

Feb 20 To Kumar & Sons A/C 35,000

2,62,000 2,62,000

Mar 1 To balance b/d 2,62,000 Mar 31 By balance c/d 3,34,500

Mar 4 To Cash 16,000

Mar 10 To Cash 14,000

Mar 6 To Gupta Traders 20,000

Mar 15 To Mehta Electronics 22,000

3,34,500 3,34,500

June 1 To balance b/d 3,34,500

Sales A/C
Date Particulars Amount Date Particulars Amount

Jan 1 To balance c/d 1,89,000 Jan 7 By Cash 28,000

Jan 12 By Cash 10,000

Jan 18 By Cash 37,000

Jan 22 By Cash 23,000

Jan 26 By Cash 52,000

Jan 30 By Cash 39,000

1,89,000 1,89,000

Feb 28 To Balance c/d 3,94,000 Feb 1 By Balance b/d 1,89,000

 Feb 5 By Cash 30,000

Feb 7 By Sharma Brothers 25,000

Feb 13 By Verma Electronics 30,000

Feb 14 By cash 25,000

Feb 17 By Patel Traders 12,000

Feb 22 By cash 30,000

Feb 23 By Rao & Co. 28,000

Feb 27 By Singh Electronics 25,000

3,94,000 3,94,000

Mar 31 To balance c/d 3,94,000 Mar 1 By Balance b/d 3,94,000

Jun 1 By Balance b/d 3,94,000

Bank A/C
Date Particulars Amount Date Particulars Amount

Jan 1 To Capital 20,000 Jan 31 By Balance c/d 20,000

20,000 20,000

Feb 1 To Balance b/d 20,000

 Rent A/C
Date Particulars Amount Date Particulars Amount

Jan 28 To Cash 8,000 Jan 31 By Balance c/d 8,000

8,000 8,000

Feb 1 To balance b/d 8,000 Feb 28 By Balance c/d 16,000

Feb 28 To Cash 8,000

16,000 16,000

Mar 1 To balance b/d 16,000 Mar 31 By Balance c/d 24,000

Mar 31 To Outstanding Rent 8,000

24,000 24,000

June 1 To balance b/d 24,000

Salary A/C
Date Particulars Amount Date Particulars Amount

Jan 31 To Cash 12,000 Jan 31 By Balance c/d 12,000

12,000 12,000

Feb 1 To balance b/d 12,000 Feb 28 By Balance c/d 24,000

Feb 28 To Cash 12,000

24,000 24,000

Mar 1 To balance b/d 24,000 Mar 31 By Balance c/d 24,000

Mar 31 To Outstanding Salary 12,000

36,000 36,000

June To balance b/d 36,000

1
 Gupta Traders A/C
Date Particulars Amount Date Particulars Amount

Feb 28 To Balance c/d 32,000 Feb 6 By Purchases 32,000

32,000 32,000

Mar 20 To Cash 50,000 Feb 28 By Balance b/d 32,000

Mar 20 To Discount Received 2,000 Mar 6 By Purchases 20,000

52,000 52,000

Sharma Brothers A/C

Date Particulars Amount Date Particulars Amount

Feb 7 To Sales 25,000 Feb 28 By balance c/d 25,000

25,000 25,000

Mar 1 To Balance b/d 25,000

Mehta Electronics A/C

Date Particulars Amount Date Particulars Amount

Feb 28 To Balance c/d 45,000 Feb 12 By Purchases 45,000

45,000 45,000

Mar 20 To Cash 65,000 Feb 28 By Balance b/d 45,000

Mar 20 To Discount Received 2,000 Mar 15 By Purchases 22,000

 65,000 65,000

Verma Electronic A/C

Date Particulars Amount Date Particulars Amount

Feb 13 To Sales 30,000 Feb 28 By balance c/d 30,000

30,000 30,000

Mar 1 To Balance b/d 30,000

Patel Traders A/C

Date Particulars Amount Date Particulars Amount

Feb 17 To Sales 12,000 Feb 28 By balance c/d 12,000

12,000 12,000

Mar 1 To Balance b/d 12,000

Kumar & Sons A/C

Date Particulars Amount Date Particulars Amount

Feb 28 To Balance c/d 35,000 Feb 20 By Purchases 35,000

35,000 35,000

Mar 1 By Balance b/d 35,000

 Rao & Co. A/C
Date Particulars Amount Date Particulars Amount

Feb 23 To Sales 28,000 Feb 28 By balance c/d 28,000

28,000 28,000

Mar 1 To Balance b/d 28,000

Singh Electronics A/C

Date Particulars Amount Date Particulars Amount

Feb 27 To Sales 25,000 Feb 28 By balance c/d 25,000

25,000 25,000

Mar 1 To Balance b/d 25,000

Insurance Premium A/C

Date Particulars Amount Date Particulars Amount

Mar 1 To Cash 75,000 Mar 31 By Balance c/d 75,000

75,000 75,000

June 1 By Balance b/d 75,000

Discount Received A/C

Date Particulars Amount Date Particulars Amount

Mar 31 To Balance c/d 4,000 Mar 20 By Gupta Traders 2,000

Mar 25 By Mehta Electronics 2,000

 4,000 4,000

June 1 By Balance b/d 4,000

Outstanding Rent A/C

Date Particulars Amount Date Particulars Amount

Mar 31 To Balance c/d 8,000 Mar 31 By Rent 8,000

8,000 8,000

June 1 By Balance b/d 8,000

Outstanding Salary A/C

Date Particulars Amount Date Particulars Amount

Mar 31 To Balance c/d 12,000 Mar 31 By Salary 12,000

12,000 12,000

June 1 By Balance b/d 12,000

 ● TRIAL BALANCE -

Name Of Account Debit Credit

Cash A/C 83,500 -
Bank A/C 20,000 -
Capital A/C - 3,20,000
Furniture A/C 80,000 -
Purchases A/C 3,34,500 -
Sales A/C - 3,94,000
Rent A/C 24,000 -
Salary A/C 36,000 -
Sharma Brothers A/C 25,000
Verma Electronics A/C 30,000
Patel Traders A/C 12,000
Kumar & Sons A/C 35,000
Rao & Co. A/C 28,000
Singh Electronics A/C 25,000
Insurance Premium A/C 75,000
Discount Received A/C 4,000
Outstanding Rent A/C 8,000

Outstanding Salary A/C 12,000

Total 7,73,000 7,73,000