By Y P Singh

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March 1 By Bank A/c 20,000 8,000 April 2 By Machinery and Furniture 15,000 2,000 March 3 A/c By Purchase A/c March 21 To Ram A/c March 28 To Investment 12,000 March 21 Discount allowed A/c 1,300 March 22 By Bank A/c 5,800 By Investment A/c 3,000 A/c March 28 To Profit & Loss A/c March 30 To Sales A/c To balance b/f 100 100 March 23 By Brokerage A/c 20 1,900 March 28 By Brokerage A/c 20 March 30 By Salary A/c 1,500 March 30 By Travelling expenses A/c 100 March 30 By balance c/f 75,300 March 31 14,000 15,760 15,760 75,300 Book-Keeping 43 Bank A/c Dr.

Accounting and Financial Management 17 Note: l Accounting Cycle: Step 1 to step 5 constitutes accounting cycle. , preparation of financial statements (Income statement and B/S). Transactions (Vouchers) Trading, Profit and Loss A/c and Balance Sheet Accounting cycle Journal Trial Balance Ledger l Accounting Period: The time period in completing accounting cycle is known as accounting period and in India it is of one-year duration (1st April to 31st March of next year). , profit or loss, assets and liabilities.

13. Transaction on March 23 Rule 1 Cash transaction 14. Transaction on March 25 Rule 1 Cash transaction Rule 2 A/Cs Involved Chowdhry and Co. A/c Return Outward A/c Bank Rule 3 Nature P N R Rule 4 Apply ground Rule for entry in books of account Goods recd. (Receiver), so Dr. it. Reduction of an expenditure (Purchases), so Cr. it. e. goes out, so Cr. it. 15. Transactions on March 28 Rule 1 Cash transaction Rule 1 Cash transaction Rule 1 Credit transaction Rule 2 Rule 3 A/Cs Involved Nature Cash A/c R Investment A/c R Rule 4 Apply ground Rule for entry in books of account Cash comes in, so Dr.

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Accounting and Financial Management for I. T. Professionals by Y P Singh
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