ACCOUNTANCY

PROJECT FILE

Preparation of Journal, Ledger, Trial Balance

and Final Accounts of a Sole Proprietorship Business

Name of Student : [Your Name]

Class / Section : [Your Class]

Roll Number : [Your Roll No.]

Subject : Accountancy

School : [Your School Name]

Academic Session : 2025 - 2026

Submitted To : [Teacher's Name]

[Paste / Insert School Logo Here]

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CERTIFICATE

This is to certify that [Your Name], a student of Class [Your Class], [Your School Name],
has successfully completed the Accountancy Project titled "Preparation of Journal,
Ledger, Trial Balance and Final Accounts" during the academic session 2025-2026,
under my guidance and supervision.

This project has been prepared in accordance with the guidelines prescribed by the Board
and is the result of the student's own effort and sincere hard work. The project is found to
be satisfactory and is hereby submitted for evaluation.

_____________________ _____________________ _____________________

Internal Examiner Subject Teacher External Examiner

Date: ______________ School Seal:

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my Accountancy teacher, [Teacher's

Name], for their invaluable guidance, constant supervision and encouragement
throughout the completion of this project. Their support helped me understand the
practical application of accounting concepts taught in the classroom.

I am also thankful to the Principal, [Principal's Name], and the school management of
[Your School Name] for providing the necessary resources and a conducive environment
to carry out this project work.

I extend my heartfelt thanks to my parents and friends for their continuous motivation,
support and valuable suggestions, without which this project would not have been
possible.

Lastly, I would like to thank everyone who directly or indirectly helped me in the successful
completion of this Accountancy project.

- [Your Name]

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INDEX

[Link]. Particulars Page No.

1 Certificate 2

2 Acknowledgement 3

3 Objectives of the Project 5

4 Introduction to the Business & Basic Concepts 5

5 Journal Entries 6

6 Ledger Accounts 7

7 Trial Balance 8

8 Trading and Profit & Loss Account 9

9 Balance Sheet 9

10 Conclusion 10

11 Bibliography 10

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OBJECTIVES OF THE PROJECT
1. To understand and apply the basic principles and rules of Double Entry Book-Keeping.

2. To learn the process of recording business transactions in the Journal.

3. To understand the process of posting journal entries into Ledger Accounts.

4. To learn the preparation of a Trial Balance and check the arithmetical accuracy of
accounts.

5. To understand the preparation of Final Accounts, i.e. Trading Account, Profit & Loss
Account and Balance Sheet.

6. To develop practical knowledge of accounting which will be useful in higher studies and
real life.

INTRODUCTION TO THE BUSINESS

For the purpose of this project, a hypothetical sole proprietorship business, "M/s Sharma
Traders", dealing in furniture, has been assumed. The business was started on 1st April,
2025 by the proprietor with cash and furniture as capital. The transactions recorded below
relate to the month of April, 2025, and have been used to prepare the Journal, Ledger,
Trial Balance and Final Accounts of the business as illustrated in the following pages.

Basic Accounting Terms Used

Journal: The book of original entry in which business transactions are first recorded in a
chronological order, following the rules of debit and credit.

Ledger: The principal book of accounts in which all journal entries are posted
account-wise, to ascertain the net balance of each account.

Trial Balance: A statement showing the debit and credit balances of all ledger accounts,
prepared to check the arithmetical accuracy of the books of accounts.

Final Accounts: Accounts prepared at the end of an accounting period to ascertain the
profit or loss (Trading and P&L Account) and the financial position (Balance Sheet) of the
business.

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JOURNAL ENTRIES
In the books of M/s Sharma Traders, for the month of April, 2025

Date
Particulars L.F. Debit (■) Credit (■)
2025

Apr 1 Cash A/c Dr. 1,00,000

Furniture A/c Dr. 20,000

To Capital A/c 1,20,000

(Being business started with cash and furniture)

Apr 2 Bank A/c Dr. 50,000

To Cash A/c 50,000

(Being cash deposited into bank)

Apr 5 Purchases A/c Dr. 15,000

To Cash A/c 15,000

(Being goods purchased for cash)

Apr 7 Purchases A/c Dr. 25,000

To Ramesh A/c 25,000

(Being goods purchased from Ramesh on credit)

Apr 10 Cash A/c Dr. 20,000

To Sales A/c 20,000

(Being goods sold for cash)

Apr 12 Suresh A/c Dr. 18,000

To Sales A/c 18,000

(Being goods sold to Suresh on credit)

Apr 15 Ramesh A/c Dr. 25,000

To Cash A/c 24,000

To Discount Received A/c 1,000

(Being paid to Ramesh in full settlement)

Apr 18 Cash A/c Dr. 17,500

Discount Allowed A/c Dr. 500

To Suresh A/c 18,000

(Being received from Suresh in full settlement)

Apr 20 Rent A/c Dr. 5,000

To Cash A/c 5,000

(Being rent paid)

Apr 22 Salaries A/c Dr. 8,000

To Cash A/c 8,000

(Being salaries paid)

Apr 24 Furniture A/c Dr. 5,000

To Cash A/c 5,000

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Date
Particulars L.F. Debit (■) Credit (■)
2025

(Being furniture purchased for cash)

Apr 25 Drawings A/c Dr. 3,000

To Cash A/c 3,000

(Being cash withdrawn for personal use)

Apr 27 Electricity Expenses A/c Dr. 1,200

To Cash A/c 1,200

(Being electricity bill paid)

Apr 28 Cash A/c Dr. 2,000

To Commission Received A/c 2,000

(Being commission received)

Apr 30 Cash A/c Dr. 10,000

To Sales A/c 10,000

(Being goods sold for cash)

Apr 30 Bank A/c Dr. 5,000

To Cash A/c 5,000

(Being cash deposited into bank)

TOTAL 2,81,200 2,81,200

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 LEDGER ACCOUNTS

Cash Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 1 To Capital A/c 1,00,000 Apr 2 By Bank A/c 50,000

Apr 10 To Sales A/c 20,000 Apr 5 By Purchases A/c 15,000

Apr 18 To Suresh A/c 17,500 Apr 15 By Ramesh A/c 24,000

Apr 28 To Commission Recd. A/c 2,000 Apr 20 By Rent A/c 5,000

Apr 30 To Sales A/c 10,000 Apr 22 By Salaries A/c 8,000

Apr 24 By Furniture A/c 5,000

Apr 25 By Drawings A/c 3,000

Apr 27 By Electricity Exp. A/c 1,200

Apr 30 By Bank A/c 5,000

Apr 30 By Balance c/d 33,300

Total 1,49,500 Total 1,49,500

Bank Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 2 To Cash A/c 50,000 Apr 30 By Balance c/d 55,000

Apr 30 To Cash A/c 5,000

Total 55,000 Total 55,000

Capital Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 30 To Balance c/d 1,20,000 Apr 1 By Cash A/c 1,00,000

Apr 1 By Furniture A/c 20,000

Total 1,20,000 Total 1,20,000

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 Furniture Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 1 To Capital A/c 20,000 Apr 30 By Balance c/d 25,000

Apr 24 To Cash A/c 5,000

Total 25,000 Total 25,000

Purchases Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 5 To Cash A/c 15,000 Apr 30 By Trading A/c 40,000

Apr 7 To Ramesh A/c 25,000

Total 40,000 Total 40,000

Sales Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 30 To Trading A/c 48,000 Apr 10 By Cash A/c 20,000

Apr 12 By Suresh A/c 18,000

Apr 30 By Cash A/c 10,000

Total 48,000 Total 48,000

Ramesh Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 15 To Cash A/c 24,000 Apr 7 By Purchases A/c 25,000

Apr 15 To Discount Recd. A/c 1,000

Total 25,000 Total 25,000

Suresh Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 12 To Sales A/c 18,000 Apr 18 By Cash A/c 17,500

Apr 18 By Discount Allowed A/c 500

Total 18,000 Total 18,000

Discount Received Account

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 Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 30 To P&L A/c 1,000 Apr 15 By Ramesh A/c 1,000

Total 1,000 Total 1,000

Discount Allowed Account

Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 18 To Suresh A/c 500 Apr 30 By P&L A/c 500

Total 500 Total 500

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 Rent Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 20 To Cash A/c 5,000 Apr 30 By P&L A/c 5,000

Total 5,000 Total 5,000

Salaries Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 22 To Cash A/c 8,000 Apr 30 By P&L A/c 8,000

Total 8,000 Total 8,000

Drawings Account
Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 25 To Cash A/c 3,000 Apr 30 By Capital A/c 3,000

Total 3,000 Total 3,000

Electricity Expenses Account

Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 27 To Cash A/c 1,200 Apr 30 By P&L A/c 1,200

Total 1,200 Total 1,200

Commission Received Account

Dr.

Date Particulars Amount (■) Date Particulars Amount (■)

Apr 30 To P&L A/c 2,000 Apr 28 By Cash A/c 2,000

Total 2,000 Total 2,000

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TRIAL BALANCE
of M/s Sharma Traders, as on 30th April, 2025

[Link]. Name of Account Debit (■) Credit (■)

1 Cash A/c 33,300

2 Bank A/c 55,000

3 Furniture A/c 25,000

4 Purchases A/c 40,000

5 Discount Allowed A/c 500

6 Rent A/c 5,000

7 Salaries A/c 8,000

8 Drawings A/c 3,000

9 Electricity Expenses A/c 1,200

10 Capital A/c 1,20,000

11 Sales A/c 48,000

12 Discount Received A/c 1,000

13 Commission Received A/c 2,000

TOTAL 1,71,000 1,71,000

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 TRADING AND PROFIT & LOSS ACCOUNT
of M/s Sharma Traders, for the month ended 30th April, 2025

Dr.

Particulars Amount (■) Particulars Amount (■)

To Purchases A/c 40,000 By Sales A/c 48,000

To Gross Profit c/d 8,000

Total 48,000 Total 48,000

To Rent A/c 5,000 By Gross Profit b/d 8,000

To Salaries A/c 8,000 By Discount Received A/c 1,000

To Discount Allowed A/c 500 By Commission Received A/c 2,000

To Electricity Expenses A/c 1,200

By Net Loss transferred to

Capital A/c 3,700

Total 14,700 Total 14,700

BALANCE SHEET
of M/s Sharma Traders, as on 30th April, 2025

Liabilities Amount (■) Assets Amount (■)

Capital A/c 1,20,000

Less: Drawings 3,000 1,13,300 Cash in Hand 33,300
Less: Net Loss 3,700

Cash at Bank 55,000

Furniture 25,000

Total 1,13,300 Total 1,13,300

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CONCLUSION
Through this project, the complete accounting cycle of a business — starting from the
recording of transactions in the Journal, posting them into Ledger Accounts, checking the
arithmetical accuracy through the Trial Balance, and finally ascertaining the financial result
and position through the Trading and Profit & Loss Account and Balance Sheet — has
been practically demonstrated.

The project has helped in developing a clear understanding of how a sole proprietorship
business maintains its books of accounts, and how accounting principles studied
theoretically are applied in a real business scenario. It also highlights the importance of
accurate record-keeping for ascertaining the true profitability and financial health of a
business.

BIBLIOGRAPHY
1. NCERT, Accountancy - Financial Accounting I, Class XI, National Council of
Educational Research and Training.

2. T.S. Grewal, Double Entry Book Keeping - Financial Accounting, Sultan Chand & Sons.

3. D.K. Goel, Accountancy, Arya Publications.

4. CBSE Curriculum and Sample Question Papers, Accountancy,

[Link]

5. [Link] - for reference on basic accounting concepts and terms.

6. Class notes and reference material provided by the Subject Teacher.

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