Accounting Project: Trial Balance, Adjustments, and Financial Reports

This accounting project provides a comprehensive overview of the accounting cycle. It begins with recording business transactions in journal entries, followed by posting these entries to ledger accounts. The project then progresses to preparing an unadjusted trial balance, making adjusting journal entries, and creating an adjusted trial balance. Subsequently, it involves the preparation of an income statement and a balance sheet. The project demonstrates the complete process of financial statement preparation, from initial transaction recording to the final financial reports, which is crucial for understanding a company's financial performance and position. The project also includes the preparation of ledger accounts, and adjusting entries, and concludes with the income statement and balance sheet.

UNIT 4- INDIVIDUAL
PROJECT

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Recording journal entries............................................................................................................3
Ledger accounts..........................................................................................................................4
Unadjusted trial balance..............................................................................................................6
Adjusting journal entries.............................................................................................................7
Adjusted trial balance..................................................................................................................9
Preparing income statement and balance sheet...........................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
The accounting is defined as the recording of all the transaction of financial nature and recording
them in books of account and posting them in ledger in order to make the profit and loss account
and balance sheet. the present report will start by recording the business transaction and doing
the adjusting entries and then making the adjusted trial balance.
MAIN BODY
Recording journal entries
Date Particular Debit Credit
DEC 1 Cash a/c
To capital a/c
80000
80000
DEC 2 Purchase a/c
To cash a/c
20000
20000
DEC 2 Rent a/c
To cash a/c
30000
30000
DEC. 3 Office supplies a/c
To cash a/c
500
500
DEC 10 Insurance policy a/c
To cash a/c
12000
12000
DEC. 14 Payroll a/c
To cash a/c
4000
4000
DEC 24 Cash a/c
Soccer fees
85000
85000
DEC 28 Salaries a/c
To cash a/c
4000
4000
DEC 29 Repairs a/c
To cash a/c
200
200
DEC 30 Telephone bill a/c
To cash a/c
150
150
DEC 30 Dividend share a/c

To cash a/c
Ledger accounts
CASH A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
1-Dec TO CAPITAL 80000 2-Dec BY PURCHASE 20000
24-
Dec
TO SOCCER
FEES 85000 2-Dec BY RENT 30000
3-Dec BY OFFICE SUPPLY 500
10-
Dec
BY INSURANCE
POLICY 12000
14-
Dec BY PAYROLL 4000
28-
Dec BY SALARIES 4000
29-
Dec BY REPAIRS 200
30-
Dec BY TELEPHONE BILL 150
30-
Dec SHARE DIVIDEND 1000
31-
Dec TO BALANCE C/D 93150
TOTAL 165000 TOTAL 165000
CAPITAL A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
1-Dec BY CASH 80000
31-
Dec TO BALANCE C/D 80000
TOTAL 80000 TOTAL 80000
PURCHASE A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
2-Dec TO CASH 20000
31-Dec TO BALANCE C/D 20000
TOTAL 20000 TOTAL 20000
RENT A/C

DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
2-Dec TO CASH 30000
31-
Dec TO BALANCE C/D 30000
TOTAL 30000 TOTAL 30000
OFFICE SUPPLY A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
3-Dec TO CASH 500
31-Dec TO BALANCE C/D 500
TOTAL 500 TOTAL 500
INSURANCE POLICY A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
10-
Dec TO CASH 12000
31-
Dec TO BALANCE C/D 12000
TOTAL 12000 TOTAL 12000
PAYROLL A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
14-Dec TO CASH 4000
31-Dec TO BALANCE C/D 4000
TOTAL 4000 TOTAL 4000
SOCCER FEES
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
24-
Dec TO CASH 85000
31-
Dec TO BALANCE C/D 85000
TOTAL 85000 TOTAL 85000
SALARIES A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
28-Dec TO CASH 4000
31-Dec TO BALANCE C/D 4000
TOTAL 4000 TOTAL 4000

REPAIRS A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
29-
Dec TO CASH 200
31-
Dec TO BALANCE C/D 200
TOTAL 200 TOTAL 200
TELEPHONE BILL A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
30-Dec TO CASH 150
31-Dec TO BALANCE C/D 150
TOTAL 150 TOTAL 150
SHARE DIVIDEND A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
30-
Dec TO CASH 1000
31-
Dec TO BALANCE C/D 1000
TOTAL 1000 TOTAL 1000
Unadjusted trial balance
PARTICULAR DEBIT CREDIT
CASH 93150
CAPITAL 80000
PURCHASE 20000
RENT 30000
OFFICE SUPPLY 500
INSURANCE POLICY 12000
PAYROLL 4000
SOCCER FEES 85000
SALARIES 4000
REPAIRS 200
SHARE DIVIDEND 150
TELEPHONE BILL 1000
TOTAL 165000 165000

Adjusting journal entries
Date Particular Debit Credit
DEC 31 Renew insurance a/c
To cash a/c
1000
1000
DEC 31 Rent a/c
To cash
2500
2500
DEC 31 Depreciation a/c
To cash
250
250
DEC 31 Salary a/c
To outstanding salary a/c
300
300
Ledger
Renew insurance
DATE PARTICULAR AMOUNT DATE PARTICULAR AMOUNT
31-Dec to cash 1000
31-Dec by bal c/d 1000
total 1000 total 1000
outstanding salary
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
31-Dec by salary 300
31-Dec to bal c/d 300
total 300 total 300
depreciation
DATE PARTICULAR AMOUNT DATE PARTICULAR AMOUNT
31-Dec to soccer 250
31-Dec by bal c/d 250
total 250 total 250
SALARIES A/C

DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
28-
Dec TO CASH 4000
31-
Dec to outstanding salary 300
31-
Dec TO BALANCE C/D 4300
TOTAL 4300 TOTAL 4300
RENT A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
2-Dec TO CASH 30000
31-Dec to cash 2500 31-Dec TO BALANCE C/D 32500
TOTAL 32500 TOTAL 32500
CASH A/C
DATE PARTICULAR JF AMOUNT DATE PARTICULAR JF AMOUNT
31-
Dec TO CAPITAL 80000 2-Dec BY PURCHASE 20000
24-
Dec TO SOCCER FEES 85000 2-Dec BY RENT 30000
3-Dec BY OFFICE SUPPLY 500
10-
Dec BY INSURANCE POLICY 12000
14-
Dec BY PAYROLL 4000
28-
Dec BY SALARIES 4000
29-
Dec BY REPAIRS 200
30-
Dec BY TELEPHONE BILL 150
30-
Dec SHARE DIVIDEND 1000
31-
Dec by renew insurance 1000
31-
Dec by rent 2500
31-
Dec By depreciation 250
31-
Dec by bal c/d 89400
TOTAL 165000 TOTAL 165000

Adjusted trial balance
PARTICULAR DEBIT CREDIT
CASH 89400
CAPITAL 80000
PURCHASE 20000
RENT 32500
OFFICE SUPPLY 500
INSURANCE
POLICY 12000
PAYROLL 4000
SOCCER FEES 85000
SALARIES 4300
REPAIRS 200
SHARE DIVIDEND 150
TELEPHONE BILL 1000
renew insurance 1000
outstanding salary 300
depreciation 250
total 165300 165300
Preparing income statement and balance sheet
Profit and loss account
Particular amount
Soccer fees 85000
Less: COGS 20000
Gp 65000
RENT 32500
OFFICE SUPPLY 500
INSURANCE POLICY 12000
PAYROLL 4000
SALARIES 4300
REPAIRS 200
SHARE DIVIDEND 150
TELEPHONE BILL 1000

renew insurance 1000
depreciation 250
net profit 9100
Balance sheet
Liability Amount Asset Amount
capital 80000 cash 89400
Add: net profit 9100
outstanding
salary 300
Total 89400 total 89400
CONCLUSION
In the end it is concluded that for business it is essential for the company in order to manage the
business and its profitability. Thus, for this all the transaction of financial nature are recorded in
business and then posted in the ledger account. Further with the ledger trial balance is prepared
and thereafter some adjustment entries are made. Further these adjustment entries are again
posted and adjusted trial balance was made.