Live Project on finance

8/14/2019 Live Project on finance

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LIVE PROJECT J

ON

PREPARATION OF SUBSIDIARY BOOK (EXCLUDINGCASH BOOK)

OF A TRADING COMPANY FOR FOUR DAYS

ATSANTRAM TRADERDS

SUBMITTED TO: IABMI, AAU, Anand.

UNDER THE GUIDENCE OF: MR. AJIT SOLANKI

Submitted By:

SHRIKANTVAISHNAVA


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THE MAIN OBJECTIVE OF LIVE PROJECT IS TO

UNDERSTAND HOW SOLUTIONS MADE FROMPROBLEMS.

THE LIVE PROJECT HELPS IN MANAGING ACTUALPROBLEMS.

LIVE PROJECT IS TO UNDERSTAND ACTUAL RECORDKEEPING SYSTEM.

TO KNOW ABOUT ACCOUNTING PROCEDURE OF

TRADER.

TO INCREASE OUR COMMUNICATION SKILL ANDCONVINCING POWER DURING MEET DIFFERENTTYPES OF TRADERS.

TO GET THE PRACTICAL KNOWLEDGE WITHAPPLYING THEORETICAL KNOWLEDGE


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Company Profile

Santram traders entered in trading business inthe year 1983, located at opp. Chokshi estateSardar ganj, Anand.

They are started trading Amul Dairy products. Mr. Jayesh R. Shah and Yogesh R. Shah is

owner of the firm. They purchase dairy products from Gujarat

Co-Operative Milk-Marketing Federation,Anand and supply those products to all AmulParlour, shops and restaurant located at Anandand V.V.nagar.


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Subsidiary books

In business most of the transaction generallyrelated to receipt and payment of cash, sale of goods and there purchase (Cash or Credit).

It is convenient to keep a separate register for each such class of transaction one for receipt andfor payments of cash, one for purchase of goods

and one for sale of goods (Cash or Credit). Aregister of this type is called subsidiary book


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Subsidiary books used inbusiness

Cash book to record receipt and payment of cash, including receipt into and payment out of the bank.

Purchase book to record credit purchase of goods in or of the materials and stores requiredin the firm.

Purchase return book to record the returns of goods and material previously purchased.

Sales book to record the credit sales of thegoods dealt in by the firm.

Sales return book to record the returned madeby the customers.


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Objectives of Subsidiary books

Understand the technique of recording inPurchase book, sales book and purchase andsales return book.

To keep separate accounts for each suchclasses of transaction one for receipt and for

payments of cash, one for purchase of goodsand one for sale of goods.

Recording of bills payable and billsreceivable.

See the technique of posting from subsidiary

books to ledger.


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Advantages of subsidiary books

Division of work: - Since in the place of one journal there will be so manysubsidiary books, the accounting work may

be divided amongst a number of clerks. Specialisation and efficiency: - When thesame work is allotted to a particular personover a period of time, he acquires full

knowledge of it and becomes efficient inhandling it. Thus the accounting work will

be done efficiently.


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Cont.

Saving of the time: - Various accounting process can be undertaken simultaneously because of the use of a number of books.This will lead to the work being

completed quickly. Availability of information: - Since a

separate register or books is kept for eachclasses of transaction, the informationrelating to each transaction will beavailable at one place.


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Transactions are NOTrecorded in the purchasebook

Transactions of cash purchase of goods are notrecorded in the purchase books. Thesetransactions are recorded in the cash book.

If there is only an order for the supply of goodsthen it not recorded non economic. Purchase goods for private use is not recorded

because it a drawings.

Goods received from a supplier on sale or return basis.

When assets are purchase on credit or cash basis.


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When transactions are partly cashand partly credit purchase

First assume that whole transaction is for credit purchase and record in the purchase book

Then an entry for part payment may be made in thecash book.

If trade discount is to be allowed then trade discountis deduct from main transaction then post it in

purchase book.

If condition for cash discount is mentioned thencash discount is deducted form cash part only.


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Sales book

DateParticular

(Name of the customers)outward

no.L.f. Amount(Rs.)

Total credit sales

------------------------

------------------------

Only credit transactions of goods sold are recordedTransactions are recorded for net amount

eg. Amount after deducting the trade discount.


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Transactions are NOT recorded inthe sales book: - Transactions of cash sales of goods are not

recorded in the sales books. These transactionsare recorded in the cash book

If there is only an order receives for the supplyof goods then it not recorded non eco.

goods for private use is not recorded because ita drawings

Goods sent for from a supplier to sold on saleor return basis

When assets are sold on credit or cash basis


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When transactions are partly cashand partly credit sales

First assume that whole transaction isfor credit sales and record in the sales

book

Then an entry for cash part receivedmay be made in the cash book.

If trade discount is to be allowed thentrade discount is deduct from maintransaction then post it in sales book.

If condition for cash discount ismentioned then cash discount is

deducted form cash part only


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Purchase return book

DateParticular

(Name of the customers)Debit note

no.L.f. Amount(Rs.)

Total credit sales------------------------

------------------------

Only credit transactions of goods purchase return are recordedTransactions are recorded for net amount eg. Amount after deducting the trade discount.


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Transactions are NOT recorded inthe purchase return book

When goods purchased for cash arereturned.

When goods received on consignment basis are returned to the consignor.

when goods received on sales or return basis are returned.

When an assets other than goods isreturned.

When goods purchased for personal use

of the proprietor are returned.


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Sales return book

DateParticular

(Name of the customers)

Creditnote no.

L.f. Amount(Rs.)

Total sales return-----------------------

-----------------------

Only credit transactions of goods sales return arerecorded.Transactions are recorded for net amount eg. Amountafter deducting the trade discount.


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Transactions are NOT recorded in thesales return book

When goods purchased for cash arereturned.

When goods received on consignment basis

are returned to the consignor when goods received on sales or return

basis are returned When an assets other than goods is

returned. When goods purchased for personal use o

the proprietor are returned.


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TRANSACTIONS OFSANTRAM TRADERS

22.11.08

Purchase Amul Butter (150100gm) & (30500gm) 5 casesof each worth Rs.21635.75 from GCMMF Ltd.

Purchase Amul Shrikhand (12500gm) 5 cases of Rajbhogand 3 cases of Pineapple worth Rs.4178.62 from GCMMFLtd.

Purchase Amul Ghee (60200ml) & (101lit) 10 cases of each worth Rs.36806.5 from GCMMF Ltd.

Sale Vanilla 2 lit 2 boxes to Divine Dayning hall worthRs.175.00.

Sale Shakti Keshar (24500gm) 1 box to Chandni Parlour worth Rs.2507.00.

Sale Masti Dahi (24200gm) 3 boxes & (12400) 2 boxes toAmul Parlour (dairy road) worth Rs.1106.00.

ALL TRANSACTIONS
http://shrikant%20live.docx/http://shrikant%20live.docx/


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PURCHASE BOOK

Date Particular Inward no L.f. Amount(Rs.)22.11.08

G.C.M.M.F.Ltd. Amul Butter .

(150100gm)-5 cases

(30500gm)- 5 cases Amul Shrikhand (12500gm)

5-cases- Rajbhog.5-cases- Pineapple.

Amul Ghee(60200ml)-10 cases.(101lit)-10 cases.

859

-||-

-||-

21635.75

4178.62

36806.50

Total credit purchase 62620.87


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SALES BOOK

Date Particular outward no. L.f. Amount(Rs.)22.11.08 Vanilla

2 lit 2 boxes to Divine Dayninghall .

Shakti Keshar(24500gm) 1 box to ChandniParlour .

Masti Dahi(24200gm) 3 boxes & (12400)

2 boxes to Amul Parlour(dairy road) .

175.00

2507.00

1106.00

TOTAL CREDIT SALE 3788


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POSTINGPurchase Account

Date Particular Amt. Date Particular Amt.

22.11.08 To G.C.M.M.F.Ltd.A/C.

21635.75

Balancec/d

62620.87


4178.62


26806.50

--------- Total 62620.87

Total62620.

87


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Sales AccountDate Particular Amt. Date Particular Amt.

22.11.08 To Devine A/C 175.0022.11.08 To Chandani parlour A/C 2507.00

Balance c/d 3788.00 22.11.08 To Amul Parlour DairyRoad A/C

1106.00

-------

--

Total 3788.00Total 3788.00


22.11.08 To Purchase A/C. 21635.75Balance c/d 62620.87 22.11.08 To Purchase A/C. 4178.62

22.11.08 To Purchase A/C. 26806.50

Total 62620.87 Total 62620.87

G.C.M.M.F.Ltd. A/C


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Divine dining hall a/cDate Particular Amt. Date Particular Amt.

22.11.08 To sales A/C 175.00 Balance c/d 175.00

Total 175.00 -------- Total 175.00

Chandani Parlour a/c



Total 2507.00 -------- Total 2507.00

Amul Parlour (Dairy Road) A/C



Total 1106.00 -------- Total 1106.00


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Trial Balance

Accounts Dr. Cr.Purchase A/C 62620.87

G.C.M.M.F.Ltd. A/C 62620.87Devine Hall A/C 175Chandani Parlour A/C 2507Sales A/C 3788.00Amul Parlour (Dairy Road) A/C 1106.00

TOTAL 66408.87 66408.87


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