Assignment on

Books of Accounts
 Assignment Question

You have just started a sandwich outlet in our campus

with a capital of 40,000.You buy the necessary vending
machines, hire persons to maintain the shop, make
and sell 20 cheese grilled sandwiches. Maintain all
necessary books of accounts and make appropriate
entries to the same.
 Basic Information Required for
Sandwich Outlet
 Number of Students at PROTON.
 Costs of raw material required.
 Costs of vending machines.
 Rent payable to premise owner (PROTON).
 Deposit payable to premise owner (PROTON).
 No. of employees required to manage the business.
 Salaries payable to the employees.
 Cost of setting up the infrastructure required like furniture
and refrigerator.
 Amount of Reserves to be kept for Contingencies.
 Ingredients required and cost
assumed
 Ingredients for 1 sandwich:
a) Bread : 2 slice (2/-)
b) Cheese : 1 cube (6/-)
c) Vegetable + Butter : (7/-)

• Total cost of 1 sandwich : 15/-

• Selling price of one sandwich : 25/-
• Profit : 10/-
 Sandwich outlet in PROTON
Capital - 40,000
Grilling machine 2500/-
Worker 1000/-
Furniture 5000/-
Cheese 3600/-
Bread 1200/-
Raw material 4200/-
(vegetables+butter)
Rent 2500/-
Fridge 5000/-
Deposit 10,000/-
Reserve for future 5000/-
 Journal entries
L
Date Particular F
Dr. amt Cr. amt
Cash a/c 40,000 -
Dr - 40,000
To Capital a/c
(business commenced)
Machine a/c Dr 7,500 -
To Cash a/c - 7,500
(grilling m/c & fridge purchased )
Salary a/c Dr 1,000 -
To Cash a/c - 1,000
(salary paid)
Furniture a/c 5,000 -
Dr - 5,000
To Cash a/c
(furniture purchased)
 Journal entries
Date Particular L Dr. amt Cr. amt
Purchase a/c Dr 9,000 -
To Cash a/c - 9,000
(raw material purchased)
Rent a/c Dr 2,500 -
To Cash a/c - 2,500
(rent paid)
PROTON a/c Dr 10,000 -
To Cash a/c - 10,000
(security amt deposited)
Cash a/c Dr 15,000 -
To Sales a/c - 15,000
(20 Sandwiches sold at
Rs.25/piece)
 Journal entry
Date Particular L Dr. amt Cr. amt
cash a/c Dr 5000 -
- 5000
to reserve a/c
(cash send to reserve)
 Ledger Account
Cash Account

Date Particular J Dr. Date Particular Cr.

F amt amt

To Capital a/c 40,000 By m/c a/c 7,500

To Sales a/c 15,000 By Salary a/c 1,000
To reserve a/c 5000 By Furniture a/c 5,000
By Purchase a/c 9,000
By Rent a/c 2,500
By PROTON a/c 10,000
By Balance c/d 25,000
60,000 60,000
Total Total
 Capital Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Balance 40,000 By Cash a/c 40,000

c/d
 Machine Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Cash a/c 7,500 By Balance c/d 7,500

 Salary Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Cash a/c 1,000 By Balance c/d 1,000

 Furniture Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Cash a/c 5,000 By Balance c/d 5,000

 Purchase Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Cash a/c 9,000 By Balance c/d 9,000

 Rent Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Bal c/d 2,500 By Cash a/c 2,500

 PROTON Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Cash a/c 10,000 By Bal c/d 10,000

 Sales Account

Date Particular Dr. Date Particular Cr.

amt Amt

To Bal c/d 15,000 15,000

By Cash a/c
 Reserve Account

Date Particular Dr. Date Particular Cr.

amt Amt

To bal c/d 5,000 5,000

By cash a/c
 Trading and P/L account

Particular Dr. amt Particular Cr.

amt
To Purchase a/c 9,000 By Sales a/c 15,000
To Gross profit 6,000
15,000 15,000

To Salary a/c 1,000 By Gross profit 6,000

To Rent a/c 2,500
To Net profit 2,500
Total 6,000 Total 6,000
 Balance Sheet

Liabilities Amt Assets Amt

Capital 40,000 Machine 7,500
P/L (profit) 2,500 PROTON 10,000
reserve 5,000 Furniture 5,000
Cash 25,000

47,500 47,500
Thank You