To get an understanding and feel of the process of accounting, let us go through an example of an organisations accounting consisting of a few transactions during an accounting period.
Following are the transactions relating to M/s Trinity Foods, over an accounting period from 1st June 2005 to 30th June 2006.
▪ Started business with Capital Tk. 1,00,000
▪ Paid into Bank Tk. 10,000
▪ Bought Furniture and paid cash Tk. 25,000
▪ Bought goods for cash Tk. 50,000
▪ Bought goods from Ram on Credit Tk. 15,000
▪ Sold a part of the goods for Tk. 75,000 and paid the proceeds into bank directly ▪ Sold the remaining goods on credit for Tk. 50,000 to Rahim ▪ Paid Salaries and Wages Tk. 5,000
▪ Paid rent by cheque Tk. 8,000
|Date | |Particulars | |L/F | |Debit Amount | |(in Tk.) | |Credit Amount | |(in Tk.) | | | |1st to 30th | |Cash a/c | | To Capital a/c | |Dr | |– | |– | |1,00,000 | | | |1,00,000 | | | | | |[For the amount brought in by the proprietor towards his capital contribution.] | | | | | | | | | |1st to...
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