Accountancy Project for Class 12

Project Guidelines

A. Points to be kept in mind while preparing the Accountancy Project for Grade - 12

1. Always try to choose exciting accountancy project topics.

2. Always keep your project short and precise. Add content related to your project topic
only.
3. Try to Add Diagrammatic/Graphic Presentation. Add Diagrams, Pie-Charts, Bar
Charts, and Graphs (If possible)
4. If you have any doubts, ask your project guide for project guidelines.
5. Submit your project report on time.

B. Important points that should be included in the project.

1. Title of the project

2. Problem being discussed in the project.
3. The main reason for selecting this project topic
4. Literature Review
5. The objective of the project
6. Scope of the project
7. Limitations of the project
8. Working methodology of project
9. Acknowledgement
10. Preface
11. Contents of the project
12. Observations and findings
13. Conclusion
14. References (reference books. journals, magazines, websites, etc.)

C. Steps to be kept in mind while writing the project

1. Identifying the Project Statement
2. Setting the Project Objective and Scope of the Project
3. Defining the Project Tasks and Responsibilities (Creating the Work Flow Structure)
4. Monitoring the Project and Finding the Important Resources Required

D. Here is a sample project with important detailed points to be kept in mind while
creating your project.
 Accountancy Project for Class 12

Accountancy Project - Class 12

PROJECT WORK (_____YEAR)

NAME OF THE SCHOOL : _____________

NAME OF THE STUDENT : _____________
CLASS : _____________
CBSE ROLL NUMBER : _____________
ACADEMIC YEAR : _____________
TEACHER IN CHARGE : _____________

ACKNOWLEDGEMENT
I would like to convey my sincere thanks to ……… (teacher’s name), my accountancy teacher,
who always gave me valuable suggestions and guidance during the project. She/he has a
source of inspiration and helped me understand and remember important details of the
project. She/he gave me an amazing opportunity to do this wonderful project ‘(name of the
project)’.
I also thank my parents and friends for their help and support in finalising this project within
the limited time frame.

Place: ________ Name : ________

Date : ________ Signature :________

CERTIFICATE BY GUIDE
This is to certify that ________ (name of the student) of class XII of _________ (name of the
school), _______ (name of the state) has completed his/her project file under my guidance.
He/she has taken proper care and shown the utmost sincerely in completing this project.

I certify that this project is up to my expectations and as per the guidelines issued by CBSE.

_____________ (Name of the faculty) _____________

(Commerce Department) (Signature)
 Accountancy Project for Class 12

CERTIFICATE BY STUDENT
I ________ (name of the student), student of class XII of ________ (name of the school),
________ (name of the state) hereby certify that the project was undertaken by me as per
the CBSE curriculum. I take it to be authentic and reliable.

_____________(Name of the student)

_____________ (Signature)
_____________ (Roll number)
 Accountancy Project for Class 12

CONTENTS
Sl. No. PARTICULARS PAGE NO.

1. Comprehensive Problems

(a) Journal Entries

(b) Ledger Posting

(c) Preparation of Trial Balance

(d) Preparation of Trading, Profit and Loss

Account and Balance sheet

(e) Calculation of Profitability Ratio

(f) Conclusion
 Accountancy Project for Class 12

PROJECT
COMPREHENSIVE PROBLEM
(Name of the project)

Comprehensive Problem:
Mr. Shekhar decided to commence a computer business in a building which was
constructed at a cost of ₹2,00,000 and contributed a further sum of ₹5,00,000. He wanted
to start with 10 computers. He started business on 1st April 2020. On the same date, he
deposited ₹4,80,000 in the bank.

He went on to PNB bank and put up his proposal and managed to get a loan to the extent of
75 percent of the cost of the computers ₹8,00,000 with printers. It was agreed that the loan
will be repaid in three annual instalments as follows.

● At the end of first year - ₹2,00,000 + ₹60,000 (Interest)

● At the end of 2nd year - ₹2,00,000 + ₹40,000 (Interest)

● At the end of 3rd year - ₹2,00,000 + ₹20,000 (Interest)

He gave ₹2,00,000 to the computer company as 25% of the value of the computer
purchased and ₹6,00,000 out of bank loan availed. He deposited ₹2,000 for the electrical
connection with the Electricity Board and deposited ₹2,00,000 TSNL for the telephonic
connection. He got the furnished computer cafe by paying ₹50,000 and also spent ₹4,500 in
getting pamphlets printed and distributed.

All payments were to be made by cheque and all the receipts were in cash to be deposited
in the bank on the same day. At the end of the year, their results showed following:

● Revenue from fees received from students of computer class ₹5,60,000

● Revenue from internet facility ₹2,40,000

● Revenue from sale of computer hardware ₹1,96,000

● Purchases of computer hardware ₹1,10,000

● Telephone expenses ₹68,000

● Petty expenses ₹24,000

 Accountancy Project for Class 12

● Entertainment expenses ₹20,000

● Miscellaneous expenses ₹20,000

● Wages paid ₹12,000

He withdrew ₹12,000 by cheque each month for their personal expenses. He paid the bank
loan regularly.

Required:
a. Journalise the above transaction

b. Post them into ledger accounts

c. Prepare the Trial Balance

d. Prepare the Trading, Profit and Loss Account and Balance Sheet after taking into
account that electricity charges of ₹2,48,000 is yet to be paid.

e. Charge depreciation at the rate of 25% on computers, 10% on furniture and 5% on

buildings.

f. Calculate profitability ratio and comment on the efficiency of the business if the net
profit ratio and gross profit ratio in similar types of business concerns are 20% and
50% respectively.

g. Mr. Shekhar wants to expand his business. He approached the bank for a further
loan. Compare the ratio that the banker will require before granting the loan. (Current
ratio, quick ratio and debt equity ratio)
 Accountancy Project for Class 12

Solution:
Journal Entries
Date Particulars L.F. Debit Credit
(₹) (₹)

2020
1st April Cash A/c Dr. 5,00,000
Building A/c Dr. 2,00,000
To Capital A/c 7,00,000
(Capital introduce in the business)

1st April Bank A/c Dr. 4,80,000

To Cash A/c 4,80,000
(Cash deposited into bank)

1st April Bank A/c Dr. 6,00,000

To Bank Loan A/c 6,00,000
(Loan taken from PNB bank)

1st April Computer A/c Dr. 8,00,000

To Bank A/c 8,00,000
(Purchased computer by paying ₹2,00,000 from
own source and the balance out of loan taken)

1st April Electricity Board A/c Dr. 2,000

TSNL A/c Dr. 2,00,000
To Bank A/c 2,20,000
(Security deposit with electricity board and TSNL)

1st April 50,000

Furniture and Fixture A/c Dr. 50,000
To Bank A/c
(Computer cafe purchased)
1st April 4,500
Advertisement A/c Dr.
4,500
To Bank A/c
(Payment made for advertisement by cheque)
2021
 Accountancy Project for Class 12

31st Bank A/c Dr. 9,96,000

March To Revenue from Fees and Sales A/c 9,96,000
(Total amount received i.e.,5,60,000 + 2,40,000 +
1,96,000)

Purchases A/c Dr. 1,10,000

31st To Bank A/c 1,10,000
March (Computer stationery Purchase)

Telephone Charges A/c Dr. 68,000

Petty Expenses A/c Dr. 24,000
31st Entertainment Expenses A/c Dr. 20,000
March Miscellaneous Expenses A/c Dr. 20,000
Wages A/c Dr. 12,000
To Bank A/c 1,44,000
(Expenses paid)

Drawings A/ c Dr. 1,44,000

To Bank A/c 1,44,000
(Amount withdrawn for personal use)
31st
March 60,000
Interest on Bank Loan A/c Dr. 60,000
To Bank Loan A/c
(Interest on bank loan due)
31st 2,60,000
March Bank Loan A/c Dr. 2,60,000
To Bank A/c
(First installment of bank loan paid)
2,15,000
Depreciation A/c Dr.
31st 2,00,000
To Computers A/c
March 5,000
To Furniture and Fixture A/c
10,000
To Building A/c
(Depreciation charged)
31st Electricity Charges A/c Dr. 2,48,000
March To Electricity Charges Payable A/c 2,48,000
(Electricity charges payable)
 Accountancy Project for Class 12

31st
March
 Accountancy Project for Class 12

Ledger of Shekhar
Cash A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2020 2020
1st
April Capital A/c 5,00,000 1st April Bank A/c 4,80,000
2021
31st March Balance c/d 20,000

2021 5,00,000 5,00,000

1st April Balance b/d

20,000

Building A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2020 2021
1st
April Capital A/c 2,00,000 31st
March Depreciation A/c 10,000
31st Balance c/d 1,90,000
March

2,00,000 2,00,000
2021
st
1 April Balance b/d

1,90,000
 Accountancy Project for Class 12

Capital A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2021 2020
31stMarch Balance c/d 7,00,000 1st April Building A/c 2,00,000
1st April Cash A/c 5,00,000

7,00,000 7,00,000
2021
st
1 April Balance b/d

7,00,000
 Accountancy Project for Class 12

Bank A/c
Date Particulars J. Amount Date Particulars J. Amount
F. (₹) F. (₹)

2020 2020
1st April Cash A/c 4,80,000 1st April Computer A/c 8,00,000
1st April Bank loan A/c 6,00,000 1st April Electricity Board A/c 2,000
2021 1st April TSNL A/c 2,00,000
31st Revenue from 9,96,000 1st April Furniture and Fixture A/c 50,000
Mar. fees and sales 1st April Advertisement A/c 9,000
A/c 2021
31st Mar. Purchases A/c 1,10,000
31st Mar. Telephone Exp. A/c 68,000
31st Mar. Petty Exp. A/c 24,000
31st Mar. Entertainment Exp. A/c 20,000
31st Mar. Miscellaneous Exp. A/c 20,000
31st Mar. Wages A/c 12,000
31st Mar. Drawings A/c 1,44,000
31st Mar. Bank loan A/c 2,60,000
31st Mar. Balance c/d 3,57,000

20,76,000 20,76,000
2021 Balance b/d
April 01

3,57,000
 Accountancy Project for Class 12

Bank Loan A/c

Date Particulars J. Amount Date Particulars J. Amount
F. (₹) F. (₹)

2021 2020
31st Bank A/c 2,60,000 1stApril Bank A/c 6,00,000
Mar. Balance c/d 4,00,000 2021
31st 31st Interest on bank loan A/c 60,000
Mar. Mar.

6,60,000 6,60,000
2021 Balance b/d
st
1 April
4,00,000
 Accountancy Project for Class 12

Computers A/c
Date Particulars J. Amount Date Particulars J. Amount
F. (₹) F. (₹)

2020 2021
1st April Bank A/c 8,00,000 31st Depreciation A/c 2,00,000
Mar. Balance c/d 6,00,000
31st
Mar.
2021 8,00,000 8,00,000
1st
April Balance c/d

6,00,000

Electricity Board A/c

Date Particulars J. Amount Date Particulars J Amount
F. (₹) . (₹)
F
.

2020 2021
1st April Bank A/c 2,000 31st Mar. Balance c/d 2,000

2021 2,000 2,000

1st April Balance b/d

2,000
 Accountancy Project for Class 12

TSNL A/c
Date Particulars J. Amount Date Particulars J. Amount
F. (₹) F. (₹)

2020 2021
1st April Bank A/c 2,00,000 31st Mar. Balance c/d 2,00,000

2021 2,00,000 2,00,000

1st April Balance b/d

2,00,000
 Accountancy Project for Class 12

Furniture and Fixture A/c

Date Particulars J. Amount Date Particulars J. Amount
F. (₹) F. (₹)

2020 2021
1st April Bank A/c 50,000 31st Mar. Depreciation A/c 5,000
31st Mar. Balance c/d 45,000

2021 50,000 50,000

1stApril Balance b/d

45,000

Advertisement A/c
Date Particulars J. Amount Date Particulars J.F Amount
F. (₹) . (₹)

2020 2021
1st April Bank A/c 9,000 31st Mar. Profit and Loss 9,000
A/c

9,000 9,000

Purchases A/c
Date Particulars J. Amount Date Particulars J.F Amount
F. (₹) . (₹)

2020 2021
1st
April Bank A/c 1,10,000 31st Mar. Trading A/c 1,10,000

1,10,000 1,10,000
 Accountancy Project for Class 12

Telephone Charges A/c

Date Particulars J.F Amoun Date Particulars J.F Amount
. t (₹) . (₹)

2021 2021
31stMarch Bank A/c 68,000 31stMarch Profit and Loss 68,000
A/c

68,000 68,000
 Accountancy Project for Class 12

Petty Expenses A/c

Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2021 2021
31st March Bank A/c 24,000 31st Profit and Loss 24,000
March A/c

24,000 24,000

Entertainment Expenses A/c

Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2021 2021
31stMarch Bank A/c 20,000 31stMarch Profit and Loss 20,000
A/c

20,000 20,000

Miscellaneous Expenses A/c

Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2021 2021
31st March Bank A/c 20,000 31st March Profit and Loss 20,000
A/c

20,000 20,000
 Accountancy Project for Class 12

Wages A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2021 2021
31st March Bank A/c 12,000 31st March Trading A/c 12,000

12,000 12,000
 Accountancy Project for Class 12

Drawings A/c
Date Particulars J.F. Amount Date Particulars J.F. Amount
(₹) (₹)

2021 2021
31st March Bank A/c 1,44,000 31st March Balance c/d 1,44,000

1,44,000 1,44,000
2021
April 1 Balance b/d

1,44,000

Interest on Bank Loan A/c

Date Particulars J.F Amount Date Particulars J.F Amount
. (₹) . (₹)

2021 2021
31stMarch Bank Loan A/c 60,000 31stMarch Profit and Loss 60,000
A/c

60,000 60,000
 Accountancy Project for Class 12

Depreciation A/c
Date Particulars J.F. Amount Date Particulars J.F Amount
(₹) . (₹)

2021 2021
31st March Computer A/c 2,00,000 31st March Profit and Loss 2,15,000
31st March Furniture and 5,000 A/c
Fixture A/c
31st March Building A/c 10,000

2,15,000 2,15,000

Electricity Charges A/c

Date Particulars J.F Amount Date Particulars J.F Amount
. (₹) . (₹)

2021 2021
31stMarch Electricity Charge 2,48,000 31stMarch Profit and Loss 2,48,000
Payable A/c A/c

2,48,000 2,48,000
 Accountancy Project for Class 12

Electricity Charges Payable A/c

Date Particulars J. Amount Date Particulars J Amount
F. (₹) . (₹)
F
.

2021 2021
31st Mar. Balance c/d 2,48,000 31st Mar. Electricity Charges 2,48,000
A/c

2,48,000 2,48,000
2021
st
1 April Balance b/d
2,48,000

Revenue from Fees and Sales A/c

Date Particulars J.F Amount Date Particulars J.F Amount
. (₹) . (₹)

2021 2021
31stMarch Trading A/c 9,96,000 31stMarch Bank A/c 9,96,000

9,96,000 9,96,000
 Accountancy Project for Class 12

Trial Balance
Dr. as on 31st March, 2021 Cr.
Particulars Amount (₹) Particulars Amount (₹)

Cash A/c 20,000 Capital A/c 7,00,000

Building A/c 1,90,000 Bank Loan A/c 4,00,000
Bank A/c 3,57,000 Electricity Charges Payable 2,48,000
Computers A/c 6,00,000 A/c
Electricity Board A/c 2,000 Revenue from Fees and 9,96,000
TSNL A/c 2,00,000 Sales A/c
Furniture and Fixture A/c 45,000
Advertisement A/c 9,000
Purchases A/c 1,10,000
Telephone Charges A/c 68,000
Petty Expenses A/c 24,000
Entertainment Expenses A/c 20,000
Miscellaneous Expenses A/c 20,000
Wages A/c 12,000
Drawings A/c 1,44,000
Interest on Bank Loan A/c 60,000
Depreciation A/c 2,15,000
Electricity Charges A/c 2,48,000

23,44,000 23,44,000
 Accountancy Project for Class 12

Trading Account and Profit & Loss Account

for the year ended 31st March, 2021
Dr. Cr.
Particulars Amount (₹) Particulars Amount (₹)

Purchases A/c 1,10,000 Revenue from Fees and 9,96,000

Wages A/c 12,000 Sales A/c
Gross Profit A/c 8,74,000

9,96,000 9,96,000

Advertisement A/c Gross Profit A/c

Electricity Charges A/c 9,000 8,74,000
Telephone Charges A/c 2,48,000
Petty Expenses A/c 68,000
Entertainment Expenses A/c 24,000
Miscellaneous Expenses A/c 20,000
Interest on Bank Loan A/c 20,000
Depreciation A/c: 60,000
Computer
Building 2,00,000
Furniture and Fixture .10,000
Net Profit transferred to 5,000
Capital A/c 2,10,000

8,74,000 8,74,000
 Accountancy Project for Class 12

Balance Sheet
as on 31st March, 2021
Capital and Liabilities Amount Assets Amount
(₹) (₹)

Bank Loan 4,00,000 Cash in Hand 20,000

Electricity Charges Payable 2,48,000 Bank 3,57,000
TSNL 2,00,000
Capital 7,00,000 Electricity Board 2,000
Less: Drawings (1,44,000) Computer 6,00,000
5,56,000 Building 1,90,000
Add: Net Profit 2,10,000 7,66,000 Furniture and Fixture 45,000

14,14,000 14,14,000
 Accountancy Project for Class 12

Calculation of Profitability Ratio:

(a) Gross Profit Ratio = Gross Profit / Net Sales x 100

= 8,74,000 / 9,96,000 x 100
= 87.75%
(b) Net Profit Ratio = Net Profit / Net Sales x 100
= 2,10,000 / 9,96,000 x 100
= 21.08%

Note: Efficiency of business is quite satisfactory because net profit ratio and gross profit ratio
are higher than the normal rate for similar types of business organisation.

Granting Bank Loan:

Bank will see the following ratio before granting the loan:

(a) Current Ratio = Current Assets

Current Liabilities
= Cash + Bank

Electricity Payable + Bank Loan

= 20,000 + 3,57,000
2,48,000 + 4,00,000
= 3,77,000
6,48,000
= 0.58: 1

(b) Quick ratio will be the same as the current ratio because there is neither closing stock
nor prepaid expense.

(c) Debt Equity Ratio = Debt

Equity
= 4,00,000
7,66,000
= 0.52 : 1

The bank should grant the loan as the ratios are favourable.
 Accountancy Project for Class 12

Teacher’s Observation
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