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Class XII
Accountancy Project Work
Preface
This project work is an effort to present
accounting in a real life perspective. The work is broadly divided into
two sections. The comprehensive section which comes first develops the
financial accounting scenario based on a successful business story. It
demonstrates entire accounting process from journal entries to final
accounts. It shows how ledger accounts are balanced at the end of each
month, how trial balances help to check arithmetic accuracy of accounts
and finally how books are closed at the end of a financial year.
The unfolding business story has been
tailored to suit the scope of this small project work. Subsidiary
journals and special ledgers as well as bank reconciliations are
excluded as they would require much larger scenario to be meaningful.
Moreover the nature of transactions and number of items included are
reduced to fit in the picture. There are only very few suppliers,
customers and expense and income accounts. There is an exaggeration of
profitability to present a very positive picture.
The second section of this work presents
ratio and cash flow analysis, the most common tools of financial
analysis. It shows how the liquidity and profitability ratios are used
to extract some crucial information from the financial statements of the
business. The cash flow statement shows how financial statements could
be used for tracking major streams of cash flow in the business. These
tools are very effective in extracting critical information for
successful finance management.
In spite of all my sincere efforts in this
work, I acknowledge the fact that there are many areas still far from
perfection due to constraints of limited experience and time.
I use this opportunity to thank my teacher
Mr. (teacher's name) for
patiently checking the details of the draft and helping me with valuable
suggestions.
With a deep
sense of gratitude towards each and every person who encouraged and
supported me in completing this work, I submit this work for evaluation.
my name
Class
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