Going by the assumption that you’re talking of a software project, you should classify your documentation according to the following sections :
The first section would be that of requirements. Consult the faculty and other people involved about what functionalities are expected from the system.
Create a document to show how the various screen layouts would look like. You can use MS power point for creating slides. This is called "functional design" in technical jargon.
Create a technical design document which shows the important snippets of code, any algorithms that you might use etc.
Depending on how complex the project is, you might want to have a set of test documents. I’ll skip that for now.
And finally, do remember to have a user manual which shows the various flows available in your system and how the users would go through them. Include as many screenshots as possible.
Write back to me if you need any more details,
Cheers