Introduction
Financial accounting is field of accounting mainly concerned with recording of financial transaction, classification of different transactions, reporting and analysis in order to know performance and profitability of business organisation. Furthermore, it include financial statement, profit and loss account, cash flow statements and other significant statements to know true position of business organisation (Edwards, J. R., 2013). Main duty of accountant in a business organisation is to record all financial transaction in journals, post them in ledger, prepare trial balance and finally reporting through financial statements to present true and fair view of financial statement. This report exhibits various aspects of financial accounting like purpose of financial accounting, regulations relating to financial accounting, accounting rules and principles and explanation about convections and concepts relating to consistency and material disclosure. This report also covers bank reconciliation statement, process of preparing bank reconciliation statement and, suspense account and its importance.
Business Report
1. Financial Accounting and its purposes
Financial accounting refers to set of activities related to preparation of final accounts of a business organisation in order to access and provide information about actual performance and financial position to internal and external users of financial accounting such as employees, investors, lenders and creditors, suppliers, government, customers and other regulatory bodies. Such final accounts are prepared by business organisations while considering various accounting policies, guidelines, rules and regulations (Hale, 2012). A Business organisation prepare financial accounting which mainly includes statement of financial position, profit and loss account or income statement, statement for change in equity and cash flow statement.
Purpose of Financial statement
- Financial statement shows financial details of company like profit earned, assets, retained earnings for both internal and external user who so ever are interested in financial statements of company.
- Investor invest in company after analysing the financial statement of the company. Firm with more assets and profits will attract more investor. Therefore, this is win win situation for both investor as well as for firm.
- Lenders/Creditor prior of extending loan thoroughly checks financial statement of respective company and then make decision related to extending or restricting their credit requirement.
- Taxation are imposed by government on basis of revenue and assets of company. Hence, real position is displayed by financial statement thus charged tax accordingly.
- Financial statements help in making external comparison (between different firm) as well as internal comparison (within the firm).
2. Regulation related to Finance
Stakeholder of company are the users of financial statement. They access financial statement for their personal interest like investment/purchase share of particular company, provide credit to the company, purchase product etc. Moreover, the main concern of user is that they get useful, reliable and relevant data as a base for future actions. Taking into consideration the requirement of user, government has developed a regulatory framework known as GAAP (General Accepted Accounting Principle). It is a standard method that involve concept, rules or principle, which ensure financial statement of the company is transparent, reliable as well as consistent (Fourie, 2015).
There are three regulatory/financial standard in the UK
Financial policy committee: It check financial statement as a whole. It's work is to manage risk associated with the stability of firm. Hence, they are responsible for macroeconomic regulation.
Prudential regulatory authority: These authority are responsible for microeconomic regulation. Their objective is to safeguard the interest, safety and financial strength of firm by reducing external factor that have negative effect on firm.
Financial conduct authority: Financial conduct authority's responsibility is to conduct business regulation, safeguard interest of investors and promote competition for customers. They have additional power like withdraw existing product, or imitated product as well as they can stop the functioning of any firm, which provide misleading data to outside party.
3: Accounting rules and principles
Accounting rules: Accounting is a dual entry system, which affect two account one is a debit account, and the other one is a credit account. There are three rules of accounting for personal account, real account and nominal account (Hall, J. A., 2012).
Personal account:It includes account of human being (sole proprietor, debtor) and artificial independent body (company, bank). As well as account of group person like drawing account, prepaid salary account etc. Hence, the golden rule for personal account is “debit the receiver and credit the giver”.
Real account: Real account is a part of impersonal account that include firm's tangible asset (machinery account, cash account) and intangible assets (patent account, goodwill account). The golden rule for real account is “Debit what comes in, credit what goes out”
Nominal account: Nominal is again a part of impersonal account that include all fictitious account like expense, revenue, gain and loss of firm. Such as travelling expenses account, advertisement expense, commission paid and rent received account. The golden rule for nominal account is “debit all expenses and losses, credit all income and gain” .
Accounting principles
Economic Entity: As business and businessmen are two separate legal entities. So it is duty of accountant to separate the account of business owner from its business. Like drawings are liability of business owner.
Monetary measurement: Accountant of firm record only those transaction which can be displayed in term of money. There can be non monetary transaction which are important for business but can't become part of financial transaction.
Historical cost principle: The value of assets keeps on changing with time. Moreover, it is the duty of accountant to update only that price on which assets were taken or brought into the firm. Firm don't have to do anything with current value of asset. Their further valuation takes place on basis of historical prices.
Full disclosure of account: Any relevant information to stakeholder must be displayed in the books of firm. This principle make sure that stakeholders don't get manipulative or misleading data as well as it ensure firm don't hide any relevant entry.
Going concern principles: This principle says whenever a firm operate, it operate with life long running prospective. In case accountant comes to know that company can't continue any more then this information must also be disclosed in their statements.
4 Convection and concept related to consistency and material disclosure
Consistency: This method states that the policy formed by company should be followed for years and years they cannot change them repeatedly. Adopting same policy helps company to make better comparison within the industry. For instance, if a firm is following straight line method of depreciation they should try to continue with that only (Jönsson, 2013).
Materiality disclosure: All transaction should be recorded or disclosed properly. This brings transparency to firm and attract stakeholders. Like if the company’s liabilities are more than asset they should disclose it in their financial statements. All petty information should not be hide from outside party for the self-motives of firm.Coursework help online
Client 1
See appendix
Client 2
(a) Statement of profit and loss for Peter Hampau for the year ended 31st July 2018
Peter Hampau |
|||
Statement of Profit or Loss for the year |
|||
|
£ |
£ |
£ |
Revenue |
|
|
1,20,000 |
Less cost of sales |
|
|
|
Opening inventory |
|
4,500 |
|
Add purchases |
|
70,000 |
|
|
|
74,500 |
|
Less closing inventory Note 1 |
|
-42,640 |
-31,860 |
Gross profit |
|
|
88,140 |
less expenses |
|
|
|
Wages and salaries |
16,500 |
|
|
Add wages and salaries accrued |
1,520 |
18,020 |
|
Motor expenses |
|
4580 |
|
Admin expenses |
|
1,650 |
|
Heating and lighting |
|
550 |
|
Advertising expenses |
1,030 |
|
|
Less advertising expenses |
-447 |
583 |
|
Depreciation on premises |
560 |
|
|
Depreciatiomn on equipment |
1,900 |
|
|
Deprecition on motor vehicles |
360 |
2,820 |
|
|
|
|
28,203 |
Net profit |
|
|
59,937 |
(b) Statement of financial position for Peter Hampau as at ended 31st July 2018
Peter Hampau |
|||
Statement of Financial Position as at 31 July 2018 |
|||
ASSETS |
£ |
£ |
£ |
Non-Current Assets |
cost |
Accumulated |
Net Book Value |
Freehold Premises (4450+560) |
28,000 |
-5,080 |
22,990 |
Equipment (6800+1900) |
19,000 |
-8,700 |
10,300 |
Motor vehicles (1200+360) |
3,000 |
-1,560 |
1,440 |
Total Non-Current Assets |
50,000 |
-15,270 |
34,730 |
Current Assets |
|
|
|
Inventory Note 1 |
|
42,640 |
|
Trade receivables |
|
11,520 |
|
Prepaid advertising |
|
447 |
|
Cash in hand |
|
300 |
|
Total Current Assets |
|
|
54,907 |
Total Assets |
|
|
89,637 |
Equity and liabilities |
|
|
|
Equity |
|
|
|
Capital |
|
|
24,380 |
Add profit |
|
|
59,937 |
|
|
|
84,317 |
Less drawings |
|
|
-2800 |
Total Equity |
|
|
81,517 |
Current Liabilities |
|
|
|
Trade payables |
|
5,600 |
|
Accruals: wages and salaries |
|
1,520 |
|
Bank overdraft |
|
1,000 |
|
Total Current Liabilities |
|
|
8,120 |
Total Equity and Liabilities |
|
|
89,637 |
Client 3
(a) Profit and loss account of Bowling Limited:
Bowling Limited |
|
|
£000 |
Revenue |
1,05,000 |
Less:Cost of sales |
31,000 |
Gross profit |
74,000 |
Expenses |
|
Less: Administrative cost |
30,000 |
Less: Distribution cost |
30,000 |
Operating profit |
14,000 |
Less: Tax |
4,000 |
Profit for the year |
10,000 |
(b) Balance Sheet of Bowling Limited
Bowling Limited |
|
|
£000 |
Assets |
|
Non-Current Assets |
|
Land and buildings |
52,000 |
Plant and machinery |
40,000 |
Total Non-current Assets |
92,000 |
Current Assets |
|
Inventory |
18,000 |
Trade receivables |
24,000 |
Other receivables (prepayments) |
3,000 |
|
45,000 |
Total Assets |
1,37,000 |
Equity and Liabilities |
|
Share Capital |
50,000 |
Share Premium |
20,000 |
Retained earnings |
32,000 |
|
1,02,000 |
Current Liabilities |
|
Trade payables |
14,000 |
Other payables |
2000 |
Bank overdraft |
15000 |
Tax payable |
4000 |
Total current liabilities |
35,000 |
Total Equity and Liabilities |
1,37,000 |
(c) Accounts concepts : Consistency and Prudence:
Accounting concepts refers to basic assumptions, rules and principles that gives a frameworks for recording of accounting transactions and preparation of final accounts. Accounting is mainly concerned with principles and accounting principles are framed on the basis of some assumptions such assumptions are also known as accounting concepts (Mullinova, S., 2016).
Consistency: According to this accounting concept accounting policies adopted by business organisation should be applied consistently from one period to another period. Any change in already adopted accounting policies and assumption can be made only if it is as per relevant statue or any change would results in better presentation of accounts.
Prudence: According to this accounting concept business organisation can record expenses, liabilities and obligation as soon as they occur whereas any revenues and incomes should be recorded as they realized.
(d) Purpose of depreciation in formulating accounting statements and methods of Depreciation:
Depreciation used by business organisation to exhibit decrease in assets arises due to obsolescence or physical wear and tear of assets during a particular period (Bushman and Smith, 2001). Depreciation is simply shows actual consumption of particular asset. Following are major methods to calculate depreciation:
Straight line method: In straight line method an equal amount of depreciation is provided by business organisation during the whole useful life of asset. This is an simple and most widely used method of depreciation. Formula of depreciation under this method is:
Cost of assets less Residual value
Total Useful life of asset
Written down value method: In this method, a certain formula is used to calculate fix percentage of depreciation and such percentage is applied to book value of asset to get the amount of depreciation for the year. This method is used for assets that have more efficiency in the beginning and thereafter decreases year after year (Holthausen and Watts, 2001). This method is usually adopted for plant and machinery, fixtures and fittings, motor vehicles, etc..
Client 4
Purpose of bank reconciliation: Bank-reconciliation statement is prepared by organisation to reconcile the amount of bank account prepared by organisation with amount shown in bank statement or pass book of bank (Libby, Bloomfield and Nelson, 2002).
Reason for variation in cash book and bank statement: Due to deposit of any amount by customers directly into bank account, bank charges charged by bank and organisation in unaware the fact, cheque issued but not presented etc. are major reason for difference in balance of cash book and bank statement as on a particular date (Bank reconciliation statement. 2017).
(i) Bank reconciliation statement at 1st December 2017:
Bank Reconciliation Statement as at 1st December 2017 |
||||
Debits |
£ |
|||
Balance as per opening Bank Statement |
17,478 |
|||
Outstanding Lodgements |
176 |
|||
|
|
|
|
17,654 |
Un-presented Cheques |
1,163 |
|||
Balance as per corrected Cash Book |
16,491 |
(ii) Durrell Ltd's updated cash book for December 2017 :
Dr Corrected Cash Book (Bank) Cr |
|||||
|
|
£ |
|
|
£ |
31/Dec |
Balance b/d |
19,973 |
|
Overstated amount |
1 |
|
Overstated amount |
9 |
|
Bank charges |
47 |
|
|
|
Standing order |
137 |
|
|
|
|
310923 (Direct D) |
297 |
|
|
|
|
|
Balance c/f |
19,500 |
|
|
|
|
|
|
|
19,982 |
|
|
19,982 |
|
|
Balance b/d |
19,500 |
|
|
|
(iii) Bank Reconciliation Statement as at 31"t December 2017:
Bank Reconciliation Statement as at 31st December |
||||
Debits |
£ |
|||
Balance as per Bank Statement |
19,738 |
|||
Outstanding Lodgements |
119 |
|||
|
|
|
|
19,857 |
Un-presented Cheques |
357 |
|||
Balance as per corrected Cash Book |
19,500 |
Client 5
In the books of Henderson for January 2018
(a) Sales Ledger Control and Purchase Ledger Control Account:
- i) Purchase Ledger Control A/c
Henderson's Purchases Ledger Account |
||||||
Date |
Details |
£ |
|
Date |
Details |
£ |
|
Cash/Bank |
1,11,010 |
|
1st Jan |
Balance b/d |
10,160 |
|
Discount received |
550 |
|
|
Credit purchases |
1,66,500 |
|
Set-off (contras entry) |
540 |
|
|
Refund |
400 |
Returns |
2,110 |
|
|
|
|
|
31st Jan |
Balance c/f |
62,850 |
|
|
|
|
|
|
177060 |
|
|
|
1,77,060 |
|
|
|
|
|
|
|
|
|
|
|
31st Jan |
Balance b/d |
62,850 |
|
|
|
|
|
|
|
(ii) Sales Ledger Control A/c
Henderson's Sales Ledger Account |
||||||
Date |
Details |
£ |
|
Date |
Details |
£ |
1st Jan |
Balance b/d |
9,600 |
|
|
Bank (Receipts from customers) |
1,50,610 |
|
Credit sales |
1,62,350 |
|
|
Discount allowed |
960 |
|
|
|
|
|
Sales returns |
5,320 |
|
|
|
|
|
Bad debts |
1,200 |
|
|
|
|
|
Set-off balances |
540 |
|
|
|
|
31st Jan |
Balance c/f |
13,320 |
|
|
1,71,950 |
|
|
|
1,71,950 |
31st Jan |
Balance b/d |
13,320 |
|
|
|
|
(b) Control Account:
A control account refers to a general ledger account that shows only total amount of different ledgers like a summary (Edwards, 2013). Amount of each control account also found in subsidiary ledger. Balance of control accounts shows sum of balance of all accounts.
Needs for preparing control account in the context of Henderson: Control account required to show a managed summary of different ledgers and accounts. A control account is a tool used by accountants in order to reconcile cost and final accounts. Control account assists in preparation of profit and loss and financial statements quickly and in easy manner (Saunders, Cornett and McGraw, 2000). Control accounts are prepared by accounts as an activity of internal check or account balances and transactions.
Client 6
(a) Suspense Account:
A suspense account is a temporary general ledger account prepared for posting of uncertain or doubtful entries and irregularities pending and unclassified amounts (Khan and Mayes, 2009).
Main features of suspense account: Suspense accounts assits in balancing of trial balance on temporarily or permanently basis. This accounts helps to easily Identification of error by showing mismatch amount in trial balance (White, Sondh, and Fried, 2005).
(b) Preparation of Trial Balance:
Trial Balance |
||
|
Debit |
Credit |
Purchases Account |
700 |
|
Sales Account |
|
1100 |
Rent paid Account |
250 |
|
Cash in bank (Dr) |
840 |
|
Travel expenses Account |
160 |
|
Receivables Account |
320 |
|
Payables Account |
|
350 |
Opening inventory Account |
220 |
|
Capital Account |
|
710 |
Suspense- Control Account |
|
330 |
|
|
|
|
2,490 |
2,490 |
(c) Journal entries in order to show necessary corrections for eliminating suspense account balance:
JOURNAL ENTRIES (in £)
Particulars |
Dr. |
Cr. |
Simon A/c .................................................................................Dr To Smith A/c (being sale was debited to smith instead of Simon) |
220 |
220 |
Jones A/c.................................................................................Dr To Suspense A/c (being sale of £420 not entered in Jones account, now entered) |
420 |
420 |
Suspense A/c …..................................................................... Dr To White A/c (being purchase of £750 not entered in White account, now entered) |
750 |
750 |
Dr. Suspense Account Cr. |
|||
Particulars |
Amount |
Particulars |
Amount |
To White A/c |
750 |
By Balance b/d |
330 |
|
|
By Jones A/c |
420 |
Total |
750 |
Total |
750 |
(d) Difference between a Suspense A/c and Clearing A/c:
Suspense account are mainly prepared by an accountant of a business firm in case of any error or omission found within account. In case if balance of trail balance on credit and debit side shows different balance accountant of use to open a suspense account until the problem is identified. On the other side clearing accounts are mainly prepared by bookkeeper of an organisation that help them to record financial dealing on the temporary basis. The wait for the suitable time and post the transaction into permanent account. Clearing account can also be used in a way for accounts receivable (Peterson, 2005)
Conclusion
From the above report it has been concluded that financial accounting, GAAP framework, accounting principles and rules regulation associated with financial statement holds a huge relevance to prepare financial statement of the firm. Financial statement works for both internal party as well as for outside party. In simple words who so ever finds interest in financial report of company can go through the profit and loss as well as balance sheet of company. Internal party uses information to check the performance of company like the amount of revenue generated by company.
References
Books and Journal:
- Edwards, J. R., 2013. A History of Financial Accounting (RLE Accounting). Routledge.
- Fourie, M. L., and et. al., 2015. Municipal finance and accounting. Van Schaik Publishers.
- Hale, T. N., Hale, T. and Held, D. eds., 2012. Handbook of transnational governance. Polity.
- Hall, J. A., 2012. Accounting information systems. Cengage Learning.
- Jönsson, S., 2013. Accounting and business economics traditions in Sweden: A pragmatic view. In Accounting and Business Economics (pp. 203-219). Routledge.
- Mullinova, S., 2016. Use of the principles of IFRS (IAS) 39" Financial instruments: recognition and assessment" for bank financial accounting. Modern European Researches. (1). pp.60-64.
- Bushman, R.M. and Smith, A.J., 2001. Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1-3). pp.237-333.
- Holthausen, R.W. and Watts, R.L., 2001. The relevance of the value-relevance literature for financial accounting standard setting. Journal of accounting and economics. 31(1-3). pp.3-75.
- Libby, R., Bloomfield, R. and Nelson, M.W., 2002. Experimental research in financial accounting. Accounting, Organizations and Society. 27(8). pp.775-810.
- Edwards, J.R., 2013. A History of Financial Accounting (RLE Accounting). Routledge.
- Khan, A. and Mayes, S., 2009. Transition to accrual accounting. International Monetary Fund.
- Saunders, A., Cornett, M.M. and McGraw, P.A., 2006. Financial institutions management: A risk management approach (Vol. 8). New York: McGraw-Hill/Irwin.
- White, G.L., Sondh, A.C. and Fried, D., 2005. Analysis of Financial Statement. Analysis.
- Peterson, S.J., 2005. Construction accounting and financial management (p. 556). New Jersey: Pearson Prentice Hall.
Appendix
(a) Journal Entry in the books of David Study
Date |
Particulars |
Debit |
Credit |
01/01/18 |
Premises A/c Dr. |
440000 |
|
|
Motor Van A/c Dr. |
45250 |
|
|
fixtures A/c Dr. |
10100 |
|
|
Inventory A/c Dr. |
40900 |
|
|
P Mole A/c Dr. |
2200 |
|
|
F Lane A/c Dr. |
2100 |
|
|
Bank A/c Dr. |
42400 |
|
|
Cash A/c Dr. |
10600 |
|
|
To S Hamid A/c |
|
10150 |
|
To J. Brown A/c |
|
9600 |
|
To Capital A/c (Balancing Figure) |
|
573800 |
|
(Being Owner's Capital is calculated ) |
|
|
|
|
|
|
|
Therefore, David Study's Capital at 1st January = £ 573800 |
|
|
|
|
|
|
|
|
|
|
Date |
Particulars |
Debit |
Credit |
01/01/18 |
Storage cost A/c Dr. |
800 |
|
|
To bank A/c |
|
800 |
|
(Being storage cost is paid) |
|
|
|
|
|
|
02/01/18 |
Purchases A/c Dr. |
7680 |
|
|
To S Hamid A/c |
|
2450 |
|
To D Main A/c |
|
2560 |
|
To W Tag A/c |
|
1060 |
|
To R Foot A/c |
|
1610 |
|
(Being goods purchases on credit from various parties) |
|
|
|
|
|
|
03/01/18 |
J Wilson A/c Dr. |
2020 |
|
|
T Cole A/c Dr. |
1840 |
|
|
F Seema A/c Dr. |
2380 |
|
|
J Allen A/c Dr. |
990 |
|
|
P White A/c Dr. |
2820 |
|
|
F Lane A/c Dr. |
1170 |
|
|
To Sales A/c |
|
11220 |
|
(Being goods sold on credit to various parties) |
|
|
|
|
|
|
04/01/18 |
Motor Expenses A/c Dr. |
670 |
|
|
To Cash A/c |
|
670 |
|
(Being motor expense is paid) |
|
|
|
|
|
|
07/01/18 |
Capital A/c Dr. |
2000 |
|
|
To Cash A/c |
|
2000 |
|
(Being cash withdrawal by owner himself) |
|
|
|
|
|
|
09/01/18 |
T Cole A/c Dr. |
1280 |
|
|
J fox A/c Dr. |
2310 |
|
|
To Sales A/c |
|
|
|
(Being goods purchase on credit with various parties) |
|
|
|
|
|
|
11/01/18 |
Sale Return A/c Dr. |
680 |
|
|
To J Wilson A/c |
|
370 |
|
To F Seema A/c |
|
310 |
|
(Being goods is returned back by the parties |
|
|
|
|
|
|
16/01/18 |
Bank A/c Dr. |
7150 |
|
|
Discount Allowed A/c Dr. |
461 |
|
|
To P Mole A/c |
|
1710 |
|
To F Lane A/c |
|
3364 |
|
To J Wilson A/c |
|
963 |
|
To F Seema A/c |
|
1574 |
|
(Being Payment received from parties after allowing discount @ 5%) |
|
|
|
|
|
|
19/01/18 |
R Foot A/c Dr. |
110 |
|
|
To Purchases Return A/c |
|
110 |
|
(Being Goods is returned to creditor) |
|
|
|
|
|
|
22/01/18 |
Purchases A/c Dr. |
3140 |
|
|
To L Mole A/c |
|
1330 |
|
To W Wright A/c |
|
1810 |
|
(Being goods purchased on credit) |
|
|
|
|
|
|
24/01/18 |
S Hamid A/c Dr. |
3860 |
|
|
J Brown A/c Dr. |
4260 |
|
|
R Foot A/c Dr. |
1750 |
|
|
To Bank A/c |
|
7500 |
|
To Discount Recieved A/c |
|
2370 |
|
(Being payment is made to creditors after receiving discount @ 10%) |
|
|
|
|
|
|
27/01/18 |
Salaries A/c Dr. |
14500 |
|
|
To Bank A/c |
|
14500 |
|
(Being salaries are paid through cheque) |
|
|
|
|
|
|
30/01/18 |
Business Rates A/c Dr. |
2220 |
|
|
To Bank A/c |
|
2220 |
|
(Being business rates are paid through cheque) |
|
|
(b) LEDGER ACCOUNTS
Storage Cost A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
01/07/18 |
To Bank A/c |
800 |
31/07/18 |
By Profit & Loss A/c |
800 |
Total |
800 |
Total |
800 |
||
|
|
|
|
|
|
Sales A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Trading and P&L A/c |
14810 |
03/01/18 |
By J Wilson A/c |
2020 |
|
|
|
|
By T Cole A/c |
1840 |
|
|
|
|
By F Seema A/c |
2380 |
|
|
|
|
By J Allen A/c |
990 |
|
|
|
|
By P White A/c |
2820 |
|
|
|
|
By F Lane A/c |
1170 |
|
|
|
09/01/18 |
By T Cole A/c |
1280 |
|
|
|
|
By J fox A/c |
2310 |
Total |
14810 |
Total |
14810 |
||
|
|
|
|
|
|
S Hamid A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
24/01/18 |
To Discount Received A/c |
1260 |
01/01/18 |
By Opening Balance (B/f) |
10150 |
|
To Bank A/c |
2600 |
02/01/18 |
By purchases A/c |
2450 |
31/01/18 |
To Closing Balance C/d |
8740 |
|
|
|
Total |
12600 |
Total |
12600 |
||
|
|
|
|
|
|
W Tag A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Closing Balance C/d |
1060 |
02/01/18 |
By purchases A/c |
1060 |
Total |
1060 |
Total |
1060 |
||
|
|
|
|
|
|
J Wilson A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
03/01/18 |
To Sales A/c |
2020 |
11/01/18 |
By Sales Return A/c |
370 |
|
|
|
16/01/18 |
By Bank A/c |
880 |
|
|
|
|
By Discount Allowed A/c |
83 |
|
|
|
31/01/18 |
By Closing Balance c/d |
687 |
Total |
2020 |
Total |
2020 |
||
|
|
|
|
|
|
F Seema A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
03/01/18 |
To Sales A/c |
2380 |
11/01/18 |
By Sales Return A/c |
310 |
|
|
|
16/01/18 |
By Bank A/c |
1470 |
|
|
|
|
By Discount Allowed A/c |
104 |
|
|
|
31/01/18 |
By Closing Balance c/d |
496 |
Total |
2380 |
Total |
2380 |
||
|
|
|
|
|
|
P White A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
03/01/18 |
To Sales A/c |
2820 |
31/01/18 |
By Closing Balance c/d |
2820 |
Total |
2820 |
Total |
2820 |
||
|
|
|
|
|
|
P Mole A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
01/01/18 |
To Opening Balance (B/f) |
2200 |
16/01/18 |
By Bank A/c |
1600 |
|
|
|
|
By Discount Allowed A/c |
110 |
|
|
|
31/01/18 |
By Closing Balance c/d |
490 |
Total |
2200 |
Total |
2200 |
||
|
|
|
|
|
|
Capital A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
07/01/18 |
To Cash A/c |
2000 |
01/01/18 |
By Opening Balance b/f |
573800 |
31/01/18 |
To Closing Balance C/d |
571800 |
|
|
|
Total |
573800 |
Total |
573800 |
||
|
|
|
|
|
|
J fox A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
09/01/18 |
To Sales A/c |
2310 |
31/01/18 |
By Closing Balance c/d |
2310 |
Total |
2310 |
Total |
2310 |
||
|
|
|
|
|
|
Motor Van A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
01/01/18 |
To Opening Balance (B/f) |
45250 |
31/01/18 |
By Closing Balance c/d |
45250 |
Total |
45250 |
Total |
45250 |
||
|
|
|
|
|
|
|
|
|
|
|
|
Discount Allowed A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
16/01/18 |
To P Mole A/c |
110 |
31/01/18 |
By Trading and P&L A/c |
461 |
|
To F Steel A/c |
164 |
|
|
|
|
To J Wilson A/c |
83 |
|
|
|
|
To F Seema A/c |
104 |
|
|
|
Total |
461 |
Total |
461 |
||
|
|
|
|
|
|
Discount Received A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Trading and P&L A/c |
2370 |
24/01/18 |
By S Hamid A/c |
1260 |
|
|
|
|
By J Brown A/c |
960 |
|
|
|
|
By R Foot A/c |
150 |
Total |
2370 |
Total |
2370 |
||
|
|
|
|
|
|
Salaries A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
27/01/18 |
To Bank A/c |
14500 |
31/01/18 |
By Trading and P&L A/c |
14500 |
Total |
14500 |
Total |
14500 |
||
|
|
|
|
|
|
Motor Expenses A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
04/01/18 |
To Cash A/c |
670 |
31/01/18 |
By Trading and P&L A/c |
670 |
Total |
670 |
Total |
670 |
Purchases A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
02/01/18 |
To S Hamid A/c |
2450 |
31/01/18 |
By Trading and P&L A/c |
10820 |
|
To D Main A/c |
2560 |
|
|
|
|
To W Tag A/c |
1060 |
|
|
|
|
To R Foot A/c |
1610 |
|
|
|
22/01/18 |
To L Mole A/c |
1330 |
|
|
|
|
To W Wright A/c |
1810 |
|
|
|
Total |
10820 |
Total |
10820 |
||
|
|
|
|
|
|
Bank A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
01/01/18 |
To Opening Balance (B/f) |
42400 |
01/01/18 |
By Storage cost A/c |
800 |
16/01/18 |
To P Mole A/c |
1600 |
24/01/18 |
By S Hamid A/c |
2600 |
|
To F Lane A/c |
3200 |
|
By J Brown A/c |
3300 |
|
To J Wilson A/c |
880 |
|
By R Foot A/c |
1600 |
|
To F Seema A/c |
1470 |
27/01/18 |
By Salaries A/c |
14500 |
|
|
|
30/01/18 |
By Business Rates A/c |
2220 |
|
|
|
31/01/18 |
By Closing Balance C/d |
24530 |
Total |
49550 |
Total |
49550 |
||
|
|
|
|
|
|
D Main A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Closing Balance A/c |
2560 |
02/01/18 |
By purchases A/c |
2560 |
Total |
2560 |
Total |
2560 |
||
|
|
|
|
|
|
By Purchases Return A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Trading and P&L A/c |
110 |
19/01/18 |
By R foot A/c |
110 |
|
|
|
|
|
|
R Foot A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
19/01/18 |
To Purchase Return A/c |
110 |
02/01/18 |
By purchases A/c |
1610 |
24/01/18 |
To Discount Received A/c |
150 |
31/01/18 |
By Closing Balance C/d |
250 |
|
To Bank A/c |
1600 |
|
|
|
Total |
1860 |
Total |
1860 |
||
|
|
|
|
|
|
T Cole A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
03/01/18 |
To Sales A/c |
1840 |
31/01/18 |
By Closing Balance C/d |
3120 |
09/01/18 |
To Sales A/c |
1280 |
|
|
|
Total |
3120 |
Total |
3120 |
||
|
|
|
|
|
|
J Allen A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
03/01/18 |
To Sales A/c |
990 |
31/01/18 |
By Closing Balance C/d |
990 |
Total |
990 |
Total |
990 |
||
|
|
|
|
|
|
F Lane A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
01/01/18 |
To Opening Balance (B/f) |
2100 |
16/01/18 |
By Bank A/c |
3200 |
03/01/18 |
To Sales A/c |
1170 |
|
By Discount Allowed A/c |
164 |
31/01/18 |
To Closing Balance C/d |
94 |
|
|
|
Total |
3364 |
Total |
3364 |
||
|
|
|
|
|
|
Cash A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
01/01/18 |
To Opening Balance (B/f) |
10600 |
04/01/18 |
By Motor Expenses A/c |
670 |
|
|
|
07/01/18 |
By Capital A/c |
2000 |
|
|
|
31/01/18 |
By Closing Balance C/d |
7930 |
Total |
10600 |
Total |
10600 |
||
|
|
|
|
|
|
Sales Return A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
11/01/18 |
To J Wilson A/c |
370 |
31/01/18 |
By Trading and P&L A/c |
680 |
|
To F Seema A/c |
310 |
|
|
|
Total |
680 |
Total |
680 |
||
|
|
|
|
|
|
L Mole A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Closing Balance C/d |
1330 |
22/01/18 |
By Purchases A/c |
1330 |
Total |
1330 |
Total |
1330 |
||
|
|
|
|
||
W Wright A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
31/01/18 |
To Closing Balance C/d |
1810 |
22/01/18 |
By Purchases A/c |
1810 |
Total |
1810 |
Total |
1810 |
||
|
|
|
|
|
|
J Brown A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
24/01/18 |
To Discount Received A/c |
960 |
01/01/18 |
By Opening Balance b/f |
9600 |
|
To Bank A/c |
3300 |
31/01/18 |
By Closing Balance C/d |
|
31/01/18 |
To Closing Balance C/d |
5340 |
|
|
|
Total |
9600 |
Total |
9600 |
||
|
|
|
|
|
|
Business Rates A/c |
|||||
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
30/01/18 |
To Bank A/c |
2220 |
31/01/18 |
By Trading and P&L A/c |
2220 |
Total |
2220 |
Total |
2220 |
(c) Trial Balance as at 31st January, 2018
Trial Balance for the month of July |
||
Particulars |
Debit |
Credit |
Purchases |
10820 |
- |
Bank |
24530 |
- |
D Main |
- |
2560 |
Purchases Return |
- |
110 |
R Foot |
250 |
- |
T Cole |
3120 |
- |
J Allen |
990 |
- |
F Lane |
- |
94 |
Cash |
7930 |
- |
Sales Return |
680 |
- |
L Mole |
- |
1330 |
W Wright |
- |
1810 |
J Brown |
- |
5340 |
Business Rates |
2220 |
- |
Storage cost |
800 |
- |
Sales |
- |
14810 |
S Hamid |
- |
8740 |
W Tag |
- |
1060 |
J Wilson |
687 |
- |
F Seema |
496 |
- |
P White |
2820 |
- |
P Mole |
490 |
- |
Capital |
- |
571800 |
J fox |
2310 |
- |
Motor Van |
45250 |
- |
Discount Allowed |
461 |
- |
Discount Received |
- |
2370 |
Salaries |
14500 |
- |
Motor Expenses |
670 |
- |
Premises |
440000 |
- |
Fixtures |
10100 |
- |
inventory |
40900 |
- |
Total |
610024 |
610024 |