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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
ended 31 July 2018

 

£

£

£

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
prepaid

-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
depreciation

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
expenses

 

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
Statement of Profit or Loss for the year ended 31st July 2018

 

£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
Statement of Financial Position as at 31st July 2018

 

£000

Assets

 

Non-Current Assets

 

Land and buildings
(60000-1000-7000)

52,000

Plant and machinery
(65000-10000-15000)

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:

  1. 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

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