TACC401: Principles of Accounting

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TACC401: Principles of Accounting

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Executive Summary
This report has been divided into three different sections. The first section has presented
discussion ion relation to the development of financial statements including column worksheet,
income statements, balance sheet and statement of equity. The second section has demonstrated
the use of manual and computerized accounting system. The third section has dealt with the
ethical issues involved in partnership form of business activities.

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Contents
Executive Summary.........................................................................................................................2
Case 1: Preparation of worksheet, financial statements and closing entries...................................4
(A): 10 Column worksheet of HNM Medical Service for the year ended 30 June, 2017............4
B: Financial Statement of HNM Medical Service.......................................................................7
C: Journalize the closing entries................................................................................................10
Case 2: Manual and computerized accounting..............................................................................12
Part A: Manual accounting.......................................................................................................12
Part B: Computerized accounting package................................................................................13
Case 3: Partnership question and other information......................................................................15
A: Stakeholders in the Situation.................................................................................................15
B: Analysis and explanation of Wrong actions done by Derek.................................................15
C. Ethical Issues Involved in the Case.......................................................................................16

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Case 1: Preparation of worksheet, financial statements and closing entries
(A): 10 Column worksheet of HNM Medical Service for the year ended 30 June, 2017
10 Column Worksheet of HNM Medical Service for the year ended 30 June 2017
Accounts
Title Trial balance Adjustment
Adjusted
Trial
Balance
Income
Statement Balance sheet
Debit Cred
it
Debi
t
Cred
it Debit Cred
it Debit Cred
it Debit Cred
it
Cash at
Bank
$
12,60
0
$
12,60
0
$
12,600
Accounts
Receivabl
e
$
11,80
0
$
11,80
0
$
11,800
Prepaid
Insurance
$
1,800
$
1,340
$
460
$
460
Land
$
180,2
00
$
180,2
00
$180,
200
Building
$
196,0
00
$
196,0
00
$196,
000
Accumul
ated
Depreciat
ion –
Building
$
86,90
0
$
9,600
$
96,50
0
$
96,50
0
Equipme
nt
$
32,30
$
32,30
$
32,300