Financial Accounting Practice Problems

This solved assignment delves into fundamental financial accounting concepts. It presents practice problems involving the preparation of various accounts like Petty Cash, Capital, Duster Expenses, and Purchase Returns. Additionally, it includes a Bank Reconciliation Statement as of May 31st, 2017, demonstrating how to align bank records with internal accounting records. The assignment is designed for students studying financial accounting principles.

Accounting

Table of Contents
TASK...............................................................................................................................................1
1. Journal Accounts.....................................................................................................................1
2. Posting in ledger accounts.......................................................................................................3
3. Bank reconciliation statement.................................................................................................8
REFERENCES................................................................................................................................9

TASK
1. Journal Accounts
The recording of all the transactions will be carried out under this and this will be including
opening as well as closing balances.
Journal accounts of PITT ST FURNITURE
Date Particulars Debit Credit
01/05/17 Cash at bank A/c Dr.
Vehicle A/c Dr.
Computer A/c Dr.
Accounts receivable account Dr.
Purchases A/c Dr.
Drawings A/c Dr.
Insurance on Vehicles A/c Dr.
Insurance on Purchases A/c Dr.
Vehicle registration A/c Dr.
Interest A/c Dr.
Rent A/c Dr.
Office supplies A/c Dr.
Rates A/c Dr.
Wages A/c Dr.
Motor vehicle expenses A/c Dr.
To Accounts Payable
To Sales
To Capital
To Loan from Easy Money Ltd.
11850
60000
5000
25000
37000
8000
200
300
600
2400
7500
450
1300
4250
750
12000
55000
40000
57600
01/05/17 Petty cash A/c Dr.
To Cash at bank
100
100
Insurance for purchases A/c Dr.
To Cash at bank
100
100
1

Rent A/c Dr.
To Cash at bank
1500
1500
03/05/17 Cash at bank A/c Dr.
To Sales
10000
10000
05/05/17 Duster A/c Dr.
To Petty cash
15
15
07/05/17 Cash at bank A/c Dr.
To Accounts receivable
25000
25000
09/05/17 Purchases A/c Dr.
To Accounts payable
17250
17250
13/05/17 Signage A/c Dr.
To Petty cash
50
50
13/05/17 Wages paid A/c Dr.
To Cash at bank
500
500
16/05/17 Accounts Payable A/c Dr.
To Cash at bank
12000
12000
21/05/17 Accounts payable A/c Dr.
To Purchase return
1150
1150
23/05/17 Accounts receivable A/c Dr.
To Sales
25000
25000
26/05/17 Petty cash A/c Dr.
To Cash at Bank
65
65
27/05/17 Wages paid A/c Dr.
To Cash at Bank
500
500
28/05/17 Drawings by owner A/c Dr.
To Cash at Bank
1000
1000
29/05/17 Insurance for vehicle A/c 50
2

Dr.
To Cash at Bank
50
Entries for adjustments:
Particulars Debit Credit
1 Depreciation for vehicle A/c Dr.
To Vehicle
6250
6250
2 Advance rent A/c Dr.
To Rent
1500
1500
3 Interest on loan A/c Dr.
To Loan from Easy Money
600
600
3 Depreciation for computers A/c Dr.
To Computers
625
625
2. Posting in ledger accounts
Whole entries which are made on the basis of above mentioned transaction, will be
posted in various ledger accounts. This is required to be finished due to find out the closing
balances of each account, which will be helpful for making trail balance. Therefore, in order to
satiate the criteria below are required to make journal entries.
Ledger accounts of PITT ST FURNITURE
Cash at bank A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 11850 01/05/17 By insurance on
purchases
100
01/05/17 By rent 1500
01/05/17 By petty cash 100
03/05/17 To sales 10000 13/05/17 By wages 500
3

07/05/17 To accounts receivable 25000 16/05/17 By accounts payable 12000
26/05/17 By petty cash 65
27/05/17 By wages 500
28/05/17 By drawings 1000
29/05/17 By insurance on
vehicle
50
31/05/17 By balance c/d 31035
46850 46850
Vehicle A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 60000
31/05/17 By balance c/d 60000
60000 60000
Computer A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 5000
31/05/17 By balance c/d 5000
5000 5000
Drawings A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 8000
4

28/05/17 To cash at bank 1000 31/05/17 By balance c/d 9000
9000 9000
Accounts receivable A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 25000 07/05/17 By cash at bank 25000
23/05/17 To sales 25000 31/05/17 By balance c/d 25000
50000 50000
Purchases A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 37000
09/05/17 To accounts payable 17250 31/05/17 By balance c/d 54250
54250 54250
Signage expenses A/c
Date Particulars Amount Date Particular Amount
13/05/17 To balance b/d 50
31/05/17 By balance c/d 50
50 50
Insurance on purchases A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 300
01/05/17 To cash at bank 100 31/05/17 By balance c/d 400
5

400 400
Interest A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 2400
31/05/17 By balance c/d 2400
2400 2400
Vehicle Registration A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 600
31/05/17 By balance c/d 600
600 600
Insurance on Vehicle A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 200
29/05/17 To cash at bank 50 31/05/17 By balance c/d 250
250 250
Rates A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 1300
31/05/17 By balance c/d 1300
1300 1300
6

Office supplies A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 450
31/05/17 By balance c/d 450
450 450
Motor Vehicle expenses A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 750
31/05/17 By balance c/d 750
750 750
Rent A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 7500
01/05/17 To cash at bank 1500 31/05/17 By balance c/d 9000
9000 9000
Wages A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 4250
13/05/17 To cash at bank 500
27/05/17 To cash at bank 500 31/05/17 By balance c/d 5250
5250 5250
Accounts Payable A/c
7

Date Particulars Amount Date Particular Amount
16/05/17 To cash at bank 12000 01/05/17 By balance b/d 12000
21/05/17 To purchase return 1150 09/05/17 By Purchases 17250
31/05/17 To balance c/d 16100
29250 29250
Loan from easy money Ltd. A/c
Date Particulars Amount Date Particular Amount
01/05/17 By balance b/d 57600
31/05/17 To balance c/d 57600
57600 57600
Sales A/c
Date Particulars Amount Date Particular Amount
01/05/17 By balance b/d 55000
03/05/17 By Cash at bank 10000
31/05/17 To balance c/d 90000 23/05/17 By Accounts
receivable
25000
90000 90000
Petty cash A/c
Date Particulars Amount Date Particular Amount
01/05/17 To cash at bank 100 05/05/17 By duster expenses 15
26/05/17 To cash at bank 65 13/05/17 By signage expenses 50
8

31/05/17 By balance c/d 100
165 165
Capital A/c
Date Particulars Amount Date Particular Amount
01/05/17 By balance b/d 40000
31/05/17 To balance c/d 40000
40000 40000
Duster expenses A/c
Date Particulars Amount Date Particular Amount
05/05/17 To balance b/d 15
31/05/17 By balance c/d 15
15 15
Purchase return A/c
Date Particulars Amount Date Particular Amount
21/05/17 By accounts payable 1150
31/05/17 By balance c/d 1150
1150 1150
3. Bank reconciliation statement.
Bank reconciliation statement as at 31st may 2017
Particulars Amount
Bank balance as per cash book $31035
9