Accounting: General Journal, Ledger, Trial Balance, Worksheet

This article covers the basics of accounting including general journal, general ledger, unadjusted trial balance, and 10-column worksheet. It also explains the difference between accrual profit and cash profit with examples.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING
Table of Contents
General Journal:...............................................................................................................................2
General Ledger:...............................................................................................................................4
Unadjusted Trial Balance:...............................................................................................................8
10-Column Worksheet:..................................................................................................................10
Income Statement:.........................................................................................................................11
Balance Sheet:...............................................................................................................................11
Difference between Accrual Profit & Cash Profit:........................................................................12
Workings:......................................................................................................................................14
Reference.......................................................................................................................................16

2ACCOUNTING
General Journal:
In the books of Muscle Up
Journal Entries
Dr. Cr.
Date Particulars Amount Amount
01-06-2018 Cash at Bank $10,120
Accounts Receivable $19,111
Motor Vehicle $32,752
Gym equipment $21,829
Stationery Supplies $409
Accounts Payable $7,445
Bank Loan $25,131
Capital $51,645
01-06-2018 Prepaid Insurance $2,375
Cash at Bank $2,375
01-06-2018 Sundry Expenses $278
Cash at Bank $278
01-06-2018 Accounts Receivable $1,012
Gym Fees $1,012
03-06-2018 Prepaid Rent $3,177
Cash at Bank $3,177
03-06-2018 Accounts Receivable $1,046
Squash Fees $1,046
04-06-2018 Cash at Bank $1,484
Accounts Receivable $1,484
08-06-2018 Cash at Bank $1,862
Accounts Receivable $1,862
10-06-2018 Cash at Bank $1,954
Squash Fees $1,954
11-06-2018 Cash at Bank $1,456
Gym Fees $1,456

3ACCOUNTING
12-06-2018 Cash at Bank $2,091
Membership Fees $2,091
13-06-2018 Equipment Hiring Charges $671
Accounts Payable $671
13-06-2018 Accounts Receivable $825
Gym Fees $825
14-06-2018 Accounts Payable $610
Cash at Bank $610
15-06-2018 Wages Expense $2,157
Cash at Bank $2,157
16-06-2018 Advertising Expense $745
Cash at Bank $745
18-06-2018 Cash at Bank $1,860
Squash Fees $1,860
19-06-2018 Stationery Supplies $817
Cash at Bank $817
21-06-2018 Accounts Receivable $1,022
Squash Fees $1,022
21-06-2018 Drawings $879
Cash at Bank $879
24-06-2018 Cash at Bank $3,939
Capital $3,939
24-06-2018 Motor Vehicle Expense $238
Cash at Bank $238
25-06-2018 Accounts Payable $688
Cash at Bank $688
26-06-2018 Cash at Bank $2,103
Membership Fees $2,103

4ACCOUNTING
26-06-2018 Advertising Expense $1,132
Accounts Payable $1,132
27-06-2018 Equipment Hiring Charges $463
Cash at Bank $463
29-06-2018 Wages Expenses $2,157
Cash at Bank $2,157
29-06-2018 Cash at Bank $1,587
Gym Fees $1,587
General Ledger:
Cash at Bank Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $10,120 $10,120
01-06-2018 Prepaid Insurance $2,375 $7,745
Sundry Expenses $278 $7,467
03-06-2018 Prepaid Rent $3,177 $4,290
04-06-2018 Accounts Receivable $1,484 $5,774
08-06-2018 Accounts Receivable $1,862 $7,636
10-06-2018 Squash Fees $1,954 $9,590
11-06-2018 Gym Fees $1,456 $11,046
12-06-2018 Membership Fees $2,091 $13,137
14-06-2018 Accounts Payable $610 $12,527
15-06-2018 Wages Expenses $2,157 $10,370
16-06-2018 Advertising Expense $745 $9,625
18-06-2018 Squash Fees $1,860 $11,485
19-06-2018 Stationery Supplies $817 $10,668
21-06-2018 Drawings $879 $9,789
24-06-2018 Capital $3,939 $13,728
24-06-2018 Motor Vehicle Expenses $238 $13,490
25-06-2018 Accounts Payable $688 $12,802
26-06-2018 Membership Fees $2,103 $14,905
27-06-2018 Equipment Hiring Charges $463 $14,442
29-06-2018 Wages Expenses $2,157 $12,285
Gym Fees $1,587 $13,872
$13,872

5ACCOUNTING
Accounts Receivable Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $19,111 $19,111
Gym Fees $1,012 $20,123
03-06-2018 Squash Fees $1,046 $21,169
04-06-2018 Cash at Bank $1,484 $19,685
08-06-2018 Cash at Bank $1,862 $17,823
13-06-2018 Gym Fees $825 $18,648
18-06-2018 Squash Fees $1,022 $19,670
Prepaid Insurance Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Cash at Bank $2,375 $2,375
Prepaid Rent Balance
Date Particulars Dr. Cr. Debit Credit
03-06-2018 Cash at Bank $3,177 $3,177
Motor Vehicle Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $32,752 $32,752
$32,752
Office Equipment Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $21,829 $21,829
$21,829
Stationery Supplies Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $409 $409
19-06-2018 Cash at Bank $817 $1,226
$1,226

6ACCOUNTING
Accounts Payable Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $7,445 $7,445
13-06-2018 Equipment Hiring Charges $671 $8,116
14-06-2018 Cash at Bank $610 $7,506
25-06-2018 Cash at Bank $688 $6,818
26-06-2018 Advertising Expenses $1,132 $7,950
$7,950
Bank Loan Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Capital $25,131 $25,131
$25,131
Capital Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Cash at Bank $10,120 $10,120
Accounts Receivable $19,111 $29,231
Motor Vehicle $32,752 $61,983
Gym equipment $21,829 $83,812
Stationery Supplies $409 $84,221
Accounts Payable $7,445 $76,776
Bank Loan $25,131 $51,645
24-06-2018 Cash at Bank $3,939 $55,584
$55,584
Drawings Balance
Date Particulars Dr. Cr. Debit Credit
21-06-2018 Cash at Bank $879 $879
$879
Gym Fees Balance
Date Particulars Dr. Cr. Debit Credit
01-06-2018 Accounts Receivable $1,012 $1,012
11-06-2018 Cash at Bank $1,456 $2,468
13-06-2018 Accounts Receivable $825 $3,293

7ACCOUNTING
29-06-2018 Cash at Bank $1,587 $4,880
$4,880
$4,880
Squash Fees Balance
Date Particulars Dr. Cr. Debit Credit
03-06-2018 Accounts Receivable $1,046 $1,046
10-06-2018 Cash at Bank $1,954 $3,000
18-06-2018 Cash at Bank $1,860 $4,860
21-06-2018 Accounts Receivable $1,022 $5,882
$5,882
Membership Fees Balance
Date Particulars Dr. Cr. Debit Credit
12-06-2018 Cash at Bank $2,091 $2,091
26-06-2018 Cash at Bank $2,103 $4,194
$4,194
Sundry Expenses Balance
Date Particulars Dr. Cr. Debit Credit
01-06-
2018 Cash at Bank $278 $278
$278
Equipment Hiring Charges Balance
Date Particulars Dr. Cr. Debit Credit
13-06-
2018 Accounts Payable $671 $671
27-06-
2018 Cash at Bank $463 $1,134
Wages Expenses Balance
Date Particulars Dr. Cr. Debit Credit
15-06-
2018 Cash at Bank $2,157 $2,157

8ACCOUNTING
29-06-
2048 Cash at Bank $2,157 $4,314
Advertising Expenses Balance
Date Particulars Dr. Cr. Debit Credit
16-06-
2018 Cash at Bank $745 $745
26-06-
2018 Accounts Payable $1,132 $1,877
Motor Vehicle Expense Balance
Date Particulars Dr. Cr. Debit Credit
24-06-
2018 Cash at Bank $238 $238
$238
Unadjusted Trial Balance:
Unadjusted Trial Balance
as on 30 June 2018
Account Unadjusted T/B
DR CR
Cash at Bank $13,872
Accounts Receivable $19,670
Prepaid Insurance $2,375
Prepaid Rent $3,177
Motor Vehicle $32,752
Accumulated Depreciation - Motor Vehicle
Office Equipment $21,829
Accumulated Depreciation - Office Equipment
Stationery Supplies $1,226
Accounts Payable $7,950
Interest Payable
Wages Payable
Bank Loan $25,131
Capital $55,584
Drawings $879
Gym Fees $4,880
Squash Fees $5,882
Membership Fees $4,194
Sundry Expenses $278

9ACCOUNTING
Equipment Hiring Charges $1,134
Wages Expenses $4,314
Advertising Expenses $1,877
Motor Vehicle Expenses $238
Interest Expenses
Depreciation Expenses
Insurance Expenses
Rent Expenses
Supplies Expenses
TOTAL
$1,03,62
1
$1,03,62
1
10-Column Worksheet:
Account
DR CR DR CR DR CR DR CR DR CR
Cash at Bank $13,872 $13,872 $13,872
Accounts Receivable $19,670 $19,670 $19,670
Prepaid Insurance $2,375 $594 $1,781 $1,781
Prepaid Rent $3,177 $635 $2,542 $2,542
Motor Vehicle $32,752 $32,752 $32,752
Accumulated Depreciation - Motor Vehicle $1,148 $1,148 $1,148
Office Equipment $21,829 $21,829 $21,829
Accumulated Depreciation - Office Equipment $4,155 $4,155 $4,155
Stationery Supplies $1,226 $583 $643 $643
Accounts Payable $7,950 $7,950 $7,950
Interest Payable $188 $188 $188
Wages Payable $308 $308 $308
Bank Loan $25,131 $25,131 $25,131
Capital $55,584 $55,584 $55,584
Drawings $879 $879 $879
Gym Fees $4,880 $4,880 $4,880
Squash Fees $5,882 $5,882 $5,882
Membership Fees $4,194 $4,194 $4,194
Sundry Expenses $278 $278 $278
Equipment Hiring Charges $1,134 $1,134 $1,134
Wages Expenses $4,314 $308 $4,622 $4,622
Advertising Expenses $1,877 $1,877 $1,877
Motor Vehicle Expenses $238 $238 $238
Interest Expenses $188 $188 $188
Depreciation Expenses $5,303 $5,303 $5,303
Insurance Expenses $594 $594 $594
Rent Expenses $635 $635 $635
Supplies Expenses $583 $583 $583
Subtotal $15,453 $14,956 $93,968 $94,465
Profit (Loss) -$497 -$497
Total $1,03,621 $1,03,621 $7,612 $7,612 $1,09,421 $1,09,421 $14,956 $14,956 $93,968 $93,968
10 Column Worksheet
Unadjusted T/B Adjustments Adjusted T/B Income Statement Balance Sheet

10ACCOUNTING
Income Statement:
$ $
Gym Fees 4,880
Squash Fees 5,882
Membership Fees 4,194
TOTAL REVENUE 14,956
Sundry Expenses -278
Equipment Hiring Charges -1,134
Wages Expenses -4,622
Advertising Expenses -1,877
Motor Vehicle Expenses -238
Interest Expenses -188
Depreciation Expenses -5,303
Insurance Expenses -594
Rent Expenses -635
Supplies Expenses -583
TOTAL EXPENSES -15,453
NET LOSS FOR THE PERIOD -497
Income Statement
for the period ended 30 June 2018
Balance Sheet:
Balance Sheet
as on 30 June 2018
$ $
Current Assets:
Cash at Bank 13,872
Accounts Receivable 19,670
Prepaid Insurance 1,781
Prepaid Rent 2,542
Stationery Supplies 643
TOTAL CURRENT ASSETS 38,508
Non-Current Assets:
Motor Vehicle 32,752
Accumulated Depreciation - Motor Vehicle -1,148

11ACCOUNTING
Office Equipment 21,829
Accumulated Depreciation - Office Equipment -4,155
TOTAL NON-CURRENT ASSETS 49,278
TOTAL ASSETS 87,786
Current Liabilities:
Accounts Payable 7,950
Interest Payable 188
Wages Payable 308
TOTAL CURRENT LIABILITIES 8,447
Non-Current Liabilities:
Bank Loan 25,131
TOTAL NON-CURRENT LIABILITIES 25,131
TOTAL LIABILITIES 33,578
Capital:
Capital 55,584
Less: Net Loss -497
55,087
Less: Drawings -879
TOTAL CAPITAL 54,208
TOTAL LIABILITIES & CAPITAL 87,786
Difference between Accrual Profit & Cash Profit:
The main concepts which is used in accounting which is related to reporting and
recognising expenses and income are accrual and cash basis of accounting. The main difference
which can be identified between cash basis and accrual basis of accounting is related to the
difference in timing in which revenue and expenses of the business are recognize (Bac, 2013).
The cash method of accounting is considered to be immediate in recognition of revenue and
expenses whereas the accrual method considers anticipated revenue expenses of the business

12ACCOUNTING
(Weil, Schipper & Francis, 2013). Another major difference which is present between cash basis
and accrual basis of accounting is that cash basis of accounting does not consider any non-cash
expenses such as depreciation expense and thereby does not provide a true view of the
performance of the business. In the case of accrual basis of accounting, both cash and non-cash
transactions are considered for estimating the accounting profits of the business. As cash basis of
accounting does not recognize non-cash items of the business, a true and clear view of the
profits cannot be obtained and therefore the method is not used much in large businesses.
In case of cash basis, revenues are only recognized in the income statement when cash is
actually received and expenses are recognized only actual cash is paid. On the other hand,
accrual method considers revenue which are actually earned during the period irrespect6ive of
the fact that cash for the same is received or not. Similarly, expenses are also recorded in a
similar manner. The accrual basis of accounting considers that money will be received for the
goods and services which is delivered to the customers. Generally, cash basis of accounting is
applied in small business organizations as in big businesses it has a tendency of overstating the
health of the business (Weygandt, Kimmel & Kieso, 2015). Whereas accrual basis provides a
true view of the financial health of a business for a year and is mostly used by businesses. Thus,
it can be said that accrual basis of accounting is more appropriate in comparison to cash basis of
accounting.
Workings:
In the books of Muscle Up

13ACCOUNTING
Adjusting Entries
Dr. Cr.
Date Particulars
Amoun
t Amount
30-06-
2018 Interest Expense $188
Interest Payable $188
Depreciation Expense $5,303
Accum. Depreciation - Motor Vehicle $1,148
Accum. Depreciation - Office Equipment $4,155
Insurance Expense $594
Prepaid Rent $594
Rent Expense $635
Prepaid Rent $635
Supplies Expense $583
Stationery Supplies $583
Wages Expenses $308
Wages Payable
308.142
9
Computation of Cash Profit:
Particulars Amount
Accounting Loss -$497
Add:
Interest Payable $188
Depreciation Expense $5,303
Insurance Expense $594
Rent Expense $635
Supplies Expense $583
Wages Payable $308
$7,115
Less:

14ACCOUNTING
Prepaid Rent $3,177
Prepaid Insurance $2,375
Purchase of Supplies $817
Cash Profit $746
The above figure shows the various items which are considered for the purpose of
computing the accounting profits of the business. The figure shows that accounting loss which is
computed considering accrual basis which considers non-cash expenses as well (Drexler, Fischer
& Schoar, 2014). In order to obtain the cash profits of the business, all non-cash deductions are
to be added back and the expenses which are still not paid are also to be added back to the figure.
In addition to this, any prepaid expense which is associated with previous year is to be removed
and this deducted. The prepaid expenses of the business which is shown in the above figure
relates to expenses of another accounting period which have been paid in advance and therefore
to ascertain the cash profits of the business, such expenses are to be deducted from the
accounting profits. The cash profits of the business is shown to be $ 746 whereas following the
accrual basis it showed a loss of $ 497.

15ACCOUNTING
Reference
Bac, A. (Ed.). (2013). International comparative issues in government accounting: The
similarities and differences between central government accounting and local
government accounting within or between countries. Springer Science & Business Media.
Drexler, A., Fischer, G., & Schoar, A. (2014). Keeping it simple: Financial literacy and rules of
thumb. American Economic Journal: Applied Economics, 6(2), 1-31.\
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting.
John Wiley & Sons.