Ledger Accounts, Trial Balance, Profit and Loss Account and Balance Sheet for the Firm of Mafuta

Accounting
Fundamentals-1

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................4
Sergei A/c.........................................................................................................................................7
Task 3...............................................................................................................................................8
Ledger accounts, trial balance, profit ad loss account and balance sheet for the firm of Mafuta
.....................................................................................................................................................8
Financial statements..................................................................................................................12
TASK 4..........................................................................................................................................13
Ledger accounts and trial balance of firm of sole trader...........................................................13
Ledger accounts, trial balance, profit ad loss account and balance sheet for the firm of Mafuta
...................................................................................................................................................16
Financial statements..................................................................................................................16
TASK 4..........................................................................................................................................16
Ledger accounts and trial balance of firm of sole trader...........................................................16
TASK 5..........................................................................................................................................18
Differentiation between the revenue expenditure and the capital expenditure with reference
international accounting standards............................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
Online........................................................................................................................................20
Capital and Revenue Expenditure. 2017. [Online]Available through:<https://accounting-
simplified.com/financial/fixed-assets/capital-and-revenue-expenditure.html>.............................20
ng....................................................................................................................................................20
Absorption Costing........................................................................................................................20
Absorption Costing........................................................................................................................20

INTRODUCTION
Fundamental of accounting refers to basic concept of accounting that provides guidelines
to prepare various financial statements of a business by analysing all the financial statements
and summerzing them (Sloan, 2019). Present statement shows preparation of fundamental
accounting using basic fundamental accounting concept. It also shows broad difference between
capital and revenue expenditure on the basis of International Accounting Standards.
TASK 1
A) Journal entries and journal entries in the books of Maxim
Date Particular Amount Amount
05/04/19 Cash a/c Dr. 300
To capital a/c 300
07/04/19 Purchase a/c Dr. 200
To cash a/c 200
08/04/19 Cash a/c Dr. 250
To loan a/c 250
15/04/19 Motor van a/c Dr. 150
To cash a/c 150
20/04/19 Cash a/c Dr. 350
To sales a/c 350
28/04/19 Rent a/c Dr. 200
To cash a/c 200
29/04/19 Loan a/c Dr. 200
To cash a/c 200
30/04/19 Drawings a/c dr. 60
To cash a/c 60
Cash Account
Date Particular Amount Date Particular Amount
05/04/19 To capital a/c 300 07/04/19 By purchase 200
1

08/04/19 To Loan A/c 250 15/04/19 By motor van 150
20/04/19 To sales a/c 350 28/04/19 By rent a/c 200
29/04/19 By loan a/c 200
30/04/19 By drawings 60
By balance c/d 90
900 900
Capital A/c
Date Particular Amount Date Particular Amount
30/04/19 To Balance c/d 300 05/04/19 By cash A/c 300
300 300
Purchase A/c
Date Particular Amount Date Particular Amount
07/04/19 To cash a/c 200 By balance c/d 200
200 200
Loan A/c
Date Particular Amount Date Particular Amount
29/04/19 To cash a/c 200 04/04/19 By cash a/c 250
30/04/19 To balance c/d 50
250 250
Sales A/c
Date Particular Amount (£) Date Particular
30/04/19 To balance c/d 350 20/04/18 By cash A/c 350
350 350
2

Rent A/c
Date Particular Amount (£) Date Particular Amount
28/04/19 To cash A/c 50 30/04/18 By balance c/d 50
50 50
Drawings A/c
Date Particular Amount (£) Date Particular Amount
30/04/18 To cash 60 30/04/18 By balance c/d 60
60 60
Motor Van A/c
Date Particular Amount (£) Date Particular Amount
15/04/18 To cash 150 30/04/18 By balance c/d 150
150 150
3

B) Trial balance in the books of Maxim
Trial balance in the books of Maxim as on 30 April
Accounts Debit balance Credit balance
Cash A/c 240
Purchase A/c 200
Loan A/c 50
Motor van A/c 150
Capital A/c 300
Sales A/c 350
Drawing A/c 60
Rent A/c 50
Total 700 700
C) Preparation of financial statements in the books of Maxim
Statement showing Profit and Loss of Maxim
Particular Amount
sales
Less:COGS
Gross profit
Less: Rent
Less :Drawings
Operating profit /net profit
Statement showing financial position of the company
Liabilities Amount Assets Amount
Stakeholders equity Current assets
capital 300 inventories 100
Drawings (60) cash 240
net profit 140 Fixed assets
4

Stakeholders equity 380 Motor van 150
loan 250
Repaid part of loan (200)
50
Total 490 Total 490
TASK 2
A) Journal entries Ledger Accounts in the books if Pendo Company
Journal in the books of Pendo Company for the period 1/01/19 to 31/01/19
Date Particulars Debit amount
( £)
Credit amount
(£)
1/01/19 Cash A/c 5000
To Capital A/c 5000
2/01/19 Motor Van expenses A/c 600
To cash a/c 600
3/01/19 Purchase A/c 1300
To Cash A/c 1300
4/01/19 Cash A/c 1000
To loan A/c 1000
10/01/19 Motor Van expenses A/c 200
To Cash A/c 200
13/01/19 Cash A/c 300
To sales A/c 300
20/01/19 Cash A/c 500
To sales A/c 500
24/01/19 storage expenses A/c 150
To cash A/c 150
27-Jan loan A/c 350
To cash A/c 350
30-Jan Drawing A/c 175
To cash A/c 175
Ledgers in the books of Pendo company
Cash A/c
Date Particulars Amount Date Particulars Amount
5

1/01/19 To capital A/c 5000 2/01/19 By Motor Van
A/c 600
4/01/19 To Sergei A/c 1000 3-/01/19 By purchases
A/c 1300
13/01/19 To Sales A/c 300 10/01/19 By Motor Van
expenses A/c 200
20/01/19 To sales A/c 500 24/01/19 By Storage
expenses A/c 150
27-/01/19 By loan A/c 350
30/01/19 By Drawings
A/c 175
By Balance c/d 4025
6800 6800
Motor Van A/c
Date Particulars Amount Date Particulars Amount
2/01/19 To Cash A/c 600 31/01/1
9
By balance c/d 600
600 600
Expenses A/c
Date Particulars Amount Date Particulars Amount
10/01/19 To Cash A/c 200 31/01/
19
By balance c/d 350
24/01/19 To Cash A/c 150
350 350
Sales A/c
Date Particulars Amount Date Particulars Amount
31/01/19 To balance
c/d
800 13/01/19 By Cash A/c 300
20/01/19 By cash A/c 500
800 800
Purchase A/c
Date Particulars Amount Date Particulars Amount
3/01/19 To Cash A/c 1300 31/01/1
9
By balance c/d 1300
6