Calculation of sole trader 13 TASK 518 Difference between revenue expenditurturtur

ACCOUNTING
FUNDAMENTALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Ledgers accounts for Maxim...................................................................................................1
b) Trial balance at 30 April.........................................................................................................3
c) Financial statements Of Maxim for the month ending 30 April..........................................3
TASK 2............................................................................................................................................4
Ledger for Pendo company.........................................................................................................4
TASK 3............................................................................................................................................8
a) ledgers accounts For Mafuta..................................................................................................8
b) Trial balance at the end of the month for Mafuta................................................................12
c) Financial statements of Mafuta for the month ending 31 January.....................................12
TASK 4..........................................................................................................................................13
Calculation of sole trader..........................................................................................................13
TASK 5..........................................................................................................................................18
Difference between revenue expenditure and capital expenditure with reference to
international accounting standards............................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
This study is based on accounting fundamentals which are related to the basis of
accounting and covers income statements, balance sheet and closing account balances at the end
of the period. This assignment will include different task in which different transactions will be
contained for which financial statements and ledger accounts will be prepared.
TASK 1
a) Ledgers accounts for Maxim
Date Journal entry Debit (£) Credit(£)
05/Apr Cash A/c Dr 300
To capital A/c 300
07/Apr Purchase A/c Dr 200
To cash A/c 200
08/Apr Cash A/c Dr 250
To loan A/c 250
15/Apr Motor van A/c Dr 150
To cash A/c 150
20/Apr Cash A/c Dr 350
To sales A/c 350
28/Apr Rent A/c Dr 50
To Cash A/c 50
29/Apr Loan A/c Dr 200
To cash A/c 200
30/Apr Drawing A/c Dr 60
To cash A/c 60
Cash A/c
Date Particular Amount (£) Date Particular Amount (£)
05/04/18 To capital 300 07/04/18 By purchase 200
08/04/18 To loan 250 15/04/18 By Motor van 150
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20/04/18 To sales 350 28/04/18 By rent 50
29/04/18 By loan 200
30/04/18 By Drawing 60
30/04/18 By balance c/d 240
Total 900 Total 900
Purchase A/c
Date Particular Amount (£) Date Particular Amount (£)
07/04/18 To cash 200 30/04/18 By balance c/d 200
Total 200 Total 200
Loan A/c
Date Particular Amount (£) Date Particular Amount (£)
29/04/18 To cash 200 048/Apr By cash 250
30/04/18 To balance c/d 50
Total 250 Total 250
Motor van A/c
Date Particular Amount (£) Date Particular Amount (£)
15/04/18 To cash 150 30/04/18 By balance c/d 150
Total 150 Total 150
Capital A/c
Date Particular Amount (£) Date Particular Amount (£)
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30/04/18 To balance c/d 300 05/04/18 By cash 300
Total Total
Sales A/c
Date Particular Amount (£) Date Particular Amount (£)
30/04/18 To balance c/d 350 20/04/18 By cash 350
Total 350 Total 350
Drawing A/c
Date Particular Amount (£) Date Particular Amount (£)
30/04/18 To cash 60 30/04/18 By balance c/d 60
Total 60 Total 60
Rent A/c
Date Particular Amount (£) Date Particular Amount (£)
28/04/18 To cash 50 30/04/18 By balance c/d 50
Total 50 Total 50
b) Trial balance at 30 April
Trial balance of Maxim at 30 April
Account Title Debit Credit
Cash A/c 240
Purchase A/c 200
Loan A/c 50
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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) Financial statements Of Maxim for the month ending 30 April
Profit and Loss for the month ended 30 April
Particular Amount (£)
sales 350
Less:COGS 100
Gross profit 250
Less: Rent 50
Less :Drawings 60
Operating profit /net profit 140
Working note
Particulars Amount
opening stock Nil
Add: Purchase 200
Less: closing stock 100
Cost of goods sold 100
Balance sheet for the month ended 30 April
Assets Amount Liabilities Amount
Fixed assets capital 300
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