Accounting Fundamentals - PDF

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ACCOUNTINGFUNDAMENTALS
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1(a) Ledger accounts of Maxim...............................................................................................1(b) Trial balance of Maxim....................................................................................................3(c) Final Statements of maxim...............................................................................................4TASK 2............................................................................................................................................5(a) Ledgers accounts of Pendo...............................................................................................5(b) Trial balance of Pendo......................................................................................................6(c) Income statement of Pendo...............................................................................................7TASK 3............................................................................................................................................8(a) Ledger accounts of Mafuta...............................................................................................8(b) Trial balance of Mafuta...................................................................................................10TASK 4..........................................................................................................................................11(a) Ledger accounts of Ricardo............................................................................................11(b) Trial balance of Ricardo.................................................................................................14TASK 5..........................................................................................................................................14CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONAccounting fundamentals are using as tool by every company for accounting activities.(Joseph and Renardy, 2013). With the help of these tools solve complex terms that are occur inbusiness when recorded transactions. Advanced accounting totally depended on the fundamentalequation that described all business's success and failure. These fundamentals are helping to dealwith particular financial function of business. This report consist of analysis of ledger accounts,income statement and financial position statement of each company. Evaluation distinctionbetween revenue expenditure and capital expenditure as per international accounting standard isalso performed in this report.TASK 1(a) Ledger accounts of MaximAccounting terms are firstly recorded in journal account as entries than these entries arerecorded in ledger accounts. These accounts are helping to maintain all component that areconnected to financial statements(Niroomandi, et. Al, 2012). Financial information are stored inledger account and presenting opening balance and closing balance of each account duringaccounting period. Single transactions are identified with in a ledger account with a transactionnumber. Ledger accounts are divided into two parts according to financial statements these areincome statement ledger account and balance sheet ledger account.1
Rent a/cDateParticularAmount (£)DateParticularAmount (£)April,28To cash a/c50April,30By profit & loss a/c50Drawings a/cDateParticularAmount (£)DateParticularAmount (£)April, 30To Cash a/c60Sales a/cDateParticularAmount (£)DateParticularAmount (£)April,30By Trading a/c350April,20To cash a/c3502
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