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Accounting Fundamentals - Assignment Solved

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Added on  2021-02-20

Accounting Fundamentals - Assignment Solved

   Added on 2021-02-20

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Accounting fundamentals
Accounting Fundamentals - Assignment Solved_1
ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1a) Recording, balancing and closing ledger accounts for Maxim...............................................1b) Preparation of list of above accounts......................................................................................3c) Preparation of P&L account and statement of financial position for Maxim..........................4TASK 2............................................................................................................................................5a) Recording, balancing and closing ledger accounts for Pendo.................................................5b) Preparation of trail balance......................................................................................................7c) Preparation of Profit and loss A/c and statement of financial position...................................8TASK 3............................................................................................................................................9a) Recording and closing ledger accounts for Mafuta.................................................................9b) Extraction of trial balance at 31 January...............................................................................13c) Preparation of Income statement and Balance sheet.............................................................13TASK 4..........................................................................................................................................14Preparation of ledger accounts and extracting trail balance for Ricardo having transactionswith individual customers and suppliers....................................................................................14TASK 5..........................................................................................................................................17Presenting difference between revenue and capital expenditure...............................................17CONCLUSION..............................................................................................................................20REFERENCES..............................................................................................................................21
Accounting Fundamentals - Assignment Solved_2
INTRODUCTIONAccounting fundamentals is a term which used for basic concepts of accounting whichinvolves expenditure, incomes, assets, liabilities and many more (Albritton, 2019). This conceptis related with the purpose of developing various accounting statements which aids in assessingthe financial performance of a business organisation (Basu and et.al., 2015). The main aim ofthis report is to build an understanding about the concepts and systems of accounting. This reportincludes various tasks which involves development and presentation of various financialstatements. The first four tasks of this report are related with development of various statements such asledger accounts, trial balance, income statements and balance sheets which are based on journalentries. These statements are prepared using the information about various organisations andindividuals. The last task is related with assessing the difference between revenue expenditureand capital expenditure. This difference is evaluated with the reference of accounting standardswhich are universal accounting norms that are required to be followed by every lawful businessfirm despite of the variation in its size or structure. TASK 1a) Recording, balancing and closing ledger accounts for MaximJournal entries for Maxim:DateJournal entryDebit (£)Credit(£)05/04/19Cash Account Dr300To capital Account30007/04/19Purchase Account Dr200To cash Account20008/04/19Cash Account Dr250To loan Account25015/04/19Motor van Account Dr150To cash Account15020/04/19Cash Account Dr350To sales Account35028/04/19Rent Account Dr50To Cash Account5029/04/19Loan Account Dr200To cash Account20030/04/19Drawing Account Dr60To cash Account601
Accounting Fundamentals - Assignment Solved_3
Total15601560Cash A/cDr.Cr.DateParticularAmount(£)DateParticularAmount (£)05/04/19To capitalAccount 30007/04/19By purchaseAccount20008/04/19To loan Account25015/04/19By Motor vanAccount15020/04/19To salesAccount35028/04/19By rent Account5029/04/19By loan Account20030/04/19By DrawingAccount6030/04/19By balance c/d240900900Loan A/cDr.Cr.DateParticularAmount(£)DateParticularAmount (£)29/04/19To cash Account20008/04/19By cash Account25030/04/19To balance c/d50250250Drawing A/cDr.Cr.DateParticularAmount(£)DateParticularAmount (£)30/04/19To cash Account6030/04/19By balance c/d606060Purchase A/cDr.Cr.DateParticularAmountDateParticularAmount (£)2
Accounting Fundamentals - Assignment Solved_4
(£)07/04/19To cash Account20030/04/19By balance c/d200200200Capital A/cDr.Cr.DateParticularAmount(£)DateParticularAmount (£)30/04/19To balance c/d30005/04/19By cash account300300300Rent A/cDr.Cr.DateParticularAmount(£)DateParticularAmount (£)28/04/18To cash account5030/04/18By balance c/d505050Motor van A/cDr.Cr.DateParticularAmount(£)DateParticularAmount (£)15/04/19To cash Account15030/04/19By balance c/d150150150Sales A/cDr.Cr.DateParticularAmount (£)DateParticularAmount (£)30/04/19To balance c/d35020/04/19By cash350350350b) Preparation of list of above accountsTrial balance of Maxim as on 30 April 20193
Accounting Fundamentals - Assignment Solved_5
Account TitleDebitCreditCash Account240Purchase Account200Loan Account50Motor van Account150Capital Account300Sales Account350Drawing Account60rent Account50Total700700c) Preparation of P&L account and statement of financial position for MaximProfit and Loss for the month ended 30 AprilParticularAmount (£)sales350Less: Cost of goods sold 100Gross profit250Less: Rent paid50net profit200Working notesParticularsAmountopening stock0Add: Purchases200Less: closing stock 100Cost of goods sold100Statement of financial position as on 30 AprilAssetsAmountLiabilitiesAmountNon-current assetscapital300Motor van150Less : Drawings60Current assetsAdd: net profit 200inventory100440cash240loan250Less : repaid20050Total 490Total490TASK 2a) Recording, balancing and closing ledger accounts for PendoSALES ACCOUNT4
Accounting Fundamentals - Assignment Solved_6

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