Accounting Fundamentals: Recording Transactions, Trial Balance, Profit & Loss, Balance Sheet

Accounting Fundamentals

TABLE OF CONTENTS
TASK 1......................................................................................................................................3
a. Recording transactions and preparing ledger accounts in the books of Maxim.................3
b. Developing trial balance for the month of April................................................................7
c. Preparing statement of profit & loss and balance sheet for the month of April.................7
TASK 2......................................................................................................................................9
a. Ledger accounts..................................................................................................................9
b. Trial balance.....................................................................................................................13
c. Final accounts...................................................................................................................14
TASK 3....................................................................................................................................15
a. Ledger accounts................................................................................................................15
b. trial balance......................................................................................................................19
c. Final accounts...................................................................................................................20

TASK 1
a. Recording transactions and preparing ledger accounts in the books of Maxim
Date Particulars Debit (in £) Credit (in £)
5 April Cash a/c Dr.
To capital a/c
300
300
7 April Purchase a/c Dr.
To cash a/c
200
200
8 April Bank a/c Dr.
To short term loan
a/c
250
250
15 April Motor van a/c Dr.
To cash / bank a/c
150
150
20 April Cash a/c Dr.
To Sales a/c
350
350
28 April Rent a/c Dr
To cash a/c
50
50
29 April Short term loan a/c
Dr.
To cash / bank a/c
200
200
30 April Drawing a/c Dr 60

To cash a/c 60
Ledger accounts
Cash a/c
Date Particulars Amount (in £) Date Particulars Amount
(in £)
5/4 To capital a/c 300 7/4 By
purchases
a/c
200
8/4 To short term
loan a/c
250 15/4 By motor
vehicle a/c
150
20/4 To sales a/c 350 28/4 By rent a/c 50
29/4 By short
term loan
a/c
200
30/4 By
drawings
a/c
60
30 /4 By balance
c/d
240
900 900
Capital a/c
Date Particulars Amount (in £) Date Particulars Amount
(in £)
30/4 To drawings 60 5/4 By cash a/c 300

a/c
30/4 To balance c/d 240
300 300
Short term loan a/c
Date Particulars Amount (in £) Date Particulars Amount
(in £)
29/4 To cash a/c 200 8/4 By bank a/c 250
30/4 To balance c/d 50
250 250
Purchase a/c
Date Particulars Amount (in £) Date Particulars Amount
(in £)
7/4 To cash a/c 200
30/4 By balance
c/d
200
200 200
Sales a/c

Date Particulars Amount (in £) Date Particulars Amount
(in £)
20/4 By cash 350
30/4 To balance c/d 350
350 350
Motor van a/c
Date Particulars Amount (in £) Date Particulars Amount
(in £)
15/4 To cash a/c 150
Rent a/c
Date Particulars Amount (in £) Date Particulars Amount
(in £)
28/4 To cash a/c 50
30/4 By balance
c/d
50
50 50