Accounting: Ledger Accounts, Trial Balance, Statements, Revenue vs Capital Expenditure
Added on 2023-01-16
20 Pages3511 Words1 Views
Accounting
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(a) Ledger accounts of Maxim....................................................................................................2
(b) Trial balance of Maxim ........................................................................................................3
(c) Final Statements of maxim....................................................................................................3
TASK 2............................................................................................................................................3
(a) Ledgers accounts of Pendo....................................................................................................5
(b) Trial balance of Pendo...........................................................................................................6
(c) Income statement of Pendo....................................................................................................6
TASK 3............................................................................................................................................7
(a) Ledger accounts of Mafuta....................................................................................................7
(b) Trial balance of Mafuta.........................................................................................................9
(c) Financial position statement of Mafuta.................................................................................9
TASK 4..........................................................................................................................................10
(a) Ledger accounts of Ricardo.................................................................................................10
(b) Trial balance of Ricardo......................................................................................................12
TASK 5..........................................................................................................................................13
Differentiate between revenue expenditure and capital expenditure........................................13
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(a) Ledger accounts of Maxim....................................................................................................2
(b) Trial balance of Maxim ........................................................................................................3
(c) Final Statements of maxim....................................................................................................3
TASK 2............................................................................................................................................3
(a) Ledgers accounts of Pendo....................................................................................................5
(b) Trial balance of Pendo...........................................................................................................6
(c) Income statement of Pendo....................................................................................................6
TASK 3............................................................................................................................................7
(a) Ledger accounts of Mafuta....................................................................................................7
(b) Trial balance of Mafuta.........................................................................................................9
(c) Financial position statement of Mafuta.................................................................................9
TASK 4..........................................................................................................................................10
(a) Ledger accounts of Ricardo.................................................................................................10
(b) Trial balance of Ricardo......................................................................................................12
TASK 5..........................................................................................................................................13
Differentiate between revenue expenditure and capital expenditure........................................13
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16
INTRODUCTION
Accounting is defined as the process of correctly recording, posting, communicating and
reviewing the overall information related with business financial transaction within a specific
time frame (Accounting, 2019). This include the preparation of valuable financial documents
such as income statements, balance sheet and cash flow statement which support in making
better decision for future profitability. Accounting is mainly depended upon the fundamental that
help in making a successful business by keeping authentic and reliable reports.
In this report, ledger accounts, statement of P&L, trail balance and statement of financial
position are prepared for different traders. In addition, difference between capital and revenue
expenditure are discussed in this report.
TASK 1
Journal entries
Date Particulars Debit (£) Credit (£)
April, 5 Cash A/c 300.00
To Capital a/c 300.00
April, 7 Purchase a/c 200.00
To cash a/c 200.00
April, 8 Cash a/c 250.00
To Loan from Tatiana 250.00
April, 15 Motor van a/c 150.00
To cash a/c 150.00
April, 20 Cash A/c 350.00
To sales a/c 350.00
April, 28 Rent a/c 50.00
To cash a/c 50.00
April, 29 Loan a/c 200.00
To Cash A/c 200
April, 30 Drawings a/c 60.00
To cash a/c 60.00
1
Accounting is defined as the process of correctly recording, posting, communicating and
reviewing the overall information related with business financial transaction within a specific
time frame (Accounting, 2019). This include the preparation of valuable financial documents
such as income statements, balance sheet and cash flow statement which support in making
better decision for future profitability. Accounting is mainly depended upon the fundamental that
help in making a successful business by keeping authentic and reliable reports.
In this report, ledger accounts, statement of P&L, trail balance and statement of financial
position are prepared for different traders. In addition, difference between capital and revenue
expenditure are discussed in this report.
TASK 1
Journal entries
Date Particulars Debit (£) Credit (£)
April, 5 Cash A/c 300.00
To Capital a/c 300.00
April, 7 Purchase a/c 200.00
To cash a/c 200.00
April, 8 Cash a/c 250.00
To Loan from Tatiana 250.00
April, 15 Motor van a/c 150.00
To cash a/c 150.00
April, 20 Cash A/c 350.00
To sales a/c 350.00
April, 28 Rent a/c 50.00
To cash a/c 50.00
April, 29 Loan a/c 200.00
To Cash A/c 200
April, 30 Drawings a/c 60.00
To cash a/c 60.00
1
(a) Ledger accounts of Maxim
Rent a/c
Date Particular Amount (£) Date Particular Amount (£)
April,28 To cash a/c 50 April,30
By profit & loss
a/c 50
Drawings a/c
Date Particular Amount (£) Date Particular Amount (£)
April, 30 To Cash a/c 60
Sales a/c
Date Particular Amount (£) Date Particular Amount (£)
April,30 By Trading a/c 350 April,20 To cash a/c 350
2
Rent a/c
Date Particular Amount (£) Date Particular Amount (£)
April,28 To cash a/c 50 April,30
By profit & loss
a/c 50
Drawings a/c
Date Particular Amount (£) Date Particular Amount (£)
April, 30 To Cash a/c 60
Sales a/c
Date Particular Amount (£) Date Particular Amount (£)
April,30 By Trading a/c 350 April,20 To cash a/c 350
2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Accounting Fundamentals: Ledger Accounts, Trial Balance, Final Statementslg...
|21
|3340
|62
Fundamentals of Accounting - Assignmentlg...
|20
|5278
|115
Fundamentals Of Financial Accounting Assignmentlg...
|15
|4500
|499
Accounting Fundamentals: Recording Transactions and Financial Statementslg...
|21
|3414
|73
Accounting Fundamentals - Assignment Samplelg...
|22
|4827
|473
Capital expenditure versus revenue expenditurelg...
|21
|5068
|242