Accounting: Ledger Accounts, Profitability Statement, Balance Sheet

ACCOUNTING

Table of Contents
TASK 1............................................................................................................................................2
a. Ledger accounts and balances..................................................................................................2
b. Profitability statement..............................................................................................................6
c. Balance sheet...........................................................................................................................7
TASK 2............................................................................................................................................8
a. Journal Entries......................................................................................................................8
b. Trial balance..........................................................................................................................13
c. Income statement and balance sheet......................................................................................14
TASK 3..........................................................................................................................................15
a) Journal entries.....................................................................................................................15
b) Ledger Accounts.............................................................................................................16
c) Trial Balance.......................................................................................................................19
d) Profit or Loss and Balance Sheet....................................................................................19
TASK 4..........................................................................................................................................20
a) Journal Entries....................................................................................................................20
b) Ledger Accounts.............................................................................................................21
c) Trial Balance.......................................................................................................................24
TASK 5..........................................................................................................................................25
Differentiate between Revenue Expenditure and Capital Expenditure.....................................25

TASK 1
a. Ledger accounts and balances
Ledger accounts of Maxim for the month of April
Date Particulars Debit (in £) Credit (in £)
5th April Cash a/c Dr
To capital a/c
300
300
7th April Purchase a/c Dr
To cash a/c
200
200
8th April Bank a/c Dr
To loan a/c
250
250
15th April Motor van a/c Dr
To cash a/c
150
150
20th April Cash a/c Dr
To Sales a/c
350
350
28th April Rent a/c Dr
To cash a/c
50
50
29th April Loan a/c
To cash at bank
200
200
30th April Drawing a/c Dr
To cash a/c
60
60
Cash a/c

Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)
5th April To capital a/c 300 7th April By purchase
a/c
200
8th April To loan a/c 250 15th April By Motor van
a/c
150
20th April To Sales a/c 350 28th April By Rent a/c 50
29th April By Loan a/c 200
30th April By Drawing
a/c
60
30th April By balance
c/d
240
900 900
Capital a/c
Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)
5th April By cash a/c 300
30th April To balance
c/d
300
300 300

Purchase a/c
Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)
7th April To cash a/c 200
30th April By balance
c/d
200
200 200
Sales a/c
Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)
20th April By Cash a/c 350
30th April To balance
c/d
350
350 350
Motor van a/c
Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)

15th April To cash a/c 150
30th April To balance
c/d
150
150 150
Rent a/c
Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)
28th April To cash a/c 50
30th April To balance
c/d
50
50 50
Loan a/c
Debit side Credit side
Date Particulars Amount (in
£)
Date Particulars Amount (in
£)
29th April To cash at
bank
200 8th April By cash at
bank
250
30th April To balance
c/d
50
250 250