Accounting Homework

This accounting homework solution covers various accounting concepts, including journal entries, ledger accounts, trial balance, and financial statements. It provides detailed explanations and examples to help students understand the fundamental principles of accounting. The solution also includes a discussion on revenue expenses, capital expenditure, and their differences.

Accounting
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Journal entries: ............................................................................................................................3
Ledger account: ...........................................................................................................................4
Trail balance: ..............................................................................................................................5
(c) Statement of Trading and Profit or Loss for the Month ended 30 April................................6
TASK 2............................................................................................................................................6
Journal: ........................................................................................................................................6
Ledger accounts...........................................................................................................................7
(b): Trial balance .........................................................................................................................9
(c): Statement of profit and loss...................................................................................................9
TASK 3..........................................................................................................................................10
(a): Journals................................................................................................................................10
(b) Trail balance.........................................................................................................................14
(c): Statement of profit and loss statement................................................................................14
TASK 4..........................................................................................................................................15
Ledger accounts and recording of transactions in the books of Ricardo...................................15
TASK 5..........................................................................................................................................18
Revenue expenses......................................................................................................................18
Capital expenditure....................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Accounting is said to be one of the crucial aspects for an organisation. It is basically
known as the systematic analysis of the financial transactions that are done by the company
during the period of time. This project aimed at providing specific information about the journal,
ledger and trail balance that are considered as primary record of the company. Apart from this,
information about the revenue and capital expenses are covered under this report (Zeff, 2016).
TASK 1
Journal entries:
(a) Journal Entries in the Books of Maxim
(In￡)
Date Particulars Debit Credit
05-04-18 Cash A/c Dr. 300
To Capital A/c 300
(Being Capital introduced in the business)
07-04-18 Purchases A/c Dr. 200
To Cash A/c 200
(Being goods is purchased)
08-04-18 Cash A/c Dr. 250
To Tatiana A/c 250
(Being loan is received from Tatiana)
15-04-18 Motor Van A/c Dr. 150
To Cash A/c 150
(Being Motor van purchased in cash)
20-04-18 Cash A/c Dr. 350
To Sales A/c 350
(Being goods is sold)
28-04-18 Rent A/c Dr. 50
To Cash A/c 50
(Being rent is paid in cash)
29-04-18 Tatiana A/c Dr. 200
To Cash A/c 200
3

(Being part of loan is repaid)
30-04-18 Capital A/c Dr. 60
To Cash A/c 60
(Being cash is withdrawal by owner)
Ledger account:
(a) LEDGER ACCOUNTS
(In￡)
Capital A/c
Date Particulars Amount Date Particulars Amount
30-04-18 To Cash A/c 60 05-04-18 By Cash A/c 300
To Closing Balance C/d 240
Total 300 Total 300
Cash A/c
Date Particulars Amount Date Particulars Amount
05-04-18 To Capital A/c 300 07-04-18 By Purchases A/c 200
08-04-18 To Tatiana A/c 250 15-04-18 By Motor Van A/c 150
20-04-18 To Sales A/c 350 28-04-18 By Rent A/c 50
29-04-18 By Tatiana A/c 200
30-04-18 By Capital A/c 60
By Closing Bal. C/d 240
Total 900 Total 900
Purchases A/c
Date Particulars Amount Date Particulars Amount
07-04-18 To Cash A/c 200 30-04-18 By Trading and P&L A/c 200

Total 200 Total 200
Tatiana A/c
Date Particulars Amount Date Particulars Amount
29-04-18 To Cash A/c 200 08-04-18 By Cash A/c 250
30-04-18 To Closing Balance C/d 50
Total 250 Total 250
Motor Van A/c
Date Particulars Amount Date Particulars Amount
15-04-18 To Cash A/c 150 30-04-18 By Closing Bal. C/d 150
Total 150 Total 150
Sales A/c
Date Particulars Amount Date Particulars Amount
30-04-18 To Trading and P&L A/c 350 20-04-18 By Cash A/c 350
Total 350 Total 350
Rent A/c
Date Particulars Amount Date Particulars Amount
28-04-18 To Cash A/c 50 30-04-18 By Trading and P&L A/c 50
Total 50 Total 50
Trail balance:
TRIAL BALANCE
(In￡)
Particulars Debit Credit
5

Capital - 240
Cash 240 -
Purchases 200 -
Tatiana - 50
Motor Van 150 -
Sales - 350
Rent 50 -
Total 640 640
(c) Statement of Trading and Profit or Loss for the Month ended 30 April
(In￡)
Particulars Amount Particulars Amount
To Purchases A/c 200 By Sales A/c 350
To Gross Profit C/d 250 By Closing Stock A/c 100
450 450
To Rent A/c 50 By Gross Profit B/d 250
To Net Profit C/d 200
250 250
Statement of Financial Position at 30th April
(In￡)
Liabilities Amount Assets Amount
Capital 240 Non-Current Assets:
Add: Net Profit For the Year 200 440 Motor Van 150
Current Assets:
Unsecured Loans: Cash in Hand 240
Tatiana 50 Closing Stock 100
Total 490 Total 490
TASK 2
Journal:
(a) Journal Entries in the books of Pendo for the month of January
(In￡)
Date Particulars Debit Credi

t
01-01-18 Cash A/c Dr. 5000
To Capital A/c 5000
(Being Capital is introduced in the business)
02-01-18 Motor Van A/c Dr. 600
To Cash A/c 600
(Being Motor Car is purchased in cash)
03-01-18 Purchases A/c Dr. 1300
To Cash A/c 1300
(Being goods is purchased)
04-01-18 Cash A/c Dr. 1000
To Sergei A/c 1000
(Being loan is received from Sergei)
10-01-18 Motor Van Expenses A/c Dr. 200
To Cash A/c 200
Being Expenses is paid on motor van)
13-01-18 Cash A/c Dr. 300
To Sales A/c 300
(Being goods is sold on cash)
20-01-18 Cash A/c Dr. 500
To Sales A/c 500
(Being goods is sold on cash)
24-01-18 Storage Expenses A/c Dr. 150
To Cash A/c 150
(Being storage Expense is paid)
27-01-18 Sergei A/c Dr. 350
To Cash A/c 350
(Being part of loan is repaid to Sergei)
30-01-18 Capital A/c Dr. 175
To Cash A/c 175
(Being Cash is Withdrawal from business)
7

Ledger accounts
(a) LEDGER ACCOUNTS
(In￡)
Capital A/c
Date Particulars Amount Date Particulars Amount
30-01-18 To Cash A/c 175 01-01-18 By Cash A/c 5000
31-01-18 To Closing Balance C/d 4825
Total 5000 Total 5000
Cash A/c
Date Particulars Amount Date Particulars Amount
01-01-
18 To Capital A/c 5000 02-01-18 By Motor Van A/c 600
04-01-
18 To Sergei A/c 1000 03-01-18 By Purchases A/c 1300
13-01-
18 To Sales A/c 300 10-01-18 By Motor Van Expenses A/c 200
20-01-
18 To Sales A/c 500 24-01-18 By Storage Expenses A/c 150
27-01-18 By Sergei A/c 350
30-01-18 By Capital A/c 175
By Closing Balance C/d 4025
Total 6800 Total 6800
Motor Van A/c
Date Particulars Amount Date Particulars Amount
02-01-18 To Cash A/c 600 31-01-18 By Closing Balance C/d 600
Total 600 Total 600
Purchases A/c
Date Particulars Amount Date Particulars Amount
03-01-18 To Cash A/c 1300 31-01-18 By Trading and P&L A/c 1300
Total 1300 Total 1300
Sergei A/c
Date Particulars Amount Date Particulars Amount

27-01-18 To Cash A/c 350 04-01-18 By Cash A/c 1000
31-01-18 To Closing Balance C/d 650
Total 1000 Total 1000
Motor Van Expenses A/c
Date Particulars Amount Date Particulars Amount
10-01-18 To Cash A/c 200 31-01-18 By Trading and P&L A/c 200
Total 200 Total 200
Sales A/c
Date Particulars Amount Date Particulars Amount
31-01-18 To Trading and P&L A/c 800 13-01-18 By Cash A/c 300
20-01-18 By Cash A/c 500
Total 800 Total 800
Storage Expenses A/c
Date Particulars Amount Date Particulars Amount
24-01-18 To Cash A/c 150 31-01-18 By Trading and P&L A/c 150
Total 150 Total 150
(b): Trial balance
TRIAL BALANCE
(In￡)
Particulars Debit Credit
Capital - 4825
Cash 4025 -
Motor Van 600 -
Purchases 1300 -
Sergei - 650
Motor Van Expenses 200 -
Sales - 800
Storage Expenses 150 -
Total 6275 6275
9

(c): Statement of profit and loss
Statement of Trading and Profit or Loss for the Month ended 30th January
(In￡)
Particulars Amount Particulars Amount
To Purchases A/c 1300 By Sales A/c 800
To Gross Profit C/d 300 By Closing Stock A/c 800
1600 1600
To Motor Van Expenses A/c 200 By Gross Profit B/d 300
To Storage Expenses A/c 150
By Net Loss C/d 50
350 350
Statement of Financial Position at 31th January
(In￡)
Liabilities Amount Assets Amount
Capital 4825 Non-Current Assets:
Less: Net Loss For the Year 50 4775 Motor Van 600
Current Assets:
Unsecured Loans: Cash in Hand 4025
Sergei 650 Closing Stock 800
Total 5425 Total 5425
TASK 3
(a): Journals
(a) Journal Entries In the Books of Mufta
(In￡)
Date Particulars Debit Credit
02-01-18 Harvey A/c Dr. 124
To Sales A/c 124
(Being Goods sold to Harvey on credit)
05-01-18 Wages A/c Dr. 12

To Cash A/c 12
(Being wages paid in cash)
05-01-18 Purchases A/c Dr. 150
To Rich A/c 150
(Being goods purchased on credit from rich
07-01-18 Cash A/c Dr. 18
To Smith A/c 18
(Being smith settled his dues)
09-01-18 Max A/c Dr. 21 -
To Cash A/c 21
(Being amount paid owing to max)
11-01-18 Cash A/c Dr. 64
To Sales A/c 64
(Being goods sold in cash)
14-01-18 Wages A/c Dr. 14
To Cash A/c 14
(Being wages paid in cash)
14-01-18 Purchases A/c Dr. 75
To Cash A/c 75
(Being goods purchased in cash)
15-01-18 Rich A/c Dr. 162
To Cash A/c 162
(Being amount is paid to rich)
20-01-18 Furniture and Fittings A/c Dr. 32
To Cash A/c 32
(Being office desk is purchased in cash)
21-01-18 Wages A/c Dr. 17
To Cash A/c 17
(Being wages paid in cash)
21-01-18 Cash A/c Dr. 110
To Sales A/c 110
(Being goods sold in cash)
23-01-18 Office expenses A/c Dr. 3
To Cash A/c 3
11

(Being Office expenses paid in cash)
23-01-18 Cash A/c Dr. 25
To Harvey A/c 25
(Being Cash is received from Harvey)
28-01-18 Cash A/c Dr. 84
To Sales A/c 84
(Being goods sold in cash)
28-01-18 Wages A/c Dr. 15
To Cash A/c 15
(Being wages paid in cash)
31-01-18 Cash A/c Dr. 30
To Sales A/c 30
(Being goods sold in cash)
LEDGER ACCOUNTS
(In￡)
Capital A/c
Date Particulars Amount Date Particulars
Amou
nt
31-01-
18 By Closing Balance C/d 1049 01-01-18
By Opening Balance
B/d 1049
Total 1049 Total 1049
Harvey A/c
Date Particulars Amount Date Particulars
Amoun
t
01-01-
18 To Opening Balance B/d 39
23-01-
18 By Cash A/c 25
02-01-
18 To Sales A/c 124
31-01-
18 BY Closing Balance C/d 138
Total 163 Total 163
Sales A/c
Date Particulars Amount Date Particulars Amount
31-01-18 To Trading and P&L A/c 412 02-01-18 By Harvey A/c 124
11-01-18 By Cash A/c 64

21-01-18 By Cash A/c 110
28-01-18 By Cash A/c 84
31-01-18 By Cash A/c 30
Total 412 Total 412
Cash A/c
Date Particulars Amount Date Particulars
Amoun
t
01-01-
18
To Opening Balance
B/d 343
05-01-
18 By Wages A/c 12
07-01-
18 To Smith A/c 18
09-01-
18 By Max A/c 21
11-01-
18 To Sales A/c 64
14-01-
18 By Wages A/c 14
21-01-
18 To Sales A/c 110
14-01-
18 By Purchases A/c 75
23-01-
18 By Harvey A/c 25
15-01-
18 By Rich A/c 162
28-01-
18 To Sales A/c 84
20-01-
18
By Furniture and Fittings
A/c 32
31-01-
18 To Sales A/c 30
21-01-
18 By Wages A/c 17
23-01-
18 By Office Expenses A/c 3
28-01-
18 By Wages A/c 15
31-01-
18 BY Closing Balance C/d 323
Total 674 Total 674
Purchases A/c
Date Particulars Amount Date Particulars Amount
05-01-18 To Rich A/c 150 31-01-18 By Trading and P&L A/c 225
14-01-18 To Cash A/c 75
Total 225 Total 225
Rich A/c
Date Particulars Amount Date Particulars Amount
15-01-18 To Cash A/c 162 01-01-18 By Opening Balance B/d 12
05-01-18 By Purchases 150
13

Total 162 Total 162
Smith A/c
Date Particulars Amount Date Particulars Amount
01-01-18 To Opening Balance B/d 18 07-01-18 By Cash A/c 18
Total 18 Total 18
Office Expenses A/c
Date Particulars Amount Date Particulars Amount
23-01-18 To Cash A/c 3 31-01-18 By Trading and P&L A/c 3
Total 3 Total 3
Max A/c
Date Particulars Amount Date Particulars Amount
09-01-18 To Cash 21 01-01-18 By Opening Balance B/d 21
Total 21 Total 21
Furniture and Fittings A/c
Date Particulars Amount Date Particulars Amount
01-01-
18 To Opening Balance B/d 198
31-01-
18
By Closing Balance
C/d 230
20-01-
18 To Cash A/c 32
Total 230 Total 230
Wages A/c
Date Particulars Amount Date Particulars Amount
05-01-18 To Cash A/c 12 31-01-18 By Trading and P&L A/c 58
14-01-18 To Cash A/c 14

21-01-18 To Cash A/c 17
28-01-18 To Cash A/c 15
Total 58 Total 58
(b) Trail balance
TRIAL BALNACE
(In￡)
Particulars Debit Credit
Capital - 1049
Harvey 138 -
Sales - 412
Cash 323 -
Purchases 225 -
Office Expenses 3 -
Furniture and Fittings 230 -
Wages 58 -
Opening Stock 458 -
Moon 26 -
Total 1461 1461
(c): Statement of profit and loss statement
Statement of Trading and Profit or Loss for the Month ended 31th January
(In￡)
Particulars Amount Particulars Amount
To Opening Stock 458 By Sales A/c 412
To Purchases A/c 225 By Closing Stock A/c 374
To Gross Profit C/d 103
786 786
To Office Expenses A/c 3 By Gross Profit B/d 103
To Furniture and Fittings A/c 230
To Wages A/c 58
By Net Loss C/d 188
291 291
15

Statement of Financial Position at 31th January
(In￡)
Liabilities Amount Assets Amount
Capital 1049 Non-Current Assets:
Less: Net Loss For the Year 188 861 Motor Van
Current Assets:
Unsecured Loans: Cash in Hand 323
Sergei Closing Stock 374
Harvey 138
Moon 26
Total 861 Total 861
TASK 4
Ledger accounts and recording of transactions in the books of Ricardo
Date Particular Debit amount Credit amount
02/06/18 Claire a/c 8500
To sales a/c 8500
(Being sales are made)
13/06/18 Purchase a/c 12000
To Georgina 12000
(Being purchase are made)
14/06/18 Hywel a/c 8550
To sales a/c 8550
(Being sales are made)
20/06/18 Cash a/c 6000
To sales a/c 6000
(being sales are made)

21/06/18 Purchase a/c 4500
To Andrew 4500
(Being purchase are made)
22/06/18 Sales return a/c 1000
to Claire a/c 1000
(Being sales return are made)
24/06/18 Mandy a/c 5000
To sales a/c 5000
(Being sales are made)
24/06/18 Cash a/c 7125
Discount allowed a/c 375
to Claire a/c 7500
(Payment made by Claire)
25/06/18 Cash a/c 8550
To Hywel a/c 8550
(Payment made to Hywel a/c)
Georgina 12000
To Cash 11160
To discount
received 840
(Payment made to Georgina)
27/06/18 Andrew a/c 4500
To discount
received 90
To cash 4410
Ledger accounts
Sales a/c
17

Date Particular Amount (£) Date Particular Amount (£)
30/06/18 To Trading a/c 28050 02/06/18 By Claire 8500
14/06/18 By Hywel 8550
20/06/18 By cash 6000
24/06/18 By Mandy 5000
28050 28050
Purchase a/c
Date Particular Amount (£) Date Particular Amount (£)
13/06/18 To Georgina 12000 30/06/18 By Trading a/c 16500
21/06/18 To Andrew 4500
16500 16500
Claire a/c
Date Particular Amount Particular Amount
02/06/18 To sale 8500 By Cash 7125
By discount
allowed 375
8500 8500
Georgina a/c
Date Particular Amount (£) Date Particular Amount (£)
25/06/18 To Cash 11160 13/06/16 By Purchase 12000
To Discount received 840
12000 12000
Hywel a/c
Date Particular Amount (£) Date Particular Amount (£)
14/06/18 To sales 8550 25/06/18 By cash a/c 8550
8550 8550
Andrew a/c
Date Particular Amount (£) Date Particular Amount (£)
27/06/18 To Cash 4410 21/06/18 By Purchase a/c 4500
To Discount received 90

4500 4500
Cash a/c
Date Particular Amount (£) Date Particular Amount (£)
20/06/18 To sales 6000 25/06/18 By Georgian 11160
14/06/18 To Hywel 8550 27/06/18 By Andrew 4410
24/06/18 To Claire a/c 7125 30/06/18 By Balance c/d 6105
21675 21675
Sales return a/c
Date Particular Amount (£) Date Particular Amount (£)
22/06/18 To Claire a/c 1000 30/06/18 By Trading a/c 1000
1000 1000
Mandy a/c
Date Particular Amount (£) Date Particular Amount (£)
24/06/18 To sales 5000 30/06/18 By Balance c/d 5000
5000 5000
Discount allowed a/c
Date Particular Amount (£) Date Particular Amount (£)
24/06/18 To Claire 375 30/06/18 By P&L a/c 375
375 375
Discount Received account
Date Particular Amount (£) Date Particular Amount (£)
30/06/18 To P&L 930 25/06/18 By Georgina 840
27/06/18 By Andrew 90
930 930
Trial balance
Particular Debit amount Credit amount
Sales 28050
Purchase 16500
Cash a/c 6105
Discount received 930
19

Discount allowed 375
Sales return 1000
Mandy 5000
Total 28980 28980
TASK 5
Revenue expenses
It is said to be one of the key aspects that are related with monthly or daily basis. It has
been analysed that a fixed strategy is basically related with the earning & expenses and present
accounting period of time. These expenses would be occurring in every year and every month.
Services maintenance, repair expenses and stationary expenditure that are having some earning
expenses that are considered with the capacity to increase the capacity of the company. The cost
of business is not only related with the continuous basis but also the basis aspects that are
accountable with the proper expenses and installation procedure with the business (Horomnea
and Pașcu, 2012).
Capital expenditure
It refers as those capital that can be used by company to modify and maintain balance
among the physical assets such as equipment, property and industries building etc. These
expenses are taken into account during the start-up of new project or investments made by the
company. Companies are also prepared these type of financial outlays to maintain or increase the
scope of their operations effectively (Nolas, Sharp and Goldsmid, 2013)
Difference between capital and revenue expenditure
Basis Capital expenditure Revenue expenditure
Meaning This particular expense is made in
accordance with the acquiring fixed
assets the expenses those are
incurred to increase the volume of
the business (Toy and Hay, 2014).
All kind of expenses those are
incurred to operate every day
transaction and activities are taken
into account as earning expense.
Term It is associated with the long term It is known as short term expenses