Introduction to Financial Accounting: Journal Entries, Trial Balance, Accruals, Cost Concept, Matching Principle, and More

Introduction to financial accounting

Table of Contents
Task 1...............................................................................................................................................3
Journal entry................................................................................................................................3
T-Account....................................................................................................................................4
Trial Balance................................................................................................................................6
Adjusting entries in the general Journal......................................................................................7
Adjusted Trial Balance................................................................................................................7
Profit and loss account and balance sheet for the month ended 31st January 2019.....................8
Task 2...............................................................................................................................................9
References......................................................................................................................................12

TASK 1
Journal entry
Table 1 Journal entries
Particulars Amount in £
Dr Cr
Cash A/c Dr. 50000
Truck A/c Dr. 100000
To Danial's Capital Account 150000
(Being Cash and Truck Invested in business )
Insurance A/c Dr. 6000
To cash A/c 6000
(Being insurance paid in cash)
Cash A/c Dr. 7000
To Services A/c 7000
(Being Services provided in cash)
Debtors A/c Dr. 20000
To Services A/c 20000
(Being Services Provided in Credit)
Employees Salary A/c Dr. 8000
To cash A/c 8000
(Being Salary paid in cash)
Cash A/c Dr. 9000
To Services A/c 9000
(Being Services Provided in Cash)
Cash A/c Dr. 5000
To Customer Advance/unearned Revenue 5000
(Being Advance Payment received)
Cash A/c Dr. 20000
To Debtors A/c 20000
(Being Amount received from debtors)

Fuel A/c Dr. 1000
To Cash A/c 1000
(Being Fuel Expenses paid in cash)
Rent A/c Dr. 5000
To Cash 5000
(Being Rent Paid in cash)
Debtors A/c Dr. 8000
To Services A/c 8000
(Being Services Provided on Account)
Drawings A/c Dr. 19000
To Cash A/c 19000
(Being Cash Withdraw for personal purpose)
T-Account
Table 2 Cash Account
Particulars Amount in £ Particulars Amount in £
To capital account 50000 By Insurance 6000
To Services 7000 By employee's salary 8000
To Services 9000 By Fuel Expenses 1000
To Unearned revenue 5000 By Rent paid 5000
To Debtors 20000 By Drawings 19000
By bal C/d 52000
Total 91000 Total 91000
Table 3 Truck Account
Particulars Amount in £ Particulars Amount in £
To capital account 100000 By Bal C/d 100000
Total 100000 Total 100000
Table 4 Capital Account