Financial Accounting Report (Doc)

FINANCIAL ACCOUNTING

TABLE OF CONTENTS

P1. Applying double entry book keeping system and preparation of accounts (case 1)
Recording journal entries in the books of Norris
DATE PARTICULARS DEBIT (£) CREDIT (£)
1 Cash A/C Dr.
To, Sales A/C
160
160
2 Insurance Premium A/C Dr.
To, Bank A/c
4000
4000
3 Accounts Receivable A/C Dr.
To, Sales A/c
2500
2500
4 Petrol A/C Dr.
To Cash A/C
500
500
5 Purchase A/C Dr.
To, Accounts Payable A/C
1700
1700
6 Drawings A/C Dr.
To, Cash A/C
570
570
7 Purchase A/C Dr.
To, Cash A/C
400
400
8 Computer A/C Dr.
To, Cash A/C
8000
8000
Posting Journal entries to respected Ledger Accounts for Norris
Cash A/C
Date Particulars Amount (£) Date Particulars Amount (£)
1 To Sales A/C 160 4 By Petrol A/C 500

To balance c/d 9310 6 By Drawing A/C 570
7 By Purchase A/C 400
8 By Computer A/C 8000
TOTAL 9470 TOTAL 9470
Sales A/C
Date Particulars Amount (£) Date Particulars Amount (£)
To balance c/d 2660 1 By Cash A/C 160
3 By Accounts Receivable
A/C
2500
TOTAL 2660 TOTAL 2660
Purchase A/C
Date Particulars Amount (£) Date Particulars Amount (£)
5 To Accounts Payable A/C 1700 By balance c/d 2100
7 To Cash A/C 400
TOTAL 2100 TOTAL 2100
P2. Producing trial balance using balance off rule (case 2 question a)
Recording Journal entries in the books of Mathews
DATE PARTICULARS DEBIT (£) CREDIT (£)

1st January Bank A/C Dr.
To, Capital A/C
10000
10000
2nd January Supplies A/C Dr.
To, Bank A/C
4000
4000
3rd January Delivery Van a/C Dr.
To, Bank A/C
2000
2000
4th January Purchase A/C Dr.
To Creditors A/C
1000
1000
5th January Bank A/C Dr.
To, Sales A/C
1500
1500
6th January Debtors A/C Dr.
To Sales A/C
5000
5000
7th January Creditors A/C Dr.
To, Bank A/C
800
800
8th January Rent A/C Dr.
To, Bank A/C
200
200
9th January Drawing A/C Dr.
To, Bank A/C
100
100
Posting Journal entries to respected Ledger Accounts for Matthews
Bank A/C
Date Particulars Amount (£) Date Particulars Amount (£)
1 To Capital A/C 10000 2 By Supplies A/C 4000
5 To Sales A/C 1500 3 By Delivery Van 2000

7 By Accounts Payable 800
8 By Rent A/C 200
9 By Drawings A/C 100
By Balance c/d 4400
TOTAL 11500 TOTAL 11500
Capital A/C
Date Particulars Amount (£) Date Particulars Amount (£)
To balance c/d 10000 1 By Bank A/C 10000
TOTAL 10000 TOTAL 10000
Supplies A/C
Date Particulars Amount (£) Date Particulars Amount (£)
2 To, Bank A/C 4000 By balance c/d 4000
TOTAL 4000 TOTAL 4000
Delivery Van A/C
Date Particulars Amount (£) Date Particulars Amount (£)
3 To Bank A/C 2000 By balance c/d 2000