Financial Accounting Statement

B10597
FINANCIAL
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1.1............................................................................................................................................3
Task 1.2............................................................................................................................................4
Task 2.1............................................................................................................................................8
Task 2.2............................................................................................................................................9
Task 2.3..........................................................................................................................................10
Task 2.4..........................................................................................................................................11
Task 3.1..........................................................................................................................................12
Task 3.2..........................................................................................................................................13
Task 3.3..........................................................................................................................................13
Task 3.4..........................................................................................................................................14
Task 4.1..........................................................................................................................................14
Task 4.2..........................................................................................................................................15
Task 4.3..........................................................................................................................................15
Task 4.4..........................................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES:.............................................................................................................................18

INTRODUCTION
The main purpose of this report is to understand basic concepts about types of business
transactions such as sales, purchases, receipts and payments. Double entry book-keeping is the
basic principal which works on balancing the figure concept; which means if something debit
from the company than it should credit with equal amount to match final figures. Trial balance is
the technique where closing ledger balance directly transfers to match the figures; it is the strong
method to know about any errors in recording transactions either in journal or trial balance.
Financial statements show internal strength of company; this statement covers profit and loss
account, balance sheet and cash flow statement. Bank reconciliation statement is essential to find
any mismatch between cash book and bank passbook. Project contains different scenarios; each
scenario analyses give separate accounting concept with practical examples.
Task 1.1
Trial balance: It is the method of bookkeeping where all ledgers balances arranged into debit
and credit side column; and balance of both side should match. If not matched; indicates there
some errors like omission, wrong entry and double entry errors. Such mismatch balanced with
the help of suspense account which settles later (Smith, 2019).
Ledger: It is a book of accounts which records journal entries and all ledger accounts showing
opening and closing balances which later adjusted in trial balance (Apostolides, 2016).
Trial balance as on 31st March, 2020:
Trial balance as on 31st March, 2020
S.No
. Particulars
L/
F Debit (£)
Credit
(£)
1 Premises 340000
2 Van 51250
3 Fixtures 8100
4 Inventory 63900
5 Receivables 4500
6 Cash at bank 62400
7 Cash in hand 5600
8 Payables 8750

9 Owner's Capital 527000
Total 535750 535750
So, owner’s capital calculated based on trial balance is £8750 pounds.
Task 1.2
I. Ledgers:
Storage cost a/c for the year ending 30th April, 2020
Particulars Debit (£) Particulars Credit (£)
To bank a/c 400 By balance c/d 400
400 400
Purchases a/c for the year ending 30th April, 2020
Particulars Debit (£) Particulars Credit (£)
To S. HOOD 1400
To D. MAIN 2000
To R. FOOT 1600
To D. Main 1800 By balance c/d 6800
6800 6800
Sales a/c for the year ending 30th April, 2020
Particulars Debit (£) Particulars Credit (£)
By T. Cole 1650
By F. Syme 2000
By J. Allen 900
By F. Lane 750
By T. Cole 650
To balance c/d 7250 By J. Allen 1300
7250 7250
Motor expenses a/c for the year ending 30th April, 2020
Particulars Debit (£) Particulars Credit (£)
To cash 470 By bal c/d 470
470 470
Drawings a/c for the year ending 30th April, 2020