Financial Accounting: Trial Balance, Journal Entries, Ledger Balances, and Financial Statements
Added on 2023-01-12
24 Pages5045 Words38 Views
FINANCIAL ACCOUNTING
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Task 1.1........................................................................................................................................1
Task 1.2........................................................................................................................................1
Task 1.3........................................................................................................................................8
TASK 2............................................................................................................................................9
Task 2.1........................................................................................................................................9
Task 2.2......................................................................................................................................12
Task 2.3......................................................................................................................................13
Task 2.4......................................................................................................................................14
TASK 3..........................................................................................................................................14
Task 3.1 .....................................................................................................................................14
Task 3.2......................................................................................................................................15
Task 3.3 .....................................................................................................................................16
Task 3.4.....................................................................................................................................16
TASK 4..........................................................................................................................................18
Task 4.1 .....................................................................................................................................18
Task 4.2 .....................................................................................................................................18
Task 4.3......................................................................................................................................19
Task 4.4......................................................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Task 1.1........................................................................................................................................1
Task 1.2........................................................................................................................................1
Task 1.3........................................................................................................................................8
TASK 2............................................................................................................................................9
Task 2.1........................................................................................................................................9
Task 2.2......................................................................................................................................12
Task 2.3......................................................................................................................................13
Task 2.4......................................................................................................................................14
TASK 3..........................................................................................................................................14
Task 3.1 .....................................................................................................................................14
Task 3.2......................................................................................................................................15
Task 3.3 .....................................................................................................................................16
Task 3.4.....................................................................................................................................16
TASK 4..........................................................................................................................................18
Task 4.1 .....................................................................................................................................18
Task 4.2 .....................................................................................................................................18
Task 4.3......................................................................................................................................19
Task 4.4......................................................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
INTRODUCTION
Financial accounting is the one of the branch of accounting with the purpose of having
record of the financial transactions of organization. This is based on the guidelines set and
includes collecting, summarizing and interpreting the financial information of the business. It
presents the complete report to the stakeholders in a specific format. It is primarily prepared for
external users like stakeholders, owners, lenders, government etc. It is prepared following the
common accounting standards as well as GAAP. In this report, the complete financial accounting
is carried out with respect to scenario given. It includes recording the financial transaction,
preparing trial balance and final accounts as per with principles, conventions & standards given
by accounting board. Also, a bank reconciliation statement is prepared in order to ensure that
entity record & bank records are same and correct.
TASK 1
Task 1.1
Trial Balance as on 31st March 2020.
Trial Balance at 31/3/2020
Account Debit Credit
Premises 340000
Van 51250
Fixtures 8100
Inventory 63900
P Mullen 1400
F Lane 3100
Cash at bank 62400
Cash in Hand 5600
S. Hood 2150
J. Brown 4600
Capital Account 529000
Total 535750 535750
Task 1.2
I
Journal Entries
Date Particulars Debit Credit
01/04/20 Storage Expense 400
To Bank 400
1
Financial accounting is the one of the branch of accounting with the purpose of having
record of the financial transactions of organization. This is based on the guidelines set and
includes collecting, summarizing and interpreting the financial information of the business. It
presents the complete report to the stakeholders in a specific format. It is primarily prepared for
external users like stakeholders, owners, lenders, government etc. It is prepared following the
common accounting standards as well as GAAP. In this report, the complete financial accounting
is carried out with respect to scenario given. It includes recording the financial transaction,
preparing trial balance and final accounts as per with principles, conventions & standards given
by accounting board. Also, a bank reconciliation statement is prepared in order to ensure that
entity record & bank records are same and correct.
TASK 1
Task 1.1
Trial Balance as on 31st March 2020.
Trial Balance at 31/3/2020
Account Debit Credit
Premises 340000
Van 51250
Fixtures 8100
Inventory 63900
P Mullen 1400
F Lane 3100
Cash at bank 62400
Cash in Hand 5600
S. Hood 2150
J. Brown 4600
Capital Account 529000
Total 535750 535750
Task 1.2
I
Journal Entries
Date Particulars Debit Credit
01/04/20 Storage Expense 400
To Bank 400
1
02/04/20 Purchases 5000
To S. Hood a/c 1400
To D. Main a/c 2000
To R. Foot a/c 1600
03/04/20 T. Cole a/c 1650
F. Syme a/c 2000
J. Allen a/c 900
F. Lane a/c 750
To Sales a/c 5300
04/04/20 Motor Expenses 470
To Cash 470
07/04/20 Drawings 1500
To Cash 1500
09/04/20 T. Cole 650
J. Allen 1300
To Sales 1950
14/04/20 Van 28500
To Abel Motors 28500
16/04/20 Bank Ac 6500
To P. Mullen a/c 1400
To F. Lane a/c 3100
To F. Syme a/c 2000
22/04/20 Purchases 1800
To D. Main 1800
24/04/20 S. Hood 2150
J. Brown a/c 4600
R. Foot a/c 1400
To Bank 8150
27/04/20 Salaries 4800
To Bank 4800
30/04/20 Business Rates 1320
To Bank 1320
2
To S. Hood a/c 1400
To D. Main a/c 2000
To R. Foot a/c 1600
03/04/20 T. Cole a/c 1650
F. Syme a/c 2000
J. Allen a/c 900
F. Lane a/c 750
To Sales a/c 5300
04/04/20 Motor Expenses 470
To Cash 470
07/04/20 Drawings 1500
To Cash 1500
09/04/20 T. Cole 650
J. Allen 1300
To Sales 1950
14/04/20 Van 28500
To Abel Motors 28500
16/04/20 Bank Ac 6500
To P. Mullen a/c 1400
To F. Lane a/c 3100
To F. Syme a/c 2000
22/04/20 Purchases 1800
To D. Main 1800
24/04/20 S. Hood 2150
J. Brown a/c 4600
R. Foot a/c 1400
To Bank 8150
27/04/20 Salaries 4800
To Bank 4800
30/04/20 Business Rates 1320
To Bank 1320
2
31/4/20 Abel Motors 28500
To Bank 28500
Total 94190 94190
Ledger Balances
LEDGER ACCOUNTS
Bank a/c
Date Particular DR(£) Date Particular CR(£)
01/04/20 To bal b/d 62400 01/04/20 Storage 400
16/04/20 P. Mullen 1400 24/04/20 S. Hood 2150
16/04/20 F. Lane 3100 24/04/20 J. Brown 4600
16/04/20 F. Syme 2000 24/04/20 R. Foot 1400
27/04/20 Salaries 4800
30/04/20 Business Rates 1320
30/04/20 Abel Motors 28500
30/04/20 By Bal c/d 25730
68900 68900
Cash a/c
Date Particular DR(£) Date Particular CR(£)
01/04/20 To bal b/d 5600 04/04/20 Motor Expenses 470
07/04/20 Drawings 1500
30/04/20 By Bal c/d 3630
5600 5600
VanDate Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 51250
14/04/20 To Abel Motors 28500
30/04/20 By Bal c/d 79750
79750 79750
Fixtures
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 8100
30/04/20 By Bal c/d 8100
8100 8100
3
To Bank 28500
Total 94190 94190
Ledger Balances
LEDGER ACCOUNTS
Bank a/c
Date Particular DR(£) Date Particular CR(£)
01/04/20 To bal b/d 62400 01/04/20 Storage 400
16/04/20 P. Mullen 1400 24/04/20 S. Hood 2150
16/04/20 F. Lane 3100 24/04/20 J. Brown 4600
16/04/20 F. Syme 2000 24/04/20 R. Foot 1400
27/04/20 Salaries 4800
30/04/20 Business Rates 1320
30/04/20 Abel Motors 28500
30/04/20 By Bal c/d 25730
68900 68900
Cash a/c
Date Particular DR(£) Date Particular CR(£)
01/04/20 To bal b/d 5600 04/04/20 Motor Expenses 470
07/04/20 Drawings 1500
30/04/20 By Bal c/d 3630
5600 5600
VanDate Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 51250
14/04/20 To Abel Motors 28500
30/04/20 By Bal c/d 79750
79750 79750
Fixtures
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 8100
30/04/20 By Bal c/d 8100
8100 8100
3
Capital a/c
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 529000
30/04/20 By Bal c/d 529000
529000 529000
Purchase a/c
Date Particulars DR(£) Date Particulars CR(£)
02/04/20 To S. Hood 1400
To D Main 2000
To R. Foot 1600
To D. Main 1800
30/04/20 By Bal c/d 6800
6800 6800
P. Mullen
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 1400 16/04/20 To bank 1400
30/04/20 By Bal c/d 0
1400 1400
Sales a/c
Date Particulars DR(£) Date Particulars CR(£)
03/04/20 T. Cole a/c 1650
03/04/20 F. Syme a/c 2000
03/04/20 J. Allen a/c 900
03/04/20 F. Lane a/c 750
09/04/20 T. Cole a/c 650
30/04/20 To bal c/d 7250 09/04/20 J. Allen a/c 1300
7250 7250
F. Lane
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 3100 16/04/20 Bank 3100
30/04/20 By Bal c/d 0
4
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 529000
30/04/20 By Bal c/d 529000
529000 529000
Purchase a/c
Date Particulars DR(£) Date Particulars CR(£)
02/04/20 To S. Hood 1400
To D Main 2000
To R. Foot 1600
To D. Main 1800
30/04/20 By Bal c/d 6800
6800 6800
P. Mullen
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 1400 16/04/20 To bank 1400
30/04/20 By Bal c/d 0
1400 1400
Sales a/c
Date Particulars DR(£) Date Particulars CR(£)
03/04/20 T. Cole a/c 1650
03/04/20 F. Syme a/c 2000
03/04/20 J. Allen a/c 900
03/04/20 F. Lane a/c 750
09/04/20 T. Cole a/c 650
30/04/20 To bal c/d 7250 09/04/20 J. Allen a/c 1300
7250 7250
F. Lane
Date Particulars DR(£) Date Particulars CR(£)
01/04/20 To bal b/d 3100 16/04/20 Bank 3100
30/04/20 By Bal c/d 0
4
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