Question Answer Financial Accounting 2022

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:

1FINANCIAL ACCOUNTING
Table of Contents
Section A:...................................................................................................................................2
Answer to question 3:.............................................................................................................2
Section B:...................................................................................................................................5
Answer to question 1:.............................................................................................................5
Bibliography:..............................................................................................................................7

2FINANCIAL ACCOUNTING
Section A:
Answer to question 3:
Closing entries:
Tim, Rajay and Jamie
General Journal
Date Explanations Debit Credit
30-Sep-16 Realisation 5,75,000
Freehold property 3,00,000
Equipment 1,50,000
Inventory 80,000
Trade receivables 45,000
(To transfer all the assets except
cash to the realisation account)
30-Sep-16 Creditors 30,000
Realisation 30,000
(To transfer liabilities to the
realisation account)
30-Sep-16 Cash at bank 4,32,000
Realisation 4,32,000
(To record realisation of cash on
disposal of individual assets)
30-Sep-16 Realisation 29,000
Cash at bank 29,000
(To record payments made for
trade creditors)
30-Sep-16 Realisation 8,000
Cash at bank 8,000
(To record payment of realisation
expenses)
30-Sep-16 Tim's capital 60,000
Rajay' capital 60,000
Jamaie' capital 30,000
Realisation 1,50,000