Financial Accounting: General Journal, Cash Receipts Journal, Cash Payment Journal, Sales Journal, Purchase Journal, Ledgers, General Ledgers

This article covers the General Journal, Cash Receipts Journal, Cash Payment Journal, Sales Journal, Purchase Journal, Accounts Receivable Subsidiary Ledgers, Accounts Payable Subsidiary Ledgers, General Ledgers, and more for Financial Accounting.

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

1FINANCIAL ACCOUNTING
Table of Contents
General Journal:...............................................................................................................................2
Cash Receipts Journal:.....................................................................................................................4
Cash Payment Journal:....................................................................................................................4
Sales Journal:...................................................................................................................................5
Purchase Journal:.............................................................................................................................5
Accounts Receivable Subsidiary Ledgers:......................................................................................6
Accounts Payable Subsidiary Ledgers:...........................................................................................7
General Ledgers:..............................................................................................................................7
Worksheet:.....................................................................................................................................17
Schedules of Subsidiary Ledgers:..................................................................................................18
Income Statement:.........................................................................................................................18
Statement of Changes in Equity:...................................................................................................19
Balance Sheet:...............................................................................................................................20
Post-Closing Trial Balance:...........................................................................................................21
Bibliography:.................................................................................................................................23

2FINANCIAL ACCOUNTING
General Journal:
General Journal
Date Account Post
Ref. Debit Credit
09-06-
2018 Showroom Fittings…..Dr. 150 58,590
To,Wagner Violins 200-2 58,590
11-06-
2018 Wagner Violins…..Dr. 200-2 18,900
To, Showroom Fittings 150 18,900
22-06-
2018 Sales Returns & Allowances….Dr. 402 23,562
To, Chopin Pianos 101-3 23,562
29-06-
2018 Dividend Declared….Dr. 302 1,77,100
To, Dividend Payable 206 1,77,100
30-06-
2018 Depreciation Expense- Showroom Fittings A/c……Dr. 602 56,700
To, Accum Depr. - Showroom Fittings A/c. 151 56,700
Depreciation Expense- Equipment A/c……Dr. 603 17,010
To, Accum Depr. - Equipment A/c. 161 17,010
Rent Expense A/c…..Dr. 605 2,46,537
To, Prepaid Store Rent A/c. 104 2,46,537
Supplies Expense A/c……Dr. 604 71,190
To, Store Supplies A/c. 102 71,190
Insurance Expense A/c……Dr. 606 7,560
To, Prepaid Insurance A/c. 105 7,560
Interest Expense A/c……Dr. 608 38,945
To, Interest Payable A/c. 201 38,945
Bad Debts Expense A/c……Dr. 613 29,610
To, Ludwig Trumpets A/c. 101-4 29,610

3FINANCIAL ACCOUNTING
Utilities Expense A/c……..Dr. 609 6,426
To, Utilities Payable A/c. 202 6,426
Salaries Expense - Office Staff A/c……Dr. 612 36,729
To, Salaries Payable A/c. 204 36,729
Wages Expense - Sales Staff A/c…….Dr. 601 8,910
To, Wages Payable A/c. 203 8,910
Tax Expense A/c…….Dr. 610 86,400
To,Tax Payable A/c. 205 86,400
Sales Revenue A/c……Dr. 400 44,40,555
Purchase Discounts A/c……Dr. 501 24,192
Purchase Returns & Allowance A/c…..Dr. 502 10,143
Inventory A/c……Dr. 103 14,16,492
To, Profit & Loss Summary A/c. 303 58,91,382
Profit & Loss Summary A/c……Dr. 303 56,32,535
To, Purchases A/c. 500 21,17,115
To, Sales Discounts A/c. 401 31,059
To, Sales Returns & Allowance A/c. 402 32,319
To, Freight- Out A/c. 600 19,908
To, Wages Expenses - Sales Staff A/c. 601 11,01,771
To, Depreciation Expense - Showroom Fittings A/c. 602 56,700
To, Depreciation Expense - Equipment A/c. 603 17,010
To, Supplies Expense A/c. 604 71,190
To, Rent Expense A/c. 605 2,46,537
To, Advertising Expense A/c. 607 43,848
To, Insurance Expense A/c. 606 7,560
To, Interest Expense A/c. 608 38,945
To, Utilities Expense A/c. 609 64,890
To, Tax Expense A/c. 610 86,400
To, Sundry Expenses A/c. 611 15,624
To, Salary Expenses - Office Staff A/c. 612 8,70,849
To, Bad Debts Expense A/c. 613 29,610
To, Inventory A/c. 103 7,81,200
Profit & Loss Summary A/c……Dr. 303 2,58,847
To, Retained Profit A/c. 301 2,58,847

4FINANCIAL ACCOUNTING
Retained Profit A/c……Dr. 301 1,77,100
To, Dividend Declared A/c. 302 1,77,100
Cash Receipts Journal:
CASH RECEIPTS JOURNAL:
Date Account Post.
Ref.
Cash at
Bank
(100)
Sales
Discounts
(401)
Sales
(400)
Accounts
Receivable
(101)
Other
DR DR CR CR CR
01-06-2018 Amadeus
Cellos 101-1 95,256 95,256
04-06-2018 Cash Sales 400 19,278 19,278
08-06-2018 Chopin
Pianos 101-3 27,342 27,342
12-06-2016 Cash Sales 400 26,334 26,334
19-06-2018 Cash Sales 400 25,011 25,011
25-06-2018 Chopin
Pianos 101-3 1,38,600 1,38,600
26-06-2018 Cash Sales 400 39,312 39,312
28-06-2018 Bach
Guitars 101-2 1,16,424 1,16,424
30-06-2018
Additional
Share
Capital
Issued
300 1,26,000 1,26,000
30-06-2018 Cash Sales 400 23,436 23,436
30-06-2018 TOTAL 6,36,993 0 1,33,371 3,77,622 1,26,000
Cash Payment Journal:
CAH PAYMENT JOURNAL:
Date Account Chq
. No.
Post
Ref.
Other
Accounts
Payable
(200)
Purchases
(500)
Cash at
Bank
(100)
Purchase
Discounts
(501)
DR DR DR CR CR
01-06-2018 Freight Out 153 600 7,560 7,560
03-06-2018 Schubert
Synthesisers 154 200-1 43,470 43,470

5FINANCIAL ACCOUNTING
09-06-2018 Purchase of
Store Supplies 155 102 5,544 5,544
16-06-2018 Freight Out 156 600 9,450 9,450
16-06-2018 Paid Office Staff
Salaries 157 612 73,458 73,458
16-06-2018 Paid Sales Staff
Wages 158 601 62,370 62,370
18-06-2018 Wagner Violins 159 200-2 1,49,814 1,49,814
23-06-2018 Donation to
Charity Fund 160 611 12,600 12,600
29-06-2018 Wagner Violins 161 200-2 75,600 75,600
29-06-2018 Paid Sales Staff
Wages 162 601 62,370 62,370
TOTAL 2,33,35
2 2,68,884 0 5,02,236 0
Sales Journal:
SALES JOURNAL
Date Invoice No. Account Post Ref. Amount
01-06-2018 910 Bach Guitars 101-2 68,292
10-06-2018 911 Amadeus Cellos 101-1 68,796
16-06-2018 912 Chopin Pianos 101-3 1,24,362
TOTAL 2,61,450
Purchase Journal:
PURCHASE JOURNAL
Date Invoice Date Account Terms Post Ref. Amount
15-06-2018 14-06-2018 Schubert Synthesisers 2/10,n/30 200-1 96,390
24-06-2018 22-06-2018 Wagner Violins 1/10,n/45 200-2 93,870
TOTAL 1,90,260

6FINANCIAL ACCOUNTING
Accounts Receivable Subsidiary Ledgers:
Amadeus Cellos 101-1
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 95,256
01-06-2018 Cash Receipts CRJ 95,256 0
10-06-2018 Credit Sales SJ 68,796 68,796
68,796
68,796
Bach Guitars 101-2
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 48,132
01-06-2018 Credit Sales SJ 68,292 1,16,424
28-06-2018 Cash Receipts CRJ 1,16,424 0
0
0
Chopin Pianos 101-3
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 65,142
08-06-2018 Cash Receipts CRJ 27,342 37,800
16-06-2018 Credit Sales SJ 1,24,362 1,62,162
22-06-2018 Sales Return GJ 23,562 1,38,600
25-06-2018 Cash Receipts CRJ 1,38,600 0
Ludwig Trumpets 101-4
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 29,610
30-06-2018 Bad Debt expense GJ 29,610 0
0
0
0

7FINANCIAL ACCOUNTING
Accounts Payable Subsidiary Ledgers:
Schubert Synthesisers 200-1
Date Explanation Invoice Date Post.Ref. Debit Credit Balance
31-May Balance 43,470
03-06-
2018 Cash Repayments CPJ 43,470 0
15-06-
2018 Credit Purchase 14-06-2018 PJ 96,39
0 96,390
96,390
96,390
Wagner Violins 200-2
Date Explanation Invoice Date Post.Ref. Debit Credit Balance
31-May Balance 1,10,124
09-06-
2018 Credit Purchase of Boutique Lighting 08-06-2018 GJ 58,59
0 1,68,714
11-06-
2018 Return of Lightings GJ 18,900 1,49,814
18-06-
2018 Cash Repayments CPJ 1,49,814 0
23-06-
2018 Credit Purchase 22-06-2018 PJ 93,87
0 93,870
29-06-
2048 Partial Cash Payment CPJ 75,600 18,270
18,270
General Ledgers:
Cash at Bank 100
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 6,14,628
30-06-2018 Total Cash Receipts CRJ 6,36,993 12,51,621
Total Cash Payments CPJ 5,02,236 7,49,385
7,49,385
7,49,385
Accounts Receivable Control 101
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 2,38,140

8FINANCIAL ACCOUNTING
22-06-2018 Sales Return GJ 23,562 2,14,578
30-06-2018 Total Credit Sales SJ 2,61,450 4,76,028
Total Cash Receipts CRJ 3,77,622 98,406
Bad Debt Expenses GJ 29,610 68,796
Store Supplies 102
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,51,011
09-06-2018 Cash Purchase CPJ 5,544 1,56,555
30-06-2018 Supplies Expense GJ 71,190 85,365
85,365
85,365
Inventory 103
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 7,81,200
30-06-2018 Closing Entry - P/L Summary GJ 7,81,200 0
Closing Inventory GJ 14,16,492 14,16,492
14,16,492
14,16,492
Prepaid Store
Rent 104
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 7,39,620
30-06-2018 Rent Expense GJ 2,46,537 4,93,083
4,93,083
4,93,083
4,93,083
Prepaid Insurance 105
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 11,340
30-06-2018 Insurance Expense GJ 7,560 3,780
3,780
3,780
3,780

9FINANCIAL ACCOUNTING
Showroom Fittings 150
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 5,10,300
09-06-2018 Credit Purchase of Boutique Lighting GJ 58,590 5,68,890
11-06-2018 Return of Lightings GJ 18,900 5,49,990
5,49,990
5,49,990
Accumulated Depreciation – Showroom Fittings 151
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Depreciation Expense - Showroom
Fittings GJ 56,700 56700
56700
56700
56700
Equipment 160
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,73,250
1,73,250
1,73,250
1,73,250
1,73,250
Accumulated Depreciation - Equipment 161
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 85,050
30-06-2018 Depreciation Expense - Equipment GJ 17,010 102060
102060
102060
102060
Accounts Payable Control 200
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 1,53,594
09-06-2018 Credit Purchase of Showroom Fittings GJ 58,590 212184
11-06-2018 Return of Lightings GJ 18,900 193284
30-06-2018 Total Credit Purchase PJ 1,90,260 383544
Total Cash Repayments CPJ 2,68,884 114660

10FINANCIAL ACCOUNTING
Interest Payable 201
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Interest Expenses GJ 38,945 38945
38945
38945
38945
Utilities Payable 202
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Utilities Expense GJ 6,426 6426
6426
6426
6426
Wages Payable 203
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Wages Expenses - Sales Staff GJ 8,910 8910
8910
8910
8910
Salaries Payable 204
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Salaries Expense - Office Staff A/c. GJ 36,729 36729
36729
36729
36729
Tax Payable 205
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Tax Expenses GJ 86,400 86400
86400
86400
86400

11FINANCIAL ACCOUNTING
Dividend Payable 206
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
29-06-2018 Dividend Declared GJ 1,77,100 177100
177100
177100
177100
Mortgage Loan 250
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 6,06,942
606942
606942
606942
606942
Share Capital 300
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 11,34,000
30-06-2018 Additional Share Capital Issued CRJ 1,26,000 1260000
1260000
1260000
1260000
Retained Profits 301
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 9,63,522
30-06-2018 Net Profit Transferred from P/L
Summary GJ 2,58,847 1222368.6
Dividend Declared GJ 1,77,100 1045268.6
1045268.6
1045268.6
Dividends Declared 302
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
29-06-2018 Dividend Payable GJ 1,77,100 1,77,100
Adjusted with Retained Profits GJ 1,77,100 0

12FINANCIAL ACCOUNTING
0
0
Profit & Loss Summary 303
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Total Revenue GJ 44,74,89
0 4474890
Closing Inventory GJ 14,16,49
2 5891382
Total Expenses GJ 48,51,335 1040047
Opening Inventory GJ 7,81,200 258847
Net Profit transferred to Reatined Profits GJ 2,58,847 0
Sales Revenue 400
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 40,45,734
30-06-2018 Total credit Sales SJ 2,61,450 4307184
Total Cash Sales CRJ 1,33,371 4440555
30-06-2018 Closing Entry - P/L Summary GJ 44,40,555 0
Sales Discounts 401
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 31,059
30-06-2018 Closing Entry - P/L Summary GJ 31,059 0
0
0
0
Sales Returns & Allowances 402
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 8,757
22-06-2018 Sales Return GJ 23,562 32,319
30-06-2018 Closing Entry - P/L Summary GJ 32,319 0
0
0
Purchases 500
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 19,26,855
30-06-2018 Total credit Purchase PJ 1,90,260 21,17,115

13FINANCIAL ACCOUNTING
30-06-2018 Closing Entry - P/L Summary GJ 21,17,11
5 0
0
0
Purchase Discounts 501
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 24,192
30-06-2018 Closing Entry - P/L Summary GJ 24,192 0
0
0
0
Purchase Returns & Allowances 502
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 10,143
30-06-2018 Closing Entry - P/L Summary GJ 10,143 0
0
0
0
Freight-Out 600
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 2,898
01-06-2018 Delivery Cost Paid CPJ 7,560 10,458
16-06-2018 Delivery Cost Paid CPJ 9,450 19,908
30-06-2018 Closing Entry - P/L Summary GJ 19,908 0
0
Wages Expense – Sales Staff 601
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 9,68,121
16-06-2018 Paid Wages CPJ 62,370 10,30,491
29-06-2018 Paid Wages CPJ 62,370 10,92,861
30-06-2018 Wages Payable GJ 8,910 11,01,771
30-06-2018 Closing Entry - P/L Summary GJ 11,01,77
1 0
Depreciation Expense – Showroom Fittings 602
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0

14FINANCIAL ACCOUNTING
30-06-2018 Accum Depr. - Showroom Fittings GJ 56,700 56,700
30-06-2018 Closing Entry - P/L Summary GJ 56,700 0
0
0
Depreciation Expense – Equipment 603
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Accum Depr. - Equipment GJ 17,010 17,010
30-06-2018 Closing Entry - P/L Summary GJ 17,010 0
0
0
Supplies Expense 604
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Store Supplies GJ 71,190 71,190
30-06-2018 Closing Entry - P/L Summary GJ 71,190 0
0
0
Rent Expense 605
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Prepaid Store Rent GJ 2,46,537 2,46,537
30-06-2018 Closing Entry - P/L Summary GJ 2,46,537 0
0
0
Insurance Expense 606
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Prepaid Insurance GJ 7,560 7,560
30-06-2018 Closing Entry - P/L Summary GJ 7,560 0
0
0
Advertising Expense 607
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 43,848

15FINANCIAL ACCOUNTING
30-06-2018 Closing Entry - P/L Summary GJ 43,848 0
0
0
0
Interest Expense 608
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Interest Payable GJ 38,945 38,945
30-06-2018 Closing Entry - P/L Summary GJ 38,945 0
0
0
Utilities Expense 609
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 58,464
30-06-2018 Utilities Payable GJ 6,426 64,890
30-06-2018 Closing Entry - P/L Summary GJ 64,890 0
0
Tax Expense 610
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Tax Payable GJ 86,400 86,400
30-06-2018 Closing Entry - P/L Summary GJ 86,400 0
0
0
Sundry Expenses 611
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 3,024
23-06-2016 Donation to Charity Fund CPJ 12,600 15,624
30-06-2018 Closing Entry - P/L Summary GJ 15,624 0
0
0
Salaries Expense – 612
Office Staff
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 7,60,662

16FINANCIAL ACCOUNTING
16-06-2018 Salary Paid CPJ 73,458 8,34,120
30-06-2018 Salaries Payable GJ 36,729 8,70,849
30-06-2018 Closing Entry - P/L Summary GJ 8,70,849 0
0
Bad Debts Expense 613
Date Explanation Post.Ref. Debit Credit Balance
31-May Balance 0
30-06-2018 Accounts Receivable 101-4 29,610 29,610
30-06-2018 Closing Entry - P/L Summary GJ 29,610 0
0
0

17FINANCIAL ACCOUNTING
Worksheet:
Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash at Bank 7,49,385 7,49,385 7,49,385
Accounts Receivable Control 98,406 29,610 68,796 68,796
Store Supplies 1,56,555 71,190 85,365 85,365
Inventory 7,81,200 7,81,200 7,81,200 14,16,492 14,16,492
Prepaid Store Rent (Paid 1 Mar.
2018) 7,39,620 2,46,537 4,93,083 4,93,083
Prepaid Insurance (Paid 1 Nov.
2017) 11,340 7,560 3,780 3,780
Showroom Fittings 5,49,990 5,49,990 5,49,990
Accumulated Depreciation –
Showroom Fittings 0 56,700 56,700 56,700
Equipment 1,73,250 1,73,250 1,73,250
Accumulated Depreciation -
Equipment 85,050 17,010 1,02,060 1,02,060
Accounts Payable Control 1,14,660 1,14,660 1,14,660
Interest Payable 0 38,945 38,945 38,945
Utilities Payable 0 6,426 6,426 6,426
Wages Payable 0 8,910 8,910 8,910
Salaries Payable 0 36,729 36,729 36,729
Tax Payable 0 86,400 86,400 86,400
Dividend Payable 1,77,100 1,77,100 1,77,100
Mortgage Loan (due 31 Jul
2042) 6,06,942 6,06,942 6,06,942
Share Capital 12,60,000 12,60,000 12,60,000
Retained Profits (1 July 2017) 9,63,522 9,63,522 9,63,522
Dividends Declared 1,77,100 1,77,100 1,77,100
Profit and Loss Summary
Sales Revenue 44,40,555 44,40,555 44,40,555
Sales Discounts 31,059 31,059 31,059
Sales Returns and Allowances 32,319 32,319 32,319
Purchases 21,17,115 21,17,115 21,17,115
Purchase Discounts 24,192 24,192 24,192
Purchase Returns and
Allowances 10,143 10,143 10,143
Freight-Out 19,908 19,908 19,908
Wages Expense - Sales Staff 10,92,861 8,910 11,01,771 11,01,771
Depreciation Expense -
Showroom Fittings 0 56,700 56,700 56,700
Depreciation Expense -
Equipment 0 17,010 17,010 17,010
Supplies Expense 0 71,190 71,190 71,190
Rent Expense 0 2,46,537 2,46,537 2,46,537
Insurance Expense 0 7,560 7,560 7,560
Advertising Expense 43,848 43,848 43,848
Interest Expense 0 38,945 38,945 38,945
Utilities Expense 58,464 6,426 64,890 64,890
Tax Expense 0 86,400 86,400 86,400
Sundry Expenses 15,624 15,624 15,624
Salaries Expense - Office Staff 8,34,120 36,729 8,70,849 8,70,849
Bad Debts Expense 0 29,610 29,610 29,610
TOTALS 76,82,164 76,82,164 6,06,017 6,06,017 79,33,284 79,33,284 56,32,535 58,91,382 37,17,241 34,58,394
PROFIT/(LOSS) 2,58,847 2,58,847
76,82,164 76,82,164 6,06,017 6,06,017 79,33,284 79,33,284 58,91,382 58,91,382 37,17,241 37,17,241
Unadjusted Trial Bal. Adjustments Adjusted Trial Bal. Income Statement Balance Sheet

18FINANCIAL ACCOUNTING
Schedules of Subsidiary Ledgers:
Schedule of Accounts Receivable
as at 30 June 2018
Acc.
No. Account Amount ($)
101-1 Amadeus Cellos 68,796
101-2 Bach Guitars 0
101-3 Chopin Pianos 0
101-4 Ludwig trumpets 0
TOTAL 68,796
Schedule of Accounts Payable
as at 30 June 2018
Acc.
No. Account Amount ($)
200-1 Schubert Synthesisers 96,390
200-2 Wagner Violins 18,270
TOTAL 1,14,660
Income Statement:
Income Statement
for the year ending 30 June 2018
Gross Sales 44,40,555
Less: Sales Returns 31,059
Less: Sales Discounts 32,319
Net Sales 43,77,177
Purchases 21,17,11
5
Less: Purchase Returns 24,192
Less: Purchase Discounts 10,143
Net Purchases 20,82,780
Add: Opening Stock 7,81,200
Cost of Goods Available for Sales 28,63,980
Less: Closing Stock 14,16,492
Cost of Goods Sold 14,47,488
Gross Profit 29,29,689

19FINANCIAL ACCOUNTING
Other Revenue 0
Expenses
Selling Expenses
Freight Out 19,908
Wages Expenses - Sales Staff 11,01,771
Depreciation Expense - Showroom Fittings 56,700
Advertising Expenses 43,848
Bad Debt Expense 29,610
Total Selling Expenses 1251837
Administration Expenses
Depreciation Expense - Equipment 17,010
Supplies Expense 71,190
Rent Expense 2,46,537
Insurance Expense 7,560
Utilities Expense 64,890
Sundry Expense 15,624
Salaries Expense - Sales Staff 8,70,849
Total Administration Expense 1293660
Financial Expenses
Interest Expenses 38,945
Total Financial Expense 38,945
Total Expenses 25,84,442
Profit Before Income Tax 3,45,247
Income Tax Expense 86,400
Profit After Income Tax 2,58,847
Statement of Changes in Equity:
Statement of Changes in Equity
for the year ending 30 June 2018
Share
Capital
Retained
Profits
Total
Equity
Opening Balance as at 1 July 2017 11,34,00 9,63,522 20,97,52

20FINANCIAL ACCOUNTING
0 2
Add: Additional Share Capital 1,26,000 1,26,000
Add: Net Profit for the period 2,58,847 2,58,847
Less: Dividend Declared 1,77,100 1,77,100
Ending Balance as at 30 June 2018 12,60,00
0
10,45,26
9
23,05,26
9
Balance Sheet:
Statement of Financial Position
as at 30 June 2018
Current Assets
Cash at Bank 7,49,385
Accounts Receivable Control 68,796
Store Supplies 85,365
Inventory 14,16,492
Prepaid Store Rent 4,93,083
Prepaid Insurance 3,780
Total Current Assets 28,16,901
Non-Current Assets
Showroom Fittings 5,49,990
Accumulated Depreciation – Showroom Fittings -56,700
Equipment 1,73,250
Accumulated Depreciation - Equipment -1,02,060
Total Non-Current Assets 5,64,480
TOTAL ASSETS 33,81,381
Current Liabilities
Accounts Payable Control 1,14,660
Interest Payable 38,945
Utilities Payable 6,426
Wages Payable 8,910
Salaries Payable 36,729
Tax Payable 86,400

21FINANCIAL ACCOUNTING
Dividend Payable 1,77,100
Total Current Liabilities 4,69,170
Non-Current Liabilities
Mortgage Loan (due 31 Jul 2042) 6,06,942
Total Non-Current Liabilities 6,06,942
TOTAL LIABILITIES 10,76,112
Shareholder's Equity
Share Capital 12,60,000
Retained Profits (as on 30 June 2018) 10,45,269
Total Shareholder's Equity 23,05,269
TOTAL LIABILITIES & EQUITY 33,81,381
Post-Closing Trial Balance:
Post-closing Trial Balance
As at 30 June 2018
Acc.
No. Account Debit ($) Credit ($)
100 Cash at Bank 7,49,385
101 Accounts Receivable Control 68,796
102 Store Supplies 85,365
103 Inventory 14,16,492
104 Prepaid Store Rent 4,93,083
105 Preapid Insurance 3,780
150 Showroom Fittings 5,49,990
151 Accumulated Depreciation – Showroom Fittings 56,700
160 Equipment 1,73,250
161 Accumulated Depreciation - Equipment 1,02,060
200 Accounts Payable Control 1,14,660
201 Interest Payable 38,945
202 Utilities Payable 6,426
203 Wages Payable 8,910
204 Salaries Payable 36,729
205 Tax Payable 86,400
206 Dividend Payable 1,77,100
250 Mortgage Loan (due 31 Jul 2042) 6,06,942
300 Share Capital 12,60,000

22FINANCIAL ACCOUNTING
301 Retained Profits 10,45,269
3540141 3540141

23FINANCIAL ACCOUNTING
Bibliography:
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education