Preparing statement of financial position of Munteanu Ltd.

Financial Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
Client 1.............................................................................................................................................1
2. Preparing ledger accounts for Alexandra study.......................................................................5
Trial balance of Alexandra study...............................................................................................11
Client 2...........................................................................................................................................12
A) Preparation of statement of profit and loss account of Munteanu Ltd. ...............................12
B) Preparing statement of financial position of Munteanu Ltd. ...............................................13
(c) The accounting concepts : Consistency and Prudency.........................................................14
D) Describing purpose of depreciation and two methods of calculating depreciation..............15
E) Critical evaluation of difference between financial statements of sole traders and limited
companies..................................................................................................................................16
Client 3...........................................................................................................................................16
(a) The purpose of preparing the bank reconciliation statement................................................16
B) Explaining areas that causes variation in the books from bank records...............................17
C) Explaining imprest system as used in petty cash .................................................................17
D) Preparation of bank reconciliation statement of Burcu Ltd..................................................18
Client 4...........................................................................................................................................20
A) Preparation of sales ledger control account and purchase ledger control account of Hilly..20
(b) The need to prepare control accounts...................................................................................20
Client 5...........................................................................................................................................21
(a) The term suspense account and their features......................................................................21
B) Drafting trial balance and Showing journal entries for adjusting suspense account...........21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................24

INTRODUCTION
Financial accounting is a branch of overall accounting system that includes the process of
analysing, summarising and recording of several financial transaction made by a company
during a specific period (Financial Accounting, 2018). It also refers to recording various
financial transactions of the business as per several accounting guidelines and standards by using
professional skills. The present study shows preparation of financial accounts and statements
such as journal, ledger accounts, trial balance, statement showing profit and loss of the company,
statement of financial position, etc, of various business organisation. in addition, it also provides
detailed discussion about numerous accounting terms like depreciation, accounting concepts and
balance reconciliation statements.
Client 1
Journal entries in the books of Alexandra for January are as follows
Date particulars Debit Credit
1st jan 2019 Storage exp.A/c Dr 450
To bank A/c
2nd jan 2019 Purchase A/c Dr 6080
To S. hood A/c 1450
To D main A/c 2060
To W Tone A/c 960
To R foot A/c 1610
3rd jan 2019 J Wilson A/c Dr 1200
T . Cole A/c dr 1650
F. Syme A/c Dr 2100
J . Allen A/c Dr 1020
P. white A/c Dr F. Lane A/c Dr 2520
F. lane A/c Dr 980
To sales A/c 9470
4th jan 2019 Motor Exp. A/c Dr 470
To cash A/c 470
7th jan 2019 Drawing A/c Dr 1500
To cash A/c 1500
9th jan 2019 T. cole A/c Dr 680
J. Fox A/c Dr 1310
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To sales A/c 1990
11th jan 2019 Sales return A/c Dr 680
To J. wilson 270
F.syme 410
16th jan 2019 Cash A/c Dr 7020
To P. Mullen A/c 1400
To F. Lane A/c 3100
To J. Wilson 850
To F. Shyme 1670
19th jan 2019 R. foot A/c Dr 50
To Purchase return A/c 50
22st 2019 Purchase A/c Dr 3740
To L.Mole A/C 1830
To W. Wright 1910
24th jan 2019 S. Hood A/c DR 3600
J. Brown A/c Dr 4600
R. Foot A/c Dr 1400
To Bank A/c 9600
27th jan 2019 Salary A/c Dr 4800
To bank A/c 4800
30th jan 2019 Business rates A/c Dr 1320
To bank A/c 1320
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