logo

P4 Preparation of financial accounts for sole trader and limited company

   

Added on  2021-01-02

13 Pages1961 Words172 Views
FINANCIALACCOUNTINGPART 1
P4 Preparation of financial accounts for sole trader and limited company_1
Table of ContentsINTRODUCTION...........................................................................................................................3PART 1............................................................................................................................................3P1 Preparation of Journal and Ledger accounts.....................................................................3P2 Preparation of trail balance...............................................................................................7P3 Preparation of final accounts.............................................................................................7P4 Preparation of financial accounts for sole trader and limited company............................9CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
P4 Preparation of financial accounts for sole trader and limited company_2
INTRODUCTIONFinancial accounting is the process of preparing financial accounts on annual basis so asto identify the true and fair financial position of company. Such financial accounts include profit& loss a/c, Balance sheet, cash flow statement etc. that records the operating performance ofcompany over a specified period of time. The present assignment includes the preparation offinancial statements of different companies so as to know their financial position in market. Inaddition, with this, bank reconciliation is prepared in order to ensure company and bank recordsare correct.PART 1P1 Preparation of Journal and Ledger accountsJournal Entries as on 1 June, 2016DateParticularsDebitCredit1 June, 2016Bank account65000To capital account650002 June, 2016Purchases account8000To trade payable account80007 June, 2016Cash account4000To Sales account40008 June, 2018Trade payable account4000To Bank account400014 June, 2018Prepaid Insurance account75To Bank account7515 June, 2018Trade receivable account12000To Sales account1200016 June, 2018Purchases account10000To trade payable account1000018 June, 2018Equipment account3000To Cash account300020 June,2018Prepaid Rent account150
P4 Preparation of financial accounts for sole trader and limited company_3
To Bank account15021 June, 2018Cash account10000To Sales account1000025 June, 2018Cash in hand account100To Bank account10030 June, 2018Stationary account30To cash in hand account30Total116355116355General Ledger accountsCash accountParticularsDebit amountParticularsCredit amountSales account4000Equipment account3000Sales account10000Stationary account30Bank account100Balance c/d11070Total14100Total14100Bank accountParticularsDebit amountParticularsCredit amountCapital account65000Account payable account4000Prepaid insurance account75Prepaid rent account150Cash in hand account100Balance c/d60675Total65000Total65000Capital accountParticularsDebit amountParticularsCredit amountBalance c/d65000Bank account65000Total65000Total65000Purchases accountParticularsDebit amountParticularsCredit amountTrade payable account8000Balance c/d18000
P4 Preparation of financial accounts for sole trader and limited company_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Accounting Project
|10
|2071
|369

Financial Accounting Assignment Solution
|12
|1352
|66

Financial Accounting Question and Answers - Assignment
|11
|2026
|197

FINANCIAL ACCOUNTING TABLE OF CONTENTS
|18
|3952
|92

Accounting: Business Transactions, Financial Statements, Fundamental Principles
|26
|4285
|155

Financial Accounting and Its Importance Doc
|12
|2928
|98