logo

Accounting Fundamentals INTRODUCTION 1 Task 11 (a) Ledger Accounts with the Help of Accounting Transaction of Maxim 4 (b) Trial Balance of Maxim 4 (c) Income Statement and Financial Statement of Pendo

   

Added on  2021-01-01

21 Pages4921 Words287 Views
Accountingfundamentals

Table of ContentsINTRODUCTION...........................................................................................................................1Task 1 ..............................................................................................................................................1(a) Ledger accounts with the help of accounting transaction of Maxim ..............................1(b) Trial balance of Maxim..........................................................................................................4(c) Income statement and financial statement of Maxim ............................................................4Task 2 ..............................................................................................................................................5(a) Pendo's Ledger account with the helps of above mentioned transaction including date anddescription ...................................................................................................................................5(b)Trial balance of Pendo as prepared on 31st January ..............................................................8(c)Income statement and financial statement of Pendo company................................................8Financial statement that shows financial position ......................................................................9Task 3.............................................................................................................................................10a) Mafuta's Ledger accounts .....................................................................................................10b) Trial balance prepared as on 31st January of Mafuta............................................................12(c) Mafuta's Profit and loss statement and financial position statement as on 31st January ....12Task 4.............................................................................................................................................13(a) Recording of transaction and ledger accounts .....................................................................13Task 5.............................................................................................................................................17Difference between revenue and capital expenditure ..............................................................17CONCLUSION..............................................................................................................................18REFERENCE.................................................................................................................................19

INTRODUCTIONAccounting is the basic concept in any organisation that gives ideas to maintain various accounts and ledger in order to run a business. Fundamental accounting refers basic concept that helps to attain company's objectives by following accounting concept and convention (Barranco and et.al., 2016). The main purpose of this report is to prepare ledger accounts, trial balance and profit and loss accounts that will show enterprise's financial situation and will help to take financial decision. It involves several guidelines such as generally accepted accounting principlesGAAP that helps to understand by accountant and users to be followed(Sacco, 2017). In this report various topics and calculation will be covered that will define company's financial positionafter preparing accounts. This report also will define difference between revenue and capital expenditure by following international accounting standards. (Basrur, 2017).Task 1 Journal entry: This is recording of financial data that is taken from journal voucher byconcerning business transaction in journal like debit equal credit (Reible, 2017). Moreover, ithelps to analyse effects of transaction on an enterprise's financial position. It helps to showfinancial position of organisation by maintaining accounts (Grunwald, 2017).Ledger posting: It is the second step after preparing journal entries that helps to transfer entriesin journal into accounts of ledger. It helps to classifying stage of accounting and its transaction.Moreover, this is connected with initial information of business transaction (Kanodia and Sapra,2016).(a) Ledger accounts with the help of accounting transaction of Maxim Date Particular Debit amount (£)Credit amount (£)5th April Cash a/c300To capital 3005th April Purchase a/c 200To cash a/c2005th April Cash a/c 2501

Received loan from Tatiana 2505th April Purchase a/c 150To cash a/c1505th April Cash a/c 350To sale a/c 3505th April Rent a/c 50To cash a/c 505th April Loan a/c 200To cash a/c 2005th April Drawing a/c 60To cash a/c 60Cash a/c Date Particular Amount Date Particular Amount 5th April To capital a/c3005thApril By purchase a/c 2005th April To loanreceived fromTatiana2505thApril By motor van 1505th April To sales3505thApril By rent 505thApril By loan paid 20030thApril By drawing 6030thBy closing balance 2402

April 900900Capital a/c Date Particular Amount Date Particular Amount 30thApril To drawing 605thApril By cash 30030thApril To closingbalance 240300300Purchase a/cDate Particular Amount Date Particular Amount 5th April To cash 20030thApril By trading a/c200200200Loan a/cDate Particular Amount Date Particular Amount 5th April To cash 2005thApril By cash 250To closingbalance 50250250Motor van Date Particular Amount Date Particular Amount 5th April To cash 15030thApril By closing balance 150150150Sale a/cDate Particular (£)Amount Date Particular (£)Amount 3

5th AprilTo trading a/c3505thApril By cash 350350350Rent a/c Date Particular (£)Amount Date Particular (£)Amount 5th April To cash 505thApril By P&L a/c505050Drawing A/c Date Particular (£)Amount Date Particular (£)Amount 5th April To cash a/c 605thApril By capital a/c 606060(b) Trial balance of MaximSerial .N.Particulars Debit(£)Amount Credit (£)Amount 1Cash a/c2402Capital2403Purchase 2004Loan 505Motor van 1506Sales 3507Rent50Total 640640(c) Income statement and financial statement of Maxim ParticularAmount Sales3504

End of preview

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

Related Documents
Accounting Fundamentals Assignment Solved
|22
|4244
|393

Accounting Fundamentals : Assignment
|22
|4619
|199

Accounting: Ledger Accounts, Trial Balance, Statements, Revenue vs Capital Expenditure
|20
|3511
|1

Accounting Fundamentals - PDF
|19
|4647
|349

Accounting Fundamentals - Assignment Sample
|22
|4827
|473

Fundamentals of Accounting - Aassignment
|22
|4674
|75