Practical Aspects of Accounting in Business

Portfolio
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INTRODUCTION
In an organisation, it is necessary that management of the company is keeping records of
each and every transaction. This will help to find out the actual financial position of the business.
This whole process will facilitate the company to take on decisions for future course of actions.
Strategy formulation becomes more effective and efficient. This report focuses on developing an
overall understanding of practical aspects of accounting of business.
MAIN BODY
Part A
1. Journal entries
Journal
Date Particulars L.F. Amount Amount
October,
2020
Dr.
£
Cr.
£
1st
Bank A/C
Dr. 8000
Cash A/C
Dr. 5200
Van A/C
Dr. 3000
To Capital A/C 16200
(Being capital invested in new business)
2nd
Laptop A/C
Dr. 1000
To Bank A/C 1000
(Being Laptop purchased and payment made
through bank)
4th
Purchase A/c
Dr. 2450
To Toys Ltd. A/C 2450
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(Being goods purchased on credit)
5th
Bank A/C
Dr. 1500
To Sales A/C 1500
(Being goods sold and payment recd. In bank)
12th
Repairs A/C
Dr. 100
To Cash A/C 100
(Being Laptop repaired and payment made in
cash)
18th
Sales Return A/C
Dr. 100
To Toys Ltd. A/C 100
(Being goods returned to Toys Ltd.)
21st
Bank A/C
Dr. 500
To Rent recd. A/C 500
(Being rent received for part of premises)
23rd
Cash A/C
Dr. 1500
Fred A/C
Dr. 400
To Sales A/C 1900
(Being goods sold, part payment received in
cash)
24th
Car A/C
Dr. 2500
To Bank A/C 2500
(Being second hand car purchased for office
use)
26th Wages A/C 820
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