logo

Financial Accounting Team Project (doc)

   

Added on  2020-10-05

44 Pages8349 Words207 Views
Team Project Cover SheetUNITNAME Financial AccountingUNITCODE ACCT1101.....................................................................................................................................................................................................................................................................TITLE/TOPIC OF PROJECT CHARLES BOUTIQUE BOOKS PTY LTD ACCOUNTING PRACTICE SET ............................................................................................................................................TUTORIAL OR LECTURE DAY & TIME(if applicable)TEAM NUMBER(if applicable)NAMEOFTUTOR (if applicable)Late projects submitted outside office hours will be receipted at 8.30 a.m. the following working day.

2

CHARLES BOUTIQUE BOOKSPTY LTD– ACCOUNTING PRACTICESET

Table of ContentsINTRODUCTION................................................................................................................................................................6CompanyBackground................................................................................................................................................6AccountingSystemInformation.................................................................................................................................6UNADJUSTED TRIAL BALANCE AND CHARTOFACCOUNTS...............................................................................7As at 31May 2020............................................................................................................................................7SUBSIDIARY LEDGERS...................................................................................................................................................8Schedule ofAccountsReceivable...............................................................................................................................8As at 31May 2020............................................................................................................................................8Schedule ofAccountsPayable....................................................................................................................................8As at 31May 2020............................................................................................................................................8TRANSACTIONS................................................................................................................................................................9ForJune2020.............................................................................................................................................................9Instructions...............................................................................................................................................................10ADJUSTINGENTRIES.....................................................................................................................................................11CashReceiptsJournal...............................................................................................................................................15CashPaymentsJournal.............................................................................................................................................16SalesJournal.............................................................................................................................................................18PurchasesJournal......................................................................................................................................................19LEDGERS..........................................................................................................................................................................20Accounts ReceivableSubsidiaryLedger..................................................................................................................20Accounts PayableSubsidiaryLedger.......................................................................................................................21GeneralLedger.........................................................................................................................................................22WORKSHEET....................................................................................................................................................................31FINANCIAL STATEMENTS............................................................................................................................................33Schedules ofSubsidiaryLedgers..............................................................................................................................33IncomeStatement.....................................................................................................................................................34Statement of ChangesinEquity................................................................................................................................36BalanceSheet............................................................................................................................................................37Post-closingTrialBalance........................................................................................................................................38WRITTEN COMPONENT.................................................................................................................................................39STUDENT DECLARATION FOR COMPLETIONOF WORK......................................................................................43

INTRODUCTIONThe objective of this Accounting practice set is to provide students with an insight into the process of recordingtransactions, completing adjusting and closing entries, and preparing financial statements for a retail business.Company BackgroundCharles Boutique Books Pty Ltd has been in business in Melbourne since July, 2014. The company was started by James Lowe and operates a shop which sells books on a wholesale basis to other businesseson both credit and cash terms. The company's share capital consists of 162,000 ordinary shares, issued at$1 each, that are owned by various members of the Lowe family. The company employs a combination of salesandadministrationstafftooperatethebusiness.Accounting System Information & ProceduresThe company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year.To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain its accountingrecords:1.Sales Journal (SJ): to record all sales of inventoryon credit2.PurchasesJournal(PJ):torecordallpurchasesofinventoryoncredit3.Cash Receipts Journal (CRJ): to record allcash receipts4.Cash Payments Journal (CPJ): to record allcash payments5.GeneralJournal(GJ):torecordalltransactionsotherthantheabove.Business transactions are recorded for Charles Boutique Books on a daily basis in one of these five journals in the accounts.Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgersare used to record the separate details of Accounts Receivable and Accounts Payable. Transactions are postedimmediately to the relevant ledger account if they are entered into the general journal, the “other” column of theCash Receipts Journal or Cash Payments Journal, or if they affect any of the Accounts Receivable or AccountsPayable subsidiary ledger accounts. Apart from these transactions, totals of the special journals are taken at theend of the month and then posted to the appropriate accounts. The company uses a periodic inventory system.In practice, the company would be required to collect and pay Goods and Services Tax (GST) on its sales andpurchases. However, for the purposes of this exercise, GST has been excluded.Please Note: All amounts in this practice set should be rounded to the nearest dollar.

UNADJUSTED TRIAL BALANCE AND CHART OF ACCOUNTSAs at 31 May 2020Acc. No.AccountDebit ($)Credit ($)100Cash at Bank87,804101Accounts Receivable Control34,020102Stationery Supplies21,573103Inventory111,600104Prepaid Store Rent (paid 1 March 2020)105,660105Prepaid Insurance (paid 1 Nov. 2019)1,620150Showroom Fittings72,900151Accumulated Depreciation – Showroom Fittings160Equipment24,750161Accumulated Depreciation - Equipment12,150200Accounts Payable Control21,942201Interest Payable202Utilities Payable203Wages Payable204Salaries Payable205Tax Payable206Dividend Payable250Mortgage Loan (due 31 July 2044)86,706300Share Capital162,000301Retained Profits (1 July 2019)137,646302Dividends Declared303Profit and Loss Summary400Sales Revenue577,962401Sales Discounts (Discount Allowed)4,437402Sales Returns and Allowances1,251500Purchases275,265501Purchase Discounts (Discount Received)3,456502Purchase Returns and Allowances1,449600Freight-Out414601Wages Expense - Sales Staff138,303602Depreciation Expense – Showroom Fittings603Depreciation Expense - Equipment604Stationery Expense605Rent Expense606Insurance Expense607Advertising Expense6,264608Interest Expense609Utilities expense 8,352610Tax Expense611Sundry Expenses432612Salaries Expense – Office Staff108,666613Bad Debts Expense1,003,3111,003,311

SUBSIDIARY LEDGERSSchedule of Accounts ReceivableAs at 31 May 2020Note: Charles Boutique Books offers all customers Credit Terms 2/10, n/30, unless otherwise statedAcc. No.AccountInvoicedateAmount ($)101-1Ashburton Books28 May13,608101-2Blackburn Books18 May6,876101-3Kewtown Books25 April9,306101-4Montrose Books12 May4,230$34,020Schedule of Accounts PayableAs at 31 May 2020Acc. No.AccountInvoicedateCredit termsAmount ($)200-1Portarlington Publishers30 May2/10, n/606,210200-2Quantum Publishing24 May1/10, n/4515,732$21,942

End of preview

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

Related Documents
Project on Accounting System Information
|43
|9089
|35

Team Assignment Cover Sheet |FAMILY NAME FIRST NAME |STUDENT ID. NUMBER |TUTORIAL OR LECTURE DAY & TIME |TEAM|NAME OF TUTOR
|41
|9287
|464

Accounting Principles Assignment Solved
|37
|6580
|173

Financial Accounting Principles and Techniques
|18
|3481
|25

Financial Accounting Statement
|18
|3444
|86

Financial Accounting Cycle for Paul Services: Report Preparation and Analysis
|14
|2246
|252