Accounting records and financial statements for Conga, a sole trader toy retailer business

THE ACCOUNTING RECORDS AND FINANCIAL STATEMENTS FOR CONGA

Table of Contents
QUESTION....................................................................................................................................... 3
Prepare the accounting records and financial statements for Conga, a sole trader toy retailer business, as
explained overleaf...................................................................................................................... 3
Explain the prudence concept and accruals (matching) concept.....................................................17
3. Explanation on recording of sales on value added tax...............................................................18
REFERENCES................................................................................................................................. 19

QUESTION
Prepare the accounting records and financial statements for Conga, a sole trader toy retailer
business, as explained overleaf.
Journal entries:
Journal entries
s.no. Particulars Debit Credit
1 Credit purchase a/c Dr 2000
To trade payable 2000
2 Credit purchase a/c Dr 400
To trade payable 400
3 Credit purchase a/c Dr 300
To trade payable 300
4 Credit purchase a/c Dr 200
To trade payable 200
5 Credit purchase a/c Dr 500
To trade payable 500
6 Expenses a/c Dr 200
To cash 200
7 Expenses a/c Dr 200
To cash 200
8 Expenses a/c Dr 400
To cash 400
9 accounts receivables a/c dr 150
To return outwards 150
10 accounts receivables a/c dr 150
To return outwards 150
11 Cash A/c dr 100
To trade payables 100
12 Cash A/c dr 200
To trade payables 200
13 Accounts receivable a/c dr 300
To credit sales 300

14 Accounts receivable a/c dr 400
To credit sales 400
15 Accounts receivable a/c dr 500
To credit sales 500
16 Accounts receivable a/c dr 400
To credit sales 400
17 Accounts receivable a/c dr 250
To credit sales 250
18 Cash a/c dr 150
To sales 150
19 Cash a/c dr 150
To sales 150
20 Cash a/c dr 250
To sales 250
21 Return inwards ac/dr 100
To trade payables 100
22 Return inwards ac/dr 100
To trade payables 100
23 Allowance for doubtful accounts DR. 1100
to accounts receivables 1100
(3% of accounts receivables are allowance for
doubtful debts)
24 Allowance for doubtful accounts DR. 6200
to accounts receivables 6200
25 Cash a/c dr 2000
Discount a/c dr 2000
to accounts receivables 4000
26 Trade payable account dr 3000
To cash a/c 2000
To discount receivable a/c 1000
27 Electricity expenses a/c dr 3000
To cash 3000
28 Rent expenses a/c dr. 5000