Accounting Fundamentals Assignment: Maxim, Pendo, and Mafuta Analysis

This assignment provides a comprehensive exploration of accounting fundamentals, encompassing ledger accounts, trial balances, and financial statements. It begins with Task 1, presenting ledger accounts and financial statements for Maxim, including cash, purchase, loan, motor van, capital, sales, drawing, and rent accounts. Task 2 focuses on the Pendo company, detailing ledger accounts, trial balance, and financial statements. Task 3 offers a similar analysis for Mafuta, covering ledger accounts, trial balance, and financial statements. Task 4 delves into the calculation of a sole trader, and Task 5 differentiates between revenue and capital expenditure based on international accounting standards. The assignment covers various transactions, from initial capital contributions to expenses, sales, and loan transactions, providing a complete overview of accounting principles. The document includes detailed workings and calculations to demonstrate the application of accounting concepts.

ACCOUNTING
FUNDAMENTALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Ledgers accounts for Maxim...................................................................................................1
b) Trial balance at 30 April.........................................................................................................3
c) Financial statements Of Maxim for the month ending 30 April..........................................3
TASK 2............................................................................................................................................4
Ledger for Pendo company.........................................................................................................4
TASK 3............................................................................................................................................8
a) ledgers accounts For Mafuta..................................................................................................8
b) Trial balance at the end of the month for Mafuta................................................................12
c) Financial statements of Mafuta for the month ending 31 January.....................................12
TASK 4..........................................................................................................................................13
Calculation of sole trader..........................................................................................................13
TASK 5..........................................................................................................................................18
Difference between revenue expenditure and capital expenditure with reference to
international accounting standards............................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
This study is based on accounting fundamentals which are related to the basis of
accounting and covers income statements, balance sheet and closing account balances at the end
of the period. This assignment will include different task in which different transactions will be
contained for which financial statements and ledger accounts will be prepared.
TASK 1
a) Ledgers accounts for Maxim
Date Journal entry Debit (£) Credit(£)
05/Apr Cash A/c Dr 300
To capital A/c 300
07/Apr Purchase A/c Dr 200
To cash A/c 200
08/Apr Cash A/c Dr 250
To loan A/c 250
15/Apr Motor van A/c Dr 150
To cash A/c 150
20/Apr Cash A/c Dr 350
To sales A/c 350
28/Apr Rent A/c Dr 50
To Cash A/c 50
29/Apr Loan A/c Dr 200
To cash A/c 200
30/Apr Drawing A/c Dr 60
To cash A/c 60
Cash A/c
Date Particular Amount (£) Date Particular Amount (£)
05/04/18 To capital 300 07/04/18 By purchase 200
08/04/18 To loan 250 15/04/18 By Motor van 150
1

20/04/18 To sales 350 28/04/18 By rent 50
29/04/18 By loan 200
30/04/18 By Drawing 60
30/04/18 By balance c/d 240
Total 900 Total 900
Purchase A/c
Date Particular Amount (£) Date Particular Amount (£)
07/04/18 To cash 200 30/04/18 By balance c/d 200
Total 200 Total 200
Loan A/c
Date Particular Amount (£) Date Particular Amount (£)
29/04/18 To cash 200 048/Apr By cash 250
30/04/18 To balance c/d 50
Total 250 Total 250
Motor van A/c
Date Particular Amount (£) Date Particular Amount (£)
15/04/18 To cash 150 30/04/18 By balance c/d 150
Total 150 Total 150
Capital A/c
Date Particular Amount (£) Date Particular Amount (£)
2

30/04/18 To balance c/d 300 05/04/18 By cash 300
Total Total
Sales A/c
Date Particular Amount (£) Date Particular Amount (£)
30/04/18 To balance c/d 350 20/04/18 By cash 350
Total 350 Total 350
Drawing A/c
Date Particular Amount (£) Date Particular Amount (£)
30/04/18 To cash 60 30/04/18 By balance c/d 60
Total 60 Total 60
Rent A/c
Date Particular Amount (£) Date Particular Amount (£)
28/04/18 To cash 50 30/04/18 By balance c/d 50
Total 50 Total 50
b) Trial balance at 30 April
Trial balance of Maxim at 30 April
Account Title Debit Credit
Cash A/c 240
Purchase A/c 200
Loan A/c 50
3

Motor van A/c 150
Capital A/c 300
Sales A/c 350
Drawing A/c 60
rent A/c 50
Total 700 700
c) Financial statements Of Maxim for the month ending 30 April
Profit and Loss for the month ended 30 April
Particular Amount (£)
sales 350
Less:COGS 100
Gross profit 250
Less: Rent 50
Less :Drawings 60
Operating profit /net profit 140
Working note
Particulars Amount
opening stock Nil
Add: Purchase 200
Less: closing stock 100
Cost of goods sold 100
Balance sheet for the month ended 30 April
Assets Amount Liabilities Amount
Fixed assets capital 300
4

Motor van 150 Less : Drawings 60
Current assets Add: net profit 140
inventory 100 380
cash 240 loan 250
Less : repaid 200
50
Total 490 Total 430
TASK 2
Ledger for Pendo company
DATE PARTICULARS DEBIT( £) CREDIT (£)
1-Jan Cash A/c 5000
To Capital 5000
2-Jan Motor Van expenses A/c 600
To cash 600
3-Jan Purchase A/c 1300
To Cash 1300
4-Jan Cash A/c 1000
To loan 1000
10-Jan Motor Van expenses A/c 200
To Cash 200
13-Jan Cash A/c 300
To sales 300
20-Jan Cash A/c 500
To sales 500
24-Jan storage expenses A/c 150
To cash 150
27-Jan loan A/c 350
To cash 350
30-Jan Drawing A/c 175
To cash 175
CASH
ACCOUNT
5

DATE PARTICULARS AMOUNT DATE PARTICULARS AMOUNT
1-Jan To capital 5000 2-Jan By Motor Van 600
4-Jan To Sergei 1000 3-Jan By purchases 1300
13-Jan To Sales 300 10-Jan By Motor Van
expenses 200
20-Jan To sales 500 24-Jan By Storage
expenses 150
27-Jan By loan 350
30-Jan By Drawings 175
By Balance c/d 4025
Total
6800 6800
SALES
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS
To balance c/d 800 13-
Jan By Cash AMOUN
T
20-
Jan By cash 300
500
Total
800 800
MOTOR
VAN
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
2-Jan To Cash 600 By balance c/d 600
Total T
600 600
LOAN
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
27-Jan To Cash 350 By cash 1000
6

To balance c/d 650
Total T
1000 1000
PURCHASE
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
3-Jan To Cash 1300 By balance c/d 1300
Total
1300 1300
EXPENSES
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
10-Jan To Cash 200 By balance c/d 350
24-Jan To Cash 150
Total T
350 350
DRAWING
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
30-Jan To Cash 175 By balance c/d 175
Total
175 175
CAPITAL
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
1-Jan To Cash 5000 By balance c/d 5000
7

Total
5000 5000
SERGEI
ACCOUNT
DATE PARTICULARS AMOUNT DAT
E PARTICULARS AMOUN
T
To balance c/d 1000 4-Jan By Cash 1000
Total
1000 1000
Trial
Balance of
Pendo
company for
the month
ended 31
january 2018
Accounting
Heads Debit Credit
1 Cash 4025
2 sales 800
3 motor van 600
4 loan 650
5 purchases 1300
6 expenses 350
7 drawing 175
8 capital 5000
Total 6450 6450
Financial statements for
the month ended 31
January
sales 800
8

less: COGS 500
Gross Profit 300
less:operating expenses
motor van expenses 200
storage expenses 150
350
Operating profit/ Net profit/ loss -50
Working note:
calculation
for COGS
opening stock nil
add: purchases 1300
less: closing
stock 800
Total 500
9

TASK 3
a) ledgers accounts For Mafuta
Date Journal entry Debit (£) Credit(£)
02/01 Harvey A/c Dr 124
To sales A/c 124
05/01 Wages A/c Dr 12
To cash A/c 12
05/01 Purchase A/c Dr 150
To Rich A/c 150
07/01 Cash A/c Dr 18
To Smith A/c 18
09/01 Max A/c Dr 21
To cash A/c 21
11/01 Cash A/c Dr 64
To sales A/c 64
14/01 Wages A/c Dr 14
To cash A/c 14
14/01 Purchase A/c Dr 75
To cash A/c 75
15/01 Rich A/c Dr 162
To cash A/c 162
20/01 office Desk A/c Dr 32
To cash A/c 32
21/01 Wages A/c Dr 17
To cash a/c Dr 17
21/01 Cash A/c Dr 110
To sales A/c 110
23/01 Office expenses A/c Dr 3
To cash A/c 3
23/01 Cash A/c Dr 25
To Harvey A/c 25
10