Accounting Assignment Solution: Journal Entries, Trial Balance, P&L

This accounting assignment solution covers three key questions. Question 1 presents journal entries, T-accounts, and a trial balance. Question 2 includes a Profit & Loss (P&L) statement and a balance sheet for A Ltd, detailing sales revenue, cost of goods sold, administrative and distribution expenses, and the calculation of net loss. The balance sheet provides information on fixed and current assets, liabilities, and shareholders' equity. Question 3 features journal entries related to property transactions and rent payments, illustrating the recording of financial events over a period of time.

Accounting

TABLE OF CONTENTS
QUESTION 1..................................................................................................................................1
A. Journal entries.........................................................................................................................1
B. T account.................................................................................................................................1
C. Trial Balance...........................................................................................................................4
QUESTION 2..................................................................................................................................5
QUESTION 3..................................................................................................................................7

QUESTION 1
A. Journal entries
S.
NO. Date Particular
L.F
. Debit
Credi
t
a 1-Aug Cash a/c Dr.
28000
0
To capital stock a/c
28000
0
b 4-Aug Land a/c Dr. 60000
Building a/c Dr.
34000
0
To cash a/c 80000
To Notes payable
32000
0
c 9-Aug Medical instrument a/c Dr. 75000
To cash a/c 75000
d 16-Aug
Office fixtures and equipments a/c
Dr. 25000
To cash a/c 10000
To Notes payable 15000
e 21-Aug Office supplies a/c Dr. 4200
To cash a/c 4200
f 24-Aug Cash a/c Dr. 1000
Accounts recievable a/c Dr. 12000
To service revenue a/c 13000
g 27-Aug Advertisement expense a/c Dr. 450
To accounts payable
a/c 450
h 28-Aug Cash a/c Dr. 12000
To accounts recievable a/c 12000
i 31-Aug Salary a/c Dr. 2200
To cash a/c 2200
Total
8118
50
8118
50
B. T account
Cash a/c

a 280000 b 80000
f 1000 c 75000
h 12000 d 10000
e 4200
i 2200
293000 171400
Closing balance 121600
Accounts receivable a/c
f 12000 h 12000
12000 12000
Closing balance 0
Office supplies
e 4200
4200 0
Closing balance 4200
Medical instrument a/c
c 75000
75000 0
Closing balance 75000
office fixture and equipment a/c
d 10000
d 15000

25000 0
Closing balance 25000
Land a/c
b 60000
60000 0
Closing balance 60000
Building a/c
b 340000
340000 0
Closing balance 340000
Notes payable a/c
b 320000
d 15000
0 335000
Closing balance 335000
Accounts payable a/c
g 450
0 450
Closing balance 450

Accounts payable a/c
g 450
0 450
Closing balance 450
Service revenue a/c
0 f 1000
f 12000
0 13000
Closing
balance 13000
Advertisement expense
g 450
450 0
Closing balance 450
Salary expense a/c
i 2200
2200 0
Closing balance 2200
C. Trial Balance
S. No. Particulars Debit Credit
1 Cash a/c 121600
2 Accounts receivables a/c 0

3 Office supplies 4200
4 Medical instrument a/c 75000
5 Office fixture and equipment a/c 25000
6 Land 60000
7 Building a/c 340000
8 Notes payable a/c 335000
9 Accounts payable a/c 450
10 Capital stock a/c 280000
11 Service revenue 13000
12 Advertisement expense a/c 450
13 salary expense a/c 2200
Total 628450 628450
QUESTION 2
P&L of A Ltd as at 31 March 2017
Income Statement
Particulars Figures (in $)
Sales revenue 2,165
COGS 1,315
Gross profit 850
Dividend received 15
Interest received 1
Total operating income 866
administrative expenses
Office rent 98
Audit fee 22
Bad debts 27
Salaries 50
other Administration expenses 125
Total administrative expenses 322

Distribution expenses
Advertisement 40
Other Distribution expenses 23
Storage cost for distribution 110
Salaries 50
Total distribution expenses 223
Dividend paid 27
Interest paid 25
Depreciation on building 10
Depreciation on Plant and Machinery 120
Income tax 182
Total expenses 1132
Net Loss -266
Workings of COGS
Opening stock 140
Add: Purchase 1,210
Less: closing stock 85
Cost of goods sold (COGS) 1,265
Add: Salaries 50
Total COGS 1,315
Balance sheet of A Ltd at the end of 31 March 2017 is as follows:
Particulars Figures (in $)
Fixed assets
Long term investments 280
Land and buildings at cost
(land 100, building 100) 200
accumulated depreciation 30
Depreciation on building 10 160
Plant and machinery at cost 400
Accumulated depreciation:
Plant and machinery 170
Depreciation on plant 120 110

Total fixed assets 550
Current assets
Bank and cash 3
Accounts receivables 233
Closing stock 86
Total current assets 322
Total assets 872
Current liabilities
Accounts payable 270
Bank o/d
Total current liabilities 270
Bank loan 100
Provision for IT 165
Total non-current liabilities 265
Shareholders’ equity
Share capital (270,000
Ordinary shares) 270
Other reserves 80
Retained earning 235
Revaluation reserve 20
Net Loss -266
Total shareholders’ equity 339
Total liabilities 872
QUESTION 3
1-Apr Flat A/C 16,000,000
To Cash A/C 16,000,000
1-Apr-16 Cash A/C 52000
To Rent A/C 52000
1-Apr-16 Cash A/C 60000
To Rent A/C 60000
15-Apr-17 Cash A/C 163,00,000
To Sale of property 163,00,000