Accounting Assignment: Journal Entries, Ledgers, and Statements

This accounting assignment provides a comprehensive solution to a variety of accounting tasks. It begins with a detailed set of journal entries, meticulously documenting financial transactions, including capital contributions, purchases, sales, and various expense payments. The solution then proceeds to create general ledger accounts, summarizing the impact of these transactions on key financial elements. The assignment also includes inventory cards utilizing the FIFO method for two different product lines, a petty cash book, and various journals such as sales, sales returns, purchase, and purchase returns. Furthermore, the solution presents accounts receivable and payable schedules, along with cash payment and receipt journals. It culminates in a bank reconciliation statement, an unadjusted and adjusted trial balance, income statements, and a balance sheet, offering a complete overview of the financial position and performance of a business. The assignment covers a period of time, adjusting for depreciation, interest, and closing entries.

ACCOUNTING

Table of Contents
Journal entries..............................................................................................................................3
General legder accounts...............................................................................................................5
Inventory card of Rock n roll in FIFO.........................................................................................7
Inventory card for Blues drum in FIFO.......................................................................................8
Petty cash Book............................................................................................................................9
Sales Journal................................................................................................................................9
Sales Return Journal..................................................................................................................10
Purchase Journal........................................................................................................................10
Purchase return Journal..............................................................................................................10
Accounts receivable and schedule.............................................................................................11
Accounts payable and schedule.................................................................................................12
Cash payment Journal................................................................................................................14
Cash receipt Journal...................................................................................................................15
Bank reconciliation statements..................................................................................................15
Unadjusted Trial balance...........................................................................................................16
Adjusted Trila balance...............................................................................................................17
Income statements......................................................................................................................18
Balance sheet.............................................................................................................................18
2

Journal entries
Date Particulars Debit Credit
0-101-17 Bank a/c Dr 4000
Motor vehicles a/c Dr 60000
Office supplies a/c Dr 600
To capital 64600
(Being capital brought by damian)
01/01/17 Capital a/c Dr 20000
To financing loan 20000
(Being Loan taken by damian)
01/01/17 Petty cash a/c Dr 400
To bank 400
(Being petty cash fund established)
02/01/17 Insurance 600
To bank 600
(Being insurance paid through
cheque)
02/01/17 Rent a/c Dr 16000
To bank 16000
03/01/17 Purchase a/c Dr
To Tiger King(80*1000 with
credit term of 3/10 nett 60)
80000
To Blues drums(300*600 with
credit term of 5/15 nett 30)
180000
(Being goods purchased on credit)
04/01/17 Foxy drummers(60*1400) 84000
Creative music Ltd(200*900) 180000
To sales
(being rock n roll drum set sold on
credit with invoice no. 4001)
05/01/17 Tiger King Ltd a/c Dr(4*1000) 4000
To Purchase return 4000
(Being rock n roll drum set
purchased from tiger king Ltd
returned)
3

06/01/17 Taxi expense 150
To Petty cash 150
(Being tax expense paid from petty
cash with voucher no. 1001)
07/01/17 Cash a/c Dr 82320
Discount allowed(84000*2%) a/c
Dr
1680
To Foxy drummers 84000
(Being cash received by giving
sales discount)
08/01/17 Music a/c Dr(12*1400) 16800
To sales 16800
(Being rock n roll sold to music)
09/01/17 Tiger king drums a/c (80000-
4000)Dr
76000
To cash 73720
To discount received 2280
(Being cash paid to tiger king in
full)
10/01/17 Sign age a/c Dr 190
To Petty cash 190
(Being sign age paid from petty
cash)
15/01/17 Wages a/c Dr 2000
Electricity a/c Dr 600
To bank 2600
(Being amount of wages and
electricity paid from cheque)
17/01/17 Drummers Feast a/c Dr (4*1400) 5600
To sales 5600
(being rock n roll sold to new
customers)
18/01/17 Sales return a/c Dr(2*1400) 2800
To feast drummers 2800
(Being two rock n roll drum set
return by feast drummers)
4

18/01/17 Drawing a/c Dr 2000
To capital 2000
(Being amount withdrawn by
Damian)
19/01/17 Purchase a/c Dr(24*1020) 24480
To Best drums 24480
(Being 24 rock n roll drum set
purchased from best drum with
credit term of 5/10 nett 30 days)
19/01/17 Motor vehicles a/c Dr 340
To bank 340
(being auto services paid through
cheque)
21/01/17 Taxi expense a/c Dr 150
Sign age a/c Dr 190
To bank 340
(Being amount of petty cash
reimbursed)
21-Jan-17 Petty cash a/c Dr 500
To bank 500
(being 500 added to increase the
petty cash advance)
22/01/17 Wages a/c Dr 2000
Telephone services a/c Dr 480
To bank 2480
(Being amount paid through
cheque)
23/01/17 Cash a/c Dr 1000
To commission 1000
(Being prepaid commission
received for future event)
General Journal
For the year ended 31st January 2017
Date Particular
Debit
($) Credit($)
1st Sep
Cash at bank 4000
5

Motor vehicle 60,000
Motor vehicle finance loan 20,000
Drawings 2,000
Electricity 600
Equipment Running Cost 340
Insurance Equipment 600
Interest 7,200
Office Supplies 600
Rent 16,000
Telephones 480
Wages 4,000
Total
(opening Entries)
Balance Day Adjustment
For the year ended 31st January 2017
Date Details Debit($) Credit($)
31st January Depreciation Equipment 6376.8
Accumulated Depreciation 6376.8
(Depreciation of equipment )
31st January Interest Expenses 7200
Interest Payable 7200
(Accrued interest payable for January 2017 )
31st January Wages expenses 1200
Cash at Bank 1200
(Employees are owned wages)
31st January Stock/ Inventory( Asset) 118560
Stock on hand/ Ending Inventory(exp) 118560
(Record stock on hand at End of Period)
31st January Sales 286400
Stock On hand/ Ending Inventory(Expenses) 118560
Purchase 284480
Purchase Return 4000
Profit and Loss Summary 124480
(Close revenue and operating expenses to profit
and loss summary)
6

Closing Entries
For the year ended 31st January 2017
Date Details Debit($) Credit($)
30th Sep Profit and Loss Summary 278427
Depreciation-Equipment 6376.8
Cost of Sales Rock n roll 104480
Cost of Sales- Blues Gym set 18000
Electricity 600
Equipment Running costs 340
Insurance-Equipment 600
Interest 7200
Office Supplies 200
Rent 16000
Telephones 480
Wages 5200
Sundry (150+190) 340
Bank Services Fees 50
stock Inventory 118560
(Close all other expenses to profit and loss Summary)
30th Sep Profit and Loss Summary 33170
Capital 33170
(Close profit and loss summary to capital)
Capital 2000
Drawing 2000
(close drawing to capital account)
Reversing Entries
For the year ended 31st January 2017
Date Details
Debit
($) Credit($)
31-Jan-17 outstanding wages 1200
wages expenses 1200
(Reversing Entries)
7

31-Jan-17 Interest payable 7200
Interest Expenses 7200
(Reversing Entries)
General ledger accounts
Capital
Date Particulars Debit Credit Balance
1/1/2017 Bank 4000 4000
Motor vehicles 60000 64000
Office supplies 600 64600
Financing loan 20000 44600
18/01/17 Drawing 2000 42600
31/01/17 Balance 42600
Cash at bank a/c
Date Particulars Debit Credit Balance
01/01/17 Capital 4000 4000
01/01/17 Petty cash 400 3600
02/01/17 Insurance 600 3000
02/01/17 Rent 16000 -13000
15/01/17 Wages 2000 -15000
15/01/17 Electricity 600 -15600
19/01/17 Motor vehicles 340 -15940
22/01/17 Wages 2000 -17940
22/01/17 Telephone [phone]
31-1-17 -18420
Motor vehicles
Date Particulars Debit Credit Balance
01/01/17 Capital 60000 60000
19/01/17 Bank 340 60340
31/01/17 Depreciation(60000
*12%)
7200 53140
31/01/17 Closing balance 53140
Office supplies
Date Particulars Debit Credit Balance
01/01/17 Capital 600 600
31/01/17 spend 400 200
31/01/17 Closing balance 200 200
Financing loan
Date Particulars Debit Credit Balance
01-012017 Capital 60000 60000
31/01/17 Interest on
loan(60000*12%)
7200
8

31/01/17 Closing balance 52800
Interest on bank
loan
Date Particulars Debit Credit Balance
31-1-17 Financing loan 7200 7200
Taxi expenses
Date Particulars Debit Credit Balance
06/01/17 Petty cash 150 150
Signage
Date Particulars Debit Credit Balance
10/1/2017 Petty cash 190 190
Wages
Date Particulars Debit Credit Balance
15-1-17 Bank 2000 2000
22-1-17 Bank 2000 4000
22-1-17 Accrued wages 1200 5200
31-1-17 Closing balance 5200
Electricity
Date Particulars Debit Credit Balance
15-1-17 Bank 600 600
Telephone
expenses
Date Particulars Debit Credit Balance
22-1-17 Bank 480 480
Commision
Date Particulars Debit Credit Balance
23-1-17 Cash 1000 1000
Bad Debt
allowance
Date Particulars Debit Credit Balance
31-1-17 Accounts receivable
Drawing
Date Particulars Debit Credit Balance
18-1-17 Bank 2000 2000
Inventory card of Rock n roll in FIFO
FIFO
9

Rock n
Roll drum
set
Purchases Sales Balance
Date Units Cost Total Units Cost Total Units Cost
3-January-
17
80 $1,000 $80,000 80 $1,000
4-January-
17
60 $1,400 $84,000 20 $1,400
8-January-
17
12 $1,400 $16,800 8 $1,400
17-January-
17
4 $1,400 $5,600 4 $1,400
19-January-
17
24 $1,020 $24,480 28 $1,020
Totals 104 76 $106,400 28
Units
available
for sale
104
Units sold 76
Closing
inventory
28
Cost of
sales
Particulars Units Unit price Total
3-January-
17(Purchas
e)
80 1000 80000
10

19-January-
17(Purchas
e)
24 1020 24480
104480
Closing
inventory
28 1020 28560
Inventory card for Blues drum in FIFO
FIFO
Blues
Gym Set
Purchase
s
Sales Balance
Date Units Cost Total Units Cost Total Units Cost To
3-January-17 300 $60 $18,000 300 $60 $18
4-January-17 200 $900 $180,000 100 $900 $90
Totals 300 200 $180,000 100 $90
Cost of sales
Particulars Units Cost price Total
3-Jan-17 300 60 18000
18000
Inventory at year
end
100 900 90000
11

Petty cash Book
Amount
received
Date Particula
rs
V.No Total Travellin
g
expenses
Stationer
y
expenses
400 2017 Cash
received
6-Jan-17 Taxi
expense
1001 150 150
10-Jan-17 Signage 190 190
500 21-Jan-17 Cash
received
340 150 190
Balance
c/d
560
900
560 22-Jan-17 Balance
b/d
340 cash
received
Sales Journal
Sales Journal
Date Invoice
No.
Account
Debited
Terms Accounts
Receivable (DR)
Sales
(CR)
4-Jan 4001 Foxy
drummers
2/10
30nett
84,000.00 84,000.00
4-Jan 4001 Creative
music Ltd
2/10
30nett
180,000.00 180,000.0
0
8-Jan-17 Music is
Us
$16,800.00 $16,800.0
0
17-Jan-17 Drummer
s feast
2/10
30nett
5600 5600
31-Jan-17 Closing
balance
286400 286400
Sales Return Journal
Sales Returns
Date Particulars Credit Debit Credit Balance
12