Accounts Homework: Bookkeeping, Journal Entries, and More

This document presents a detailed solution to an accounting homework assignment, encompassing several key areas of financial accounting. It begins with a cash balance summary and bank ledger account, demonstrating the recording of cash receipts and payments, along with bank reconciliation. The solution then progresses to journal entries, covering topics such as depreciation, asset disposal, prepaid expenses, accrued interest, bad debts, and adjustments to allowance for doubtful debts. Further, the assignment includes the creation of ledger accounts and the preparation of a trial balance, trading account, and profit and loss account. The final task involves the preparation of a ten-column worksheet, followed by an income statement and balance sheet, illustrating the complete accounting cycle for a given period. This comprehensive solution provides step-by-step explanations and calculations to enhance understanding of accounting principles and practices.

Accounts / Bookkeeping Questions
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TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................6
TASK 4............................................................................................................................................7
TASK 5..........................................................................................................................................16
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TASK 1
Cash balance summary and bank ledger account
Cash Balance Summary of A.Liu
Cash Receipts Cash Payments
Date Details Amount $ Date Details Amount $
02/ May Receipts 1446.52 01/
May
324875 1526.16
07/ May Receipts 3486.72 04/
May
324876 905.70
11/ May Receipts 1538.90 08/
May
324877 2404.38
11/ May Receipts 436.84 12/
May
324878 1702.86
12/ May Receipts 2360.20 15/
May
324879 1296.98
21/ May Receipts 1039.30 20/
May
324880 561.40
30/ May Receipts 846.76 28/
May
324881 1958.30
Total 11155.24 Total 10355.78
Bank Ledger account
Bank 100
Date Details Folio Debit Credit Balance
1/5 Balance b/d N/A $3,182.90 (Cr.)
Receipts:
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1/ 5 Cash/ cheque deposit N/A 733.10
2/ 5 Cash/ cheque deposit N/A 1446.52
7/ 5 Cash/ cheque deposit N/A 3486.72
11/ 5 Cash/ cheque deposit N/A 1538.90
12/ 5 Cash/ cheque deposit N/A 436.80
18/ 5 Cash/ cheque deposit N/A 2360.20
26/ 5 Cash/ cheque deposit N/A 1039.30 11041.54 (Dr.)
Total 11041.54 7858.64 (Dr.)
Payments:
1/ 5 Cheque #324856 N/A 1526.16
5/ 5 Cheque #324856 N/A 934.02
12/ 5 Cheque #324877 N/A 2404.38
15/ 5 Cheque book fee N/A 50
17/ 5 Cheque #324879 N/A 1296.98
21/ 5 Cheque #324878 N/A 1702.86
24/ 5 L. Mami cheque dishonour N/A 551.56
24/ 5 Dishonour fee N/A 15
25/ 5 Cheque # 324876 N/A 905.7
31/ 5 Cheque #324880 N/A 561.40 9948.03 (Cr.)
Total 9948.03 2089.39 (Cr.)
31/ 5 Balance c/d 2089.39 (Cr.)
Bank reconciliation statement
Bank Reconciliation Statement as at May 31
Cheque No. $
Debit balance as per Bank Statement $2981.98
Add: Unpresented Cheques #324856 $934.02
Sub-total $3916
Less: Outstanding Deposits $733.10
Credit Balance per the Bank Ledger Account $3182.90
TASK 2
Recording journals entries to the account
General Journal GJ1
Date Details Debit Credit
30/11/15 Accumulated dep. a/c Dr. 13000
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To Finishing Machine A/c 13000
Transfer asset cost to Disposal
30/11/15 Profit and loss a/c Dr. 13000
To accumulated dep a/c 13000
Transfer to Disposal
30/11/15 Jack Strong a/c Dr. 14300
To Finishing Machine 12000
To Profit on sale of machine 2300
Sale of finishing machine
30/11/15 Bank a/c Dr. 1000
To Jack Strong a/c 1000
Deposit received
30/11/15 Profit and loss a/c Dr. 2300
To Finishing machine a/c 2300
Transfer profit or loss on disposal
30/6/16 Profit on sale of machine Dr. 2300
To Profit and loss account 2300
Transfer to P&L
Formulation of ledger accounts
Machinery 166
Date Details Folio Debit Credit Balance
30/11/15 Balance N/A 620000 DR
30/11/15 Jack Strong N/A 14300 .
30/11/15 Profit and loss a/c 2300
30/06/15 Total 2300 14300 608000 DR.
Accumulated Depreciation 168
30/11/15 Balance N/A 280000CR
30/11/15 Profit and loss N/A 13000 13000 DR
30/06/15 Total N/A 13000 267000 CR
Bank
10030/11/15 Balance N/A 20000 DR
30/11/15 Jack Strong N/A 1000 1000 DR
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30/06/15 Balance 21000 DR
Accounts Receivable – Strong
110.0130/11/15 Balance N/A Nil DR
30/11/15 Jack Strong N/A 13300 13300 DR.
30/06/15 Balance 13300 DR.
Profit on Disposal
77530/11/15 Jack strong N/A 2300
30/6/16 Profit and loss account N/A 2300 0
Disposal
48030/11/15 Finishing machine N/A 25000
30/06/15 Balance 25000 CR
TASK 3
Journal entries
Date Particulars Debit Credit
30/6/16 Prepaid insurance a/c Dr. 2400
To Cash a/c 2400
Insurance Paid in Advance
1/7/16 Insurance a/c Dr. 2400
To prepaid insurance a/c 2400
Reversal of Balance Day Adjustment
30/6/16 Prepaid rent a/ c Dr. 150
To Cash a/c 150
Rent paid in Advance
1/7/16 Rent a/c Dr. 150
To prepaid rent a/c 150
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Date Particulars Debit Credit
Reversal of Balance Day Adjustment
30/6/16 Accrued interest a/c Dr. 350
To Interest a/c 350
Revenue due but not yet received
1/7/16 Interest a/c Dr. 350
To accrued interest a/c 350
Reversal of Balance Day Adjustment
30/6/16 Depreciation a/c Dr. 1000
To asset a/c 1000
Depreciation charged for the year
30/6/16 Bad debts expenses a/c Dr. 200
To bad debts written off a/c 200
Bad Debts Written off
30/6/16 Account receivable a/c Dr. 105.25
To allowance for doubtful debts 105.25
Adjustment to Allowance Doubtful Debts
TASK 4
Journal Entries:
(a) General Journal of E.Norman
Da
te
Particulars Debit Credit
30/6 Building account 162
To cash account 162
Balance transferred to Trading A/c
30/6 Bank 100
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To Cash account 100
Balance transferred to Trading A/c
30/6 Account Reciavable account 110
To sales 110
Gross profit transferred to P&L A/c
30/6 GST Paid 125
To cash account 125
Balance transferred to P&L A/c
30/6 Purchase 210
To Account payble 210
30/6 Cash 230
To GST collected 230
30/6 Cash 400
To sales 400
30/6 COGS 550
To Cash 550
Balances transferred to P&L A/c
30/6 Office furniture & Equipment 174
To cash 174
30/6 Inventory 120
To cash 120
30/6 Freight outwards 610
To cash 610
30/6 Insurance 720
To cash 720
30/6 Electricity 705
To cash 705
30/6 Telephone 765
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To cash 765
30/6 Salary and wages 700
To cash 700
30/6 Rates 745
To cash 745
30/6 Discount alloowas 800
To cash 800
30/6 Rent 750
To cash 750
30/6 Cash 465
To commission reciaved 465
30/6 Bank 300
to Capital 300
Ledger
Building Accounts
Date Particulars Debit Date Particulars Credit
30/6 To balance 31483
To cash 162 By balance 31645
31645 31645
Bank account
Date Particulars Debit Date Particulars Credit
30/6 To balance 1900
To cash 100 By balance 2300
To capital 300
2300 2300
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Account
Reciavable
Date Particulars Debit Date Particulars Credit
30/6 To balance 3700
To sales 110 By balance 3810
3810 3810
GST (Assets)
Date Particulars Debit Date Particulars Credit
30/6 To balance 2000
To sales 125 By balance 2125
2125 2125
Account payble
Date Particulars Debit Date Particulars Credit
30/6 By balance 5000
To balance 5210 By puchase 210
5210 5210
GST (Liability)
Date Particulars Debit Date Particulars Credit
30/6 By balance 2600
To balance 2830 By Cash 230
2930 2830
Sales
Date Particulars Debit Date Particulars Credit
30/6 By balance 44593
To balance 44993 By Cash 400
44993 44993
COGS
Date Particulars Debit Date Particulars Credit
30/6 To balance 21,118
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To cash 550 By balance 21618
21618 21618
Office furniture &
equipment
Date Particulars Debit Date Particulars Credit
30/6 To balance 950
To cash 174 By balance 1124
1,124 1124
Inventory
Date Particulars Debit Date Particulars Credit
30/6 To balance 13,832
To cash 210 By balance 14042
14,042 14042
Freightr Outwards
Date Particulars Debit Date Particulars Credit
30/6 To balance 475
To cash 610 By balance 1085
1085 1085
Insurance
Date Particulars Debit Date Particulars Credit
30/6 To balance 228
To cash 720 By balance 948
948 948
Electricity
Date Particulars Debit Date Particulars Credit
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30/6 To balance 532
To cash 702 By balance 1232
1232 1232
Telephones
Date Particulars Debit Date Particulars Credit
30/6 To balance 190
To cash 765 By balance 955
955 955
Salaries
Date Particulars Debit Date Particulars Credit
30/6 To balance 2470
To cash 700 By balance 3170
3170 3170
Rates
Date Particulars Debit Date Particulars Credit
30/6 To balance 238
To cash 745 By balance 983
983 983
Discount
Allowance
Date Particulars Debit Date Particulars Credit
30/6 To balance 1007
To cash 800 By balance 1807
1807 1807
Rent
Date Particulars Debit Date Particulars Credit
30/6 To balance 484
To cash 750 By balance 1234
1234 1234
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