Accounting for Information Systems

This report covers the accounting for information systems, detailing journal entries, general ledger accounts, and petty cash management. It includes a comprehensive table of contents and notes to accounts, explaining the principles of accounting applied in the context of the provided data. The report serves as a valuable resource for understanding the financial transactions and their documentation in an accounting system.

ACCOUNTING FOR
INFORMATION SYSTEM

Table of Contents
Journal entries..................................................................................................................................3
General ledger accounts...............................................................................................................8
Petty cash book..........................................................................................................................10
Ledger accounts.............................................................................................................................11
Notes to accounts...........................................................................................................................11
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
3

(Being rent paid through cheque)
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)
06/01/17 Taxi expense 150
To Petty cash 150
(Being tax expense paid from
4

petty cash with voucher no. 1001)
07/01/17 Cash a/c Dr 82320
Discount allowed(84000*2%) a/c
Dr
1680
To accounts receivable 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 Accounts payable a/c (80000-
4000)Dr
76000
To cash
To discount received 2280
(Being cash paid to tiger king in
full)
73720
10/01/17 Sign age a/c Dr 190
To Petty cash 190
(Being sign age paid from petty
cash)
5

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)
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
6

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 Cash a/c 340
To bank 340
(Being amount of petty cash
reimbursed)
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
(Being amount paid through
cheque)
23/01/17 Cash a/c Dr 1000
To Commission 1000
7

(being prepaid commission
received for future event)
Closing entries
Date Particulars Debit Credit
31-Jan-17 Depreciation(53140*12%) a/c Dr 6376.8
Accrual wages a/c Dr 1200
Allowance for doubtful debts a/c
Dr
1996
Office supplies a/c Dr 200
Closing stock a/c Dr 125000
Interest on loan a/c Dr 7200
To bank 141972.8
General ledger accounts
Capital
Date Particulars Debit Credit Balance
01/01/17 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
8

Date Particulars Debit Credit Balance
01/01/17 Capital 60000 60000
19/01/17 Bank 340 60340
31/01/17 Depreciation(6000
0*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
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
9

Telephone
expenses
Date Particulars Debit Credit Balance
22-1-17 Bank 480 480
Commission
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
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
10