Financial Accounting Homework: Analyzing Business Transactions

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Accounting Fundamentals
1

Table of Contents
Task 1...............................................................................................................................................3
A...................................................................................................................................................3
B...................................................................................................................................................6
C...................................................................................................................................................7
Task 2...............................................................................................................................................8
A...................................................................................................................................................8
B.................................................................................................................................................11
C.................................................................................................................................................11
Task 3.............................................................................................................................................12
Task 4.............................................................................................................................................16
Task 5.............................................................................................................................................22
2

Task 1
A.
Journal Entries
Date Particular Amount Amount
5-Apr Cash Account Dr. £ 300
To Capital Account £ 300
7-Apr Purchase Account Dr. £ 200
To Cash account £ 200
8-Apr Cash Account Dr. £ 250
To Loan £ 250
15-Apr Motor Van Account Dr. £ 150
To Cash Account £ 150
20-Apr Cash Account Dr. £ 350
To sales Account £ 350
28-Apr Rent Account Dr. £ 50
To Cash £ 50
29-Apr Loan Account Dr. £ 200
To Cash Account £ 200
30-Apr Drawing Account Dr. £ 60
To Cash Account £ 60
3

Cash Account
Date Particular Amount Date Particular Amount
5-Apr To Capital £ 300 7-Apr By Purchase £ 200
8-Apr To Loan £ 250 15-Apr By motor van £ 150
20-Apr To sales £ 350 28-Apr By rent £ 50
29-Apr By loan £ 200
30-Apr By Drawing £ 60
30-Apr By closing Balance £ 240
£ 900 £ 900
1-May To opening Balance £ 240
Capital Account
Date Particular Amount Date Particular Amount
30-Apr To Closing balance £ 300 5-Apr By Cash £ 300
1-May By Opening Balance £ 300
Purchase Account
Date Particular Amount Date Particular Amount
7-Apr To Cash £ 200 30-Apr By Closing Balance £ 200.00
1-May To Opening balance £ 200
Loan Account
Date Particular Amount Date Particular Amount
29-Apr To cash £ 200 8-Apr By Cash £ 250
30-Apr To Closing Balance £ 50
£ 250 £ 250
1-May By opening Balance £ 50
4

Motor Van Account
Date Particular Amount Date Particular Amount
15-Apr To Cash £ 150 30-Apr By Closing balance £ 150
1-May To Opening Balance £ 150
Sales Account
Date Particular Amount Date Particular Amount
30-Apr To Closing balance £ 350 20-Apr By cash £ 350
1-May By Opening balance £ 350
Rent Account
Date Particular Amount Date Particular Amount
28-Apr To Cash £ 50 30-Apr By closing Balance £ 50
1-May To opening Balance £ 50
Drawing Account
Date Particular Amount Date Particular Amount
30-Apr To Cash £ 60 30-Apr By Closing Balance £ 60
1-May To Opening Balance £ 60
5

B.
Trail Balance
Particular Dr. Cr.
Cash Account £ 240
Capital Account £ 300
Purchase Account £ 200
Loan Account £ 50
Motor Van Account £ 150
Sales Account £ 350
Rent Account £ 50
Drawing Account £ 60
Total £ 700 £ 700
6

C.
Profit And Loss Account
Particular Amount Amount
Sales £ 350
Add: Closing balance £ 100
Less:
Purchase -£ 200
Rent Expenses -£ 50 -£ 250
Net Profit £ 200
Balance sheet
Liability Amount Asset Amount
Capital £ 300 Cash £ 240
Net Profit £ 200 Motor Van Account £ 150
Less: Drawing -£ 60 Stock Account £ 100
Loan Account £ 50
Total £ 490 £ 490
7

Task 2
A.
Journal Entry
Date Particular Amount Amount
1-Jan Cash account Dr. £ 5,000
To Capital Account £ 5,000
2-Jan Motor Van Account Dr. £ 600
To Cash Account £ 600
3-Jan Purchase Account Dr. £ 1,300
To Cash Account £ 1,300
4-Jan Cash Account Dr. £ 1,000
To loan Account £ 1,000
10-Jan Expenses Account Dr. £ 200
To Cash Account £ 200
13-Jan Cash Account Dr. £ 300
To Sales Account £ 300
20-Jan Cash Account Dr. £ 500
To Sales Account £ 500
24-Jan Expenses Account Dr. £ 150
To Cash Account £ 150
27-Jan Loan Account Dr. £ 350
8

To Cash Account £ 350
30-Jan Drawing Account Dr. £ 175
To Cash Account £ 175
Ledger Accounts
Cash Account
Date Particular Amount Date Particular Amount
1-Jan To Capital Account £ 5,000 2-Jan By Motor Van £ 600
4-Jan To Loan £ 1,000 3-Jan By Purchase £ 1,300
13-Jan To Sales £ 300 10-Jan By expenses £ 200
20-Jan To Sales £ 500 24-Jan By expenses £ 150
27-Jan By Loan £ 350
30-Jan By Drawing £ 175
31-Jan By Closing Balance £ 4,025
Total £ 6,800 Total £ 6,800
1-Feb To Opening Balance £ 4,025
Sales Account
Date Particular Amount Date Particular Amount
31-Jan To Closing Balance £ 800 13-Jan By Cash £ 300
20-Jan By Cash £ 500
£ 800 £ 800
1-Feb By opening Balance £ 800
Expenses Account
Date Particular Amount Date Particular Amount
10-Jan To Cash £ 200 31-Jan By Closing Balance £ 350
24-Jan To Cash £ 150
£ 350 £ 350
1-Feb To Opening Balance £ 350
Loan Account
Date Particular Amount Date Particular Amount
27-Jan To Cash £ 350 4-Jan By Cash £ 1,000
31-Jan To Closing Balance £ 650
9

£ 1,000 £ 1,000
1-Feb By opening Balance £ 650
Purchase Account
Date Particular Amount Date Particular Amount
3-Jan To Cash £ 1,300 31-Jan By Closing Balance £ 1,300
1-Feb To Opening Balance £ 1,300
Motor Van Account
Date Particular Amount Date Particular Amount
2-Jan To Cash £ 600 31-Jan By Closing Balance £ 600
1-Feb To Opening balance £ 600
Capital Account
Date Particular Amount Date Particular Amount
31-Jan To Closing Balance £ 1,300 1-Jan By Cash £ 5,000
1-Feb Opening Balance £ 5,000
Drawing Account
Date Particular Amount Date Particular Amount
30-Jan To cash £ 175 31-Jan By Closing balance £ 175
1-Feb To Opening Balance £ 175
10

B.
Trail Balance
Particular Dr. Cr.
Cash Account £ 4,025
Sales Account £ 800
Expenses Account £ 350
Loan Account £ 650
Purchase Account £ 1,300
Motor Van Account £ 600
Capital Account £ 5,000
Drawing Account £ 175
Total £ 6,450 £ 6,450
C.
Profit & Loss Account
Particular Amount Amount
Sales £ 800
Add: Closing Stock £ 800
Less:
Purchase -£ 1,300
Expenses -£ 350 -£ 1,650
Net Profit -£ 50
Balance Sheet
Liability Amount Assets Amount
Capital £ 5,000 Cash £ 4,025
Add: Net Profit -£ 50 Motor van £ 600
less: Drawing -£ 175 Stock £ 800
Loan £ 650
Total £ 5,425 £ 5,425
11

Task 3
Ledger Accounts of Mafuta
Cash A/c
Date Particulars Amount Date Particulars Amount
1/1/2019 To Balance b/d £ 343 1/5/2019 By Wages
£
12
1/7/2019 To Smith
£
18 1/9/2019 By Max
£
21
1/11/201
9 To Sales
£
64
1/14/201
9 By Wages
£
14
1/21/201
9 To Sales £ 110
1/14/201
9 By Purchases
£
75
1/23/201
9 To Harvey
£
25
1/15/201
9 By Rich £ 162
1/28/201
9 To Sales
£
84
1/20/201
9
By Furniture &
Fittings
£
32
1/31/201
9 To Sales
£
30
1/21/201
9 By Wages
£
17
1/23/201
9 By Office Expenses
£
3
1/28/201
9 By Wages
£
15
1/31/201
9 By Balance c/d £ 323
£ 674 £ 674
Furniture & Fittings A/c
Date Particulars Amount (£) Date Particulars Amount (£)
1/1/2019
To Balance
B/D £ 198
1/31/201
9 By Balance C/D £ 230
1/20/201
9 To Cash
£
32
£ 230 £ 230
Harvey A/c
Date Particulars Amount (£) Date Particulars Amount (£)
1/1/2019 To Balance £ 1/23/201 By Cash £
12