Accounting Fundamentals: Task Solutions, Financial Statements

This document presents solutions to various accounting fundamentals tasks. It includes detailed journal entries, trial balances, income statements, and statements of financial position for several scenarios. The solutions cover topics such as cost accounting methods (FIFO, LIFO, and weighted average), overhead absorption rates, break-even analysis, and the differentiation between capital and revenue expenditures. Task 1 presents journal entries, a trial balance, and financial statements. Task 2 provides journal entries, a trial balance, income statement, and statement of financial position. Task 3 showcases journal entries, a trial balance, income statement, and statement of financial position. Task 4 provides a trial balance and ledger entries. Task 5 explains the difference between capital and revenue expenditures. The document offers comprehensive solutions suitable for students studying accounting fundamentals.

ACCOUNTING FUNDAMENTALS 1
ACCOUNTING
FUNDAMENTALS

ACCOUNTING FUNDAMENTALS 2
Task 1:
Part a:
Journal entries:
Particulars Debit Credit
Apr-05 Cash 300.00
Capital 300.00
Apr-07 Purchases 200.00
Accounts payable 200.00
Apr-08 Cash 250.00
Loan 250.00
Apr-15 Motor van 150.00
Cash 150.00

ACCOUNTING FUNDAMENTALS 3
Apr-20 Accounts receivables 350.00
Sales 350.00
Apr-28 Rent expense 50.00
Cash 50.00
Apr-29 Loan 200.00
Cash 200.00
Apr-30 Rent expense 60.00
Cash 60.00
Part b:
Particulars Debit Credit
Cash
240.0
0
Accounts receivables
350.0
0
Motor van
150.0
0
Loan
50.0
0
Accounts payable 350.0

ACCOUNTING FUNDAMENTALS 4
0
Capital
300.0
0
Drawings
60.0
0
Purchases
200.0
0
Sales
350.0
0
Rent expense
50.0
0
Total
1,050.0
0
1,050.0
0
-
Part c:
Statement of income
Particulars Amount
Sales 350.00

ACCOUNTING FUNDAMENTALS 5
Less: purchases 200.00
Gross profit 150.00
Less: expenses:
Rent expense 50.00
Net profit 100.00
Statement of financial position
Particulars Amount
Assets:
Cash
240.0
0
Accounts receivables
350.0
0
Motor van
150.0
0
Total Assets
740.0
0

ACCOUNTING FUNDAMENTALS 6
Liabilities and
shareholders equity:
Loan
50.0
0
Accounts payable
350.0
0
Capital less drawings
340.0
0
Total liabilities and
shareholders equity 740
Task 2:
Part a:
Cash Purchases Motor Van Loan
Part
icula
rs
De
bit
C
r
e
di
t
Pa
rti
cul
ars
D
e
b
it Credit
Pa
rti
cul
ars
D
e
b
it
C
r
e
di
t
Pa
rti
cul
ars
D
e
b
it
C
r
e
di
t
J
a
Capi 5
,00
J
a
Ca 1
3
J
a
Ca 6
0
J
a
Ca 1
0

ACCOUNTING FUNDAMENTALS 7
n
-
0
1 tal
0.0
0
n
-
0
3 sh
0
0
n
-
0
2 sh 0
n
-
0
4 sh
0
0
J
a
n
-
0
2
Mot
or
van
6
0
0
J
a
n
-
2
7
Ca
sh
3
5
0
J
a
n
-
0
3
Purc
hase
s
1
3
0
0
J
a
n
-
0
4 Loan
10
00
J
a
n
Mot
or
expe
2
0
0

ACCOUNTING FUNDAMENTALS 8
-
1
0 nses
J
a
n
-
2
4
Stor
age
expe
nses
1
5
0
J
a
n
-
2
0
Sale
s
80
0
J
a
n
-
2
7 Loan
3
5
0
J
a
n
-
Dra
wing
s
1
7
5

ACCOUNTING FUNDAMENTALS 9
3
0
Motor
expenses Capital Drawings Sales
Part
icula
rs
De
bit
C
r
e
di
t
Pa
rti
cul
ars
D
e
b
it Credit
Pa
rti
cul
ars
D
e
b
it
C
r
e
di
t
Pa
rti
cul
ars
D
e
b
it
C
r
e
di
t
J
a
n
-
1
0 Cash
20
0
J
a
n
-
0
1
Ca
sh 5,000.00
J
a
n
-
3
0
Ca
sh
1
7
5
J
a
n
-
2
0
Ca
sh
8
0
0
Storage
expenses
Part
icula
rs
De
bit
C
r
e
di

ACCOUNTING FUNDAMENTALS 10
t
J
a
n
-
2
4 Cash
15
0
Journal entries:
Particulars Debit Credit
Jan-01 Cash 5,000.00
Capital 5,000.00
Jan-02 Motor van 600.00
Cash 600.00
Jan-03 Purchases 1,300.00
Accounts payable 1,300.00
Jan-04 Cash 1,000.00

ACCOUNTING FUNDAMENTALS 11
Loan 1,000.00
Jan-10 Motor expense 200.00
Cash 200.00
Jan-13 Accounts receivables 300.00
Sales 300.00
Jan-20 Accounts receivables 500.00
Sales 500.00
Jan-24 Storage expense 150.00
Cash 150.00
Jan-27 Loan 350.00
Cash 350.00
Jan-30 Drawings 175.00
Cash 175.00
Part b:
Particulars Debit Credit
Cash 4,025.0

ACCOUNTING FUNDAMENTALS 12
0
Motor van
600.0
0
Drawings
175.0
0
Loan
650.0
0
Capital
5,000.0
0
Purchases
1,300.0
0
Sales
800.0
0
Motor expenses
200.0
0
Storage expenses
150.0
0
Total
6,450.0
0
6,450.0
0
Part c:
Statement of income
Particulars Amount