Accounting Fundamentals: Comprehensive Assignment Solution

This document presents a complete solution to an accounting fundamentals assignment. The solution includes detailed journal entries for various transactions, leading to the preparation of income statements and statements of financial position. The assignment covers multiple tasks, including the recording of transactions, preparation of trial balances, and the creation of financial statements. It also includes a discussion on capital expenditure versus revenue expenditure, highlighting the key differences between the two. Furthermore, the solution provides a breakdown of accounts, including accounts receivables, accounts payable, and the impact of various transactions on the financial position of a business. The document demonstrates a strong understanding of basic accounting principles and provides clear, concise solutions to each task in the assignment.

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 and expense
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