Analysis of Accounting Records and Financial Statements for Conga

This assignment focuses on preparing and analyzing the accounting records and financial statements for Conga, a sole trader toy retailer. The assignment includes detailed journal entries for various transactions, such as credit purchases, sales, expenses, and loan activities. It also covers the preparation of sales day book, purchase day book, cash receipts and payments books, and general ledger accounts like sales, purchases, and expenses. Furthermore, the assignment addresses key accounting concepts like the prudent and accrual concepts. The solution also considers the potential impact of value-added tax (VAT) on Conga's accounting reports. The provided solution includes all the necessary financial statements and accounting records for the company. This assignment is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

The Accounting records and Financial
statements
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Table of Contents
INTRODUCTION...........................................................................................................................1
1-prepare the accounting records and financial statement for Conga, a sole trader toy retailer
business-......................................................................................................................................1
....................................................................................................................................................1
2- Prudent concept and Accrual concept ..................................................................................17
3- In future the government might require VAT on sales then VAT would be recorded in
Conga accounting and report....................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Financial Accounting is the process of identify , analysis and recording and summarised all
financial transactions are summarised in financial statement it includes income statement ,
balance sheet , cash flow statement and equity shareholder statement. Generally acceptable
accounting principle is standard framework for financial accounting. Financial statement
represent financial position of the company and helps to compare with other company that useful
for internal and external stake holders (Williams and Dobelman, 2017).
Present report based on Conga company which is UK base company and having retail business
of toys.
This report will include accounting records and financial statement like trail balance, income
statement and balance sheet of Conga company. It also includes prudent concept and accrual
concept of financial accounting which adapt while preparing financial statement Further it
prescribes that value added tax is mandatory for all company so Conga company also record
value added tax in accounting reports.
1-prepare the accounting records and financial statement for Conga, a sole trader toy retailer
business-
Journal entries
s.no. Particulars Debit Credit
1 Credit purchase account Dr. 2000
To trade payable 2000
2 Credit purchase account Dr. 400
To trade payable 400
3 Credit purchase account Dr. 300
To trade payable 300
4 Credit purchase account Dr. 200
To trade payable 200
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5 Credit purchase account Dr. 500
To trade payable 500
6 Expenses account Dr. 200
To cash 200
7 Expenses account Dr. 200
To cash 200
8 Expenses account Dr. 400
To cash 400
9 Trade receivables account Dr. 150
To return outwards 150
10 Trade receivables account Dr. 150
To return outwards 150
11 Cash account Dr. 100
To trade payables 100
12 Cash account Dr. 200
To trade payables 200
13 Trade receivable account Dr. 300
To credit sales 300
14 Trade receivable account Dr. 400
To credit sales 400
15 Trade receivable account Dr. 500
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To credit sales 500
16 Trade receivable account Dr. 400
To credit sales 400
17 Trade receivable account Dr. 250
To credit sales 250
18 Cash account Dr. 150
To sales 150
19 Cash account Dr. 150
To sales 150
20 Cash account Dr. 250
To sales 250
21 Sales return account Dr. 100
To trade payables 100
22 Sales return account Dr. 100
To trade payables 100
23 Allowance for doubtful accounts Dr.. 1100
to accounts receivables 1100
(3% of accounts receivables are allowance for
doubtful debts)
24 Allowance for doubtful account Dr.. 6200
to accounts receivables 6200
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25 Cash account Dr. 2000
Discount account Dr. 2000
to accounts receivables 4000
26 Trade payable account Dr. 3000
To cash account 2000
To discount receivable account 1000
27 Electricity expenses account Dr. 3000
To cash 3000
28 Rent expenses account Dr.. 5000
To cash 5000
29 Cash account Dr. 45000
To capital 45000
30 Loan account Dr. 40000
Interest account Dr. 20000
To bank account 60000
31 Wages account Dr. 4000
To accrued wages 4000
Total 138700 138700
Conga Sales Day Book December 2018
Date Customer Invoice Amount dr cr
No.
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30-Nov-18 sales 390390
31-Dec-18 cash 150
31-Dec-18 cash 150
31-Dec-18 cash 250
31-Dec-18 accounts
receivables 300
31-Dec-18 accounts
receivables 400
31-Dec-18 accounts
receivables 500
31-Dec-18 accounts
receivables 400
31-Dec-18 accounts
receivables 250
Total 392790
Conga Sales Returns Day Book December 2018
Date Customer Invoice Amount
No. dr cr
30-Nov-18 Return inwards 6200
31-Dec-18 trade payables 100
31-Dec-18 trade payables 100
Total 6400
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Conga Purchase Day Book December 2018:
Date Customer Invoice Amount dr cr
No.
30-Nov-18 purchases 135500
31-Dec-18 Trade payable 2000
31-Dec-18 Trade payable 400
31-Dec-18 Trade payable 300
31-Dec-18 Trade payable 200
31-Dec-18 Trade payable 500
Total 138900
Conga Purchase Returns Day Book December 2018:
Date Customer Invoice Amount dr cr
No.
31-Dec-18 accounts recievables 150
31-Dec-18 accounts recievables 150
Total 300
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Conga Cash Receipts Book December 2018
Date Customer Invoice Amount
No. dr cr
accounts
recievables 2000
31-Dec-18 Trade payables 100
31-Dec-18 Trade payables 200
31-Dec-18 sales 150
31-Dec-18 sales 150
31-Dec-18 sales 250
capital 45000
Total 47850
Conga Cash Payments Book December 2018:
Date Customer Invoice Amount
No. dr cr
31-Dec-18 expenses 200
31-Dec-18 expenses 200
31-Dec-18 expenses 400
31-Dec-18 Trade payables 2000
31-Dec-18 Electricity
expenses a/c dr 3000
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31-Dec-18 Rent expenses
a/c dr. 5000
Total 10800
GENERAL LEDGER:
Sales Account
Date Description Dr Date Description Cr
to balance b/d 390390 By balance Cf 387990
by accounts
recivables 300
by accounts
recivables 400
by accounts
recivables 500
by accounts
recivables 400
by accounts
recivables 250
cash 150
cash 150
cash 250
total 390390 total 390390
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Purchases Account
Date Description Dr Date Description Cr
To trade
payables 2000 By balance b/d 135500
To trade
payables 400
To trade
payables 300
To trade
payables 200
To trade
payables 500
to balance C/f 132100
Total 135500 total 135500
Expenses Account
Date Description Dr Date Description Cr
To cash 200
To cash 200 By balance c/f 800
To cash 400
Total 800 Total 800
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accounts recievables Account
Date Description Dr Date Description Cr
to retuern
outwards 150 allowance for doubtfull
debts 1100
to retuern
outwards 150 allowance for doubtfull
debts 6200
to credit sales 300 cash 2000
to credit sales 400 discount allowed 2000
to credit sales 500 By balance b/d 36660
to credit sales 400
to credit sales 250
To balance c/f 45810
Total 47960 Total 47960
Trade payables Account
Date Description Dr Date Description Cr
to cash 2000 by cash 100
to discount
received 1000 by cash 200
to balance b/d 30900 return inward 100
return inward 100
By balance
c/f 33400
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