BFA507 The Accounting Framework Assignment: Borderline Ltd Analysis

This assignment solution for Borderline Ltd encompasses a comprehensive manual accounting task, including detailed journal entries, T-accounts, and a closing trial balance for June 2018. It presents a revenue account, balance sheet, and bank reconciliation statement, alongside computations of inventory. The solution addresses environmental concerns, suggesting mitigation strategies and potential financial impacts. Specifically, the assignment details journal entries for various transactions, including sales, purchases, payments, and adjustments for depreciation, wages, and income tax. T-accounts for purchase, sales, sundry debtors and creditors are provided. Furthermore, the solution includes a profit and loss statement and balance sheet to present a complete financial picture of Borderline Ltd. The assignment also delves into environmental issues such as climate change and water pollution, proposing solutions and financial implications for the company. This analysis ensures a thorough understanding of accounting principles and their practical application.

Assignment

Table of Contents
PArt A..............................................................................................................................................3
Journal entries..............................................................................................................................3
T-Accounts..................................................................................................................................6
Closing Trial Balance................................................................................................................10
Revenue Account.......................................................................................................................11
Balance sheet.............................................................................................................................12
Bank Reconcilation statement...................................................................................................13
Part C.............................................................................................................................................14
What environmental concerns may need to be addressed?.......................................................14
How these concerns might be addressed?.................................................................................14
What might be the financial impact of these decisions?............................................................14
Why you believe it is important to address these concerns?.....................................................15
Reference.......................................................................................................................................16

PART A
Journal entries
Table 1 Journal of Borderline Ltd for June 2018
Date Particulars Debit Credit
6/1/2018 Bank Dr. $ 1,200.00
Discount Allowed Dr. $ 100.00
To Roar Ltd $ 1,300.00
(Being Cheque Received from Roar Ltd.
in full settlement)
6/3/2018 Jones Ltd Dr. $ 825.00
To Sales $ 825.00
(Goods sold to Jones Ltd on credit
terms)
6/4/2018 Rent Dr. $ 1,500.00
To Bank $ 1,500.00
(Being Rent paid for the month of June)
6/5/2018 Purchase Dr. $ 1,397.00
To Pink Ltd $ 1,397.00
(Being goods purchased from Pink Ltd.)
6/6/2018 Yard Ltd Dr. $ 4,550.00
To Bank $ 4,500.00
To Discount Received $ 50.00
(Being amount paid to Yard Ltd in Full
Settlement)
6/8/2018 Bank Dr. $ 1,900.00
To Wide Ltd $ 1,900.00

(Being amount received from Wide Ltd)
6/11/2018 Pink Ltd Dr. $ 1,397.00
To Bank $ 1,369.06
To Discount Received $ 27.94
(Being amount paid to Pink Ltd )
6/12/2018 Telephone Expenses Dr. $ 320.00
To Bank $ 320.00
(Being telephone expense paid)
6/13/2018 Bank Dr. $ 700.00
To Jones Ltd $ 700.00
(Being amount received from Jones
Ltd.)
6/14/2018 Bank Dr. $ 20,900.00
To Cash $ 20,900.00
(Being Cash deposited in Bank)
6/14/2018 Cash Dr. $ 5,200.00
To Bank $ 5,200.00
(Being cash withdrew from Bank)
6/14/2018 Wages Dr. $ 7,400.00
To GST Paid $ 2,200.00
To Cash $ 5,200.00
(Being amount paid as Wages in Cash)
6/17/2018 Stationery Expenses Dr. $ 220.00
To Bank $ 220.00
(Being Amount paid for Stationery)
6/18/2018 Zane Limited Dr. $ 2,750.00
To Sales $ 2,750.00
(Being Goods sold to Zane Ltd.)
6/21/2018 Wide Ltd. $ 715.00
To Sales $ 715.00

(Being goods sold to Wide Ltd.)
6/23/2018 Purple Ltd. Dr. $ 3,200.00
To Bank $ 3,200.00
(Being amount paid to Purple Ltd.)
6/27/2018 Sundry Expenses Dr. $ 435.00
To Bank $ 435.00
(Being amount paid as sundry
Expenses)
6/28/2018 Bad Debt Dr. $ 250.00
To Mane Ltd $ 250.00
(Being amount categorized as Debt)
6/29/2018 Bank Dr. $ 27,500.00
To Cash $ 27,500.00
(Being Cash deposited to Bank)
6/30/2018 Sales Return Dr. $ 154.00
To Zane Ltd $ 154.00
9eing goods returned from Zane Ltd.)
6/30/2018 Purchase Dr. $ 4,510.00
To Purple Limited $ 4,510.00
6/30/2018 Bank Dr. $ 6,200.00
To Cash $ 6,200.00
(Being Cash deposited in Bank)
6/30/2018 Zale Ltd $ 6,000.00
To Bank $ 6,000.00
(Being amount paid to Zale Ltd)
6/30/2018 Gross Wages Dr. $ 1,320.00
Electricity Dr. $ 1,000.00
Advertisement Dr. $ 3,500.00
To Outstanding Expenses $ 5,820.00

(Being outstanding expenses made due)
6/30/2018 Income Tax Dr. $ 12,430.00
To Provision for Income Taxes $ 12,430.00
(Being Income Tax for the month of
June)
6/30/2018 Depreciation Dr. $ 955.00
To Accumulated Depreciation on
Fittings $ 455.00
To Accumulated Depreciation on Motor
Vehicles $ 500.00
(Being Depreciation for the June
Month)
6/30/2018 Interest on Loan Dr. $ 240.00
To Outstanding Interest $ 240.00
(Being Interest on Loan for the month
of June
6/30/2018 Wages Dr. $ 7,600.00
To GST Paid $ 2,000.00
To Cash $ 5,600.00
(Being amount paid as Wages in Cash)
6/30/2018 Provision For Bad & Doubtful Debt Dr. $ 250.00
To Bad Debt $ 250.00
(Being Bad Debt Charged to its
Provision)
$ 126,618.00 $ 126,618.00
T-Accounts
Table 2 Purchase

Date Particulars Amount Date Particulars Amount
6/5/2018 To Pink Ltd $ 1,397.00 6/30/2018
By Revenue
Account $ 7,597.00
6/30/2018 To Purple Ltd $ 6,200.00
$ 7,597.00 $ 7,597.00
Table 3 Sales
Date Particulars Amount Date Particulars Amount
6/30/2018
To Revenue
Account $ 58,970.00 6/3/2018 By Jones Ltd $ 905.00
6/14/2018 By Cash $ 20,900.00
6/18/2018 By Zane Ltd $ 2,750.00
6/21/2018 By Wide Ltd $ 715.00
6/28/2018 By Cash $ 27,500.00
6/30/2018 By Cash $ 6,200.00
$ 58,970.00 $ 58,970.00
Table 4 Sundry Debtors Account
Da
te
Parti
cular
s
Sha
de
Ltd
Ro
ar
Ltd
Zan
e
Ltd
Jone
s
Ltd
Wi
de
Ltd
Ma
ne
Da
te
Part
icul
ars
Sh
ade
Ltd
Ro
ar
Ltd
Za
ne
Lt
d
Jon
es
Ltd
Wi
de
Ltd
M
an
e
6/
1/
20
18
To
Bala
nce
B/d
$
2,7
50.
00
$
1,3
00.
00
$
1,7
00.
00
$
1,10
0.00
$
1,9
00.
00
$
250
.00
6/1
/20
18
By
Ban
k
$
-
$
1,2
00.
00
$
-
$
-
$
-
$
-
O
n
Di
ffe
re
nt
Da
tes
To
Sale
s
$
-
$
-
$
2,7
50.
00
$
825.
00
$
715
.00
$
-
6/1
/20
18
By
Dis
cou
nt
All
owe
d
$
-
$
10
0.0
0
$
-
$
-
$
-
$
-
6/8
/20
18
By
Ban
k
$
-
$
-
$
-
$
-
$
1,9
00.
$
-

00
6/1
3/2
01
8
By
Ban
k
$
-
$
-
$
-
$
70
0.0
0
$
-
$
-
6/2
8/2
01
8
By
Bad
Deb
t
$
-
$
-
$
-
$
-
$
-
$
25
0.
00
6/3
0/2
01
8
By
Sal
es
Ret
urn
$
-
$
-
$
15
4.0
0
$
-
$
-
$
-
6/3
0/2
01
8
By
Bal
anc
e
C/d
$
2,7
50.
00
$
-
$4,
29
6.0
0
$
1,2
25.
00
$
71
5.0
0
$
-
$
2,7
50.
00
$
1,3
00.
00
$
4,4
50.
00
$
1,92
5.00
$
2,6
15.
00
$
250
.00
$
2,7
50.
00
$
1,3
00.
00
$4,
45
0.0
0
$
1,9
25.
00
$
2,6
15.
00
$
25
0.
00
Table 5 Sundry Creditors Account
Dat
e
Partic
ulars
Man
e
Ltd
Pur
ple
Ltd
Pink
Ltd
Yard
Ltd
Zale
Ltd
Dat
e
Partic
ulars
Man
e
Ltd
Pur
ple
Ltd
Pin
k
Ltd
Yar
d
Ltd
Zal
e
Ltd
6/6
/20
18
To
Bank
$
-
$
-
$
-
$
4,500
.00
$
-
6/1
/20
18
By
Balan
ce
B/d
$
250.
00
$
3,2
00.
00
$
-
$
4,55
0.00
$
6,0
00.
00
6/6
/20
18
To
Disco
unt
Recei
ved
$
-
$
-
$
-
$
50.00
$
-
6/5
/20
18
By
Purch
ase
$
-
$
-
$
1,3
97.
00
$
-
$
-
6/1
1/2
018
To
Bank
$
-
$
-
$
1,36
9.06
$
-
$
-
6/3
0/2
018
By
Purch
ase
$
-
$
4,5
10.
00
$
-
$
-
$
-
6/1 To $ $ $ $ $

1/2
018
Disco
unt
Recei
ved - -
27.9
4 - -
6/2
3/2
018
To
Bank
$
-
$
3,20
0.00
$
-
$
-
$
-
6/3
0/2
018
To
Bank
$
-
$
-
$
-
$
-
$
6,00
0.00
6/3
0/2
018
To
Balan
ce
C/d
$
250.
00
$
4,51
0.00
$
-
$
-
$
-
$
250.
00
$
7,7
10.
00
$
1,3
97.
00
$
4,55
0.00
$
6,0
00.
00
Table 6 Accumulated Depreciation
Date Particulars Fittings
Motor
Vehicles Date Particulars Fittings
Motor
Vehicles
6/30/20
18
To Balance
C/d
$
10,920.0
0
$
12,000.0
0
6/1/201
8
By Balance
b/d
$
10,465.0
0
$
11,500.0
0
6/30/20
18
By
Depreciatio
n
$
455.00
$
500.00
$
10,920.0
0
$
12,000.0
0
$
10,920.0
0
$
12,000.0
0
Table 7 Bank Account
Date Particulars Amount Date Particulars Amount
6/1/2018 To Balance B/d $ 25,200.00 6/4/2018 By Rent $ 1,500.00
6/1/2018 To Roar Ltd $ 1,200.00 6/6/2018 By Yard Ltd $ 4,500.00
6/11/2018 To Pink Ltd $ 1,369.06 6/12/2018 By Telephone $ 320.00
6/13/2018 To Jones $ 700.00 6/14/2018 By Cash $ 5,200.00

6/14/2018 To Cash $ 20,900.00 6/17/2018 By Stationery $ 220.00
6/29/2018 To Cash $ 27,500.00 6/23/2018 By Purple Ltd $ 3,200.00
6/30/2018 To Cash $ 6,200.00 6/27/2018 By Sundry Exp $ 435.00
6/30/2018 Cash $ 5,600.00
6/30/2018 By Zale Ltd $ 6,000.00
6/30/2018
By Balance
C/d $ 56,094.06
$ 83,069.06 $ 83,069.06
Computation of inventory
Table 8 Computation of Inventory
Particulars Amount
Opening Inventory $ 85,000.00
Purchased During the Month $ 5,907.00
Cost of Goods Sold During the Month $ 23,740.00
Sales Return During the Month $ 70.00
Closing Inventory $ 67,237.00
Closing Trial Balance
Table 9 Trial Balance for Borderline Ltd
Particulars Debit Credit
Cash at Bank $ 56,094.06
Debtors Control Account $ 8,986.00
Provision for Doubtful Debts $ 50.00
Inventory $ 67,237.00
Shop Fitting and Equipment $ 60,000.00
Accumulated Depreciation Fittings $ 10,920.00
Motor Vehicle $ 35,000.00
Accumulated Depreciation Motor Vehicle $ 12,000.00
Creditors Control $ 4,760.00
Share Capital $ 60,000.00
Retained Profits $ 81,735.00
GST Paid $ 4,300.00

GST Payable $ 4,200.00
GST Collected $ 8,500.00
Loan $ 32,000.00
Discount Allowed $ 100.00
Discount Received $ 77.94
Rent $ 1,500.00
Telephone $ 320.00
Wages $ 16,320.00
Electricity $ 1,100.00
Stationery Expenses $ 220.00
Sundry Expenses $ 435.00
Sales Return $ 154.00
Advertisement $ 3,500.00
Outstanding Expense $ 2,420.00
Income Tax $ 12,430.00
Provision for Income Tax $ 12,430.00
Outstanding Advertisement Expenses $ 3,500.00
Interest on Loan $ 240.00
Outstanding Interest on Loan $ 240.00
Sales $ 58,970.00
Purchase $ 7,597.00
Accounting Fees $ 250.00
Depreciation $ 955.00
Outstanding Accounting Fees $ 250.00
Suspense Account $ 15,314.88
$ 292,052.94 $ 292,052.94
Revenue Account
Table 10 Profit & Loss for Borderline Ltd for June 2018
PROFIT & LOSS June
Sales $58,816.00
less cost of goods sold $23,740.00
Discount Received $77.94
Gross profit/net sales $35,153.94
Expenses

Accountant fees $250.00
Discount Allowed $100.00
Advertising & marketing $3,500.00
Sundry Expenses $435.00
Bank interest $240.00
Credit card fees $0.00
Utilities (electricity, gas, water) $1,100.00
Telephone $320.00
Lease/loan payments $0.00
Rent & rates $1,500.00
Depreciation $955.00
Repairs & maintenance $0.00
Stationery & printing $220.00
Insurance $0.00
Superannuation $0.00
Income tax $12,430.00
Wages (including PAYG) $16,320.00
Total expenses $37,370.00
NET PROFIT (Net Income) -$2,216.06
Balance sheet
Table 11 Balance Sheet for Border Line Ltd
BALANCE SHEET 30 th June 2018
Current assets $132,317
Cash at Bank $56,094
Inventory $67,237
Debtors $8,986
Fixed assets $110,315
Furniture & fit out $60,000
Vehicles $35,000
Suspense $15,315
Total assets $242,632
Current/short-term liabilities $55,210
Accounts payable $4,760
Interest payable $240