Accounting Homework: Purchase, Sales Ledger & Bank Reconciliation

This document presents a detailed solution to an accounting homework assignment. The solution encompasses several key accounting tasks, including the preparation of purchase and sales ledgers, control accounts, and bank reconciliation statements. The assignment covers the creation of purchase ledgers, purchase ledger control accounts, and the reconciliation of control account balances. It also includes the preparation of a sales ledger control account, updating a cash book, and creating a bank reconciliation statement. Further, the assignment involves the creation of a weekly cash book, bank reconciliation statements, and the handling of overdrawn cash scenarios. Finally, the solution includes the calculation of administrative expenses, VAT figures, and the creation of a trial balance, including adjustments for closing inventory, allowance for doubtful debts, and profit/loss calculations. The solution provides a comprehensive guide to various accounting principles and practices.

ACCOUNTS

TABLE OF CONTENTS
Task 1..........................................................................................................................................................4
A. Prepare purchase ledgers accounts......................................................................................................4
B. Prepare purchase ledger control accounts...........................................................................................4
C. Reconcile the control accounts balances with the ledger account balances.........................................5
TASK 2.......................................................................................................................................................5
A. Prepare sales ledger control account...................................................................................................5
B. Update cash book................................................................................................................................5
C. Bank reconciliation statement.............................................................................................................6
A. cash book............................................................................................................................................6
B. Bank Reconciliation Statement..........................................................................................................6
TASK 3.......................................................................................................................................................7
A. Prepare weekly cash book...................................................................................................................7
A. Update the cash book..........................................................................................................................7
B. Bank Reconciliation statement............................................................................................................7
C. Prepare cash and BRS when cash were overdrawn.............................................................................8
Bank Reconciliation statement................................................................................................................8
TASK 6.......................................................................................................................................................8
1. Calculate administrative expenses to be included in the trial balance..................................................8
2. Calculate the VAT figure on administration expenses for inclusion in the VAT control account........8
3. Update the VAT control account.........................................................................................................9
4. Trial balance........................................................................................................................................9

Task 1
A. Prepare purchase ledgers accounts
F Begum Account
Particulars Amount £ Particulars Amount £
Discount received £ 260.00 Balance B..d £ 2,120.00
Accounts payable £ 6,790.00 Purchase £ 9,440.00
Purchase returns £ 770.00
Balance c/d £ 3,740.00
£ 11,560.00 £ 11,560.00
J.Singh
Particulars Amount £ Particulars Amount £
Discount received £ 357.00 Balance b.d £ 4,005.00
Accounts payable £ 7,996.00 Purchases £ 9,995.00
Purchases return £ 275.00
Balance c/d £ 5,372.00
£ 14,000.00 £ 14,000.00
A. Patel
Particulars Amount £ Particulars Amount £
Balance c/d £ 35.00 Purchases £ 4,690.00
Purchase return £ 386.00
Contra £ 2,269.00
Balance c/d £ 2,000.00
£ 4,690.00 £ 4,690.00
B. Prepare purchase ledger control accounts
Purchase ledger control accounts
Particulars Amount £ Particulars Amount £
Return outward £ 1,431.00 Balance £ 11,112.00
Bills payable £ 14,786.00 F Begum £ 9,440.00
Discount received £ 617.00 J. Singh £ 9,995.00
A. Patel £ 4,690.00
Cash 2065
Balance c/d £ 20,468.00
£ 37,302.00 £ 37,302.00

C. Reconcile the control accounts balances with the ledger account balances
Reconciliation statement
Particulars Amount £
Net total balances in Purchase ledger £ 20,468.00
Cash purchases £ 2,065.00
Balance £ 18,403.00
TASK 2
A. Prepare sales ledger control account
Particulars Amount £ Particulars Amount £
Balances B/d £ 3,752.00 Return inward £ 449.00
Credit sales £ 24,918.00 Contra £ 2,269.00
Check dishonor £ 25.00 Cheques from customers £ 18,768.00
Balance c/d £ 7,209.00
£ 28,695.00 £ 28,695.00
B. Update cash book
Date
2006 Details Bank Date
Cheque
Number Details Bank
1-Nov Balance b/f
£
5,281.00 1-Nov-06 8301
Wooden
wonders
£
1,642.00
15-Nov-
06 Bright&Co.
£
10,000.00 1-Nov-06 8302 Davies design
£
1,391.00
22-Nov-
06 WWW Ltd
£
1,250.00 6-Nov-06 8303 PFT Ltd
£
6,065.00
22-Nov-
06 Leek&Lom
£
8,812.00 6-Nov-06 8304 Carver &Co
£
6,340.00
22-Nov-
06 C Smyth
£
175.00
28-Nov-
06 8305 ELG Ltd
£
2,711.00
24-Nov-
06 Bank interest
£
5.00
15-Nov-
06 Hull CC
£
58.00
28-Jun-
06 Balance c/d
21-Nov-
06
In stone
insurance
£
110.00
22-Nov-
06
Overdraft
facility
£
40.00
24-Nov-
06 Bank charges
£
12.00
28-Jun-
06 Balance c/d
£
7,154.00
£
25,523.00
£
25,523.00

29-Jun-
06
Brought
Forward
£
7,154.00
C. Bank reconciliation statement
Bank reconciliation statement
Particulars Amount
Balance as per bank statement 6943
Leek &Lom 8812
C Smyth 175
Total to add 8987
PFT Ltd 6065
ELG Ltd 2711
Total to less 8776
Balance as per cash book 7154
A. cash book
Date
2008 Details Bank
Date
2008
Cheque
Number Details Bank
1-Jun-08 Balance B/f 12050 2-Jun-08 136408 Stone&Company 629
20-Jun-08 Laura laing 5210 2-Jun-08 136409 Baker Ltd 500
20-Jun-08 DVM Ltd 850 6-Jun-08 136410 belt and Braces 6425
20-Jun-08 Bank interest 20 10-Jun-08 136411 DRL Ltd 348
21-Jun-08 Mathew mann 624 16-Jun 136412 Philip gose 175
17-Jun-08 136413 David Kay 216
20-Jun-08
Property
maintenance 725
20-Jun-08 LDM ltd 100
20-Jun-08 Bank charges 15
28-Jun-08 9621
18754
1875
4
22-Jun-08
Brought
Forward 9621
B. Bank Reconciliation Statement
Bank reconciliation statement
Particulars Amount
Balance as per bank statement 7578
Mathew man 624
Laura laing 5210

Total to add 5834
Philip gose 175
David Kay 216
Reminants 3400
Total to less 3791
Cash as per cash book 9621
TASK 3
A. Prepare weekly cash book
cash book
Date
Descripti
on Cash Bank Date Description Cash Bank
1/11/20
14 Balance
£
384.21
£
2,576.00
2/11/20
14
Staff travel
card
£
9.10
1/11/20
14 Sales
£
354.25
2/11/20
14
Printing
paper
£
39.63
1/11/20
14 Bacs
£
9,900.00
4/11/20
14 Creditors
£
1,001.00
3/11/20
14 Sales
£
899.00
5/11/20
14 Rent
£
705.00
5/11/20
14 Debtors
£
3,216.00
5/11/20
14 Wages
£
366.16
6/11/20
14 Balance c/d
£
1,588.73
£
15,692.00
£
1,637.46
£
15,692.00
£
1,637.46
£
15,692.00
A. Update the cash book
Cash Book
Date Details Amount Date Details Amount
1-Jan Balance 3200 1-Jan David Marsh 225
2-Jan Bac-Sarah lewis 600 11-Jan Internet banking 420
9-Jan Sales 1050 12-Jan Bank charges 75
15-Jan Rent refund 80 13-Jan sarah events 650
15-Jan Stan holt 940 17-Jan telephone charges 95
16-Jan Bacs-Eva mitchell 1370 18-Jan ATM 100
16-Jan Anna cameron 200 5875
7440 7440

B. Bank Reconciliation statement
Particulars Amount
Balance as per pass book 4735
Stan holt 940
Anna cam 200
Cash book balance 5875
C. Prepare cash and BRS when cash were overdrawn
Date Details Amount Date Details Amount
2-Jan Bac-Sarah lewis 600 1-Jan Balance 3200
9-Jan Sales 1050 1-Jan David Marsh 225
15-Jan Rent refund 80 11-Jan Internet banking 420
15-Jan Stan holt 940 12-Jan Bank charges 75
16-Jan Bacs-Eva mitchell 1370 13-Jan sarah events 650
16-Jan Anna cameron 200 17-Jan telephone charges 95
18-Jan ATM 100
2675
4240 4240
Bank Reconciliation statement
Particulars Amount
Balance as per pass book 1535
Stan holt 940
Anna cam 200
Cash book balance 2675
TASK 6
1. Calculate administrative expenses to be included in the trial balance
Total administrative expenses= 27216
Vat rate = 20%
Administrative expenses to be shown in trial balance= 27216*100/120= 22680
2. Calculate the VAT figure on administration expenses for inclusion in the VAT control account
Total administrative expenses= 27216
Vat rate= 20%
Vat amount= 27216*20/120= 4536

3. Update the VAT control account
Particulars Amount Particulars Amount
vat on purchases 35000 Balance b/d 5000
Vat on administrative expenses 4536 Vat on sales 26250
Paid to HMRC 5000
Balance c/d 13286
44536 44536
4. Trial balance
Account Trial balance Adjustments Profit and loss Balance sheet
Dr Cr Dr Cr Dr Cr Dr Cr
Capital
13000
0
13000
0
Drawings 3500 3500
Bank 574 574
Motor vehicle cost 85000 48000
Accumulated depreciation on motor
vehicle 37000
Fixture and fittings 129000 75000
Accumulated depreciation on fixtures 54000
SLCA 47500 2500 44250
Allowance for doubtful debts 3000 750
PLCA 38400 885 39285
Revenue
20649
8 3000
20949
8
Purchases 165367
16536
7
Opening inventory 3205 3205
Rent 5075 5075
Electricity 1000 1000
Wages 43900 43900
VAT
13590
0
1328
6
14918
6
Irrecoverable expenses 4000 4000
Suspense accounts 4485
448
5 4485
Closing inventory
382
7 3827 3827
Allowance for doubtful debts 750 750
Miscellaneous assets
12183
7
Administrative expenses 22680 22680
Profit/Loss - -

28652 28652
Total
29764
6
29764
6