Financial Accounting: Detailed Analysis of Client Transactions Records

This financial accounting assignment delves into the practical application of accounting principles through the analysis of various client transactions. The report meticulously details journal entries, ledger postings, and the construction of trial balances for multiple clients. It covers the preparation of profit and loss statements and financial position statements, alongside an exploration of accounting concepts and the purpose of depreciation. Furthermore, the assignment addresses bank reconciliation statements, control accounts, suspense accounts, and their significance. The document provides a comprehensive overview of financial accounting procedures, offering a valuable resource for students studying accounting.

Financial Accounting

Table of Contents
INTRODUCTION...........................................................................................................................4
Client 1.............................................................................................................................................4
(a) Books of prime entries ..........................................................................................................4
(b) Ledger posting.......................................................................................................................7
Trial balance..............................................................................................................................13
Client 2...........................................................................................................................................14
(a) Profit and loss statement for Peter piper..............................................................................14
(b) Financial Position Statements..............................................................................................14
Client 3...........................................................................................................................................15
(a) Profit and loss statement of Raintree Ltd. For the year ended 30th September 2017.........15
(b) Statement of financial statement of Braintree Ltd...............................................................15
(c) Accounting concepts............................................................................................................16
(c) Purpose of depreciation.......................................................................................................16
Client 4 ........................................................................................................................................17
(a) Purpose of bank reconciliation statement............................................................................17
(b) Factors affect the balance of bank statement and cash account..........................................17
Client 5...........................................................................................................................................17
(a) sales ledger control account and purchase ledger control account......................................17
(b) Importance of Ledger control account................................................................................18
Client 6...........................................................................................................................................18
(a) Meaning of suspense accountant.........................................................................................18
(b) Trial balance........................................................................................................................18
(c) Journal entries regarding suspense account.........................................................................19
(d) Difference between suspense and clearing accounts ..........................................................19
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Financial accounting is one of the important parts of accounting system. All transactions
and records are kept in the form of sections, formats and schedules under the same (Chen and et.
al., 2011). Financial accounting provides a path to track the records and information in a proper
manner. Financial accounting is a concept which is made up of multiple rules and principles
around which information and records are maintained. This report defines the implementation of
book keeping method in general accounting. Financial records and accounts are prepared in
certain formats as double entry systems, ledger and trail balance (Weil, Schipper and Francis,
2013 ). Bank reconciliation statements, control and suspense accounts are prepared subject to
case requirement.
Client 1
(a) Books of prime entries
Journal entries (Figures in £)
Date Particular L/F Debit Credit
01/05/16
2/05/2016
3/05/2016
Storage a/c
To Bank a/c
(Being storage paid)
Purchase a/c
To S. Hood
To D. Main
To W. Tone
To R. Foot
(Being purchase made)
J. Wilson a/c
T. Cole a/c
F. Syme a/c
J. Allen a/c
400
6080
1120
1640
2080
910
400
1450
2060
960
1610

4/05/2017
7/05/2016
9/05/2016
11/05/2016
14/05/2016
16/05/2016
P. White a/c
F. Lane a/c
To Sales a/c
(Being sales made)
Motor a/c
To Cash a/c
(Being motor purchased)
Drawing a/c
To Cash a/c
(Cash withdrawal for personal use)
T. Cole a/c
J. Fox a/c
To Sales a/c
(being sales made)
Sales return a/c
To J. Wilson a/c
To F. Syme a/c
(Being Goods returned)
Van a/c
To Abel Motors Ltd
(Being Van purchased )
Bank a/c
To P. Mullen
To F. Lane
To J. Wilson
2420
770
470
1500
680
1310
680
28500
6668
8490
470
1500
1990
270
410
28500
1330
2945
807

19/05/2016
22/05/2016
24/05/2016
27/05/2016
To F. Syme
(being payment maid)
Discount allowed a/c (70+155+43+84)
To P. Mullen
To F. Lane
To J. Wilson
To F. Syme
(Being Discount Allowed)
R. Foot account a/c
To Purchase return a/c
(Being Purchase return)
Purchase a/c
To L. Mole
To W. Wright
(Purchase made)
S. Hood a/c
J. Brown a/c
R. Foot a/c
To Bank a/c
S. Hood a/c
J. Brown a/c
R. Foot a/c
To Discount received
(360+460+140)
(Payment made and discount received)
Salaries a/c
To Bank a/c
352
50
3740
3240
4140
1260
360
460
140
4800
1586
70
155
43
84
50
1830
1910
8640
960
4800

30/05/2016
31/05/2016
(Being salaries paid)
Business rates a/c
To Bank
(Being rates paid)
Abel Motors Ltd a/c
To Bank a/c
1320
20500
1320
20500
Working note
1. Payment Received from
P. Mullen {1400- (1400*5%)} = 1330
F. Lane {3100- (3100*5%)} = 2945
Net goods sold and payment received from
J. Wilson (1120-270) = (850-850*5%) = 808
F. Syme (2080-410) = (1670-(1670*5%)) = 1587
2. Discount Received from
S. Hood (3600*10%) = 360
J. Brown (4600*10%) = 460
R. Foot (1400*10%) = 140
(b) Ledger posting
Bank
account
Date Particulars Amount Date Particular Amount
01/05/16 To balance B/d 91392 01/05/16
By Storage
expensed 400
16/05/16 To P. Mullen 1330 24/05/16 By S. Hood 3240
To F. Lane 2945 By J. Brown 4140

To J. Wilson 807 By R. Foot 1260
To F. Syme 1586 27/05/16 By Salary a/c 4800
30/05/16 By Business rates 1320
31/05/16 By Able motors 20500
01/05/17 By balance c/d 62400
98060 98060
Premises a/c
Date Particulars Amount Date Particular Amount
01/05/16 To balance B/d 340000
01/05/17 by balance 340000
Total 340000 340000
Van
account a/c
Date Particulars Amount Date Particular Amount
01/05/16
To opening
balance 22750
14/05/16 To abel Motors 28500
01/05/17 by balance 51250
51250 51250
P. Mullen a/c
Date Particulars Amount Date Particular Amount
01/05/16 balance B/d 2800 16/05/16 By bank 1330
By Discount
allowed 70
01/05/17 by balance 1400
2800 2800

S. Hood
Date Particulars Amount Date Particular Amount
01/05/16 By balance b/d 1600
01/05/17 To Balance C/d 2150 02/05/16 By purchase 1450
2150 2150
S. Hood
Date Particulars Amount Date Particular Amount
01/05/16 By balance b/d 1600
01/05/17 To Balance C/d 2150 02/05/16 By purchase 1450
2150 2150
Storage
cost
Date Particulars Amount Date Particular Amount
01/05/16 To bank 400 01/05/17 By balance c/d 400
400 400
Sales a/c
Date Particulars Amount Date Particular Amount
03/05/16 By J. wilson 1120
By T. Cole 1640
By F. Syme 2080
By J. Allen 910
By P. White 2420
By F. Lane 770
09/05/16 By T. Cole 680
By J. Fox 1310
22/05/16 By L. mole 1830
01/05/17 To Balance C/d 14670 by W. Wright 1910

14670 14670
Purchase a/c
Date Particulars Amount Date Particular Amount
02/05/16 To S. hood 1450
To D. main 2060
To W. Tone 960
To R. Foot 1610
22/05/16 To L. Mole 1830
W. Wright 1910 01/05/17 By balance c/d 9820
9820 9820
Fixtures a/c
Date Particulars Amount Date Particular Amount
01/05/16 To balance b/d 8100
01/05/17 By balance 8100
8100 8100
Inventory a/c
Date Particulars Amount Date Particular Amount
01/05/16 To balance b/d 63900
01/05/17 By balance 63900
63900 63900
F. Lane a/c
Date Particulars Amount Date Particular Amount
01/05/16 To balance c/d 5430 16/05/16 By bank 2945
by Discount
Allowed 155

03/05/16 To sales 770
01/05/17 By balance 3100
6200 6200
J. Brown
Date Particulars Amount Date Particular Amount
01/05/16
by balance
B/d 4600
01/05/17 To balance 4600
4600 4600
R. Foot
Date Particulars Amount Date Particular Amount
19/05/16 To Purchase Return 50 02/05/16 by purchase 1610
01/05/17 To balance c/d 1560
1610 1610
J. Wilson
Date Particulars Amount Date Particular Amount
03/05/16 To sales 1120 11/05/16 By Sales return 270
01/05/17 By Balance C/d 850
1120 1120
T. Cole
Date Particulars Amount Date Particular Amount
03/05/16 To sales 1640 01/05/17 By Balance C/d 2320
09/05/16 To sales 680
2320 2320

F. Syme
Date Particulars Amount Date Particular Amount
03/05/16 To sales 2080
11/05/2016
By Sales return 410
By bank 1586
by Discount Allowed 84
2080 2080
J. Allen
Date Particulars Amount Date Particular Amount
03/05/16 To sales 910 01/05/17 By Balance C/d 910
910 910
P. White
Date Particulars Amount Date Particular Amount
03/05/16 To sales 2420 01/05/17 By Balance C/d 2420
2420 2420
D. Main
Date Particulars Amount Date Particular Amount
01/05/17 To balance c/d 2060 02/05/16 by purchase 2060
2060 2060
W. Tone
Date Particulars Amount Date Particular Amount
01/05/17 To balance c/d 960 02/05/16 by purchase 960
960 960
J. Fox