Comprehensive Financial Analysis Report: Quick Pick Delivery Services

This report presents a detailed financial analysis of Quick Pick Delivery Services. It begins with journal entries, followed by ledger accounts and a trial balance. The core of the report includes an income statement, balance sheet, and adjusting and closing entries, culminating in a post-closing trial balance. The analysis then delves into the financial performance of the company, calculating and interpreting key financial ratios such as return on assets, return on capital, liquidity ratio, and profit margin. The financial ratios indicate a strong profit margin but highlight the need to improve the liquidity ratio. Overall, the report concludes that Quick Pick Delivery Services demonstrates a sound financial position and offers scope for business expansion.

ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Journal entries.............................................................................................................................1
Ledger Accounts.........................................................................................................................2
Trial Balance...............................................................................................................................5
Income Statement and Balance Sheet.........................................................................................5
Adjusting Entries.........................................................................................................................6
Closing Entries............................................................................................................................7
Post Closing Trial Balance..........................................................................................................7
Report on Financial Performance................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In general terms Accounting is a process of recording, classifying, summarising,
controlling and analysing the financial activities of the organisation. Through accounting, an
organisation may know its profitability and financial position (Turco, 2016). The below study
shows the financial performance of Quick Pick Delivery Services with the help of its journal
transactions, income statement, balance sheet and a report on its financial position is also
provided with the help of financial ratios.
Journal entries
Recording of journal entries at the end of 31st january 2017
Date Particulars L.F. Debit ($) Credit($)
a. Cash A/C Dr. 6000
Truck A/C Dr. 11000
To, Capital A/C 17000
b. Office Supplies A/C Dr. 300
To, Cash A/C 300
c. Prepaid insurance A/C Dr. 700
To, Cash A/C 700
d. Cash A/C Dr. 800
Accounts receivables A/C Dr. 700
To, Services revenues A/C 1500
e. Account receivable A/C Dr. 1500
To, Services revenues A/C 1500

f. Salary A/C Dr. 700
To, Cash A/C 700
g. Cash A/C Dr. 12000
To, Services revenues A/C 12000
h. Cash A/C Dr. 600
To, Unearned revenue A/C 600
I. Cash A/C Dr. 1500
To, Accounts receivable AC 1500
j. Fuel expenses A/C Dr. 200
To, Accounts payable A/C 200
k. Account receivable A/C Dr. 900
To, Services revenues A/C 900
l. Rent A/C Dr. 600
To, Cash A/C 600
m. Accounts payable A/C Dr. 200
To, Cash A/C 200
n. Drawings A/C 2100
To, Cash A/C 2100
Ledger Accounts
Cash A/C

Particulars Amount ($) Particulars Amount($)
To capital A/C 6000 By office supplies A/C 300
To service revenue A/C 800 By prepaid expenses A/C 700
To service revenue A/C 12000 By salary expenses A/C 700
To unearned revenue A/C 600 By rent expenses A/C 600
To accounts receivable A/C 1500 By accounts payable A/C 200
By drawing A/C 2100
By balance c/d A/C 16300
TOTAL 20900 TOTAL 20900
To balance b/d 16300
Truck A/c
Particulars Amount($) Particulars Amount($)
To capital A/C 11000 By balance c/d 11000
TOTAL 11000 TOTAL 11000
To balance b/d 11000
Capital A/c
Particulars Amount($) Particulars Amount($)
To balance c/d 17000 By cash A/C 6000
By truck A/C 11000
TOTAL 17000 TOTAL 17000
By balance b/d 17000
Office Supplies A/c
Particulars Amount($) Particulars Amount($)
To cash A/C 300 By balance c/d A/C 300

TOTAL 300 TOTAL 300
To balance b/d 300
Prepaid Insurance A/c
Particulars Amount($) Particulars Amount($)
To cash A/C 700 By balance c/d 700
TOTAL 700 TOTAL 700
To balance b/d 700
Account Receivable A/c
Debit Credit
To service revenue A/C 700 By cash A/C 1500
To service revenue A/C 1500 By balance c/d 1600
To service revenue A/C 900
TOTAL 3100 TOTAL 3100
To balance b/d 1600
Service Revenues A/c
Debit Credit
To balance c/d 15900 By accounts receivables A/C 700
By accounts receivables A/C 1500
By cash A/C 12000
By accounts receivables A/C 900
By cash A/C 800
TOTAL 15900 TOTAL 15900
By balance b/d 15900

Salary A/c
Debit Credit
To cash A/C 700 By balance c/d 700
TOTAL 700 TOTAL 700
To balance b/d 700
Unearned Revenue A/c
Debit Credit
By cash A/C 600
To balance c/d 600
TOTAL 600 TOTAL 600
By balance b/d 600
Fuel A/c
Debit Credit
To accounts payable A/c 200 By balance c/d 200
TOTAL 200 TOTAL 200
To balance b/d 200
Accounts Payable A/c
Debit Credit
By fuel expenses A/C 200
To cash A/C 200
TOTAL 200 TOTAL 200
Rent A/c

Debit Credit
To cash A/C 600 By balance c/d 600
TOTAL 600 TOTAL 600
To balance b/d 600
Drawing A/c
Debit Credit
To cash A/C 2100 By balance c/d 2100
TOTAL 2100 TOTAL 2100
To balance b/d 2100
Trial Balance
Trial Balances at the end of 31st January 2017
UNADJUSTED
BALANCES ADJUSTMENTS
Particulars Debit ($) Credit ($) Debit ($) Credit ($)
Cash A/C 16300
Capital A/C 17000
Accounts receivables A/C 1600
Office supplies A/C 300 100
Truck A/C 11000
Prepaid insurance A/C 700 250
Service revenue A/C 15900 500
Salary expenses A/C 700 700
Fuel expenses A/C 200
Unearned revenue A/C 600 500
Rent expense A/C 600
Drawing A/C 2100

ACCRUED SALARY EXPENSES 700
DEPRECIATION EXPENSE 60
ACCUMULATED DEPRECIATION 60
SUPPLIES EXPENSES 100
INSURANCE EXPENSES 250
TOTAL 33500 33500 1610 1610
Income Statement and Balance Sheet
Income Statement at the end of 31st January 2017
Particulars Amount($)
Service revenues 16400
less: operating expenses
Salary expenses 1400
Fuel expenses 200
Rent expenses 600
Depreciation expenses 60
Supplies expenses 100
Insurance expenses 250
-2610
Net income 13790
Statement of changes in Equity
Particulars Amount($)
Capital 17000
Add: net incomes 13790

Less: drawings -2100
Capital as on 31st January 2017 28690
Balance Sheet at the end of 31st January 2017
Particulars Amount($) Amount($)
Current Assets :
Cash 16300
Accounts receivables 1600
Office supplies 200
Prepaid expenses 450
Total current assets 18550
Fixed assets:
Truck 11000
Less: accumulated depreciation -60 10940
Total assets(A) 29490
Current liabilities:
Unearned service revenues 100
Accrued salary expenses 700
Total current liabilities (B) 800
Net assets (A-B) 28690
Shareholders equity :
Capital 28690
Total liabilities 28690
Adjusting Entries
Adjustment Journal Entries
Date Particulars L.F. Debit ($) Credit($)

a. Salary expenses A/C DR. 700
To, accrued salary expenses A/C 700
b. Depreciation expenses A/C Dr. 60
To, accumulated depreciation A/C 60
c. Insurance expenses A/C Dr. 250
To, Prepaid insurance A/C 250
d. Supplies expenses A/C 100
To, Office supplies A/C 100
e. Unearned revenues A/c Dr. 500
To, Service revenue A/C 500
Closing Entries
Closing Entries
Date Particulars L.F. Debit ($) Credit($)
Service revenue A/C Dr. 16400
To, income and expenses A/C 16400
Income and expense A/C Dr. 2610
To, salary expenses 1400
To, fuel expenses 200
To, rent expenses 600
To, depreciation expenses 60
To, supplies expenses 100

To, insurance expense 250
Net income A/c Dr. 13790
To, capital A/C 13790
Capital A/C Dr. 2100
To, drawings A/C 2100
Post Closing Trial Balance
Post closing Trial balance at the end of 31st January 2017
Particulars Debit ($) Credit ($)
Cash A/C 16300
Capital A/C 17000
Accounts receivables A/C 1600
Office supplies A/C 200
Truck A/C 11000
Prepaid insurance A/C 450
Service revenue A/C 16400
Salary expense A/C 1400
Fuel expense A/C 200
Unearned revenue A/C 100
Rent expense A/C 600
Drawing A/C 2100
ACCRUED SALARY EXPENSES 700
DEPRECIATION EXPENSE 60
ACCUMULATED DEPRECIATION 60
SUPPLIES EXPENSES 100