Detailed Accounting Report: Journal, Ledger, Trial Balance, Statements

This report provides a detailed analysis of accounting principles and practices. It begins with an introduction to accounting and then delves into the practical application of these principles. The first task involves the creation of journal entries, followed by posting these entries into ledger accounts. The report also includes a bank reconciliation statement, an unadjusted trial balance, and the preparation of income statements and a balance sheet. The report encompasses all the necessary steps for the complete accounting cycle, from initial transactions to the final financial statements, offering a comprehensive view of the financial position of Pitt St Furniture. The report concludes with a summary of the key findings.

Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Journal accounts.................................................................................................................1
2. Posting in ledger accounts..................................................................................................5
3. Bank reconciliation statement..........................................................................................10
4. Trial balance.....................................................................................................................10
5. Income statements and balance sheet...............................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Accounting is the concept under which various process are performed so that all the
information which is relevant to business can be recorded in most appropriate manner (Brigham
and Ehrhardt, 2013). In this different accounts are prepared such as firstly journal is made in
which entries are made after that positing is done in ledgers. Then trial balance is made in which
all the adjustments are considered which will be further used to prepare income statement and
balance sheet (Healy and Palepu, 2012). All of this will be explained in below provided report.
TASK
1. Journal accounts
In this all the transactions that are taking place in business together with opening and
closing balances will be recorded and same is provided below.
General Journal of PITT ST FURNITURE
Date Particulars Debit Credit
01/05/17 Cash at bank A/c Dr.
Accounts receivable account Dr.
Vehicle A/c Dr.
Computer A/c Dr.
Drawings A/c Dr.
Purchases A/c Dr.
Insurance on Purchases A/c Dr.
Insurance on Vehicles A/c Dr.
Interest A/c Dr.
Vehicle registration A/c Dr.
Rates A/c Dr.
Rent A/c Dr.
Office supplies A/c Dr.
Motor vehicle expenses A/c Dr.
Wages A/c Dr.
To Accounts Payable
11850
25000
60000
5000
8000
37000
300
200
2400
600
1300
7500
450
750
4250
12000
1

To Loan from Easy Money Ltd.
To Capital
To Sales
57600
40000
55000
Petty cash book
Date Particulars Debit Credit
05/05/17 Duster expense A/c Dr.
To Petty cash
15
15
13/05/17 Signage Expense A/c Dr.
To Petty cash
50
50
Total 65 65
Cash receipt Journal
Debits Credits
Date Particulars Cash at bank Accounts receivable sales
03/05/17 Cash at bank A/c
To Sales
10000
10000
07/05/17 Cash at bank A/c
To Accounts
receivable
25000
25000
Total 35000 25000 10000
Cash payment Journals
Debit Credit
Date Particulars Accounts
payables
Pett
y
Drawin
gs
Rent Insurance
on
Insurance
on
Wages Cash at bank
2

cash purchases vehicles
01/05/
17
Petty cash
A/c
To Cash at
bank
100
100
Rent A/c
Dr.
To Cash at
bank
150
0
1500
Insurance
on
purchases
A/c
To Cash at
bank
100
100
13/05/
17
Wages A/c
To Cash at
bank
500
500
16/05/
17
Accounts
Payable
A/c
To Cash at
bank
12000
12000
26/05/
17
Petty cash
A/c
To Cash at
Bank
65
65
27/05/
17
Wages A/c
To Cash at
500
500
3

Bank
28/05/
17
Drawings
A/c
To Cash at
Bank
1000
1000
29/05/
17
Insurance
on vehicle
A/c
To Cash at
Bank
50
50
Total 12000 165 1000 150
0
100 50 1000 15815
Sales journal
Debit Credit
Date Particulars Accounts receivable sales
23/05/17 Accounts receivable A/c
To Sales
25000
25000
Total 25000 25000
Purchase journal
Debit Credit
Date Particulars Purchases Accounts payable
09/05/17 Purchases A/c
To Accounts payable
17250
17250
Total 17250 17250
Purchase return journal
4

Debits Credit
Date Particulars Accounts payable Purchase return
21/05/17 Accounts payable A/c
To Purchase return
1150
1150
Adjustment entries:
Particulars Debit Credit
1 Prepaid rent A/c Dr.
To Rent
1500
1500
2 Depreciation on vehicle A/c Dr.
To Vehicle
6250
6250
3 Depreciation on computers A/c Dr.
To Computers
625
625
4 Interest A/c Dr.
To Loan from Easy Money Ltd.
600
600
2. Posting in ledger accounts
All the entries which have been made above will have to be posted in various ledger
accounts (Weil, Schipper and Francis, 2013). This is required to be done as by this closing
balances of each account will be determined that are used in making of trial balance. So in order
to fulfil this criteria below are provided necessary ledger accounts.
Ledger accounts of PITT ST FURNITURE
Cash at bank A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 11850 01/05/17 By petty cash 100
01/05/17 By rent 1500
5

01/05/17 By insurance on
purchases
100
03/05/17 To sales 10000 13/05/17 By wages 500
07/05/17 To accounts receivable 25000 16/05/17 By accounts payable 12000
26/05/17 By petty cash 65
27/05/17 By wages 500
28/05/17 By drawings 1000
29/05/17 By insurance on
vehicle
50
31/05/17 By balance c/d 31035
46850 46850
Accounts receivable A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 25000 07/05/17 By cash at bank 25000
23/05/17 To sales 25000 31/05/17 By balance c/d 25000
50000 50000
Vehicle A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 60000
31/05/17 By balance c/d 60000
60000 60000
Computer A/c
Date Particulars Amount Date Particular Amount
6

01/05/17 To balance b/d 5000
31/05/17 By balance c/d 5000
5000 5000
Drawings A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 8000
28/05/17 To cash at bank 1000 31/05/17 By balance c/d 9000
9000 9000
Purchases A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 37000
09/05/17 To accounts payable 17250 31/05/17 By balance c/d 54250
54250 54250
Insurance on purchases A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 300
01/05/17 To cash at bank 100 31/05/17 By balance c/d 400
400 400
Insurance on Vehicle A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 200
29/05/17 To cash at bank 50 31/05/17 By balance c/d 250
7

250 250
Interest A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 2400
31/05/17 By balance c/d 2400
2400 2400
Vehicle Registration A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 600
31/05/17 By balance c/d 600
600 600
Rates A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 1300
31/05/17 By balance c/d 1300
1300 1300
Rent A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 7500
01/05/17 To cash at bank 1500 31/05/17 By balance c/d 9000
9000 9000
Office supplies A/c
8

Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 450
31/05/17 By balance c/d 450
450 450
Motor Vehicle expenses A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 750
31/05/17 By balance c/d 750
750 750
Wages A/c
Date Particulars Amount Date Particular Amount
01/05/17 To balance b/d 4250
13/05/17 To cash at bank 500
27/05/17 To cash at bank 500 31/05/17 By balance c/d 5250
5250 5250
Accounts Payable A/c
Date Particulars Amount Date Particular Amount
16/05/17 To cash at bank 12000 01/05/17 By balance b/d 12000
21/05/17 To purchase return 1150 09/05/17 By Purchases 17250
31/05/17 To balance c/d 16100
29250 29250
9

Loan from easy money Ltd. A/c
Date Particulars Amount Date Particular Amount
01/05/17 By balance b/d 57600
31/05/17 To balance c/d 57600
57600 57600
Capital A/c
Date Particulars Amount Date Particular Amount
01/05/17 By balance b/d 40000
31/05/17 To balance c/d 40000
40000 40000
Sales A/c
Date Particulars Amount Date Particular Amount
01/05/17 By balance b/d 55000
03/05/17 By Cash at bank 10000
31/05/17 To balance c/d 90000 23/05/17 By Accounts
receivable
25000
90000 90000
Petty cash A/c
Date Particulars Amount Date Particular Amount
01/05/17 To cash at bank 100 05/05/17 By duster expenses 15
26/05/17 To cash at bank 65 13/05/17 By signage expenses 50
31/05/17 By balance c/d 100
165 165
10