ACC101 Fundamental of Accounting Assignment Help

ACC101 Fundamental of Accounting Assignment Help

ACC101 Fundamental of Accounting Assignment Help

Introduction

In this report I have gained a very good understanding on the Accounts rules and regulation. In today’s world organization has to keep their amount an data in orderly manner so that better operation could be managed. General ledger, Sub ledger, account journal entries, Income statement are the sub part that has been used for the preparation of financial statement of the company. Financial statement is the small book that depicts the overall image of the organization. as per the accounting rules there is find a fact that in preparation of financial statement an organization has to prepare journal entries in first then ledger account afterward Trading & income statement is prepared then after with the help of financial statement is structured.

ACC101 Fundamental of Accounting Assignment Help

Task-1

A. Record the November transactions (round amounts to the nearest dollar) in appropriate special journals and the general journal.

Before start with this reporting and recording transaction incurred in the November we should be discussing what is actual meaning of General ledger and sub ledger and special ledger account.

General ledger- It is the main ledger account in which all the transaction are recorded in this ledger only those transaction or business recorded which are not covered by the  special ledger. This ledger is the secondary books to record the transaction for the future use.

Special ledger account- It is the other part of recording translation so that other transaction and journal entries are not left from the recording process. This is understood that Main ledger account are Creditors account and debtors account whereas special ledger account covers sales account, purchase account GST account and furthermore.

S. NO.

Particular

Ledger folio

Dr

Credit.

Nov 1

Purchase a/c dr.

   To M. Merlow

   TO GST a/c

 

 

4800

 

4320

480

Nov 1

Purchase a/c Dr.

To insurance cover

 

1600

 

   1600

Nov 2

Cash  a/c Dr.

   To Sales

    To GST a/c

 

110

 

99

11

Nov 3

Lenny Ltd a/c Dr.

  To cash

 

2980

 

2980

Nov  4

Stock a/c  Dr.

GST a/c Dr

       To laws Ltd

 

4320

480

 

 

4800

Nov  5

M. Merlow a/c Dr.

To cash

TO GST

 

3300

 

2970

330

Nov  8

Rent A/c Dr.

To cash

 

1080

 

1080

Nov 8

Law Ltd a/c Dr.    

 To cash

 

3280

 

3280

Nov 11

Cash  a/c Dr.

 To T. tremble

 

2860

 

2860

Nov 12

D draper a/c Dr.

GST a/c    Dr.

 To sales

 

8640            

960

 

9600

Nov 13

Purchase a/c

To Lenny ltd

To GST

 

7920

 

7128

792

Nov 14

Salary a/c Dr.

To bank a/c

 

2400

 

2400

Nov 18

Bank  a/c Dr.

GST a/c  Dr.

 To sales

 

16560

1840

 

18400

Nov 18

T. tremble a/c Dr.

GST a/c  Dr

  To sales

 

8370

930

 

 

9300

Nov 19

 Sales return a/c Dr.

TO  GST

   To Lenny

 

154

 

15.4

 

 

 

154

Nov 20

GST    a/c

 To cash

 

3000

 

3000

Nov 20

Purchased a/c Dr.

To bank

To GST a/c

 

10800

 

9720

1080

Nov 21

Cash a/c Dr.

  To D. Draper

 

1320

 

 

1320

Nov 26

Salaries a/c Dr.

 To cash a/c

 

2400

 

2400

Nov 27

Lenny Ltd a/c Dr

 To Cash A/c

 

2980

 

2980

Nov 28

Electricity a/c  Dr.

  To Bank a/c

To GST a/c

 

420

 

378

42

Nov 30

Cash a/c Dr.

GST a/c Dr.

   To sales a/c

 

16200

1800

 

 

 

18000

Nov 30

Purchase a/c Dr.

 To Lenny Ltd a/c

 

7260

 

7260

(Garg, 2012)

B. Open running closing balance accounts in the subsidiary ledgers and their control accounts in the general ledger, and enter the opening details of these accounts?

Subsidiary ledger- It is prepared with the help of accounting entries in the books sub ledger is the second step in preparing a complete records of the transaction. This book is comprised of Account receivables, purchase account, sales account and further more.

There are following general ledger account in which transactions are recorded as blow.

Account Receivables (Draper)

Date

Debit

Credit

Closing balance

28 Oct

 

 

 

$ 4200

 

 

 

 

 $ 4200

(Hand)

Date

Dr

Credit.

Closing balance

30 Oct

 

 

 

$ 4620

 

 

 

 

$ 4620

(T. Tremble)

Date

4Debit

Credit

Closing balance

18 Oct

 

 

 

 $ 5720

 

 

 

 

$ 5720

 (Account payable- Law Ltd)

Date

Debit

Credit

 Closing balance

19 Oct

 

 

 

$ 3 280

 

Nov 8

 

 

$ 3280

(M. Merlow)

Date

Debit

Credit.

Closing balance

10 Oct

 

 

 

$ 5 300

 

 

 

 

$ 5300

Debtor account (Lenny Ltd)

Date

Debit

Credit.

Closing balance

23 Oct

 

 

 

$ 2980

 

 

 

 

$ 2980

(Cash at bank)

Date

Debit

Credit.

Closing balance

23 Oct

 

120 000

 

 

$ 120 000

 

 

 

 

$ 120000

 (Salary account)

Date

Debit

Credit.

Closing balance

23 Oct

 

2400

 

 

$ 2400

 

Sales ledger

Date

Debit

Credit.

Closing balance

23 Oct

 

 

 

$ 110

 

 

 

$ 110

(Purchase ledger)

Date

Debit

Credit.

Closing balance

24 Oct

 

6600

 

$ 6600

 

 

 

 $ 6600

C. Post relevant data from the journals to the appropriate running balance subsidiary ledger accounts?

With the help of these prepared journals we could easily prepare the ledger account for the better understanding of the data and transaction in the business. Organization has made various credit and cash transaction regard with the sales and purchase of the goods and services. purchase (Ledger & Milner, 2015).

(Cash at bank)

Date

Dr

Cr.

Balance

23 October

 

120 000

 

 

120 000

 

14 November

18400

 

138400

 

 

 

$ 10800

128400

30 November

18000

 

146400

(Salary)

Date

Dr

Cr.

Balance

14 November

 

2400

 

 

2400

 

(Sales ledger)

Date

Dr

Cr.

Balance

Oct

 

 

9480

12  November

 

9600

9710

14 November

 

18400

28110

18  November

 

9300

27956

22November

154

18000

46110

(Purchase ledger)

Date

Dr

Cr.

Balance

1 November

6600

 

6600

20 November

10800

 

17400

30 November

7920

 

25320

20  November

10800

 

36120

D. Prepare schedules of accounts receivable and accounts payable as at 30 November 2012, and reconcile to the appropriate subsidiary ledger control accounts in the general ledger?

Account receivable- It is the person and entity that have been in the debt of the organization and will pay at the certain stipulated data. This type of account arises due to credit sales, or debt. It is situated in the Assets side (Gomez, et. Al., 2011).

Account payable- it is the account to whom amount to be paid by the origination. This account is shown on the liability side of the balance sheet prepared. 

 Debtors Account (Draper)

Date

Dr

$

Cr.

$

Balance

$

28 October

 

 

4 200

12 Nov

9600

 

13800

21 Nov

 

1320

12480

Debtors account(Hand)

Date

Dr

$

Cr

$.

Balance

$

30 October

 

 

 

4 620

 

 

 

 

4620

(T. Tremble)

Date

Dr

Cr.

Balance

18 October

 

 

 

5720

 

 

 

2860

2860

13 Nov

9300

 

12160

(Account payable- Law Ltd)

Date

Dr

Cr.

Balance

19 October

 

 

 

3 280

 

12 Nov

 

4800

8080

 

 

3280

 

4800

(M. Merlow)

Date

Dr

Cr.

Balance

10 October

 

 

 

5 300

 

12 Nov

 

4800

10100

 

 

3300

 

6800

(Lenny Ltd)

Date

Dr

Cr.

Balance

23 October

 

 

 

2980

 

13 Nov

 

7260

10240

 

E. Prepare the GST Collections and GST Outlays accounts as they would appear at 30 November 2012?

GST collection- It is the amount collected from the customers on behalf of government. General Service tax is the tax charged on the service provided by the sales persons in the market. In this scenario GST is charged at the rate of 10%. The rate of GST depends on the Countries and their rules and regulation in the respective countries. But it is the fact that High rate of GST is charged in the developed countries and vice versa (Allbery, 2012).

                                      Bank   a/c Dr.                  4441

                                                     To GST collection made on sales    4441

                                              GST Collection received Account A/c Dr. 2252

                                                                                 To cash                                2252

(GST Collection Account)

Date

Dr $

Cr. $

 Closing Balance

19 October

 

 

10

10

 

Nov 10

 

818

828

 

Nov 11

 

260

1088

Nov 12

 

872

1960

Nov 18

 

845

2805

Nov 30

 

1636

4441

Total payable

 

4441

-

GST Payable Account-It is the account which is kept at the liability side of the balance sheet. Organization has to make payment of the amount collected as GST on the behalf of Clients to the government. In this question GST Payable would be 10%. GST payable is also known  with its another name GST outlays account (PHILLIPS  & SCHMIDT, 2010).

(GST outlays Account)

Date

Dr $

Cr. $

Balance

Nov 1

 

436

 

436

 

 4 Nov

436

-

872

 

13 Nov

720

-

1592

30 Nov

660

-

2252

TASK-2

A. In two columns and ignoring GST, prepare general journal entries to record the transactions assuming?

(A) A perpetual inventory system is used

Perpetual inventory system- It is the system in which all the transaction are taken into consideration since the time when the company was incorporated. It is the ongoing process and entries are done on the basis that all the opening and closing books are recorded in the journal entries (Fisher & Hageman, 2012).

Date

Particular

Dr

Cr.

April-1

Trading stock a/c Dr.

   To opening stock a/c

960

 

960

April 3

April  4

Purchase a/c dr.

   To

EXW supplier's warehouse

 

1600

 

 

 

 

 

1600

 

 

Freight  a/c Dr.

  To Bank

 

60

 

60

April 5

 

Customer  a/c Dr.

   To Sales

1640

 

1640

April 5

 

Freight  a/c Dr.

  To Bank

30

 

30

April 9

 

EXW supplier's warehouse a/c Dr.

To purchase return

400

 

400

April        9

EXW supplier's a/c Dr.

To bank

1200

 

1200

April     10

Sales return   A/c Dr.

To customer

210

 

210

April  13

Purchase a/c dr.

   To

EXW supplier's warehouse

 

800

 

800

April 14

 

Bank a/c Dr.

 To customers

1430

 

1430

April   19

Cash a/c Dr.

     To sales

2340

 

2340

April 20

 

Sales return dr.

 To cash

240

 

240

April 22

 

EXW supplier's warehouse  a/c  Dr

To cash

800

 

800

April 30

Trading stock a/c Dr.

     To closing stock

800

 

800

2. A periodical inventory system is used

Periodical inventory system- It is the system in which only concerned accounting year transactions are recorded in order to compute profit and loss.  This system does not ask for making trading stock transfer from one year to another year. As this accounting system is concerned with the computation of gross profit of this accounting year.

Date

Particular

Dr

Cr.

April 3

April    4

Purchase a/c dr.

   To

EXW supplier's warehouse

Freight  a/c Dr.

  To Bank

 

1600

 

 

 

60

 

1600

 

 

 

 

60

April 5

 

Customer  a/c Dr.

   To Sales

1640

 

1640

April 5

 

Freight  a/c Dr.

  To Bank

30

 

30

April 9

 

EXW supplier's warehouse a/c Dr.

To purchase return

400

 

400

April        9

EXW supplier's a/c Dr.

To bank

1200

 

1200

April     10

Sales return   A/c Dr.

To customer

210

 

210

April  13

Purchase a/c dr.

   To

EXW supplier's warehouse

 

800

 

800

April 14

 

Bank a/c Dr.

 To customers 

1430

 

1430

April   19

Cash a/c Dr.

     To sales

2340

 

2340

April 20 

 

Sales return dr.

 To cash

240

 

240

April 22

 

EXW supplier's warehouse  a/c  Dr 

To cash

800

 

800

April 30

Trading stock a/c Dr.

     To closing stock

800

 

800

B. Repeat requirement and assume the business is registered for the GST?

In the case if business is recorded for the GST then organization has to pay GST @ 10 % to the movement on the transaction. Organization collects this GST from the clients and then pays it to the government on the later stipulated date.

Date

Particular

Dr

Cr.

April 3, 4

 

Purchase a/c dr.

GST outlays

   To

EXW supplier's warehouse

Freight  a/c Dr.

  To Bank

 

1600

160

 

 

 

60

 

 

1760

 

 

 

 

60

April 5

 

Customer  a/c Dr.

   To Sales

   To GST a/c

1804

 

1640

164

April 5

 

Freight  a/c Dr.

  To Bank

30

 

30

April 9

 

EXW supplier's warehouse a/c Dr.

To purchase return

400

 

400

April        9

EXW supplier's a/c Dr.

To bank

To GST outlays

1320

 

1200

120

April     10

Sales return   A/c Dr.

To customer

210

 

210

April  13

Purchase a/c dr.

 

   To

EXW supplier's warehouse

To GST outlays

 

880

 

800

 

 

 

80

April 14

 

Bank a/c Dr.

GST collection

 To customers 

1430

143

 

1573

April   19

Cash a/c Dr.

GST collection

     To sales

2340

234

 

 

2574

April 20

 

Sales return dr.

 To cash

240

 

240

April 22

 

EXW supplier's warehouse  a/c  Dr 

To cash

To GST Outlays

880

 

800

80

April 30

Trading stock a/c Dr.

     To closing stock

800

 

800

C. Assuming Star bright closes its accounts at month-end; prepare relevant entries to close the accounts under both inventory systems.

In the perpetual entry system Star bright closes its accounts at the month end and prepare relevant entries to close the accounts.

There are following entries shown as below.

(1)  Trading account Dr        

                   To Stock a/c                       

(2)   P& L a/c Dr

                 To Debtors

(3) Creditor’s a/c Dr.

         To P& L A/c

            (4)Purchase a/c   Dr.  2400

        To trading a/c

 (5)  Trading     A/c   Dr.

      To  Sales a/c

In the periodical entry system there will following entry in order to close the accounts

 (1)   P& L a/c Dr

                 To Debtors

(2) Creditor’s a/c Dr.

         To P& L A/c

(3)Purchase a/c   Dr.  2400

        To trading a/c

 (4)  Trading     A/c   Dr.

      To  Sales a/c

D. Prepare two separate income statements showing gross profit and profit for April, assuming that?

Date

Particular

Amount $

Date

Particular

Amount $

April-1

Opening stock

960

-

-

-

April-3

Stock

1600

April-5

Sales

1540

April-4

Freight

(60+30)

90

April-9

Purchase return

400

April-10

Sales return

210

April- 19

Cash sales

2360

April-30

Gross profit

2240

April- 30

Closing stock

800

 

 

5100

 

 

5100

  With the help of the computation we could drive the result that there will be gross profit of 2240

2-Trading stock A/c & Income statement showing gross profit when periodical inventory system was used

In case of perpetual entry system there will not be find very many differences but there will be following changes in eh computation of the profit.

Date

Particular

Amount

Date 

Particular

Amount

April-3

Stock

1600

April-5

Sales

1540

April-4

Freight(60+30)

90

April-9

Purchase return

400

April-10

Sales return

210

April- 19

Cash sales

2360

April-30

Gross profit

 

April- 30

Closing stock

800

Conclusion

The Explanatory study of accounting and other rules have shown me the importance of the recording and keeping transaction in the complete set of books. Journal entries, trial balance, ledger sub ledger are the primary books which are prepared for the incorporation of organization financial statement. This statement is comprised of Cash flow stamen, share holders statement. P&L, balance sheet, auditor’s annual report and other ancillary documents. In this report I have realized that organization is the complex set of activities in which various transaction takes place an in order to keep them in the align manner accounting process system is used for the future purpose. GST is the utmost obligatory factor on the organization that depicts company liability to pay tax on goods and services. Now I would like to conclude up my report by dictating that organization in order to keep its records preserved for the long time so that it could be used for the future purpose accounting transaction recording process is used.

References

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Gomez, C., Conejero, G., Torregrosa, L., Cheynier, V., Terrier, N. & Ageorges, A. 2011, "In vivo grapevine anthocyanin transport involves vesicle?mediated trafficking and the contribution of anthoMATE transporters and GST",The Plant Journal, vol. 67, no. 6, pp. 960-970.

Fisher, D.G. & Hageman, A.M. 2012, "Using journal entries to teach partnership tax: An illustrative case", Journal of Accounting Education, vol. 30, no. 1, pp. 100-130.

PHILLIPS, F. & SCHMIDT, R.N. 2010, "Creating Early Success in Financial Accounting: Improving Performance on Adjusting Journal Entries: IMPROVING PERFORMANCE ON ADJUSTING JOURNAL ENTRIES",Accounting Perspectives, vol. 9, no. 2, pp. 87-96.

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Allbery, D. 2012, "Ledger", The Kenyon Review, vol. 34, no. 3, pp. 86-86.

Ledger, M.E. & Milner, A.M. 2015, "Extreme events in running waters", Freshwater Biology, vol. 60, no. 12, pp. 2455-2460