AC101 FINANCIAL ACCOUNTING ASSIGNMENT.

TO
BE COMPLETED ON OR BEFORE

4.15PM ON THURSDAY NOVEMBER 5TH 2009

ALL COMPLETED ANSWERS TO BE DROPPED IN THE ECONOMICS POST BOX ON THE GROUND FLOOR OF RHETORIC HOUSE.

1.

The following is a list of balances in the ledger of C Rick at 31 May 2008:

Cash at bank Purchases Sales Wages and salaries Rent and rates Insurance Motor expenses Printing and stationery Light and heat General expenses Premises Motor vehicles Fixtures and fittings Debtors Creditors Cash in hand Drawings Capital Bank loan Required:

2,368 12,389 18,922 3,862 504 78 664 216 166 314 10,000 3,800 1,350 3,896 1,731 482 1,200 12,636 8,000

Prepare a trial balance as at 30 May 2008.

2. The following trial balance has been extracted from the books of Mr Jones, a sole trader for the year ended 31 May 2008. DR CR

Sales Purchases Carriage In Drawings Rent, rates, and insurance Postage and stationery Advertising Salaries and wages Debtors Creditors Cash on hand Cash at bank Opening stock Equipment : Capital

138,078 82,350 5,144 7,800 6,622 3,001 1,330 26,420 12,120 6,471 177 1,002 11,927 58,000 71,344 215,893 215,893

Stock at the close of business on 31 May has been valued at 13,551 Required: Prepare a trading and profit and loss account for Mr Jones for the year ended 31 May and a balance sheet as at that date.

3. Required: List, explain and give examples of, four posting errors which would not affect agreement of a trial balance.

4. Enter the following transactions in the accounting records. May1 May 2 May 3 May 5 May 6 May 8 May 10 May 12 May 18 May 21 May 22 May 23 May 25 May 28 May 29 May 31 Started business with 2000 in the bank Bought goods on credit from C. Shaw 900 Bought goods on credit from F. Hughes 250 Sold goods for cash 180 We returned goods to C. Shaw 40 Bought goods on credit from F. Hughes 190 Sold goods on credit to G Wood 390 Sold goods for cash 210 Lodged 300 of the cash in hand at the bank Bought machinery by cheque 550 Sold goods on credit to L. Moore 220 G. Woods returned goods to us 140 L. Moore returned goods to us 10 We returned goods to F. Hughes 30 We paid Shaw by cheque 860 Bought machinery on credit from D. Lee 270

Your answer should include day book entries (including journal entries), balanced off T accounts and trial balance.