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Assignment Globba Clothing Store

Congratulations, you have been appointed as chief accountant for a small


retail company Globba Clothing Store
Company has just started it's business and your task is to register the
business transactions to accounting system. Our accounting system is Excel
because there isn't yet funds to acquire a proper accounting software.
Usable XL template is attached, of course you may create your own as well.

Documents relevant for the assignment are in this same spreadsheet + purchase invoic

Materials which you need:


1 x Bank statement
3 x Cash register summaries
2x Sales invoices
4x Purchase invoices (separate file on Moodle)
List of possible accounts needed - see list below the template
Additional information you need:
a) Total Cost of goods sold for January sales was 42 000
b) Furniture and equipment has useful life of 5 years in the business
c) Employees worked overtime during January and 2500 will be paid to them in Februa
d) Insurance cost for the property damage is 1440 for whole year. It will be paid later.

Requirements:
1) Please prepare the accounting entries for this company (template on the next sheet).
2) Please prepare income statement for January and balance sheet as of 31st January fo
(you can prepare them to same sheet)
Submit your file to Moodle.
Thank You and Good Luck!

m is Excel

n as well.

eet + purchase invoices in separate file on Moodle

aid to them in February


. It will be paid later.

te on the next sheet).


t as of 31st January for this company.

Income Statement 1.1.-31.1.2013

Balance Sheet 31.1.2013

Sales
COGS
Gross profit
Other operating expenses:
Salary expenses
Rent expenses
Advertising expenses
Insurances and Office expenses
Depreciation

0.00
0.00
0.00

Operating profit

0.00

Financial expenses:
Interest expenses

0.00

Net income

0.00

0.00
0.00
0.00
0.00
0.00

ASSETS
Non-current assets:
Furniture and equipment
- accumulated depreciation
Furniture and equipment net book value
Current assets:
Inventory
Accounts receivable
Cash and bank

LIABILITIES AND SHAREHOLDERS' EQUITY


Share capital
1000.00
Net income
0.00
total Shareholders' equity

0.00
0.00

1000.00

0.00

0.00
0.00
1000.00

Loans from credit institutions


Accounts payable
Accrued expenses
VAT payable
total Liabilities

0.00
0.00
0.00
0.00
0.00

1000.00

1000.00

check

0.00

Add accounts if needed!


DOC
nr
1
2

Date

Description

CASH

1/2/2013 Investment of equity

0
0
0
check that balance is calculated on the correct side

TOTAL

Chart of accounts:
Furniture and equipment
Accumulated depreciation
Inventory
Accounts receivable
Prepaid expenses
Cash
Bank account 1
Share capital
Retained earnings
Long-term loan from credit institution
Short-term loan from credit institution
Accounts payable
Salary payables
Other accrued expenses
Unearned revenue
VAT payable
Output VAT (payable)

Input VAT (recceivable)


Sales 24%
Rental income
Cost of goods sold
Freight expenses of purchases
Salary expenses
Depreciation
Rent expenses on premises 24%
Electricity and gas expenses 24%
Advertising expenses 24%
Telephone expenses 24%
Interest expenses
Income tax expense

BANK ACCOUNT

SHARE CAPITAL

12400

12400
12400
ce is calculated on the correct side

INVENTORY

SALES

12400

12400
12400

0
0

0
0

COGS

0
0

ACCS.RECEIV

0
0

ACC. PAYABLE

0
0

0
0

ADD NEW ACCOUNTS!!

0
0

Check
debits total
cr total
12400
0
0
0
0
0

0
0

12400
0
0
0
0
0

0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0

Document
balance
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0

Nordea Bank
BANK STATEMENT
Account 123454321 / Globba Clothing Store

1.1-31.1.2013

DATE

DETAILS

AMOUNT

10/1/2015

OPENING BALANCE

10/26/2015

Investment to the company

1,000.00

10/26/2015

Loan from Nordea bank (to be repaid by year end)

5,000.00

10/26/2015

Web-bank payment: Paid for store furniture and


equipment to previous owner, incl.VAT 24%

5.1.

RENT Payment
Receiver: Forum
Message: January store rent, thanks. Incl. VAT 24%

-1,250.00

7.1.

Transfer cash from the store

35,000.00

11.1.

Web-bank payment: Helsingin Sanomat


Advertisement. Incl VAT 24%

-200.00

12.1.

Web-bank payment, office supplies, including VAT 24%

-700.00

19.1.

Customer settlement to invoice 1004

20.1.

Transfer cash from the store

20.1.

Salaries paid for January

-16,000.00

21.1.

Payment for Baggy the bag invoice

-30,000.00

31.1.

Payment for Warm head invoice 5555

-1,250.00

31.1.

Transfer cash from the store

21,000.00

31.1.

Repayment of short-term loan incl. Interest expense 20,00

-1,320.00

1/31/2013

0.00

-12,000.00

410.00
32,500.00

Deposits total during the period


Withdrawals total during the period
Change

94,910.00
-62,720.00
32,190.00

Bank account balance

32,190.00

0.00

GLOBBA CLOTHING STORE


CASH REGISTER SUMMARY

1.1-7.1.2013
Sales incl. VAT 24%

36,000.00

Excl. VAT

29,032.26

VAT

DEBIT

Accounting notes:
ACCOUNT NAME

6,967.74

AMOUNT

GLOBBA CLOTHING STORE


CASH REGISTER SUMMARY

8.1-20.1.2013
Sales incl. VAT 24%

33,000.00

Excl. VAT

26,612.90

VAT

DEBIT

Accounting notes:
ACCOUNT NAME

6,387.10

AMOUNT

GLOBBA CLOTHING STORE


CASH REGISTER SUMMARY

21.1-31.1.2013
Sales incl. VAT 24%

21,000.00

Excl. VAT

16,935.48

VAT

DEBIT

Accounting notes:
ACCOUNT NAME

4,064.52

AMOUNT

INVOICE
Globba Clothing Store
Ratapihantie 13
HELSINKI
phone 555 5555 555
CUSTOMER & DELIVERY
Pippa Middleton
Hotel Kmp
Invoice nr 1004
Invoice date 5.1.2013

Quantity

STYLISH AT SCHOOL
- Globba Clothing Store

Item

Price

3 Dress
1 Scarf
1 Hat

100.00
50.00
60.00

Total
300.00
50.00
60.00

TOTAL

410.00

Our prices include VAT 24%


Price excl. VAT
VAT

330.65
79.35

VAT ID 9876543-2
Payment: 14 days net
Nordea Bank - our account!

THANK YOU FOR YOUR PURCHASE!

INVOICE
Globba Clothing Store
Ratapihantie 13
HELSINKI
phone 358 5555 555
CUSTOMER & DELIVERY
Ken Barbie
Hotel Kmp
Invoice nr 1005
Invoice date 19.1.2013

Quantity

STYLISH AT SCHOOL
- Globba Clothing Store

Item

Price

1 Trousers
2 Shirt
1 Hat

120.00
80.00
60.00

Total
120.00
160.00
60.00

TOTAL

340.00

Our prices include VAT 24%


Price excl. VAT
VAT

274.19
65.81

VAT ID 9876543-2
Payment: 14 days net
Nordea Bank - our account!

THANK YOU FOR YOUR PURCHASE!