Finance Completed Full Full PDF

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Higher Nationals in Business

Assignment Brief – BTEC (RQF)
Unit 10 Financial Accounting
Razi financial accounting 28-02-2020

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Higher National Certificate/Diploma in

Business
Assignment Brief
Student Name/ID Number RAZI UV
Unit Number and Title Unit:10 Financial Accounting
Academic Year 2019-2021

Unit Tutor MUHAMED FAYIS. KP
Assignment Title Financial Accounting Principles
Issue Date 07-01-2020

Submission Date 28-02-2020
IV Name & Date 05-03-2020
Submission Format:
The submission is in the form of an individual written report. This should be written in a concise,
formal business style using single spacing and font size 12. You are required to make use of
headings, paragraphs and subsections as appropriate, and all work must be supported with
research and referenced using the Harvard referencing system. Please also provide a
bibliography using the Harvard referencing system. The recommended word limit is 1,000
words, although you will not be penalised for exceeding the total word limit.
A two-hour exam involving the completion of financial accounts, for which details will be
provided. These financial accounts are to be submitted at the end of the session, along with the
exam question paper. This is a closed-book exam and, therefore, class notes and supporting
materials cannot be taken into the exam room
Unit Learning Outcomes:
LO1Record business transactions using double entry book-keeping, and be able to extract a trial

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balance
LO2 Prepare final accounts for sole traders, partnerships or limited companies in accordance with
appropriate principles, conventions and standards
LO3 Perform bank reconciliations to ensure company and bank records are correct
LO4Reconcile control accounts and shift recorded transactions from the suspense accounts to the right
accounts.
Assignment Brief and Guidance:
You are a junior accountant in a small accountancy firm and you have been asked to prepare and produce
a range of final accounts for a number of different businesses. You have been provided with a range of
individual companies financial details from which to create a general ledger, a trial balance, income
statement and balance sheet. You will need to make adjustments as required and once the general ledger
is completed you will also have to check the bank statements provided to make any bank reconciliations.
Once completed you will present to your line manager a portfolio of final accounts that includes a reflective
summary that compares the different types of accounts produced.
You have also been given a number of company ledgers where errors have been detected and control
accounts to check over and reconcile, these will also be included in your portfolio. In addition to this a
summary explanation of the control reconciliation process is to be presented to identify how and why you
made reconciliations for each one.
As a Junior Accountant you are still completing your exams for your accountancy course. You
will have to undertake a final two-hour closed-book exam, which will require you to prepare final
accounts, perform bank reconciliation and reconcile control accounts.
Learning Outcomes and Assessment Criteria

Pass Merit Distinction
LO1 Record business transactions using double entry book-keeping, D1 Apply trial balance
and be able to extract a trial balance figures to show which
statement of financial
P1 Apply the double entry M1 Analyse transactions accounts they will end up in.
book-keeping system of to show the progression
debits and credits. Record from a previous trial
sales and purchases balance to the next one
transactions in a general using double entry bookkeeping.
ledger.
P2 Produce a trial balance

applying the use of the
balance off rule to
complete the ledger.

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LO2 Prepare final accounts for sole-traders, partnerships and limited

companies in accordance with appropriate principles, conventions and
standards D2 Compare the essential
features of each financial
P3Prepare final accounts M2 Make adjustments to account statement to
from given trial balance. balances of sum accounts analyse the differences
for example, accruals, between them in terms
P4 Produce final accounts depreciation and purpose, structure and content
for a range of examples prepayments before
that include sole-traders, preparing the final
partnerships or limited accounts.
companies.
LO3Perform bank reconciliations to ensure company and bank records D3 Prepare accurate bank
are correct reconciliations that apply
appropriate tools and techniques
P5 Apply the bank reconciliation M3 Apply the reconciliation to check general accounts and
process to prepare a number process demonstrating the use of balance sheets.
ofbank reconciliations. deposit in transit, outstanding
checks and Not Sufficient Funds
(NSF) check.
LO4Reconcile control accounts and shift recorded transactions from D4 Produce accurate accounts
the suspense accounts to the right accounts that have been reconciled
applying the appropriate
P6 Explain the process taken to M4 Demonstrate understanding methods.
reconcile control accounts and of the different types of accounts
clear suspense accounts using and how and why they are
given account examples. reconciled.
Pearson Education 2018

Higher Education Qualifications
Assignment Brief

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STUDENT ASSESSMENT SUBMISSION AND DECLARATION
Student name: RAZI Assessor name: MUHAMED FAYIS. KP
Issue date: 07-01-2020 Submission date:28-02-2020 Submitted on: 26-02-2020
Programme: Pearson BTEC level 4 Higher National Diploma
Unit: FINANCIAL ACCOUNTING
Assignment number and title:
Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students who
break the rules, however innocently, may be penalised. It is your responsibility to ensure that you
understand correct referencing practices. As a university level student, you are expected to use
appropriate references throughout and keep carefully detailed notes of all your sources of
materialsfor material you have used in your work, including any material downloaded from the
Internet. Please consult the relevant unit lecturer or your course tutor if you need any further
advice.
Student Declaration
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the
consequences of plagiarism. I understand that making a false declaration is a form of malpractice.
Student signature: Date:

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Higher Nationals -Summative Assignment Feedback Form
Student Name/ID RAZI
Unit Title FINANCIAL ACCOUNTING
Assignment Number Assessor MUHAMED FAYIS. KP

28-02-2020 DateReceived1st
Submission Date
submission
DateReceived2ndsubm
Re-submission Date
ission
Assessor Feedback:
Grade: Assessor Signature: Date:
Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

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Introduction to financial accounting

Financial accounting is a specialized accounting division that keeps track of financial
transactions within a corporation. The transactions are recorded, summarized, and published in
a financial report or financial statement, such as a statement of income or a balance sheet, using
structured guidance. Financial accounting is very essential. In balance sheet, it presents the
financial statement or the financial report. The accounting components are the assets, liabilities,
expenses, and incomes. the history of financial accounting came in 1494, when the father of
financial accounting Luca Pacioli published the first accounting textbook, called "Summa."
financial Accounting aim is to provide the data required for sustainable economic decision-
making. Financial accounting typically focuses at making financial reports that include details
of the results of a company to third parties, such as investors, creditors, and tax authorities.
The double-entry accounting or bookkeeping system means amounts must be reported in a

minimum of two accounts for each business transaction. The double-entry system often allows
the amounts entered as debits to be equal to the amounts entered as credits for all transactions.
Financial accounting is a specialized accounting division that keeps track of financial
transactions within a business. The transactions are reported, listed, and published in a financial
report or financial statement, such as a statement of income or a balance sheet, using structured
guidelines. Accounting rules works as a base for any accounting framework. Before applying
accounting principles, a person is required to know the basic accounting rules that in a
transaction which account should be debited and which account should be credited.
International Financial Reporting Standards (IFRS) are a set of international accounting

standards, which state how particular types of transactions and other events should be reported
in financial statements. IFRS are issued by the International Accounting Standards Board
(IASB), and they specify exactly how accountants must maintain and report their accounts.
IFRS was established in order to have a common accounting language, so business and
accounts can be understood from company to company and country to country.
If a company distributes its financial statements outside of the company, GAAP must be
followed. If a corporation's stock is publicly traded, financial statements must also adhere to
rules established by the U.S. Securities and Exchange Commission.

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GAAP addresses such things as revenue recognition, balance sheet, item classification, and
outstanding share measurements. If a financial statement is not prepared using GAAP,
investors should be cautious. Also, some companies may use both GAAP- and non-GAAP-
compliant measures when reporting financial results.
A transaction is a business activity that influences the financial statements of a company

financially, and is reported as an entry in its accounting records. Examples of purchases are:
paying for services provided or products shipped to a retailer. A ledger account includes a track
record of transactions. It is a separate document that is allocated to a particular asset, liability,
form of income or type of cost within the general ledger. Examples of ledger accounts include:
Payable Funds, Inventory. To arrive at a company's balance sheet, one must first plan the
trading account and the report for profit and loss. This account is ready to reach the amount of
income earned or loss incurred for a period. A trading account helps in determining the gross
profit or gross loss of a business concern, made strictly out of trading activities. Trading
involves buying and selling activities. The profit and loss account are opened by recording the
gross profit on the credit side or gross loss on the debit side. A company has to pay a lot of
costs in addition to the direct expenditures to achieve the net profit. These costs are deducted
from profit or added to a gross loss, resulting in net profit or net loss. A balance sheet is a
statement of the financial position of a business that lists the assets and liabilities. The purpose
of the balance sheet is to reveal the financial status of a business as of a specific point in time.
The statement shows what assets the company has and how much liabilities a company has, as
well as the amount invested in the business.

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TRANSACTIONS
01-05-2020 Owais started his business with Rs 2,000,000
01-05-2020 Owais opened an account in bank for cash 300,000
01-05-2020 Purchased furniture from jiyad for Rs 400,000
01-05-2020 Sold furniture to sufail for 200,000
02-05-2020 Taken loan from zidhan for Rs 500,000
02-05-2020 Due to quality problems sufail returned goods for 100,000
02-05-2020 Loan repaid to zidhan Rs 500,000
02-05-2020 Rent paid for office Rs 100,000
03-05-2020 Purchased a truck for transportation of goods for Rs 400,000
03-05-2020 Updated tyres for truck of Rs 200,000
03-05-2020 Sold goods to hajnas for Rs 600,000
03-05-2020 Purchased goods from razi for Rs 500,000
04-05-2020 Withdraw cash from bank Rs 400,000
04-05-2020 Interest paid Rs 40,000
04-05-2020 Electricity bill paid Rs 20,000
04-05-2020Salary paid for employees Rs 100,000
05-05-2020 Donated good for NGO of Rs 50,000
05-05-2020 Sold goods for cheque to ABC company for Rs 700,000
05-05-2020 Withdrawn cash from bank for personal use Rs 70,000
05-05-2020 Rent paid for Godown Rs 60,000
06-05-2020 Fuel expense for transporting goods to ABC company Rs 5000
06-05-2020 Paid toll for Rs 1000
06-05-2020 Sold truck for Rs 350,000

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06-05-2020 Commission paid Rs 35,000
07-05-2020 Purchased a van for Rs 150,000
07-05-2020 Renumeration fund paid for Rs 100,000
07-05-2020 Taken loan from zidhan for Rs 400,000
07-05-2020 Settled zidhan fully Rs 400,000
08-05-2020 Purchased food for workers for Rs 2000
08-05-2020 Selling goods to a customer for cash Rs 20,000
08-05-2020 Deposited cash to bank Rs 500,000
08-05-2020 Salary paid by cheque 4,000
09-05-2020 Interest on deposit allowed by the bank 50,000
09-05-2020 Received commission 30,000
09-05-2020 Withdrawn cash from bank Rs 40,000
09-05-2020 Purchased machine for packing goods for Rs 100,000
10-05-2020 Installation fee Rs 20,000
10-05-2020 Purchased goods from jiyad Rs 200,000
10-05-2020 Carriage inward paid Rs 1,000
10-05-2020 Repair on machine Rs 1,500
11-05-2020 Insurance for van is paid Rs 8,000
11-05-2020 Deposited cash to bank Rs 20,000
11-05-2020 Commission received through bank Rs 40,000
11-05-2020 Service charge charged by bank Rs 1,000
12-05-2020 Goods (costing 150,000) sold to sufial Rs 300,000
12-05-2020 Goods given as charity 10,000.
12-05-2020 Donation paid Rs 2000

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12-05-2020 Professional charge paid Rs 3000
13-05-2020 Legal charge paid Rs 1,000
13-05-2020 Advertisement charge paid Rs 4,000
13-05-2020 Paying wages to employees Rs 45,000
13-05-2020 Obtaining a loan from a lender Rs 70,000
14-05-2020 Selling shares to an investor Rs 30,000
14-05-2020 Life insurance premium paid in cash 50,000
14-05-2020 Purchased goods for credit from ABC company Rs 100,000
14-05-2020 Sold goods to sufail for Rs 40,000
15-05-2020 Sold goods for cash (cost price 10,000) for Rs 15,000
15-05-2020 Payment to raju in advance Rs 80,000
15-05-2020 Purchased machinery for Rs 500,000
16-05-2020 Brought computer for office use from Zidhan for Rs 4,000
16-05-2020 Sponsored a football team for Rs 35,000
16-05-2020 Goods distributed by way of free samples for Rs 10,000
16-05-2020 Purchase building Rs. 50,000
17-05-2020 Rooms in building given for rent advance cash collected Rs 7500
17-05-2020 Telephone bill paid Rs 3,500
17-05-2020 Paid through check for advertisement Rs 20,000
17-05-2020 Goods sold to sufail for cash Rs 100,000
18-05-2020 Carriage outward paid Rs 2000
18-05-2020 Salary paid by cheque Rs 4,000
18-05-2020 Interest on deposit allowed by the bank Rs 50,000

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18-05-2020 Received commission Rs 30,000
19-05-2020 Withdraw cash from bank Rs 40,000
19-05-2020 Repair on machinery is paid Rs 1,000
19-05-2020 Insurance premium for van is paid Rs 4,000
19-05-2020 Returned goods to ABC company 10,000
20-05-2020 Received cash from sufail 100,000 in full settlement
20-05-2020 Deposited cash in to bank Rs 20,000
20-05-2020 Commission collected by the bank Rs 40,000
20-05-2020 Service charge charged by bank Rs 1,000
21-05-2020 Purchased goods from jiyad 200,000
21-05-2020 Goods sold to ABC company Rs 300,000
21-05-2020 Received cheque from ABC 300,000
22-05-2020 Goods given as charity Rs 10,000
22-05-2020 Donation paid 2,000
22-05-2020 Professional charges paid Rs 3,000
22-05-2020 Legal charges paid Rs 1,000
23-05-2020 Advertisement paid Rs 4,000
23-05-2020 Purchased AC in office Rs 20,000
23-05-2020 Paid cash to jiyad 200,000
24-05-2020 Received commission 20,000
24-05-2020 Withdrawn cash from bank Rs 20,000
24-05-2020 Purchased goods from binoy 50,000

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25-05-2020 Goods sold to XYZ company for Rs 120,000
25-05-2020 Carriage outward paid Rs 2,500
25-05-2020 Invested cash in the shares of a company Rs 200,000
25-05-2020 Cheque received from XYZ company deposited to bank Rs 120,000
26-05-2020 Printing charges paid Rs 500
26-05-2020 Dividend on investment collected by the bank Rs 20,000
26-05-2020 Additional capital introduced 500,000
26-05-2020 Withdrawn cash from business for personal use Rs 40,000
27-05-2020 Withdrawn cash from bank for personal use Rs 30,000
27-05-2020 Withdrawn goods from business for personal use Rs 20,000
27-05-2020 Paid rent for owner residence Rs 5,000
27-05-2020 Paid for personal use telephone bill of owais 5,000
28-05-2020 Withdrawn cash from bank for office trip Rs 250,000
28-05-2020 Service charge allowed by bank Rs 5,000
28-05-2020 Plane ticket expense 50,000
28-05-2020 Resort booked for cash 75,000
29-05-2020 Purchased jackets for staff Rs 5,000
29-05-2020 Booked train ticket for cash 5,000
29-05-2020 Miscellaneous expenses charges Rs 1,000
29-05-2020 Bought furniture for Rs. 60,000
30-05-2020 Bought plant and machinery for the business for Rs. 1,25,000
30-05-2020 Goods purchased from ABC Co. for Rs. 55,000
30-05-2020 Goods costing Rs. 25,000 sold to XYZ Co. for Rs. 35,000.

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30-05-2020 Cash deposited to bank Rs 200,000
31-05-2020 Additional capital introduced 400,000.
31-05-2020 Dividend on investment collected by bank 400,000
JOURNAL ENTRIES
Date TRANSACATIONS L.F AMOUNT AMOUNT

01-05-2020 Cash A/C Dr
To capital A/C 2,000,000
(started business) 2,000,000
01-05-2020 Bank A/C Dr 300,000
To cash A/C 300,000
(opened b ank A/C)
01-05-2020 Furniture A/C Dr 400,000
To cash A/C 400,000
(purchased furniture)
01-05-2020 Cash A/C Dr 200,000
To sales A/C 200,000
(sold goods)
02-05-2020 zidhan A/C Dr 500,000
To loan A/C 500,000
(taken loan)
02-05-2020 Sales return A/C Dr 100,000
To Sufail A/C 100,000
(goods returned due to defect)
02-05-2020 Loan A/C Dr 500,000
To zidhan A/C 500,000
(loan repaid to zidhan)
02-05-2020 Rent A/C Dr 100,000
To cash A/C 100,000
(Being rent paid)
03-05-2020 Truck A/C Dr 400,000
To cash A/C 400,000
(Purchased a truck)
03-05-2020 Truck maintenance A/C Dr 200,000
To cash A/C 200,000
(updated tyres)
03-05-2020 Hajnas A/C Dr 600,000

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(sold goods)
03-05-2020 Purchase A/C Dr 500,000
To razi A/C 500,000
(Purchased goods)
04-05-2020 Cash A/C Dr 400,000
To bank A/C 400,000
(Withdrawn cas)
04-05-2020 Interest A/C Dr 40,000
To cash A/C 40,000
(Being interest paid)
04-05-2020 Electricity A/C Dr 20,000
To cash A/C 20,000
(being electricity bill paid)
04-05-2020 Salary A/C Dr 100,000
To cash A/C 100,000
(being salary paid)
05-05-2020 Donation A/C Dr 50,000
To cash A/C 50,000
(Donated goods)
05-05-2020 Bank A/C Dr 700,000
(Being goods sold for cheque)
05-05-2020 Drawing A/C Dr 70,000
To bank A/C 70,000
(Being cas withdrawn for personal
use)
05-05-2020 Rent A/C Dr 60,000
To cash A/C 60,000
(being rent paid)
06-05-2020 Fuel expense A/C Dr 5,000
To cash A/C 5,000
06-05-2020 Toll A/C Dr 1,000
To cash A/C 1,000
(being toll paid)
06-05-2020 Sales A/C Dr 350,000
To cash A/C 350,000
(Sold truck)
06-05-2020 Commission A/C Dr 35,000
To cash A/C 35,000
07-05-2020 Van A/C Dr 150,000
To cash A/C 150,000
(new Van purchased)
07-05-2020 Renumeration A/C Dr 100,000
To cash A/C 100,000
(renumeration for partners)
07-05-2020 Cash A/C Dr 400,000
To zidhan A/C 400,000

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(loan taken)
07-05-2020 Zidhan A/C Dr 400,000
To cash A/C 400,000
(settled zidhan)
08-05-2020 Purchase A/C Dr 2,000
To cash A/C 2,000
(food for workers)
08-05-2020 Sales A/C Dr 20,000
To cash A/C 20,000
(goods sold)
08-05-2020 Cash A/C Dr 500,000
To bank A/C 500,000
(Deposited)
08-05-2020 Salary A/C Dr 4,000
To bank A/C 4,000
09-05-2020 Bank A/C Dr 50,000
To interest A/C 50,000
09-05-2020 Cash A/C Dr 30,000
To commission A/C 30,000
09-05-2020 drawings A/C Dr 40,000
To bank A/C 40,000
09-05-2020 Purchase A/C Dr 100,000
To cash A/C 100,000
(purchased machinery)
10-05-2020 Machinery A/C Dr 20,000
To cash A/C 20,000
(installation fee)
10-05-2020 Purchase A/C Dr 200,000
To Jiyad A/C 200,000
(purchased goods)
10-05-2020 Carriage inward A/C Dr 1,000
To cash A/C 1,000
10-05-2020 Repair A/C Dr 1,500
To cash A/C 1,500
11-05-2020 Drawings A/C Dr 8,000
To cash A/C 8,000
(being insurance paid)
11-05-2020 Cash A/C Dr 20,000
To bank A/C 20,000
11-05-2020 Bank A/C Dr 40,000
(commission charged)
11-05-2020 Bank charge A/C Dr 1,000
To bank A/C 1,000
(service charge)
12-05-2020 Sufail A/C Dr 300,000
To sales A/c 300,000

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12-05-2020 charity A/C Dr 10,000

To purchase A/C 10,000
(being goods given as charity)
12-05-2020 Donation A/C Dr 2,000
To cash A/C 2,000
(being donation paid)
12-05-2020 Professional expense A/C Dr 3,000
To cash A/C 3,000
13-05-2020 Legal A/C Dr 1,000
To cash A/C 1,000
13-05-2020 Advertisement A/C Dr 4,000
To cash A/C 4,000
13-05-2020 Wages A/C Dr 45,000
To cash A/C 45,000
13-05-2020 cash A/C Dr 70,000
To lender A/C 70,000
14-05-2020 Shares A/C Dr 30,000
To cash A/C 30,000
14-05-2020 Insurance premium A/C Dr 50,000
To cash A/C 50,000
14-05-2020 Debtors A/C Dr 100,000
To ABC company A/C 100,000
(being goods sold on credit)
14-05-2020 Sufail A/C Dr 40,000
To sales A/C 40,000
15-05-2020 Cash A/C Dr 15,000
To sales A/C 15,000
15-05-2020 Raju A/C Dr 80,000
To cash A/C 80,000
15-05-2020 Machinery A/C Dr 500,000
To cash A/C 500,000
(being machinery purchased)
15-05-2020 Machinery A/C Dr 20,000
To cash A/C 20,000
(Installation of machine)
16-05-2020 Computer A/C Dr 4,000
To loan A/C 4,000
(being goods distributed as free-
samples)
16-05-2020 Promotion A/C Dr 10,000
To cash A/C 10,000
16-05-2020 Building A/C Dr 50,000
To cash A/C 50,000
17-05-2020 Cash A/C Dr 7,500

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To rent A/C 7,500

17-05-2020 Telephone bill A/C Dr 3,500
To cash A/C 3,500
To bank A/C 20,000
17-05-2020 Sufail A/C Dr 100,000
18-05-2020 Carriage outward A/C Dr 2,000
To cash A/C 2,000
18-05-2020 Salary A/C Dr 4,000
To bank A/C 4,000
18-05-2020 Bank A/C Dr 50,000
To Interest A/C 50,000
18-05-2020 Cash A/C Dr 30,000
To commission received A/C 30,000
19-05-2020 Drawings A/C Dr 40,000
To bank A/C 40,000
19-05-2020 Repair A/C Dr 1,000
To cash A/C 1,000
19-05-2020 Insurance premium A/C Dr 4,000
To cash A/C 4,000
19-05-2020 ABC A/C Dr 10,000
To purchase return A/C 10,000
20-05-2020 Cash A/C Dr 100,000
To sufail A/C 100,000
20-05-2020 cash A/C Dr 20,000
To bank A/C 20,000
20-05-2020 Bank A/C Dr 40,000
To bank A/C 1,000
21-05-2020 Purchase A/C Dr 200,000
To jiyad A/C 200,000
To cash A/C 1,000
21-05-2020 ABC A/C Dr 300,000
21-05-2020 Bank A/C Dr 300,000
To cash A/C 300,000
22-05-2020 Charity A/C Dr 10,000
22-05-2020 Donation A/C Dr 2,000
To cash A/C 2,000
22-05-2020 Professional expense A/C Dr 3,000
To cash A/C 3,000
22-05-2020 Legal A/C Dr 1,000

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To cash A/C 1,000

To cash A/C 4,000
23-05-2020 Air conditioner A/C Dr 20,000
To cash A/C 20,000
23-05-2020 Machinery A/C Dr 4,000
To cash A/C 4,000
(installation A/C)
23-05-2020 Jiyad A/C Dr 200,000
To Cash A/C 200,000
24-05-2020 Cash A/C Dr 20,000
To commission received A/C 20,000
24-05-2020 drawings A/C Dr 20,000
To bank A/C 20,000
24-05-2020 Purchase A/C Dr 50,000
To binoy A/C 50,000
To cash A/C 1,000
25-05-2020 Cash A/C Dr 120,000
To XYZ A/C 120,000
25-05-2020 Carriage outward A/C Dr 2,500
To cash A/C 2,500
25-05-2020 Shares A/C Dr 200,000
To cash A/C 200,000
25-05-2020 Bank A/C Dr 120,000
To XYZ A/C 120,000
26-05-2020 Printing charges A/C Dr 500
To cash A/C 500
26-05-2020 Bank A/C Dr 20,000
To dividend A/C 20,000
26-05-2020 Cash A/C Dr 500,000
To capital A/C 500,000
(additional capital)
26-05-2020 Drawings A/C Dr 40,000
To cash A/C 40,000
27-05-2020 Drawings A/C Dr 300,000
To bank A/C 30,000
27-05-2020 Drawings A/C Dr 20,000
To purchase AC 20,000
(for goods withdrawn for personal
use)
27-05-2020 Rent A/C 5,000
Dr 5,000
To cash A/C
(owner residence rent paid)
27-05-2020 Drawings A/C Dr 5,000

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To cash A/C 5,000

(being mobile bill paid for personal
use)
28-05-2020 Drawings A/C Dr 250,000
To bank A/C 250,000
(withdrawn from bank for office)
To bank A/C 5,000
28-05-2020 Travelling expenses A/C Dr 50,000
To cash A/C 50,000
(Being travelling expense paid)
To cash A/C 75,000
(resort booked)
To cash A/C 5,000
(jackets for staff)
To cash A/C 5,000
(train ticket booked)
29-05-2020 Miscellaneous expense A/C Dr 1,000
To cash A/C 1,000
29-05-2020 Furniture A/C Dr 60,000
To bank 60,000
30-05-2020 Plant & machinery A/C Dr 125,000
To cash A/C 125,000
30-05-2020 Purchase A/C Dr 55,000
To ABC Co. A/C 55,000
30-05-2020 XYZ Co. A/C Dr 35,000
To sales A/C 35,000
30-05-2020 Cash A/C Dr 200,000

To bank A/C 200,000
31-05-2020 cash A/C Dr 400,000 400,000

To capital A/C
31-05-2020 bank A/C Dr 400,000
Dividend A/C 400,000

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LEDGER ACCOUNTS
Dr cash account Cr
Particulars Amount Particulars amount
Capital 2,000,000 Bank 300,000
Sales 200,000 Furniture 400,000
Bank 400,000 rent 100,000
Zidhan 400,000 truck 400,000
Bank 500,000 truck maintenance 200,000
Commission 30,000 interest 40,000
Bank 20,000 electricity 20,000
Rent 7,500 salary 100,000
Commission received 30,000 donation 50,000
Sufail 100,000 rent 60,000
Bank 20,000 fuel expense 5,000
Commission received 20,000 toll 1,000
XYZ 120,000 sales 350,000
Capital 500,000 commission 35,000
Bank 200,000 van 150,000
Sales 15,000 renumeration 100,000
Capital 400,000 zidhan 400,000
Lender 70,000 purchase 2,000
sales 20,000
purchase 100,000
machinery 20,000
carriage inward 1,000
repair 1,500
drawings 8,000
donation 2,000
professional expense 3,000
legal 1,000
advertisement 4,000
wages 45,000
shares 30,000
insurance premium 50,000
raju 80,000
machinery 500,000
machinery 20,000
promotion 10,000
building 50,000
telephone bill 3,500
carriage outward 2,000
repair 1,000
insurance premium 4,000
carriage inward 1,000
bank 300,000
donation 2,000
professional expense 3,000
legal 1,000
advertisement 4,000
A/C 20,000

22
Machinery 4,000
Jiyad 200,000
Carriage inward 1,000
Carriage outward 2,500
Shares 200,000
Printing charges 500
Drawings 40,000
Rent 5,000
Drawings 5,000
Travelling expense 50,000
Miscellaneous expense 1,000
Plant & machinery 125,000
balance 313,500
, 5,032,500 5,032,500
Dr capital account Cr
Cash 2,000,000
Cash 500,000
Cash 400,000
Balance 2,900,000
2,900,000 2,900,000
Dr bank account Cr
Cash 300,000 Cash 400,000
Sales 700,000 Drawings 70,000
Interest 50,000 Cash 500,000
Commission 40,000 Salary 4,000
Interest 50,000 Drawings 40,000
Commission 40,000 Cash 20,000
Cash 300,000 Advertisement 20,000
XYZ 120,000 Salary 4,000
Dividend 20,000 Drawings 40,000
Dividend 400,000 Cash 20,000
drawings 20,000
Drawings 300,000
Drawings 250,000
Furniture 60,000
Cash 200,000
Bank charge 1,000

Bank charge 1,000

23
Bank charge 5,000
Balance 65,000
2,020,000 2,020,000
Dr Furniture account Cr
Cash 400,000
Bank 60,000
Balance 460,000
460,000 460,000
Dr sales A/C Cr
Cash 350,000 Cash 200,000
Cash 20,000 Hajnas 600,000
Bank 700,000
Balance 1,920,000 Sufail 40,000
Sufail 100,000
ABC 300,000
XYZ 35,000
Sufail 300,000
Cash 15,000
2,290,000 2,290,000
Dr zidhan account Cr
Loan 500,000 Loan 500,000
Cash 400,000 Cash 400,000
900,000 900,000
Dr loan A/C Cr

24
Zidhan 500,000 Zidhan 500,000

Computer 4,000
Balance 4,000
504,000 504,000
Dr sales return A/C Cr

Sufail 100,000
Balance 100,000
100,000 100,000
Dr sufail Cr
Sales 40,000 Sales return 100,000
Sales 100,000 Cash 100,000
Sales 300,000
Balance 240,000
440,000 440,000
Dr interest Account Cr

25
Cash 40,000 Bank 50,000

Bank 50,000
Balance 60,000
100,000 100,000
Dr rent account Cr
Cash 100,000 Cash 7,500
Cash 60,000
Cash 5,000
Balance 157,500
165,000 165,000
Dr truck account Cr
Cash 400,000
Balance 400,000
400,000 400,000
Dr truck maintenance account Cr


26
Cash 200,000
balance 200,000
200,000 200,000
Dr Hajnas account Cr
Sales 600,000
balance 600,000
600,000 600,000
Dr Purchase account Cr
Razi 500,000 Charity 10,000
Cash 2,000 Advertisement 35,000
Cash 100,000 Charity 10,000
Jiyad 200,000 drawings 20,000
Jiyad 200,000
Binoy 50,000
ABC 55,000 Balance 1,032,000
1,107,000 1,107,000
Dr Razi account Cr

27
Purchase 500,000
balance 500,000
500,000 500,000
Dr electricity account Cr
Cash 20,000
balance 20,000
20,000 20,000
Dr salary account Cr
Cash 100,000
Bank 4,000
Bank 4,000
balance 108,000
108,000 108,000
Dr Donation account Cr

28
Cash 50,000
Cash 2,000
Cash 2,000
Balance 54,000
54,000 54,000
Dr Fuel expense account Cr

Cash 5,000
Balance 5,000
5,000 5,000
Dr drawings account Cr
Bank 70,000
Bank 40,000
Cash 8,000
Bank 40,000
Bank 20,000
Cash 40,000 balance 793,000
Bank 300,000
purchase 20,000
Cash 5,000
Bank 250,000
793,000 793,000
Dr toll account Cr

29
Cash 1,000
Balance 1000
1000 1000
Dr commission account Cr
Cash 35,000 Cash 30,000
Bank 40,000
Bank 40,000
Cash 30,000
Balance 125,000 Cash 20,000
160,000 160,000
Dr van account Cr
Cash 150,000
Balance 150,000
150,000 150,000
Dr renumeration account Cr

30
Cash 100,000
Balance 100,000
100,000 100,000
Dr machinery account Cr
Cash 20,000
Cash 500,000
Cash 20,000
cash 4,000
Balance 544,000
544,000 544,000
Dr jiyad account Cr
Cash 200,000 Purchase 200,000
Purchase 200,000
Balance 200,000
400,000 400,000
Dr Carriage inward account Cr


31
Cash 1,000
Cash 1,000
Cash 1,000
Balance 3,000
3,000 3,000
Dr repair account Cr
Cash 1,500
Cash 1,000
Balance 2,500
2,500 2,500
Dr bank charge account Cr

Bank 1,000
Bank 1,000
Bank 5,000
Balance 7,000
7000 7000
Dr charity account Cr

32
Purchase 10,000
Purchase 10,000
Balance 20,000
20000 20000
Dr Professional expense account Cr

Cash 3,000
Cash 3,000
Balance 6,000
6,000 6,000
Dr legal account Cr
Cash 1,000
cash 1,000
Balance 2,000
2,000 2,000
Dr advertisement account Cr
Cash 4,000
Purchase 35,000
Bank 20,000
Cash 4,000
balance 63,000

33
63,000 63,000
Dr wages account Cr
Cash 45,000
Balance 45,000
45,000 45,000
Dr lender account Cr
Cash 70,000
Balance 70,000
70,000 70,000
Dr shares account Cr
Cash 30,000
Cash 200,000
Balance 230,000
230,000 230,000

34
Dr Insurance premium Cr
Cash 50,000
Cash 4,000
Balance 54,000
54,000 54,000
Dr debtors account Cr
ABC 100,000
Balance 100,000
100,000 100,000
Dr ABC account Cr
Purchase return 10,000 Debtors 100,000
Sales 300,000 Purchase 55,000
Balance 155,000
310,000 310,000

35
Dr Raju account Cr
Cash 80,000
Balance 80,000
80,000 80,000
Dr computer account Cr
Loan 4,000
Balance 4,000
4,000 4,000
Dr promotion account Cr
Cash 10000
Balance 10,000
10,000 10,000
Dr building account Cr

36
Cash 50,000
Balance 50,000
50,000 50,000
Dr telephone bill account Cr

Cash 3,500
Balance 3,500
3,500 3,500
Dr carriage outward account Cr

Cash 2,000
Cash 2,500
Balance 4,500
4,500 4,500

37
Dr purchase return account Cr

ABC 10,000
Balance 10,000
10,000 10,000
Dr Air conditioner account Cr

Cash 20,000
Balance 20,000
20,000 20,000
Dr binoy account Cr
Purchase 50,000
Balance 50,000
50,000 50,000
Dr XYZ account Cr

38
Sales 35,000 Cash 120,000

Bank 120,000
Balance 205,000
240,000 240,000
Dr Printing charges account Cr

Cash 500
Balance 500
500 500
Dr dividend account Cr
Bank 20,000
Bank 400,000
Balance 420,000
420,000 420,000
Dr travelling expense account Cr

Particulars Amount Particulars Amount

39
Cash 50,000
Cash 75,000
Cash 5,000
Cash 5,000
Balance 135,000
135,000 135,000
Dr Miscellaneous expense account Cr

Cash 1,000
Balance 1,000
1,000 1,000
Dr Plant & machinery account Cr

Cash 125,000
Balance 125,000
125,000 125,000

40
TRIAL BALANCE
particulars DR CR
Cash 313,500
Capital 2,900,000
Bank 65,000
furniture 460,000 ---------
Sales 1,920,000
Zidhan ---------
Loan 4,000
Sales return 100,000
Sufail 240,000
Interest 60,000
Rent 157,500
Truck 400,000
Truck maintenance 200,000
Hajnas 600,000
Purchase 1,032,000
Razi 500,000
Electricity 20,000
Salary 108,000
Donation 54,000
Fuel expense 5,000
Drawings 793,000
Toll 1000
Commission 125,000
Van 150,000
Renumeration 100,000
Machinery 544,000
Jiyad 200,000
Carriage inward 3000
Repair 2500
Bank charge 7000
Charity 20,000
Professional expense 6,000
Legal 2000
Advertisement 63,000
Wages 45,000
Lender 70,000
Shares 230,000
Insurance premium 54,000
Debtors 100,000
ABC 155,000
Raju 80,000
Computer 4,000
Promotion 10,000

41
Building 50,000
Telephone bill 3,500
Purchase return 10,000

AC 20,000
Binoy 50,000
XYZ 205,000
Dividend 420,000
Travelling expenses 135,000
Miscellaneous expense 1000
64,64,000 64,64,000
1. Closing stock on June 31, 2019 was 100,000

2. Interest received in advance 20,000
3. Outstanding wages amount Rs 30,000
4. Depreciation on building by 10%
5. Prepaid insurance premium Rs 14,000
6. Rent paid in advance 37,500
A trial balance is an accounting worksheet in which the balance of all ledgers is compiled into
debit and credit account column totals that are equal. an organization prepares a trial balance
periodically, sometimes at the end of the financial year. the overall purpose of creating a trial

42
balance is to make sure the entries during a company's accounting system are recorded
correctly. Here I recorded a company’s one month’s transactions. Adding four transactions
each day I written one hundred and twenty-two transactions. So, I have now one hundred and
twenty-two transactions and next step is entering all transactions to journal. Every time a
transaction occurs, it’s recorded using a journal entry. Everything I am doing now will be doing
day by day by the real accountants and bookkeepers in each organization. A Journal Entry is a
list of the transaction report of debits and credits in the Journal. Journal entries are important
as they allow us to sort our transactions into understandable data. Me then recorded all the
transactions to journal entries so now I can understand and point out each account easier. Now
I have many accounts in my hand like purchase, sales, cash, bank etc. Now I have recorded all
transactions to journal entries. The next step in accounting is entering these journal entries to
ledgers. Ledger is a list of transactions relating to a particular account. It means cash ledger
will give us all the transactions we done through cash; bank ledger tells us all the bank
transactions involved in our bank account. So, I have fifty-five accounts and I recorded all the
transactions coming under in each account. I got both debit side and credit side in each account,
by adding and subtracting I got each balance amount which is to be added to make both debit
and credit side balance. Now I got a particular balance amount from each account (in some
account there won’t be balance amount because both debit and credit side will be equal) either
or debit side or on credit side. Finally, I have balance of all accounts expect one or two which
is already both side equal. Now the final step is to create a trial balance based on the balance
amount I got from each account. If the balance amount in an account is on debit side it will
recorded on the credit side of the trial balance and if it is on credit side in ledger it will recorded
in the debit side of trial balance. A trial balance is important because it acts as a summary of
all of our accounts. By looking at our trial balance, we can immediately see the balance of
every single account in our business. So, I recorded my balance amount of each ledger records.
But in my cash account it shows I have expense than my income, I introduced an additional
capital. My bank seemed to be overdraft so I deposited cash to bank made appear both in my
debit side of trial as my assets. I started to add debit side and credit side of my trial balance and
a small error occurred in the total amount. I got a fifty thousand more in my debit side. So, I
started to check again. Sometimes a fifty thousand amount transaction will be recorded twice
or maybe I may be forgot to record. Again, I checked my ledger account and I find that a thirty
thousand transaction and twenty thousand transaction were not written, both were to be
appeared on the debit side of trial. So, by adding thirty thousand and twenty thousand to
specified amount in debit side, I got my both debit and credit side of trail equal.

43
TRADING PROFIT AND LOSS AND BALANCE SHEET
Particulars amount Particulars Amount

Purchase 1,032,000 Sales 1,920,000
Purchase return -10,000 Sales return 100,000
1,022,000 1,820,000
Fuel expense 5,000
Carriage inward 3,000 By closing stock 100,000
Wages 45,000
Add: outstanding +30,000 75,000
Gross profit c/d 815,000
1,920,000 1,920,000
Gross profit b/d 815,000
Commission 125,000
Dividend 420,000
Rent 157,500 Interest 60,000
Less - 37,500 120,000 Less: recieved in advance-20,000 40,000
Electricity 20,000
Salary 108,000
Donation 54,000
Toll 1,000
Repair 2,500
Bank charge 7000
Charity 20,000
Legal 2,000
Less - 14,000 40,000
Promotion 10,000
travelling expense 135,000
Miscellaneous expense 1,000
Depreciation on building
(50000x10%) 5,000
Net profit 497,000

1,400,000 1,400,000

44
Balance sheet
LIABILITIES AMOUNT ASSET AMOUNT
Capital 2,900,000 Cash 313,500
Closing stock 100,000
Drawings -793,000 truck 400,000
=2,107,000 Furniture 460,000
Net profit + 497,000 Hajnas 600,000
2,604,000 Van 150,000
Loan 4,000 Machinery 544,000
shares 230,000
Razi 500,000 debtors 100,000
Jiyad 200,000 Computer 4,000
Lender 70,000 Building 50000
Less dep -5000 45,000
AC 20,000
Binoy 50,000 ABC 155,000
XYZ 205,000 Plant machinery 125,000
Other outstanding Sufail 240,000
(wages) 30,000
Interest received advance 20,000 Bank 65,000
Raju 80,000
Prepaid insurance 14,000
Advance rent 37500
3683000 3683000
The purpose of the balance sheet is to reveal the financial status of a business as of a specific
point in time. The statement shows what an entity owns (assets) and how much it owes
(liabilities). Here by looking trial balance, I had allocated my expenses and income in trading
and profit loss account. Company’s expenses and income like purchase, sales are recorded in
trading account and I got a gross profit of 815,000. this 815,000 is then written in the income
side of profit and loss account. Then I recorded all other expenses and income in profit and
loss account. After recording all expenses and income in profit and loss account, I got
expense side 903000 and income side 1400000. By subtracting I got 497000 which shown as
net profit. After recording all expenses and incomes, next is to create balance sheet. Balance
sheet will have an asset and liability side. Capital will be shown in the liability side and need
to subtract drawings from capital. After subtracting drawings from capital, I got 2,107,000.
The net profit I got from profit and loss account needed to be added with this amount. After

45
adding, I got 2,604,000 as my capital. Then recorded the persons and companies who I need
to give cash and also bank loan. In asset side, I recorded the cash in my hand, cash in bank,
the persons and companies who need to give cash to my company, my all fixed assets like
machines, van, computer etc. after recording each items correctly in asset and liability, I got
both asset and liability side equal. Accounting equation states state that Liabilities plus capital
equals assets. Because of the Journal Entries which is based on the double entry system of
book keeping which states that at least two accounts are created out of transaction, the
minimum being a debit account and a credit account. This way Balance sheets both sides are
equal. After I got both sides tallied, I added six adjustments like closing stock, depreciation
on building, rent paid in advance, outstanding wages, insurance prepaid and interest received
in advance. The closing stock placed to the income column of the trading account and asset
side of the balance sheet. The additional wages added to the current wages and entered to the
balance sheet's liability side. Prepaid insurance deducted from existing insurance and entered
on the balance sheet asset side. Income received in advance subtracted from current interest
received in the profit and loss account and entered on the balance sheet asset side as well.
Advance rent deducted from the current expense and entered to the asset side of the balance
sheet. Depreciation on building considered as an expense in profit and loss account and
deducted from the building total in the balance sheet. After doing necessary changes
according to the adjustments I given, I got balance sheet both side equal is because I had
given the adjustments in the correct places.

46
PORTFOLIO AND FINAL ACCOUNTS
LIABILITIES
CAPITAL
Particulars amount
Owner fund 2,900,000
Total 2,900,000
Sundry creditors
Particulars Amount
Razi 500,000
Jiyad 200,000
Binoy 50,000
XYZ 205,000
Lender 70,000
Total 1,025,000
Current liability
Particulars Amount
Sundry creditors 1,025,000
outstanding wages 30,000
interest in advance 20,000
Loan 4,000
Total 1,079,000

47
LIABILITY
22%
58%
20%
CAPITAL SUNDRY CREDITORS CURRENT LIAABILITY
ASSETS
FIXED ASSETS
Truck 400,000
Furniture 460,000
Van 150,000
Machinery 544,000
Computer 4,000
Ac 20,000
Plant &machinery 125,000
shares 230,000
1,933,000

48
Sundry debtors
Particulars Amount
Hajnas 600,000
Debtors 100,000
ABC 155,000
Sufail 240,000
Raju 80,000
1,175,000
Current asset
Particulars Amount
Closing stock 100,000
Liquid asset 378,500
Prepaid insurance 14,000
Advance rent 37,500
Sundry debtors 1,175,000
1,705,000
ASSETS
36%
40%
24%
fixed asset sundry deptors current assets

49
460,000 Here by analysing portfolio of balance sheet tells us a clear report about our assets and
liabilities. I started my company with a capital of 2,900,000. The liabilities of my company are
capital 58%, sundry creditors 20% and current liability of 22%. In asset side I got fixed asset
40%, sundry debtors 24% and current asset 36%. Here I have current liability 1,025,000 and
current asset 1,175,000 which means with my current asset I can overcome my current liability.
The current asset includes Closing stock 100,000, Liquid asset 378,5000, Prepaid insurance
14,000, Advance rent 37,500 and Sundry debtors 1,175,000. The current liability includes
sundry creditors 1,025,000, outstanding wages 30,000, interest in advance 20,000 and loan
4,000. Here current is a little more than current asset which is strength for the company to
invest more in any other businesses or purchasing any necessary materials. Here my sundry
creditors are razi 500,000, jiyad 200,000, Binoy 50,000, XYZ 205,000 and lender 70,000. Total
sundry creditors amount is 1,025,000. Here my sundry debtors are hajnas 600,000, debtors
100,000, ABC 155,000, sufail 240,000 and raju 80,000. Total sundry debtors are 1,175,000.
This tells that sundry creditors amount of my company can be settled by sundry debtors’
amount of my company. This tells that my company can settle all liabilities with the amount
expect fixed assets and there will be remaining cash in my hand which can be used further
activities or cash be kept as income. I have fixed assets truck 400,000, furniture, van 150,000,
machinery 544,000, computer 4,000, AC 20,000 and plant & machinery 125,000. In my
company the main expenses are purchase of 1,022,000, rent 120,000, travelling expense
125,000, salary 108,000. Here there are some un necessary expense like truck maintenance,
travelling expense which can be reduced the amount and by reducing the small expenses I can
increase my companies net profit. Also, the indirect expense like cartage expense,
renumeration, travelling expense all can be also reduced. Reducing the small expenses and
giving cash for purchasing goods are raw materials which can be further sell the products or
can make products and sell. The company currently have good amount of sales and incomes
received like dividend on investments, commission received and interest received. At the
present, company is going well and they company have a stability of two years at now. By
increasing more sales, reducing small expenses and avoiding un necessary expense makes
company stronger and also growth of the company will be increasing in short period of time.
Another suggestion I got by the analysis is that there are many credit sales to some individuals
like razi, jiyad which is greater in amount of almost 500,000 and 200,000 respectively.
Reducing such credit sales will increase the stable of asset side and no need of giving cash as

50
liability. This is an important thing to be focused. If letting sales on credit, company need to
make sure that cash will be debited in the given period of time.
BANK RECONCILIATION STATEMENT

Date Particulars Amount Date Particulars Amount
2006
Aug 1 Balance b/d 2,000 Aug 2 Sufail 006630 50
Aug 4 Nihal enterprises 140 Aug 2 Jiyad & Co 006631 400
Aug 10 Sahal and sons 100 Aug 3 Haroon & Co 006632 20
Aug 15 Shaheen bros 60 Aug 5 Jaseem ltd. 006633 100
Aug 16 Razi & Co 150 Aug 8 Owais & Co 90
Aug 18 Milshid 40 Aug 12 Zidhan 006634 50
Aug 20 Sufiyaan ltd 90 Aug 14 Hajnas 006635 650
Aug 22 John 70 Aug 18 Insurance premium 120
Aug 23 Najeem and Co 250 Aug 21 Benz ltd. 006636 60
Aug 24 Alex ltd. 90 Aug 26 Henry garage 006637 100
Aug 25 Aiswarya 110 Aug 27 Fayol & Co 006638 120
Aug 28 Jordan bros 30 Aug 29 Micheal ltd. 006639 150
Aug 30 Robin & Co 80
Aug 31 Balance c/d 1300
3,210 3,210

51
Date Particulars Debit Credit Balance

Aug 1 Balance 2,000
Aug 2 006630 50 1950
Aug 2 006631 400 1550
Aug 3 006632 20 1530
Aug 4 Nihal enterprises 140 1670
Aug 5 006633 100 1570
Aug 8 Owais & Co 90 1480
Aug 10 Sahal and sons 100 1580
Aug 12 006634 50 1530
Aug 14 006635 650 880
Aug 15 Shaheen bros 60 940
Aug 16 Razi & Co 150 1090
Aug 18 Insurance premium 120 970
Aug 18 Milshid 40 1010
Aug 20 Sufiyaan ltd. 90 1100
Aug 21 006636 60 1040
Aug 22 John 70 1110
Aug 23 Najeem & Co 250 1360
Aug 24 Alex ltd. 90 1450
Aug 25 Aiswarya 110 1560
Aug 26 006637 100 1460
Aug 27 006638 120 1340
Aug 28 Jordan bros 30 1370
Aug 29 006639 150 1220
Aug 30 Robin & Co 80 1300
Date Particulars Amount Date Particulars Amount

2006
Aug 1 Balance b/d 2,000 Aug 2 Sufail 006630 50
Aug 4 Nihal enterprises 140 Aug 2 Jiyad & Co 006631 400
Aug 10 Sahal and sons 100 Aug 3 Haroon & Co 006632 20
Aug 15 Shaheen bros 60 Aug 8 Owais & Co 90
Aug 16 Razi & Co 150 Aug 12 Zidhan 006634 50
Aug 18 Milshid 40 Aug 14 Hajnas 006635 650
Aug 20 Sufiyaan ltd 90 Aug 18 Insurance premium 120
Aug 22 John 70 Aug 26 Henry garage 006637 100
Aug 23 Najeem and Co 250 Aug 27 Fayol & Co 006638 120
Aug 24 Alex ltd. 90 Aug 29 Micheal ltd. 006639 150
Aug 25 Aiswarya 110
Aug 30 Robin & Co 80 Aug 31 Balance c/d 1430
3,180 3,180

52
Date Particulars Debit Credit Balance

Aug 1 Balance 2,000
Aug 2 006630 50 1950
Aug 2 006631 400 1550
Aug 3 006632 20 1530
Aug 5 006633 100 1430
Aug 8 Owais & Co 90 1340
Aug 12 006634 50 1290
Aug 14 006635 650 640
Aug 15 Shaheen bros 60 700
Aug 16 Razi & Co 150 850
Aug 18 Insurance premium 120 730
Aug 18 Milshid 40 770
Aug 20 Sufiyaan ltd. 90 860
Aug 21 006636 60 800
Aug 22 John 70 870
Aug 23 Najeem & Co 250 1120
Aug 24 Alex ltd. 90 1210
Aug 25 Aiswarya 110 1320
Aug 27 006638 120 1200
Aug 28 Jordan bros 30 1230
Aug 29 006639 150 1080
Aug 30 Robin & Co 80 1160
Particulars Amount Amount
Balance as per cash book 1430
Add:
Jordan bros 30
100
Henry garage 006637
130
1560

53
Less:
Jeseem 006633 100
Benz ltd. 60
Nihal enterprise 140
100
Sahal and sons
400
Balance as per bank 1160
A bank reconciliation statement is a summary of business activity that reconciles financial details.
It ensures that payments have been processed and money has been deposited on the same date. An
accountant prepares the reconciliation statement once a month. BRS is prepared on a periodical
basis for checking that bank related transactions are recorded properly in cash book's bank
column and also by the bank in their books. BRS helps to detect errors in recording transactions
and determining the exact bank balance as on a specified date. Here I created a demo cash
ledger including twenty-four transactions involved in it. By adding the debit and credit side
and subtracting the bigger amount from the lower I got a balance amount. I need to check that
the balance amount of cash book is equal to the balance amount we obtain by recording cash
book to pass book. The debit side of cash book will be recorded to the credit side of cash book
and credit side should be recorded to the debit side of cash book. I recorded all twenty-four
accounts into cashbook. In my cash book in the starting I will be having an amount it should
be recorded as balance in the cash book. Then record the accounts in debit side and credit side
which should be twenty-four accounts in total. After entering this and calculating the amount
in each account. I got debit side 1910 and credit side 3210. So, the balance amount is 1300
which should be shown as balance amount in pass book. Then post all accounts according to
date given and allocate debit side amount of cash book to credit side of pass book and credit
side of cash book to debit side of pass book. After this, by adding the credit side amount from
the balance we given in pass book and subtracting debit side amount from the balance of pass
book, I got an amount which is equal to the balance 1300 I got in cash book. Now, I removed

54
jeseem and benz ltd from credit side of cash book and Jordan bros from debit side of cash book.
Also, I removed nihal enterprises, sahal and sons and henry garage from pass book. Then create
a bank reconciliation statement and given the balance amount I got after removing the cash
book 1430. Now add amount of henry garage and Jordan bros with the balance amount 1430
and I got 1560. Now subtract amount of jeseem, nihal enterprises, sahal sons and benz ltd from
1560 and I got 1160 which is equal to the amount of pass book which I got after doing the
necessary changes after I removed the accounts from pass book.
SUSPENSE ACCOUNT
particulars DR CR
Cash 313,500
Capital 2,900,000
Bank 65,000
furniture 460,000 ---------
Sales 1,920,000
Zidhan ---------
Loan 4,000
Sales return 100,000
Sufail 240,000
Interest 60,000
Rent 157,500
Truck 400,000
Hajnas 600,000
Purchase 1,032,000
Razi 500,000
Electricity 20,000
Salary 108,000
Donation 54,000
Fuel expense 5,000
Drawings 793,000
Toll 1000
Commission 125,000
Van 150,000
Machinery 544,000
Jiyad 200,000
Carriage inward 3000
Repair 2500
Bank charge 7000
Charity 20,000

55
Legal 2000
Wages 45,000
Lender 70,000
Shares 230,000
Debtors 100,000
ABC 155,000
Raju 80,000
Computer 4,000
Promotion 10,000
Building 50,000
Purchase return 10,000

AC 20,000
Binoy 50,000
XYZ 205,000
Dividend 420,000
Travelling expenses 135,000
Miscellaneous expense 1000
Suspense 3000
64,64,000 64,64,000
,
Suspense A/C
Balance 3000 Telephone bill 4000
Repair 2000 Professional expense 2000
Salary 1000
Total 6000 6000

56
Repair A/C Error

Date Particulars Debit Credit
Cash A/C Dr 8000
07/11/2019 To Repair A/C 6000
Cash A/C Dr 8000
07/11/2019 To Repair A/C 8000
Suspense A/C Dr 2000
07/11/2019 To Repair A/C 2000
Salary A/C Error
Cash A/C Dr 5000
10/11/2019 To salary A/C 4000
Cash A/C Dr 5000
10/11/2019 To salary A/C 5000
Suspense A/C Dr 1000
10/11/2019 To salary A/C 1000
Telephone Bill A/C Error
Telephone Bill A/C Dr 6000
13/11/2019 To Cash A/C 10000
13/11/2019 To Cash A/C 10000
13/11/2019 To Suspense A/C 4000
Professional expense A/C Error
Professional expense A/C Dr 7000
16/11/2019 To Cash A/C 9000
16/11/2019 To Cash A/C 9000
16/11/2019 To Suspense A/C 2000
New P/L Account

Net Profit 497000
+Repair +2000
+salary +1000
500000
-telephone Bill -4000
-professional expense -2000
New profit 494000
The suspense account is maintained as a general ledger account, until the error is discovered
or the unknown transaction is identified. All discrepancies are maintained as suspense
account in trial balance. However, these are temporary accounts that must be closed by the
end of the accounting cycle. Here there are mistakes in trial balance of the company and I
created suspense account to rectify the errors happened. In trail balance advertisement
amount I given 60,000 instead of 63,000 and given and suspense account 3000 to make that
error correct. Other errors occurred in repair account and salary account are the amount I

57
recorded is not correct. In repair instead of 8000 I given 6000 and in salary account instead of
5000 I given 4000. Same in telephone bill account and professional expense account. In
telephone account instead of 10,000 I given 6000 and in professional expense account instead
of 9000 I given 7000. By making these changes correct by adding suspense account I got
both side equal. So, the net profit I got first is 497,000 and after rectifying these errors I got a
new profit and loss account of 494,000. Creating this suspense account helps me to correct
my changes easily otherwise I may need to done from the first.
CONTROL ACCOUNT
Dr Hajnas account Cr
Sales 600,000
balance 600,000
600,000 600,000
Dr ABC account Cr
Purchase return 10,000 Debtors 100,000
Sales 300,000 Purchase 55,000
Balance 155,000
310,000 310,000
Dr sufail Cr

58
Sales 40,000 Sales return 100,000

Sales 100,000 Cash 100,000
Sales 300,000
Balance 240,000
440,000 440,000
Dr Raju account Cr
Cash 80,000
Balance 80,000
Debtors A/C
Amount Amount
sales (hajnas) 600000 Debtor (ABC) 100000

Sales (ABC) 300000 Purchase (ABC) 55000
Purchase return (ABC) 10000 Sales return (sufail) 100000
Sales (sufail) 40000 cash (sufail) 100000
Sales (sufail) 100000
Sales (sufail) 300000
Cash (raju) 80000 Balance 1075000
1430000 1430000
Particulars Amount
Balance amount of:
Hajnas 600000
ABC 155000
Sufail 240000
Raju 80000
Total 1075000

59
Balance as per debtor’s A/C 1075000
Dr Razi account Cr
Purchase 500,000
balance 500,000
500,000 500,000
Dr jiyad account Cr
Cash 200,000 Purchase 200,000
Purchase 200,000
Balance 200,000
400,000 400,000

60
Dr binoy account Cr
Purchase 50,000
Balance 50,000
50,000 50,000
Dr XYZ account Cr
Sales 35,000 Cash 120,000
Bank 120,000
Balance 205,000
240,000 240,000
Dr lender account Cr
Cash 70,000
Balance 70,000
70,000 70,000

61
Creditors A/C
Cash (jiyad) 200000 Purchase (razi) 500,000

sales (XYZ) 35000 Purchase (jiyad) 200,000
purchase (jiyad) 200,000
Purchase (binoy) 50,000
Cash (XYZ) 120,000
Bank (XYZ) 120,000
Cash (lender) 70,000
Balance 10,25,000
12,60,000 12,60,000
Particulars Amount
Balance amount of:
Razi 500,000
Jiyad 200,000
Binoy 50,000
XYZ 205,000
Lender 70,000
Total 1025000
Balance as per creditor’s A/C 1025000
Control accounts are most widely used to list receivable accounts and payable accounts, as
these areas contain a large volume of transactions and therefore need to be separated into
separate ledgers instead of cluttering the general ledger with too much detailed information.
For a control account, the ending balance will suit the total balance amount of the specified
ledgers. The purpose of the control account is to keep the general ledger nice and clean
without any details, yet contain the correct balances to be used in the financial statements.

62
Many of the accounts seen in the financial statements, take cash for instance, is shown as
the control account in the balance sheet. Here by looking the ledgers of sundry debtors I
created a control account for sundry debtors by recording each account occurred in the debit
side and credit side of ledgers. By adding the both sides of control a/c of sundry debtors, I got
a balance amount which is equal to the total balance amount from the ledgers of sundry
debtors. Similarly, for sundry debtors I created control a/c in the same way as I done the
control a/c of sundry debtors and I got both the balance of control a/c of sundry debtors equal
to the total balance amount sundry creditors ledger.

63
REFERENCES
Britton; A, 2005. Financial Accounting. Trans-atlantic Publications, Inc.
Carl S.W james M,R and jonathan E,D (2014). Financial & Managerial Accounting. 1 st
edition USA; south-western cengage learning.
Janet walker (2005) management accounting. 2nd edition England: pearson education limited.
R.J 2003, Accounting demystified. Amacom.
William H, W (2004). Accounting for managers. 1st edition USA; the McGraw- hill
companies, Inc.
Janet walker (2005) management accounting. 2nd edition England: pearson education limited.

64

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1

Higher Nationals in Business

Unit 10 Financial Accounting

Razi financial accounting 28-02-2020

Higher National Certificate/Diploma in

Academic Year 2019-2021

Issue Date 07-01-2020

Unit Learning Outcomes:

Razi financial accounting 28-02-2020

Assignment Brief and Guidance:

accounts, perform bank reconciliation and reconcile control accounts.

Learning Outcomes and Assessment Criteria

P2 Produce a trial balance

Razi financial accounting 28-02-2020

LO2 Prepare final accounts for sole-traders, partnerships and limited

Pearson Education 2018

Razi financial accounting 28-02-2020

STUDENT ASSESSMENT SUBMISSION AND DECLARATION

Student name: RAZI Assessor name: MUHAMED FAYIS. KP

Issue date: 07-01-2020 Submission date:28-02-2020 Submitted on: 26-02-2020

Programme: Pearson BTEC level 4 Higher National Diploma

Unit: FINANCIAL ACCOUNTING

Assignment number and title:

Student signature: Date:

Razi financial accounting 28-02-2020

Higher Nationals -Summative Assignment Feedback Form

Student Name/ID RAZI

Unit Title FINANCIAL ACCOUNTING

Assignment Number Assessor MUHAMED FAYIS. KP

Grade: Assessor Signature: Date:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

Razi financial accounting 28-02-2020

Introduction to financial accounting

The double-entry accounting or bookkeeping system means amounts must be reported in a

International Financial Reporting Standards (IFRS) are a set of international accounting

Razi financial accounting 28-02-2020

A transaction is a business activity that influences the financial statements of a company

Razi financial accounting 28-02-2020

01-05-2020 Owais started his business with Rs 2,000,000

01-05-2020 Owais opened an account in bank for cash 300,000

01-05-2020 Purchased furniture from jiyad for Rs 400,000

01-05-2020 Sold furniture to sufail for 200,000

02-05-2020 Taken loan from zidhan for Rs 500,000

02-05-2020 Due to quality problems sufail returned goods for 100,000

02-05-2020 Loan repaid to zidhan Rs 500,000

02-05-2020 Rent paid for office Rs 100,000

03-05-2020 Purchased a truck for transportation of goods for Rs 400,000

03-05-2020 Updated tyres for truck of Rs 200,000

03-05-2020 Sold goods to hajnas for Rs 600,000

03-05-2020 Purchased goods from razi for Rs 500,000

04-05-2020 Withdraw cash from bank Rs 400,000

04-05-2020 Interest paid Rs 40,000

04-05-2020 Electricity bill paid Rs 20,000

04-05-2020Salary paid for employees Rs 100,000

05-05-2020 Donated good for NGO of Rs 50,000

05-05-2020 Sold goods for cheque to ABC company for Rs 700,000

05-05-2020 Withdrawn cash from bank for personal use Rs 70,000

05-05-2020 Rent paid for Godown Rs 60,000

06-05-2020 Fuel expense for transporting goods to ABC company Rs 5000

06-05-2020 Paid toll for Rs 1000

06-05-2020 Sold truck for Rs 350,000