Accounting Fundamentals
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BA BUSINESS PORTFOLIO Year 1
ACCOUNTING FUNDAMENTALS
Resit Assignment 1
Donald Smith is a retailer of photocopiers. He prepares accounts to 31 December 2010. At 1 January 2010 the balances on his nominal ledger accounts were as follows:
£
Capital 11,600
Bank 4,000
Cash 100
Motor Vehicles – Cost 20,000
Motor Vehicles – Provision for Depreciation 5,000
Fixtures and Equipment – Cost 4,000
Fixtures and Equipment – Provision for Depreciation 1,000
Trade Debtor (Mr Jones) 3,000
Trade Creditor (Mr Lewis) 2,000
Bank Loan 18,000
VAT Control Account 1,500
Stock
8,000
Task 1
Enter these opening balances onto a spreadsheet
During the year ended 31 December 2010 the following transactions took place (VAT is 17.5% unless otherwise stated). Workings should be to the nearest £:
Credit Sales
14 January Sold goods for £20,000 plus VAT to Mr Davies
18 June Sold goods for £40,000 including VAT to Mr Jenkins
30 September Sold goods for £30,000 plus VAT to Mr Griffiths
Task 2
Complete the Sales Day Book for the year
Credit Purchases and Expenses
4 January Purchased goods from Mr Osborne for £10,000 plus VAT
16 July Purchased goods from Mr Morgan for £18,000 including VAT
14 August Received a telephone bill from BT for £400 plus VAT
18 October Received a gas bill from British Gas for £600 including VAT at 5%
24 December Purchased equipment for £2,000 plus VAT
Task 3
Complete