LCBB4001: Maxim Commenced Trading in His Bakery on 5 April: Accounting Fundamentals , UoW, UK

 
 
 

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LCBB4001: Maxim Commenced Trading in His Bakery on 5 April: Accounting Fundamentals , UoW, UK

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UniversityUniversity of Wales (UoW) UK
SubjectLCBB4001: Accounting Fundamentals

LEARNING OUTCOMES:

  1. Explain the nature, behavior, and purpose of cost accounting, and apply cost accounting concepts, techniques, and methods to business transactions;
  2. Review the basic principles of accounting including the use of appropriate software
  3. Prepare financial statements from initial data, dealing with both routine and non-routine transactions and analyze financial statements with confidence

TASK 1

Maxim commenced trading in his bakery on 5 April. All his transactions were on a cash basis, as

follows: 5 April              Introduced cash into the business of £300
7 April                             Purchased goods for £200
8 April                             Received loan from Tatiana of £250 repayable within twelve months
15 April                           Purchased a motor van for £150
20 April                           Sold goods for £350
28 April                           Paid rent of £50
29 April                           Repaid part of the loan £200
30 April                           Drew cash from the business £60.

At 30 April Maxim had £100 goods in hand.

Required:

(a) Write up, balance, and close the relevant ledger accounts for the above transactions.

(b) Prepare the list of account balances at 30 April.

(c) Prepare the statement of profit or loss for the month ended 30 April and a statement of financial position at that date.

TASK 2

P e n d o

You are given the following information on the first month’s trading of Pendo, who is in business as a second-hand furniture dealer. All transactions are on a cash basis.

You are given the following information on the first month’s trading of Pendo,

Required:

(a) Write up the ledger accounts for the above transactions, including dates, descriptions, and balances.

(b) Prepare the trial balance at 31 January.

(c) Prepare the statement of profit or loss for the month ended 31 January and a statement of financial position at that date.

TASK 3

Mafuta is a retailer and on 1 January his assets were:

Mafuta is a retailer and on January his assets were
His transactions during January were

Inventory at cost was 374

Required:

(a) Write up and close the relevant ledger accounts.
(b) Extract a trial balance at 31 January.
(c) Prepare a statement of profit or loss for the month ended 31 January and a statement of financial position at that date.

TASK 4

Ricardo, a sole trader, had the following transactions for the month of June:

Ricardo, a sole trader, had the following transactions for the month of June
Mandy bought goods worth £5,000 and was offered a 3%

Required:

Prepare the relevant ledger accounts to record the above transactions, extract a trial balance at 27 June and close the relevant ledger accounts.

Your answer should clearly show transactions with individual customers and suppliers

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