Explain the circumstances and attach any necessary supporting documentation. Late penalties will be applied for assignments submitted after midnight on the due date without an approved extension. More details on late penalties are provided in the course outline.
Requirement:
- Provide journal entries of the transactions (use appropriate format and formula in excel).
- Post the journal to the General Ledger Accounts (use appropriate format and formula in excel).
- Prepare a Trial Balance (use appropriate format, formula in excel and follow ALORE order for arranging the accounts).
Each and every organization needs to use the accounting concepts and standards to record the financial transactions in the books of accounts of company. In this report, three different tasks have been undertaken to record the financial transaction of organization. In this all three parts, financial transactions of Accounting Services Pty Ltd have been done. In first task, journal entries are prepared to record the financial transactions in the initial stage. After that journal entries are posted to ledgers and after that trial balance are prepared in tabular form (Weygandt, Kimmel, and Kieso, 2015).
In simple words, journal entries in accounting are accounted as logging of transactions into accounting journal items. It assists in several recording of transactions and each of which is done either debit or credit. It is considered that the total of debit must be equal to total of credit (Ruch, and Taylor, 2015).
ACCOUNTING SERVICES PTY LTD. |
|||
JOURNAL ENTRIES |
|||
FOR APRIL 2018 TO JUNE 2018 |
|||
Date |
Account Title |
Debit |
Credit |
Apr-01 |
Cash |
51000 |
|
|
Accounts receivable |
6000 |
|
|
Supplies |
12000 |
|
|
Building |
122000 |
|
|
Accounts payable |
|
22600 |
|
GST |
|
2400 |
|
Capital |
|
166000 |
|
(being opening entries made) |
|
|
|
|
|
|
Apr-01 |
Accounts receivable |
8800 |
|
|
Service Revenue |
|
8800 |
|
(being customer invoiced for accounting and tax services) |
|
|
|
|
|
|
Apr-04 |
furniture |
16000 |
|
|
Cash |
|
16000 |
|
(being office furniture purchased) |
|
|
|
|
|
|
Apr-10 |
Accounts receivable |
16000 |
|
|
Service Revenue |
|
16000 |
|
(being customers invoiced for financial planning services) |
|
|
|
|
|
|
Apr-14 |
Cash |
8000 |
|
|
Accounts receivable |
|
8000 |
|
(being cash received from customers) |
|
|
|
|
|
|
Apr-15 |
Cash |
8360 |
|
|
Discount |
440 |
|
|
Accounts receivable |
|
8800 |
|
(being cash received from customer billed on April 1) |
|
|
|
|
|
|
Apr-20 |
Accounts Payable |
4000 |
|
|
Cash |
|
4000 |
|
(being payment made for office supplies) |
|
|
|
|
|
|
Apr-28 |
Advertisement expenses |
4000 |
|
|
Brisbane Voice Newspaper |
|
4000 |
|
(being invoice billed for advertisement expenses) |
|
|
|
|
|
|
May-07 |
Salaries |
1600 |
|
|
PAYGW |
160 |
|
|
Cash |
|
1760 |
|
(being salaries paid after deducting taxes) |
|
|
|
|
|
|
May-11 |
Brisbane Voice Newspaper |
4000 |
|
|
Cash |
|
4000 |
|
(being advertisement expenses paid) |
|
|
|
|
|
|
May-15 |
Gas and electricity bill |
240 |
|
|
Accounts Payable |
|
240 |
|
(being billing made for gas and electricity) |
|
|
|
|
|
|
May-23 |
Cash |
3400 |
|
|
Service Revenue |
|
3400 |
|
(being tax services rendered to customers) |
|
|
|
|
|
|
May-30 |
Salaries |
1000 |
|
|
PAYGW |
100 |
|
|
Office Rent |
1200 |
|
|
Cash |
|
2300 |
|
(being salaries and office rent paid) |
|
|
|
|
|
|
Jun-08 |
Accounts Payable |
240 |
|
|
Cash |
|
240 |
|
(being gas and electricity bill paid) |
|
|
|
|
|
|
Jun-15 |
Cash |
30000 |
|
|
Furniture |
1500 |
|
|
Capital |
|
31500 |
|
(being cash and furniture contributed by owners) |
|
|
|
|
|
|
Jun-23 |
Accounts receivable |
2000 |
|
|
Service Revenue |
|
2000 |
|
(being accounting services rendered to customers) |
|
|
|
|
|
|
Jun-29 |
Water bill |
470 |
|
|
Accounts Payable |
|
470 |
|
(being bill received for water bill) |
|
|
|
|
|
|
Jun-30 |
Salaries |
800 |
|
|
PAYGW |
80 |
|
|
Cash |
|
880 |
|
(being salaries paid) |
|
|
|
|
|
|
Jun-30 |
Bank fees |
20 |
|
|
Bank |
|
20 |
|
(being bank fees paid) |
|
|
|
|
|
|
Jun-30 |
Profit & Loss |
10110 |
|
|
Discount |
|
440 |
|
Gas & electricity bill |
|
240 |
|
Advertisement expenses |
|
4000 |
|
PAYGW |
|
340 |
|
Water bill |
|
470 |
|
Office rent |
|
1200 |
|
Salaries |
|
3400 |
|
Bank fees |
|
20 |
|
(being expenses transferred to profit and loss account) |
|
|
|
|
|
|
Jun-30 |
Service Revenue |
30200 |
|
|
Profit & loss |
|
30200 |
|
(being service revenues transferred to profit & loss) |
|
|
|
|
|
|
Jun-30 |
Profit & loss |
20090 |
|
|
Capital |
|
20090 |
|
(being profit transferred to capital) |
|
|
The journal entries are later on posted into the general leger accounts with a view to prepare the financial statement of company. The general ledger accounts are supported by the prepared journal entries (Reid, and Myddelton, 2017).
CASH A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-01 |
To balance b/d |
51000 |
Apr-04 |
By furniture |
16000 |
Apr-14 |
To accounts receivable |
8000 |
Apr-20 |
By Accounts payable |
4000 |
Apr-15 |
To accounts receivable |
8360 |
May-07 |
By Salaries |
1600 |
May-23 |
To service revenue |
3400 |
May-07 |
By PAYGW |
160 |
Jun-15 |
To capital |
30000 |
May-11 |
By Brisbane voice newspaper |
4000 |
|
|
|
May-30 |
By salaries |
1000 |
|
|
|
May-30 |
By PAYGW |
100 |
|
|
|
May-30 |
By office rent |
1200 |
|
|
|
Jun-08 |
By accounts payable |
240 |
|
|
|
Jun-30 |
By Salaries |
800 |
|
|
|
Jun-30 |
By PAYGW |
80 |
|
|
|
|
By balance c/f |
71580 |
|
|
100760 |
|
|
100760 |
SUPPLIES A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-01 |
To balance b/d |
12000 |
Jun-30 |
By balance c/f |
12000 |
|
|
|
|
|
|
|
|
12000 |
|
|
12000 |
ACCOUNTS PAYABLE A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-20 |
To cash |
4000 |
Apr-01 |
By balance b/d |
22600 |
Jun-08 |
To cash |
240 |
May-15 |
By gas & electricity bill |
240 |
Jun-30 |
to balance c/f |
19070 |
Jun-29 |
By water bill |
470 |
|
|
23310 |
|
|
23310 |
CAPITAL A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-30 |
To balance c/f |
217590 |
Apr-01 |
By balance b/d |
166000 |
|
|
|
Jun-15 |
By cash |
30000 |
|
|
|
Jun-15 |
By furniture |
1500 |
|
|
|
Jun-30 |
By profit & loss |
20090 |
|
|
217590 |
|
|
217590 |
FURNITURE A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-04 |
To cash |
16000 |
Jun-30 |
By balance c/f |
17500 |
Jun-15 |
To capital |
1500 |
|
|
|
|
|
17500 |
|
|
17500 |
ADVERTISMENT EXPENSES |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-28 |
To Brisbane voice newspaper |
4000 |
Jun-30 |
By profit & loss |
4000 |
|
|
4000 |
|
|
4000 |
SALARIES A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
39203 |
To cash |
1600 |
11110 |
By profit & loss |
3400 |
11079 |
To cash |
1000 |
|
|
|
11110 |
to cash |
800 |
|
|
|
|
|
3400 |
|
|
3400 |
GAS & ELECTRICITY BILL A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
May-15 |
To accounts payable |
240 |
Jun-30 |
By profit & loss |
240 |
|
|
240 |
|
|
240 |
WATER BILL A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-29 |
To accounts payable |
470 |
Jun-30 |
By profit & loss |
470 |
|
|
470 |
|
|
470 |
ACCOUNTS RECEIVABLE A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-01 |
To balance b/d |
6000 |
Apr-14 |
By cash |
8000 |
Apr-01 |
To service revenue |
8800 |
Apr-15 |
By cash |
8360 |
Apr-10 |
To service revenue |
16000 |
Apr-15 |
By discount |
440 |
Jun-23 |
To service revenue |
2000 |
Jun-30 |
By balance c/f |
16000 |
|
|
32800 |
|
|
32800 |
BUILDING A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-01 |
To balance b/d |
122000 |
Jun-30 |
By balance c/f |
122000 |
|
|
122000 |
|
|
122000 |
GST A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-30 |
To balance c/f |
2400 |
Apr-01 |
By balance b/d |
2400 |
|
|
2400 |
|
|
2400 |
SERVICE REVENUE A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-30 |
To profit & loss a/c |
28200 |
Apr-01 |
By accounts receivable |
8800 |
|
|
|
Apr-10 |
By accounts receivable |
16000 |
|
|
|
May-23 |
By cash |
3400 |
|
|
28200 |
|
|
28200 |
DISCOUNT A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Apr-15 |
To accounts receivable |
440 |
Jun-30 |
By profit & loss |
440 |
|
|
440 |
|
|
440 |
BRISBANE VOICE NEWSPAPER |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
May-11 |
To cash |
4000 |
Apr-28 |
By advertisement expenses |
4000 |
|
|
4000 |
|
|
4000 |
PAYGW A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
May-07 |
To cash |
160 |
Jun-30 |
By profit & loss |
340 |
May-30 |
To cash |
100 |
|
|
|
Jun-30 |
to cash |
80 |
|
|
|
|
|
340 |
|
|
340 |
OFFICE RENT A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
May-30 |
To cash |
1200 |
Jun-03 |
By profit & loss |
1200 |
|
|
|
|
|
|
|
|
1200 |
|
|
1200 |
BANK FEES A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-30 |
To bank |
20 |
Jun-30 |
By profit & loss a/c |
20 |
|
|
|
|
|
|
|
|
20 |
|
|
20 |
BANK A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-30 |
To balance c/f |
20 |
Jun-30 |
By bank fees |
20 |
|
|
20 |
|
|
20 |
PROFIT & LOSS A/C |
|||||
DATE |
PARTICULARS |
AMOUNT |
DATE |
PARTICULARS |
AMOUNT |
Jun-30 |
To Discount |
440 |
Jun-30 |
By service Revenue |
30200 |
Jun-30 |
To Gas & electricity bill |
240 |
|
|
|
Jun-30 |
To Advertisement expenses |
4000 |
|
|
|
Jun-30 |
To PAYGW |
340 |
|
|
|
Jun-30 |
To Water bill |
470 |
|
|
|
Jun-30 |
To Office rent |
1200 |
|
|
|
Jun-30 |
To salaries |
3400 |
|
|
|
Jun-30 |
To Bank fees |
20 |
|
|
|
Jun-30 |
To capital |
20090 |
|
|
|
|
|
30200 |
|
|
30200 |
It is analyzed that the Trial balance is the statement of all the debit and credit in double-entry account book with any disagreement or indicating error (Teatime, and Granlund, 2017).
ACCOUNTING SERVICES PTY LTD. |
||
TRIAL BALANCE |
||
AS ON JUNE 30, 2018 |
||
ACCOUNT TITLE |
DEBIT |
CREDIT |
Cash |
71580 |
|
Accounts Receivable |
16000 |
|
Supplies |
12000 |
|
Building |
122000 |
|
Furniture |
17500 |
|
Bank |
|
20 |
Accounts payable |
|
19070 |
GST |
|
2400 |
Capital |
|
217590 |
|
239080 |
239080 |
(Miller-Nobles, Mattison, and Matsumura, 2016).
After recording of all these entries of the financial transactions, it would be easy for the accountants to prepare the financials statements of company. These statements are prepared with a view to keep the business financial transactions transparent to its stakeholders.
Miller-Nobles, T.L., Mattison, B. and Matsumura, E.M., 2016. Horngren's Financial & Managerial Accounting: The Managerial Chapters. Pearson.
Reid, W. and Myddelton, D.R., 2017. The meaning of company accounts. Routledge.
Ruch, G.W. and Taylor, G., 2015. Accounting conservatism: A review of the literature. Journal of Accounting Literature, 34, pp.17-38.
Teittinen, H. and Granlund, M., 2017. Accounting Information Systems and decision-making. In The Routledge Companion to Accounting Information Systems (pp. 103-115). Routledge.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. John Wiley & Sons.
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My Assignment Help. (2021). Accounting Services Pty Ltd: Financial Transactions Report. Retrieved from https://myassignmenthelp.com/free-samples/acc506-accounting-fundamentals-research/information-systems-and-decision-making.html.
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[Accessed 07 September 2024].
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My Assignment Help. Accounting Services Pty Ltd: Financial Transactions Report [Internet]. My Assignment Help. 2021 [cited 07 September 2024]. Available from: https://myassignmenthelp.com/free-samples/acc506-accounting-fundamentals-research/information-systems-and-decision-making.html.