Principles of accounting may be defined as broad underlying concept which guides bookkeepers while preparing financial statements. According to Bradbury & Schröder (2012), this report presents the financial statements of a new restaurant Apple which includes journal entries, ledger accounts, trial balance, income statement and balance sheet of restaurant for recording the daily business transactions in the books of accounts (Coetsee, 2010).
Date |
Particular |
Amount $ (Debit) |
Amount $ (Credit) |
1 Jan
|
Cash a/c Dr To capital a/c |
20000 |
20000 |
2 Jan |
Rent a/c Dr. To cash a/c |
3000 |
3000 |
3 Jan |
Machinery (Kitchen equipments) a/c Dr. To Berry a/c |
5400 |
5400 |
4 Jan |
Furniture & Fixtures a/c Dr. To Durian a/c
Purchase a/c Dr. To cash a/c |
2400
300 |
2400
300 |
5 Jan |
Purchase a/c Dr. To cash a/c |
1500 |
1500 |
6 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr/ To inventory a/c |
400
200 |
400
200 |
7 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c |
560
280 |
560
280
|
8 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
|
480
220 |
480
220 |
9 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c |
660
320 |
660
320 |
10 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To Melon Foods a/c |
520
260
1600 |
520
260
1600 |
11 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Melon Foods a/c Dr. To Purchase return a/c |
400
180
200 |
400
180
200 |
12 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To cash a/c |
390
190
400 |
390
190
400 |
13 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
|
460
250 |
460
250 |
14 Jan |
Mango steen a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
|
540
240 |
540
240 |
15 Jan |
Berry a/c Dr. To cash a/c To discount received a/c
Cost of goods sold a/c Dr. To inventory a/c
|
5400
200 |
5292 108
200 |
16 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Melon foods a/c Dr. To cash a/c |
380
140
1500 |
380
140
1500 |
17 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Drawings a/c Dr. To cash a/c |
420
170
2000 |
420
170
2000 |
18 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To Melon and foods a/c |
480
240
1800 |
480
240
1800 |
19 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Repairs a/c Dr. To cash a/c |
490
250
50 |
490
250
50 |
20 Jan |
Rambu Tan a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Melon foods a/c Dr. To cash a/c |
500
230
1600 |
500
230
1600 |
21 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
|
520
210 |
520
210 |
22 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To cash a/c |
330
160
300 |
330
160
300 |
23 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To Longan store a/c |
370
190
1700 |
370
190
1700 |
24 Jan |
Cash a/c Dr. To Mango Steen a/c
Cost of goods sold a/c Dr. To inventory a/c
Cash a/c Dr. To sales a/c |
580
180
390 |
580
180
390 |
25 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
|
450
220 |
450
220 |
26 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Durion & Co. a/c Dr. To cash a/c To discount received a/c |
460
170
2400 |
460
170
2376 24 |
27 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To cash a/c |
600
350
400 |
600
350
400 |
28 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Purchase a/c Dr. To Melon foods a/c |
520
260
1000 |
520
260
1000 |
29 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Melon foods a/c Dr. To purchase a/c |
430
200
60 |
430
200
60 |
30 Jan |
Cash a/c Dr. To sales a/c
Cost of goods sold a/c Dr. To inventory a/c
Cash a/c Dr. To bills received a/c
Drawings a/c Dr. To cash a/c |
480
260
300
2000 |
480
260
300
2000 |
31 Jan |
Wages a/c Dr. To cash a/c
|
2300 |
2300 |
According to Collins et al. (2012), Journal Entries posted in the ledger accounts of Apple Restaurant:
Dr. Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
|
1 Jan |
To capital a/c |
20000 |
2 Jan |
By rent a/c |
3000 |
|
6 Jan |
To sales a/c |
400 |
4 Jan |
By purchase a/c |
300 |
|
7 Jan |
To sales a/c |
560 |
5 Jan |
By purchase a/c |
1500 |
|
8 Jan |
To sales a/c |
480 |
12 Jan |
By purchase a/c |
400 |
|
9 Jan |
To sales a/c |
660 |
15 Jan |
By berry a/c |
5292 |
|
10 Jan |
To sales a/c |
520 |
16 Jan |
By Melon foods a/c |
1500 |
|
11 Jan |
To sales a/c |
400 |
17 Jan |
By drawings a/c |
2000 |
|
12 Jan |
To sales a/c |
390 |
19 Jan |
By repairs |
50 |
|
13 Jan |
To sales a/c |
460 |
20 Jan |
By Melon foods a/c |
1600 |
|
16 Jan |
To sales a/c |
380 |
22 Jan |
By purchase a/c |
300 |
|
17 Jan |
To sales a/c |
420 |
26 Jan |
By Durian & Co. a/c |
2376 |
|
18 Jan |
To sales a/c |
480 |
27 Jan |
By purchase a/c |
400 |
|
19 Jan |
To sales a/c |
490 |
30 Jan |
By drawings a/c |
2000 |
|
21 Jan |
To sales a/c |
520 |
31 Jan |
By wages a/c |
2300 |
|
22 Jan |
To sales a/c |
330 |
31 Jan |
By balance c/d |
8052 |
|
23 Jan |
To sales a/c |
370 |
|
|
|
|
24 Jan |
To mango steen a/c |
580 |
|
|
|
|
24 Jan |
To sales a/c |
390 |
|
|
|
|
25 Jan |
To sales a/c |
450 |
|
|
|
|
26 Jan |
To sales a/c |
460 |
|
|
|
|
27 Jan |
To sales a/c |
600 |
|
|
|
|
28 Jan |
To sales a/c |
520 |
|
|
|
|
29 Jan |
To sales a/c |
430 |
|
|
|
|
30 Jan |
To sales a/c |
480 |
|
|
|
|
30 Jan |
To bills received a/c |
300 |
|
|
|
|
|
|
31070 |
|
|
31070 |
Dr. Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
20000 |
1 Jan |
By cash a/c |
20000 |
|
|
20000 |
|
|
20000 |
Dr. Rent a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
2 Jan |
To cash a/c |
3000 |
31 Jan |
By balance c/d |
3000 |
|
|
3000 |
|
|
3000 |
Dr. Machinery a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
3 Jan |
To Berry a/c |
5400 |
31 Jan |
By balance c/d |
5400 |
|
|
5400 |
|
|
5400 |
Dr. Berry a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount($) |
15 Jan |
To cash a/c |
5292 |
3 Jan |
By machinery a/c |
5400 |
15 Jan |
To discount received a/c |
108 |
|
|
|
|
|
5400 |
|
|
5400 |
Dr. Furniture a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
4 Jan |
To Durian a/c |
2400 |
31 Jan |
By balance c/d |
2400 |
|
|
2400 |
|
|
2400 |
Dr. Durian a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
By balance c/d |
2400 |
4 Jan |
By furniture a/c |
2400 |
|
|
2400 |
|
|
2400 |
Dr. Purchase a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
|
4 Jan |
To cash a/c |
300 |
29 Jan |
By Melon foods a/c |
60 |
|
5 Jan |
To cash a/c |
1500 |
31 Jan |
By balance c/d |
8940 |
|
10 Jan |
To Melon foods a/c |
1600 |
|
|
|
|
12 Jan |
To cash a/c |
400 |
|
|
|
|
18 Jan |
To Melon foods a/c |
1800 |
|
|
|
|
22 Jan |
To cash a/c |
300 |
|
|
|
|
23 Jan |
To Longan store a/c |
1700 |
|
|
|
|
27 Jan |
To cash a/c |
400 |
|
|
|
|
28 Jan |
To Melon foods a/c |
1000 |
|
|
|
|
|
|
9000 |
|
|
9000 |
Dr. Melon foods a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
11 Jan |
To purchase return a/c |
200 |
10 Jan |
By purchase a/c |
1600 |
16 Jan |
To cash a/c |
1500 |
18 Jan |
By purchase a/c |
1800 |
20 Jan |
To cash a/c |
1600 |
28 Jan |
By purchase a/c |
1000 |
29 Jan |
To purchase a/c |
60 |
|
|
|
31 Jan |
To balance c/d |
1040 |
|
|
|
|
|
4400 |
|
|
4400 |
Dr. Purchase return a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
200 |
11 Jan |
By Melon foods a/c |
200
|
|
|
200 |
|
|
200 |
Dr. Mango Steen a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
14 Jan |
To sales a/c |
540 |
24 Jan |
By cash a/c |
580 |
31 Jan |
To balance c/d |
40 |
|
|
|
|
|
580 |
|
|
580 |
Dr. Drawings a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
17 Jan |
To cash a/c |
2000 |
31 Jan |
To balance c/d |
4000 |
30 Jan |
To cash a/c |
2000 |
|
|
|
|
|
4000 |
|
|
4000 |
Dr. Discount received a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
132 |
15 Jan |
By Berry a/c |
108 |
|
|
|
26 Jan |
By Durion & Co. a/c |
24 |
|
|
132 |
|
|
132 |
Dr. Repairs a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
19 Jan |
To cash a/c |
50 |
31 Jan |
To balance c/d |
50 |
|
|
50 |
|
|
50 |
Dr. Rambu Tan a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
20 Jan |
To sales a/c |
500 |
31 Jan |
To balance c/d |
500 |
|
|
500 |
|
|
500 |
Dr. Longan store a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
1700 |
23 Jan |
By purchase a/c |
1700 |
|
|
|
|
|
|
|
|
1700 |
|
|
1700 |
Dr. Bills received a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
300 |
30 Jan |
By cash a/c |
300 |
|
|
300 |
|
|
300 |
Dr. Wages a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To cash a/c |
2300 |
31 Jan |
To balance c/d |
2300 |
|
|
2300 |
|
|
2300 |
Dr. Sales a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
11230 |
6 Jan |
By cash a/c |
400 |
|
|
|
7 Jan |
By cash a/c |
560 |
|
|
|
8 Jan |
By cash a/c |
480 |
|
|
|
9 Jan |
By cash a/c |
660 |
|
|
|
10 Jan |
By cash a/c |
520 |
|
|
|
11 Jan |
By cash a/c |
400 |
|
|
|
12 Jan |
By cash a/c |
390 |
|
|
|
13 Jan |
By cash a/c |
460 |
|
|
|
14 Jan |
By Mango steen a/c |
540 |
|
|
|
16 Jan |
By cash a/c |
380 |
|
|
|
17 Jan |
By cash a/c |
420 |
|
|
|
18 Jan |
By cash a/c |
480 |
|
|
|
19 Jan |
By cash a/c |
490 |
|
|
|
20 Jan |
By Rambu Tan |
500 |
|
|
|
21 Jan |
By cash a/c |
520 |
|
|
|
22 Jan |
By cash a/c |
330 |
|
|
|
23 Jan |
By cash a/c |
370 |
|
|
|
24 Jan |
By cash a/c |
390 |
|
|
|
25 Jan |
By cash a/c |
450 |
|
|
|
26 Jan |
By cash a/c |
460 |
|
|
|
27 Jan |
By cash a/c |
600 |
|
|
|
28 Jan |
By cash a/c |
520 |
|
|
|
29 Jan |
By cash a/c |
430 |
|
|
|
30 Jan |
By cash a/c |
480 |
|
|
|
|
|
|
|
|
11230 |
|
|
11230 |
Dr. Cost of goods sold a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
6 Jan |
To inventory a/c |
200 |
31 Jan |
To balance c/d |
5570 |
7 Jan |
To inventory a/c |
280 |
|
|
|
8 Jan |
To inventory a/c |
220 |
|
|
|
9 Jan |
To inventory a/c |
320 |
|
|
|
10 Jan |
To inventory a/c |
260 |
|
|
|
11 Jan |
To inventory a/c |
180 |
|
|
|
12 Jan |
To inventory a/c |
190 |
|
|
|
13 Jan |
To inventory a/c |
250 |
|
|
|
14 Jan |
To inventory a/c |
240 |
|
|
|
15 Jan |
To inventory a/c |
200 |
|
|
|
16 Jan |
To inventory a/c |
140 |
|
|
|
17 Jan |
To inventory a/c |
170 |
|
|
|
18 Jan |
To inventory a/c |
240 |
|
|
|
19 Jan |
To inventory a/c |
250 |
|
|
|
20 Jan |
To inventory a/c |
230 |
|
|
|
21 Jan |
To inventory a/c |
210 |
|
|
|
22 Jan |
To inventory a/c |
160 |
|
|
|
23 Jan |
To inventory a/c |
190 |
|
|
|
24 Jan |
To inventory a/c |
180 |
|
|
|
25 Jan |
To inventory a/c |
220 |
|
|
|
26 Jan |
To inventory a/c |
170 |
|
|
|
27 Jan |
To inventory a/c |
350 |
|
|
|
28 Jan |
To inventory a/c |
260 |
|
|
|
29 Jan |
To inventory a/c |
200 |
|
|
|
30 Jan |
To inventory a/c |
260 |
|
|
|
|
|
|
|
|
|
|
|
5570 |
|
|
5570 |
Dr. Inventory a/c Cr.
Date |
Particular |
Amount ($) |
Date |
Particular |
Amount ($) |
31 Jan |
To balance c/d |
5570 |
6 Jan |
By Cost of goods sold a/c |
200 |
|
|
|
7 Jan |
By Cost of goods sold a/c |
280 |
|
|
|
8 Jan |
By Cost of goods sold a/c |
220 |
|
|
|
9 Jan |
By Cost of goods sold a/c |
320 |
|
|
|
10 Jan |
By Cost of goods sold a/c |
260 |
|
|
|
11 Jan |
By Cost of goods sold a/c |
180 |
|
|
|
12 Jan |
By Cost of goods sold a/c |
190 |
|
|
|
13 Jan |
By Cost of goods sold a/c |
250 |
|
|
|
14 Jan |
By Cost of goods sold a/c |
240 |
|
|
|
15 Jan |
By Cost of goods sold a/c |
200 |
|
|
|
16 Jan |
By Cost of goods sold a/c |
140 |
|
|
|
17 Jan |
By Cost of goods sold a/c |
170 |
|
|
|
18 Jan |
By Cost of goods sold a/c |
240 |
|
|
|
19 Jan |
By Cost of goods sold a/c |
250 |
|
|
|
20 Jan |
By Cost of goods sold a/c |
230 |
|
|
|
21 Jan |
By Cost of goods sold a/c |
210 |
|
|
|
22 Jan |
By Cost of goods sold a/c |
160 |
|
|
|
23 Jan |
By Cost of goods sold a/c |
190 |
|
|
|
24 Jan |
By Cost of goods sold a/c |
180 |
|
|
|
25 Jan |
By Cost of goods sold a/c |
220 |
|
|
|
26 Jan |
By Cost of goods sold a/c |
170 |
|
|
|
27 Jan |
By Cost of goods sold a/c |
350 |
|
|
|
28 Jan |
By Cost of goods sold a/c |
260 |
|
|
|
29 Jan |
By Cost of goods sold a/c |
200 |
|
|
|
30 Jan |
By Cost of goods sold a/c |
260 |
|
|
|
|
|
|
|
|
5570
|
|
|
5570 |
S.No. |
Particular |
Debit ($) |
Credit ($) |
1 |
Cash a/c |
8052 |
- |
2 |
Capital a/c |
- |
20000 |
3 |
Rent a/c |
3000 |
- |
4 |
Furniture a/c |
2400 |
- |
5 |
Durian a/c |
- |
2400 |
6 |
Purchase a/c |
8940 |
- |
7 |
Melon Foods a/c |
- |
1040 |
8 |
Purchase return a/c |
- |
200 |
9 |
Mango Steen a/c |
- |
40 |
10 |
Drawings a/c |
4000 |
- |
11 |
Discount received a/c |
- |
132 |
12 |
Repairs a/c |
50 |
- |
13 |
Rambu Tan a/c |
500 |
- |
14 |
Longan store a/c |
- |
1700 |
15 |
Bills received/c |
- |
300 |
16 |
Wages a/c |
2300 |
- |
17 |
Sales a/c |
- |
11230 |
18 |
Cost of goods sold a/c |
5570 |
- |
19 |
Inventory a/c |
- |
5570 |
20 |
Machinery a/c |
5400 |
- |
|
|
40212 |
40212 |
According to Needles et al. (2013), the income statement and balance sheet of Apple restaurant:
Income |
Amount |
Income ($) |
Amount ($) |
|
To opening stock a/c |
- |
By sales |
11230 |
|
To purchase 8940 Less: Purchase return (200) |
8740 |
|
|
|
To wages |
2300 |
By closing stock |
5570 |
|
To Gross Profit |
5760 |
|
|
|
|
16800 |
|
16800 |
|
To rent a/c |
3000 |
By Gross Profit |
5760 |
|
To repairs a/c |
50 |
By discount received a/c |
132 |
|
To Net Profit |
3142 |
By bills received a/c |
300 |
|
|
6192 |
|
6192 |
Liabilities |
Amount |
Assests |
Amount |
Capital 20000 Less: Drawings (4000) Add: Net Profit 3142 |
19142 |
Cash a/c |
8052 |
Creditors: Melon Foods 1040 Mango Steen 40 Rambu Tan 500 Durian & Co. 2400 |
3980 |
Debtors: Longan Store a/c
|
1700 |
|
|
Machinery a/c |
5400 |
|
|
Closing Stock a/c |
5570 |
|
|
Furniture a/c |
2400 |
|
23122 |
|
23122 |
This report has concluded the financial statements of Apple Company as at 31 January 2017. The report evaluate the performance of Apple restaurant by prepared the financial statements which includes the journal entries, ledger accounts, trial balance, income statements and balance sheet as at 31 January 2017 and all these statements are prepared according to International Accounting Standard board.
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