Accounting: Double Entry Book-Keeping, Trial Balance, Final Accounts, Bank Reconciliation and Contro

Record business transactions using double entry book-keeping, and be able to extract a trial balance required:

A) Apply the double entry book-keeping system of debits and credits. Record sales and purchases transactions in a general ledger.

B) Produce a trial balance applying the use of the balance off rule to complete the ledger.

C) Analyse sales and purchase transactions to compile a trial balance using double entry book-keeping appropriately and effectively.

D) Record correctly transactions and produce an accurate trial balance off of ledger accounts, checking that each transactions that each transactions is recorded in line with accepted accounting principles.

Prepare final accounts for sole-traders, partnerships and limited companies accordance with appropriate principles, conventions and standards. Required:

a) Prepare final account from given trial balance figures adjusting for accruals, depreciation and prepayments.

B) Produce final accounts for a range of examples that include sole-traders, partnerships or limited companies.

C) Analyse profit or loss accounts, statement of financial position and cash flows statements appropriate for the given examples.

D) Apply appropriate and accurate calculations for the constructing of the final accounts. 

Perform bank reconciliation to ensure company and bank records are correct. Required

a) Apply the bank reconciliation process to prepare a number of bank reconciliations.

B) Apply the reconciliation process demonstrating the use of deposit in transit, outstanding cheques and not sufficient funds (nsf) check.

C) Prepare accurate bank reconciliation that apply appropriate tools and techniques to check general accounts and statement of financial postion. 

Meccy uses control accounts for both receivables and payables. The individual receivables and payables ledger accounts do not form part of the double-entry system. When the draft trial balance at 31 december 2013 was prepared, meccy found that the trial balance did not balance. She posted the difference of $2,020 to the debit of a suspense account. She also found that the credit balance on the payables control account was $35,934, but the list of payables’ balances that she had prepared from the accounts in the payables ledger totalled $37,335. She has since found the following errors:

(1) The balance on the payable’s account of bee limited was recorded as $1,050 credit, but the balance was actually $1,050 debit.

(2) Payments totalling $900 to payables on 31 december were correctly entered into the cash book, but not posted to the payables control account or the individual payables’ accounts.

(3) Returned goods of $560 to grant ltd was credited to both the payables’ control account and the return outwards account. The balance on grant ltd’s account had been correctly recorded in individual payable’s account.

Question 2

(4) Discount received of $310 was credited to the discount received account and debited to the payables control account. No entries were made in the individual payables’ accounts.

(5) Discounts allowed of $111 were credited to the discount allowed account and debited to the payables control account. No entries were made in any individual payables’ accounts. Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts. Required a) explain the process taken to reconcile control accounts and clear suspense accounts using given account examples.

B) Demonstrate understanding the different types of accounts and how and why they are reconciled.

C) Produce accurate accounts that have been reconciled applying the appropriate methods. Note: Where necessary, all your calculations should be to the nearest $1.

The below information provided for question 1- question 3 rosemary is a retailer and started a retail shop called rosemary enterprise which buying and selling branded boutiques on 1st may 2016. The accounting period for the business is from 1st may 2016 – 30th april 2017. Rosemary owns 4 stories of shop lots, which she rented the 3rd and 4th floor lots to her friend, tan may ling with monthly rental of $1,850. The remaining 2 stories shop lots is being used for her own boutique. Following are the trial balance as at 31st march 2017.

A) inventory as at 30th april 2017 is $3,650.

B) the trade receivables included: Amber $1,300, pradan $2,800, jacalyn $1,600, jordan $1,950 and niki $2,450 (sales invoices dated 28th february 2017).

C) the trade payables included: Cloth & co. $1,220, armani $2,400 and george $2,680.

D) during the year, the business depreciation policy is as follows:  Shop lot – straight line method at 10% per annum motor vehicle- sum of year’s digit method, useful life of 5 years Ø furniture & fittings – cost method at 30% per annum office equipment- sum of years digit method with scrap value of $250 & useful life of 9 years Ø depreciation is charge by monthly basis from the date of purchase until the date of disposal. disposal of furniture & fittings during the year at cost of $3,500 which have been depreciated for 11 months with proceeds of $2,540 received in cash.

A) Inventory as at 30th april 2017 is $3,650.

B) The trade receivables included: Amber $1,300, pradan $2,800, jacalyn $1,600, jordan $1,950 and niki $2,450 (sales invoices dated 28th february 2017).

C) The trade payables included: Cloth & co. $1,220, armani $2,400 and george $2,680.

D) During the year, the business depreciation policy is as follows:  shop lot – straight line method at 10% per annum motor vehicle- sum of year’s digit method, useful life of 5 years furniture & fittings – cost method at 30% per annum office equipment- sum of years digit method with scrap value of $250 & useful life of 9 years depreciation is charge by monthly basis from the date of purchase until the date of disposal. Ø disposal of furniture & fittings during the year at cost of $3,500 which have been depreciated for 11 months with proceeds of $2,540 received in cash.