Accounting Fundamentals

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

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