Accounting

 
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 into 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...