Introduction to Financial Accounting Assignment
Please answer all Questions.
QUESTION 1 - Frank, a hospitality event consultant, started business on 01 May. The following is a list of transactions for the month of May.
01 May - Frank O'Donoghue deposits €25,000 into a business bank account.
02 May - The business purchased office equipment for €7,000 paying by cheque.
04 May - The business purchased furniture on credit from Bargain Pieces Ltd. for €5,000.
05 May - Purchased stock of goods on credit from Cianod Ltd. for €2,000.
06 May - Purchased stock of goods paying by cheque for €3,000.
10 May - Sold goods for €5,000 receiving the money by cheque.
15 May - Paid rent of €1,800 by cheque.
16 May - Paid stationery bill of €500 by cheque.
16 May - Paid €650 for advertising by cheque.
18 May - Returned some of the goods to the value of €800 purchased on credit from Cianod Ltd.
20 May - Jack took €900 out of bank for his own use.
22 May - Paid the balance owed to Cianod Ltd. by cheque.
23 May - Paid wages €1,800 by cheque.
25 May - Let part of the premises receiving €1,000 rent by cheque.
26 May - Paid €75 for travel and motor expenses.
27 May - Jack took stock to the value of €200 for his own use.
28 May - Sold goods worth €950 on credit to G. Dunne.
30 May - Paid Bargain Pieces Ltd the amount outstanding.
a) Enter the above transactions in the appropriate ledger accounts for May, balancing off all accounts.
b) Prepare a trial balance as at 31st May 2015.
QUESTION 2 - Describe any SIX of the following accounting concepts:
a) The business entity concept
b) The dual aspect concept
c) The money measurement concept
d) The historic cost concept
e) The going concern concept
f) The realisation concept
g) The accruals concept