Description of Business

The name of the business is Paints Express . It is a sole trading business unit. Paints Express is operated by the owner K.Gustave. The products sold are paint and painting accessories such as paint brushes and paint rollers. The transactions and financial statements will be examined for the period of ay !st " ay #!st$ %&&!.

Transaction List
ay ! 'pening (alances. )urniture * %&&& -reditors .-. -row * /#&& 2oan * 3,&& (an4 'verdraft * !,&& +ehicles *%& ,&& 0ebtors . T Thorne * 1,& -ash * /&& 5toc4 * #&&

! # / 3 !& !# !3 !: !< %& %! %3 %: %< #& #!

Purchases goods on credit from - -row$ *!,&& 6eturned *%&& worth of goods to - -row 7wrong colour8 T Thorne paid * 1,& on account by che9ue -ash 5ales *#,&& 0eposited *%/,& in the ban4 5old goods on credit to P Palmer *%&&&$ T Thorne *!3:& T Thorne returned *:& worth of goods; P Palmer paid *!<,& -ash purchases paid by che9ue *,,& Purchased goods from 2 2ong on credit * ,&& -ash sales *#<&& Paid personal medical insurance premium of *:& by che9ue Purchases paid by che9ue *#&&& -ash sales */,&& paid directly into ban4 T Thorne paid *3&& cash on account Paid 2. 2ong by che9ue$ ta4ing advantage of /= discount Paid following by che9ue> 6ent *,&&$ wages *!&&&

-losing stoc4 * !,3,

Books of Original Entry

Sales Day Book Date 2001 ay!13 ay!13 ay!31 P.Palmer T.Thorne Transferred to 5ales a@c 0etails

(page 163) )olio ?mount * 52 !&, 52 %33 G2 /%3 %&&& !3:& #3:&

"urc#ases Day Book Date 2001 ay!01 ay!1% ay!31 0etails

(page 20$) )olio ?mount *

-.-row 2.2ong Transferred to Purchases a@c

P2 #&& P2 %!, G2 :3

!,&& ,&& %&&&

Date 2001 ay!1$ ay!31

&eturns 'n(ar)s Day Book (page 23) 0etails )olio

?mount * :& :&

T. Thorne Transferred to 6eturns Inwards a@c

52 %33 G2 1,

&eturns Out(ar)s Day Book (page %*) Date 2001 ay!3 ay!31 -.-row Transferred to 6eturns 'utwards a@c P2 #&& G2 #< %&& %&& 0etails )olio ?mount *

T#e +ournal
Date 2001 ay!01 +ehicles G2 %&, page 1, Details -oli o D& .&

-ash 5toc4 )urniture 0ebtors> T. Thorne 2oan -reditors> -.-row (an4 'verdraft -apital To recor) assets an) lia/ilities at t#is )ate to open t#e /ooks ay!31 5ales Trading account To close off Sales account at year en) ay!31 Trading account Purchases To close off "urc#ases account at year en) 6eturns 'utwards Trading account To transfer returns out(ar)s to tra)ing account at year en) Trading account 6eturns Inwards To transfer returns in(ar)s to tra)ing account at year en) Trading account 'pening 5toc4 To close off opening stock account -losing 5toc4 Trading account To close off closing stock account ay!31 Profit and 2oss ?ccount 6ent To close off rent account at year en) ay!31 Profit and 2oss ?ccount Aages To close off (ages account at year en) ay!31 Profit and 2oss ?ccount 0iscount ?llowed To close off )iscount allo(e) account at year en)

-( G2 G2 52 G2 P2 -( G2

&& /&& #&& %&& & 1,& 3,& & /#& & !,& & !&, ,&

G2 G2

!,1 :& !,1 :& ,,, & ,,, & %&& %&&

G2 G2

ay!31

G2 G2

ay!31

G2 G2

:& :&

ay!31

G2 G2 G2

#&& #&& !,3 , !,3 , ,&& ,&& !&& & !&& & ,& ,&

ay!31

G2 G2 G2 G2 G2

G2 G2

D& .& Date %&&! ay. &! ay. &/ ay. &3 ay. !& ay. !3 ay. %& ay. %: ay. %< (alanc e T.Thorn e 5ales -ash P.Palme r 5ales 5ales T.Thorn e b@d 52 G2 52 G2 G2 52 3&& ,& #<&& /,&& #,&& %/,& !<,& 0etails )olio 0iscou nt -ash * /&& 1,& (an4 * 0ate %&&! ay. &! ay. !& ay. !: ay. %! ay. %3 ay. #& ay. #! ay. #! ay. #!

.0S1 BOO2 (page 63)

0etails

)olio

0iscou nt

-ash *

(an4 * !,&&

(alance (an4 Purchas es 0rawing s Purchas es 2.2ong 6ent Aages (alance

b@d G2 G2 G2 P2 G2 G2 c@d %& 1&,& :,&& %& %/,&

,,& :& #&&& /:& ,&& !&&& %//& <,,&

,& Bune ! (alanc e b@d

:,&& 1&,&

<,,& %//&

Sales Le)ger
"4 "al5er
7page !&,8 %&&! ay.!# Detai ls 5ales 50( !1# * %&&& %&&! ay !3 ay. !3 Details (an4 0iscount ?llowed -( 1/ G2 #% * !<, & ,& %&& &

%&&&

T4 T#orne
7page %338 %&&! ay.&! ay.!# Details (alance b@d 5ales 50( !1# * 1,& !3: & %&&! ay. &/ ay. !3 ay. %< ay. #! Details (an4 6eturns Inwards -ash Balance c6) -( 1/ 6I0( %# -( 1/ * 1,& :& 3&& !&& & %/# &

Bun.&!

(alance b@d

%/# & !&& &

"urc#ases Le)ger
.4 .ro(
7page #&&8 %&&! Details ay.&# 6eturns 'utwards 6'0( <: * %&& %&&! ay. &! Details (alance b@d * /#& &

ay.#!

Balance c6)

,1& & ,:& &

ay. &!

Purchases

P0( %&3

(alance Bun.&! b@d

!,& & ,:& & ,1& &

L4Long
%&&! ay.#& ay.#& 7page %!,8 Details (an4 0iscount 6eceived -( 1/ G2 ,% * /: & %& ,& & %&&! ay.!< Details Purchases P0( %&3 * ,& & ,& &

7eneral Le)ger

Purchases (page 87) 2001 May-18 May-27 May-"1 Details Bank Bank #%tal cre$it purchases &%r '%nth CB 6 CB 6 PDB 207 $ 2001 "000 2000 !!!0 !!!0 Details $ !!!0

!!0 May-"1 #ra$ing acc%unt

Obj100

Sales
7page /%38 %&&! ay.#! Details
Trading ?ccount

* !,1: &

%&&! ay.&3 ay.%& ay.%: ay.#!

Details -ash -ash -ash Total credit sales for month -( 1/ -( 1/ -( 1/ 50( !1#

* #,&& #<&& /,&& #3:& !,1: &

!,1: &

&ent
%&&! ay.#! Details (an4 -( 1/ * %&&! ,&& ay.#! Details Profit and 2oss account * ,&&

8ages
%&&! ay.#! Details (an4 -( 1/ * %&&! !&&& ay.#! Details Profit and 2oss account * !&&&

Discount 0llo(e)
%&&! ay.!3 Details P.Palmer 52 !&, * ,& 7page #%8 %&&! Details ay.#! Profit and 2oss account * ,&

Discount &ecei9e)
%&&! ay.#! Details (alance c@d 7page ,%8 * %&&! %& ay.#& Bun.&! Details 2.2ong (alance b@d P2 %!, * %& %&

.apital
%&&! ay.#! Details (alance c@d * %&&! !&,,& ay.&! Bun.&! Details (alance b@d (alance b@d B !, * !&,,& !&,,&

Stock
%&&! ay.&! ay.#! Details (alance b@d Trading a@c B !, * %&&! #&& ay.#! !,3, ay.#! !:3, Details Trading a@c (alance c@d * #&& !,3, !:3,

Bun.&!

(alance b@d

!,3,

Dra(ings
%&&! ay.%! ay.#! Details (an4 (alance b@d -( 1/ * %&&! :& ay.#! :& Details (alance c@d * :&

&eturns Out(ar)s
7page #<8 %&&! ay.#! Details Trading a@c * %&&! %&& ay.#! month Details Total returns for 6'0( <: * %&&

&eturns 'n(ar)s
7page 1,8 %&&! ay.#! Details Total returns for month 6I0( %# * %&&! : & ay.#! Details Trading a@c * : &

:e#icles
%&&! ay.&! ay.#! Details (alance b@d (alance b@d B !, * %&&! %&,&& %&,&& ay.#! Details (alance c@d * %&,&&

-urniture
%&&! ay.&! ay.#! Details (alance b@d (alance b@d B !, * %&&! %&&& %&&& ay.#! Details (alance c@d * %&&&

"aints E;press<
Trial (alance as at ay #!st$ %&&! Dr 'pening 5toc4 Purchases -.-row " -reditor T. Thorne " 0ebtor 5ales (an4 -ash 6eturns 'utwards 6eturns Inwards -apital )urniture 2oan %&&& 3,&& :& !&,,& %//& 1&,& %&& !&&& !,1:& * #&& ,,,& ,1&& .r *

+ehicles 0iscount ?llowed 0iscount 6eceived 0rawings 6ent Aages

%&,&& ,& %& :& ,&& !&&& 3%,,0 3%,,0

-losing 5toc4 as at

ay #!st was * !,3,

24 7usta9e Trading and Profit and 2oss ?ccount for month ended 5ales Less 6eturns Inwards Less -ost of goods sold 'pening 5toc4 Add Purchases Less 6eturns 'utwards ,,,& %&& ,#,& ,1,& Less -losing 5toc4 Gross Profit Add 0iscounts 6eceived !,3, /&3, !!,%, %& !!,/, Less Expenses #&& ay #!st$ %&&! = = = !,1:& :& !,1&&

Aages 6ent 0iscounts ?llowed Cet Profit

!&&& ,&& ,& !,,& <<<,

247usta9e (alance 5heet as at #!st ay$ %&&! * )ixed ?ssets )urniture +ehicles -urrent ?ssets 5toc4 0ebtors (an4 -ash Less -urrent 2iabilities -reditors !,3, !&&& %//& 1&,& !!&1, ,1&& ,/1, %3<1, Less 2ong Term 2iabilities 2oans 3,&& %&/1, %&&& %&,&& %%,&& *

)inanced (y> -apital &!.&,.&! Add Cet Profit Less 0rawings

!&,,& <<<, %&,/, :& %&/1,