USA: +1-206-973-7012 
Sign in
Preparation and Presentation of Financial Records
Debtors Ledger:
Hanson Account
Debits £ Credits £
Aug 1 bal b/f 560 Aug 15 bank 532
Aug 15 discount allowed 28
560 560
Nichols Account
Debits £ Credits £
Aug 1 bal b/f 2520 Aug 15 bank 2926
Aug 4 sales 560 Aug 15 discount allowed 154
3080 3080
Optix Account
Debits £ Credits £
Aug 4 sales 784 Aug 11 return inwards 224
Aug 15 bank 532
Aug 15 discount allowed 28
784 784
Barties ltd Account
Debits £ Credits £
Aug 4 sales 1092
Aug 9 sales 308 Aug 29 bal c/d 1400
1400 1400
Simpson Account
Debits £ Credits £
Aug 4 sales 1372 Aug 11 return inwards 252
Aug 15 bank 1064
Aug 15 discount allowed 56
1372 1372
Denby Account
Debits £ Credits £
Aug 4 sales 672 Aug 29 bal c/d 672
Garfield Account
Debits £ Credits £
Aug 4 sales 1652 Aug 29 bal c/d 1652
Joe Penson Account
Debits £ Credits £
Aug 9 sales 938 Aug 29 bal c/d 938
Sales Account
Debits £ Credits £
Aug 4 Nichols 560
Aug 4 Optix 784
Aug 4 Barties ltd 1092
Aug 4 Simpson 1372
Aug 4 Denby 672
Aug 4 Garfield 1652
Aug 9 Barties ltd 308
Aug 29 bal c/d 7378 Aug 9 Joe Penson 938
7378 7378
Creditors Ledger:
Bennett Account
Debits £ Credits £
Aug 1 bal b/f 840
Aug 23 bank 1120 Aug 3 purchases 280
1120 1120
Ronson Account
Debits £ Credits £
Aug 23 bank 2800 Aug 1 bal b/f 2800
Harmison Account
Debits £ Credits £
Aug 29 bal cld 784 Aug 3 purchases 784
Gensen Account
Debits £ Credits £
Aug 29 bal b/d 380 Aug 3 purchases 380
Lazzard Account
Debits £ Credits £
Aug 3 purchases 966
Aug 16 return outwards 126
Aug 23 bank 840
966 966
John Jessup Account
Debits £ Credits £
Aug 29 bal b/d 1246 Aug 18 purchase 1246
Better Supplies Account
Debits £ Credits £
Aug 29 bal b/d 1008 Aug 18 purchase 1008
Purchases Account
Debits £ Credits £
Aug 3 Bennet 280
Aug 3 lazzard 966
Aug 3 Gensen 380
Aug 3 Harmison 784
Aug 18 John Jessup 1246
Aug 18 Better supplies 1008 Aug 29 bal c/d 4664
4664 4664
Nominal Ledger:
Premises Account
Debits £ Credits £
Aug 1 bal b/f 280000 Aug 29 bal c/d 280000
Van Account
Debits £ Credits £
Aug 1 bal b/f 6300
Aug 12 Eastleigh 4200 Aug 29 bal c/d 10500
10500 10500
Cash Account
Debits £ Credits £
Aug 1 bal b/f 630 Aug 8 drawings 280
Aug 5 van service 182 Aug 29 bal c/d 532
812 812
Bank Account
Debits £ Credits £
Aug 1 bal b/f 17556 Aug 2 Hassle Holdings 210
Aug 12 Insurance 630
Aug 23 Bennett 120
Hanson 560
Lazzard 840
Aug 24 wages 784
Aug 25 business rates 924
Aug 29 Eastleigh 4200
Aug 29 bal c/d 10102
17556 17556
Hassle Holdings Account
Debits £ Credits £
Aug 2 bank 210 Aug 29 bal c/d 210
Capital Account
Debits £ Credits £
Aug 1 cash 630
Bank 17556
Aug 29 bal c/d 36232 Stock 18046
36232 36232
Trial Balance before end adjustments as at 1st August 2009
Particulars debit £ credit £
Bank 17556
Cash 630
Van 6300
Premises 280000
Inventory 18046
Fixtures 8400
Capital 330372
Debtors 3080
Creditors 3640
Totals 334012 334012
Trial Balance after adjustments as at 31st August 2009
Particulars debit £ credit £
Bank 10102
Cash 168
Premises 280000
Van 10325
Fixtures 8225
Inventory 18046
Better supplies 1008
John Jossup 1246
Gensen 380
Harmision 784
Capital 330372
Depreciation 350
Discount allowed 266
Joe Penson 938
Barties ltd 1400
Sales 7378
Purchases 4644
Return inwards 476
Return outwards 126
Totals 341910 341910
Income Statement as at 31st August 2009(£)
Sales 7378
Less: return inwards (476)
Less cost of sales:
Opening stock 18046
Purchases 4664
Less: return outwards (126)
Less: closing stock (14200) 8384
Gross loss -880
Less: expenses
Wages 784
Business rates 924
Insurance 630
Van service 280
Rent 210 (2828)
Gross loss -3708
Balance Sheet as at 31st August 2009
Fixed Assets cost Acc. Depreciation Net Book Value
Premises 280000 – 280000
Fixtures 8400 175 8225
Vans 10500 175 10325
Current Assets; 298550
Stock 14200
Debtors 2338
Insur. Prepayment 577.5
17115.5 17115.5
Current Liabilities:
Creditors 3418
Telephone accruals 168 (3586)
312079.5
Financed by:
Capital 315787.5
Drawings (280)
Gross loss (3708) 312079.5
Sage Accounting Package
Sage accounting package is software designed to solve accounting problems more easily, faster and more efficiently than manual calculations. Sage unlike manual way does additional tasks like payroll, personnel, forecasting and contact management. Sage accounting packages are designed differently to concur with different applications. The more functions and complex the sage is the higher the functions it performs unlike the manual way, which is similar in all cases. There is sage accounting package designed for small business, medium-sized and large business and corporations. Sage accounting package is therefore highly regarded than the manual way because people are even using computers more.
Comments
Clive seems to be improving in the sales of his business as he supplies and orders more goods as the month matures. The increase in the sales of Clive’s business shows an expansion in his market scope. Clive however has a problem of learning his business with more debts than the liquid cash. Clive has been accumulating debts with creditors as he sells most of his products to debtors on loan. Clive’s debtors do not respond well in the payment of goods sold to them on credit. Clive seems to be selling his goods at low profit rate and the discounts allowed lowers the profit more.
Clive’s business is making a loss, as it is hard for him to budget for his expenses and profits as most of the stock is purchased on credit and sold on credit. The selling of many goods on credit is dangerous to business as it reduces the working capital. Clive also has purchased another van irrespective of low working capital in the business. For Clive to solve these problems he should try to get rid of debts. I can advice Clive to shorten the time allowed for debts. Clive can also promote cash sales by offering his customers cash discounts and not at later payments.
Clive should also try to purchase goods on cash on delivery to ensure the business runs on its own capital. Clive can achieve this by maybe selling the old van to increase his working capital. If Clive can be able to do get rid of large debts and ensure good record keeping he can be able to generate more incomes than expenses. The good records will ensure that Clive will control any constraints, as it will be easy to identify them.
