Discuss the difference in the role of the journal

Assignment Help Accounting Basics
Reference no: EM13670175

Part A

Discuss the difference in the role of the journal and the ledger in capturing accounting information efficiently and effectively.

Outline the entity concept and how it impacts on the recording of personal and business transactions.

Identify the type of errors that could be discovered by preparing a trial balance and provide examples of each.

Provide examples of two transactions and examine the application of the debit and credit rule.

Part B

The following business transactions relate to Ray Rosa (financial planner) for his first month of business operations in August 2015:

2015

August 1 Commenced business operations with a $300? 000 cash injection of personal funds.
            2          Paid monthly rent $1500.
            4          Purchased office stationery $2000 on credit from Stationery Plus.
            7         Purchased office equipment on credit from Supplies Inc. $10? 000.
            9         Sent invoice to client M. Birt for services $3000.
            11       Purchased MYOB software for laptop computer $700 cash.
            13       M. Birt paid amount outstanding.
            14        Met with prospective client and negotiated the provision of financial advice for client and family quoting $5000.
            17        Paid car parking permit $220.
            19       Withdrew cash from business $2000 for personal use.
            22        Paid WWW Ltd for monthly internet use $182.
            29        Received interest from business bank account $15.

State the impact on the accounting equation for each transaction above.

For example:

1 Aug↑Capital $300?000   ↑Cash $300?000

Prepare a worksheet for the month of August 2015 from the above information.

Part C

Using the business transactions in part B, record the transactions in the ledger of Ray Rosa.

Prepare a trial balance for Ray Rosa at 31 August 2015.

Prepare an income statement for the month ending 31 August 2015.

Prepare a balance sheet as at 31 August 2015.

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Reference no: EM13670175

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