ACC 301 Assignment Questions and Answers

Assignment Update on Acc 301 Solved by Studentsdash

1. Pick any question of Ur choice that requires you to prepare cashbook, ledger, trial balance and other financial state solve it
2. Pick any question of Ur choice that requires you to prepare journals and solve it
3. List account that makes up financial statement

Answer to 1

Question:

Pick any question of Ur choice that requires you to prepare cashbook, ledger, trial balance and other financial state solve it

Let’s say a small business started on January 1st, 2025, and the following transactions happened during the month of January:

1. The owner deposited ₦100,000 into the business account.
2. The business bought inventory for ₦30,000.
3. The business paid rent for the month, ₦20,000.
4. The business sold goods for ₦50,000 in cash.
5. The business paid ₦10,000 for electricity bills.
6. The business withdrew ₦15,000 for personal use.

We are to:

• Prepare a cashbook
• Prepare the ledger accounts for the business
• Prepare a trial balance

---

1. Cashbook

The cashbook will record all cash transactions, including receipts and payments.

Date	Particulars	Cash In (₦)	Cash Out (₦)	Balance (₦)
Jan 1, 2025	Owner’s deposit	100,000		100,000
Jan 3, 2025	Inventory purchase		30,000	70,000
Jan 5, 2025	Rent payment		20,000	50,000
Jan 7, 2025	Goods sold (cash)	50,000		100,000
Jan 10, 2025	Electricity bill		10,000	90,000
Jan 15, 2025	Owner’s withdrawal		15,000	75,000

---

2. Ledger Accounts

Cash Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 1, 2025	Owner’s deposit	100,000		100,000
Jan 3, 2025	Inventory purchase		30,000	70,000
Jan 5, 2025	Rent payment		20,000	50,000
Jan 7, 2025	Goods sold (cash)	50,000		100,000
Jan 10, 2025	Electricity bill		10,000	90,000
Jan 15, 2025	Owner’s withdrawal		15,000	75,000

---

Inventory Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 3, 2025	Cash (Inventory bought)	30,000		30,000

---

Rent Expense Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 5, 2025	Cash (Rent payment)	20,000		20,000

---

Electricity Expense Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 10, 2025	Cash (Electricity payment)	10,000		10,000

---

Owner’s Withdrawal Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 15, 2025	Cash (Owner’s withdrawal)	15,000		15,000

---

3. Trial Balance

At the end of January, we need to check if everything balances. The trial balance will show the total debits and credits.

Account Name	Debit (₦)	Credit (₦)
Cash Account	75,000
Inventory Account	30,000
Rent Expense Account	20,000
Electricity Expense	10,000
Owner’s Withdrawal	15,000
Capital (Owner’s deposit)		100,000
Sales (Revenue)		50,000
Total	150,000	150,000

The trial balance shows that the total debits are equal to the total credits, which means the books are balanced.

---

4. Financial Statements

Based on the trial balance, we can now prepare the Income Statement and Balance Sheet.

Income Statement (for the month ended January 31, 2025):

Particulars	Amount (₦)
Revenue (Sales)	50,000
Expenses:
Rent Expense	20,000
Electricity Expense	10,000
Net Profit	20,000

Balance Sheet (as at January 31, 2025):

Assets	Amount (₦)	Liabilities + Owner’s Equity	Amount (₦)
Cash	75,000	Capital (Owner’s deposit)	100,000
Inventory	30,000	Owner’s Withdrawal	15,000
Total Assets	105,000	Total Liabilities + Owner’s Equity	115,000

---

Answer to 2

Question:

Pick any question of Ur choice that requires you to prepare journals and solve it

Here are the transactions for ABC Enterprises for the month of January 2025:

1. On January 1, the owner invested ₦200,000 in cash.
2. On January 2, the business purchased inventory worth ₦50,000 on credit.
3. On January 5, the business sold goods worth ₦80,000 (₦60,000 cash, ₦20,000 on credit).
4. On January 10, the business paid ₦30,000 for rent.
5. On January 15, the business paid ₦5,000 for electricity bills.
6. On January 20, the business withdrew ₦10,000 for personal use.

We are to:

• Prepare the journal entries for each transaction
• Prepare the ledger accounts for the business
• Prepare a trial balance

---

1. Journal Entries

1. Owner’s Investment (January 1)

The owner invested ₦200,000 in cash.

Journal Entry:

Date	Account Title	Debit (₦)	Credit (₦)
Jan 1, 2025	Cash	200,000
	Owner’s Capital		200,000

---

2. Purchase of Inventory on Credit (January 2)

The business purchased inventory worth ₦50,000 on credit.

Journal Entry:

Date	Account Title	Debit (₦)	Credit (₦)
Jan 2, 2025	Inventory	50,000
	Accounts Payable		50,000

---

3. Sale of Goods (January 5)

The business sold goods worth ₦80,000 (₦60,000 in cash, ₦20,000 on credit).

Journal Entry:

Date	Account Title	Debit (₦)	Credit (₦)
Jan 5, 2025	Cash	60,000
	Accounts Receivable	20,000
	Sales Revenue		80,000

---

4. Rent Payment (January 10)

The business paid ₦30,000 for rent.

Journal Entry:

Date	Account Title	Debit (₦)	Credit (₦)
Jan 10, 2025	Rent Expense	30,000
	Cash		30,000

---

5. Electricity Payment (January 15)

The business paid ₦5,000 for electricity bills.

Journal Entry:

Date	Account Title	Debit (₦)	Credit (₦)
Jan 15, 2025	Electricity Expense	5,000
	Cash		5,000

---

6. Owner’s Withdrawal (January 20)

The business withdrew ₦10,000 for personal use.

Journal Entry:

Date	Account Title	Debit (₦)	Credit (₦)
Jan 20, 2025	Owner’s Drawings	10,000
	Cash		10,000

---

2. Ledger Accounts

Now, let’s post these journal entries into the ledger.

Cash Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 1, 2025	Owner’s Capital	200,000		200,000
Jan 5, 2025	Sales (Cash)	60,000		260,000
Jan 10, 2025	Rent Payment		30,000	230,000
Jan 15, 2025	Electricity Payment		5,000	225,000
Jan 20, 2025	Owner’s Drawings		10,000	215,000

Accounts Receivable Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 5, 2025	Sales (Credit Sale)	20,000		20,000

Inventory Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 2, 2025	Purchase (Inventory)	50,000		50,000

Accounts Payable Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 2, 2025	Inventory (Credit Purchase)		50,000	50,000

Sales Revenue Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 5, 2025	Sales (Goods sold)		80,000	80,000

Rent Expense Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 10, 2025	Cash (Rent Payment)	30,000		30,000

Electricity Expense Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 15, 2025	Cash (Electricity Payment)	5,000		5,000

Owner’s Drawings Account:

Date	Particulars	Debit (₦)	Credit (₦)	Balance (₦)
Jan 20, 2025	Cash (Owner’s Withdrawal)	10,000		10,000

---

3. Trial Balance

Now, we will prepare the trial balance to make sure everything balances.

Account Name	Debit (₦)	Credit (₦)
Cash	215,000
Accounts Receivable	20,000
Inventory	50,000
Accounts Payable		50,000
Sales Revenue		80,000
Rent Expense	30,000
Electricity Expense	5,000
Owner’s Drawings	10,000
Owner’s Capital		200,000
Total	330,000	330,000

The trial balance shows that total debits equal total credits, so the books are balanced.

---

4. Financial Statements

Income Statement (for the month ended January 31, 2025):

Particulars	Amount (₦)
Revenue (Sales)	80,000
Expenses:
Rent Expense	30,000
Electricity Expense	5,000
Net Profit	45,000

Balance Sheet (as at January 31, 2025):

Assets	Amount (₦)	Liabilities + Owner’s Equity	Amount (₦)
Cash	215,000	Owner’s Capital	200,000
Accounts Receivable	20,000	Accounts Payable	50,000
Inventory	50,000	Owner’s Drawings	10,000
Total Assets	285,000	Total Liabilities + Equity	285,000

---

Answer to 3

---

Question: List the accounts that make up the financial statements.

The financial statements are important tools in accounting that help businesses understand their financial performance and position. There are different accounts that make up these financial statements. Here’s a breakdown of the main ones:

1. Income Statement (Profit and Loss Statement)

This statement shows whether the business made a profit or loss over a period of time, like a month or a year. It shows the company’s revenues and expenses.

Accounts in the Income Statement:

• Revenue (Sales): This is the total money the business earns from selling goods or services. For example, when a business sells products, this money is recorded here.
• Cost of Goods Sold (COGS): This account shows the direct costs of making or acquiring the products that were sold, like materials or wages for workers who made the products.
• Expenses: These are the costs that help run the business, like rent, electricity, salaries, or office supplies.
• Net Profit or Loss: This is the difference between revenue and expenses. If revenue is higher than expenses, the business made a profit. If expenses are higher than revenue, the business made a loss.

---

2. Balance Sheet (Statement of Financial Position)

The balance sheet shows the business’s financial position at a specific point in time. It has three main parts: assets, liabilities, and owner’s equity.

Accounts in the Balance Sheet:

• Assets: These are things that the business owns and can use to make money, like cash, buildings, inventory (goods for sale), and equipment.
  1. Current Assets: These are things the business expects to turn into cash or use up within a year. Examples include cash, accounts receivable (money customers owe), and inventory.
  2. Non-Current Assets: These are long-term assets, like land, buildings, and equipment, that will be used for many years.
• Liabilities: These are debts or things the business owes to others.
  1. Current Liabilities: Debts that need to be paid within a year, like accounts payable (money the business owes to suppliers) or short-term loans.
  2. Non-Current Liabilities: Debts that are due after more than a year, like long-term loans or bonds.
• Owner’s Equity: This represents the owner’s share in the business. It’s basically the difference between the business’s assets and liabilities.
  1. Owner’s Capital: The money the owner has invested in the business.
  2. Retained Earnings: Profits the business has made over time, which are reinvested into the business instead of being paid out.

---

3. Cash Flow Statement

This statement tracks the flow of cash in and out of the business. It helps the business know if it has enough cash to pay its bills and run its operations. It is divided into three parts:

• Operating Activities: Cash flows from the business’s core activities, like selling goods and paying for expenses.
• Investing Activities: Cash flows related to buying or selling long-term assets, like land or equipment.
• Financing Activities: Cash flows from borrowing money, paying off loans, or issuing shares.

---

4. Statement of Changes in Owner’s Equity (or Retained Earnings)

This statement shows how the owner’s equity has changed over a period of time. It includes:

• Net Profit or Loss from the income statement.
• Owner’s Contributions (additional money the owner puts into the business).
• Owner’s Drawings (money the owner takes out of the business for personal use).

---

In Summary:

• Income Statement: Includes Revenue, COGS, Expenses, and shows Net Profit or Loss.
• Balance Sheet: Includes Assets (Current and Non-Current), Liabilities (Current and Non-Current), and Owner’s Equity.
• Cash Flow Statement: Shows cash from Operating, Investing, and Financing activities.
• Statement of Changes in Owner’s Equity: Shows changes in the owner’s equity, including Net Profit, Owner’s Contributions, and Owner’s Drawings.

---