FINANCIAL ACCOUNTING I

Naffay Bin Rauf

18u00167
Contents
Executive Summary....................................................................................................................................3
Opening Trial Balance.................................................................................................................................4
General Journal...........................................................................................................................................5
Special Journals.....................................................................................................................................11
Sales journal..........................................................................................................................................12
Cash Payments Journal.........................................................................................................................13
Cash Receipts Journal...........................................................................................................................14
General Ledger..........................................................................................................................................15
Subsidiary Ledgers................................................................................................................................18
Un-Adjusted Trial Balance........................................................................................................................19
Adjusting Entries.......................................................................................................................................20
Adjusted Trial Balance..............................................................................................................................20
Statement of owner’s equity....................................................................................................................21
Income Statement....................................................................................................................................22
Balance Sheet............................................................................................................................................23
Closing Entries...........................................................................................................................................24
Post-Closing Trial Balance.........................................................................................................................25
Executive Summary
Mix-Up Mart is a cash and carry departmental store which is
located in the Paragon City, Lahore. This store sells wide variety
of daily use products. K store is accessed by almost all age
groups.This store is backed by the support of several suppliers.
They fills the supply when an inventory, of different products,
reaches to a minimum level.
The transactions are recorded through Scanner in a general
journal for the entire month which includes its sales and
purchases as well as the monthly expenditures of the store.
Opening Trial Balance
Post Closing Trial Balance for month ended October
2019.Opening Trial Balance month of November 2019.
General Journal
The General journal is the point of entry of business
transactions into the accounting system. It is a chronological
record of the transactions, showing an explanation:Each
Transaction,The accounts affected Whether those accounts are
increased or decreased and by what amount.
Special Journals
A purchases journal is a record of all acquisitions made on credit
during a period.This is a journal that keeps track of the orders
placed using vendor credit or accounts payable as well as the
current balance owed to each vendor.
Sales journal
A sales journal is a specialized accounting journal used in an
accounting system to keep track of the sales of items that
customers have purchased on account by charging a receivable
on the debit side of an accounts receivable account and crediting
revenue on the credit side.
Cash Payments Journal
The Cash Payments Journal is used to record all cash
payments made by a company.
Cash Receipts Journal
The Cash Receipts Journal is used to record sales of
merchandise for cash.
General Ledger
A general ledger (GL) is a chronological accounting record a
business uses to keep track of financial transactions.
Transactions are categorized and summarized into general
ledger accounts. An account is a unique record for each type of
asset, liability, equity, revenue and expense.
Subsidiary Ledgers
A subsidiary ledger is a group of similar accounts whose
combined balances equal the balance in a specific
general ledger account. The general ledger account that
summarizes a subsidiary ledger's account balances is called a
control account or master account.
Un-Adjusted Trial Balance
An unadjusted trial balance is a listing of all the business
accounts that are going to appear on the financial statements
before year-end adjusting journal entries are made.
Adjusting Entries
Adjusting entries are journal entries made at the end of the
accounting period to allocate revenue and expenses to the period
in which they actually are applicable.

Adjusted Trial Balance

An adjusted trial balance is a listing of all company accounts
that will appear on the financial statements after year-end
adjusting journal entries have been made
Statement of owner’s equity
The statement of owner's equity portrays changes in the capital
balance of a business over a reporting period. The concept is
usually applied to a sole proprietorship, where income earned
during the period is added to the beginning capital balance
and owner draws are subtracted
Income Statement
An income statement or profit and loss account   is one of
the financial statements of a company and shows the
company’s revenues and expenses during a particular period.
Balance Sheet
Balance sheet is a statement of the assets, liabilities, and capital
of a business or other organization at a particular point in time,
detailing the balance of income and expenditure over the
preceding period

Closing Entries
The sequence of the closing process is as follows:
 1. Close the revenue accounts to Income Summary.
2. Close the expense accounts to Income Summary.
3. Close Income Summary to Retained Earnings.
4. Close Dividends to Retained Earnings

Post-Closing Trial Balance

A post-closing trial balance is a listing of all balance sheet
accounts containing non-zero balances at the end of a reporting
period