PLEASE ANSWER ALL OF THE QUESTIONS BRIEFLY:

Task/assessment brief:

This assignment requires you to prepare a 1200 word report on the basics of bookkeeping and the accounting process with appropriate examples. It should contain the following important details.

1. Introduction (10 marks; 100 words)

Accounting records transactions and events that can be measured in money terms. In reference to this statement, an accounting is a limitation or an advantage? Support your answers with reasons and examples.

2. Discussion (80 marks; 1000 words)

2.1 An accounting equation is referred to an equation in which total assets are always equal to capital plus liabilities. Sometimes, business transactions affect either both sides of the equation or one side of the equation, but the ultimate effect must be equal on both sides. On this topic, you are required to give an example for the following transactions, construct a table of the Accounting equation and show the effects of the transactions on the assets, liabilities, and capital.

a. Business commenced with cash (1 transaction)

b. An asset purchased for cash (1 transaction)

c. Goods purchased on credit (1 transaction)

d. Expenses paid by cash (1 transaction)

e. Goods sold on credit (1 transaction)

2.2 Give examples of financial transactions took place in a product manufacturing business:

a. Business started by depositing money into the bank (1 transaction)

b. An asset purchased for credit (1 transaction)

c. Expenses paid by bank (1 transaction)

d. Income received from other sources (1 transaction)

e. Goods sold on credit (1 transaction)

f. Received cash from debtors (1 transaction)

g. Cash paid to creditors (1 transaction)

h. Withdrew from bank for office use (1 transaction)

2.3. From the financial transactions in the task (2.2), prepare the Pro-forma templates for the following:

a.Journal entries for the above transactions.

b.Post them to the appropriate ledger accounts

c. Prepare the Trial balance from the ledger balances

3. Conclusion (10 marks; 100 words)

3.1. Based on the above understanding, conclude your task by identifying the errors detected by the trial balance.