This assignment aims to:

• Apply and develop your knowledge and understanding of the financial statements
• Improve your research and analytical skills.
• Improve your written and explanatory skills.

You are required to assume transactions starting a sole trader Merchandising Company. Capital can also be assumed.

• Minimum 15 transactions are required, based on those transactions prepare subsidiary books, or books of prime entry and post to the ledgers.
• Prepare Trial Balance based on Ledger Accounts
• Prepare Income statement and Balance sheet based on Trial Balance

The students are required to Prepare the following:

1. General Appearance (Introduction/Table of content) (1 mark)
2. Transactions (2 Marks)
3. Subsidiary books (4 Marks)
4. Ledger Accounts/ Control Account (3 Marks)
5. Trail Balance (1 Mark)
6. Income Statement (2Marks)
7. Balance Sheet (2 Marks)

Each team will choose any transactions of their own. Repetition is not allowed.

1. General Appearance: the assignment should include the following parts:

• Introduction: brief about the company nature and type of business.
• Table of content
• Use credit terms 2/10 or n/30
• You can assume Opening stock as (0) Zero in preparation of Income statement, and income statement can a single step or multiple step depending on the transactions