Accounting System and Process

Accounting System and Process
Name of the Student
Name of the University

Table of Contents
Part A: Spreadsheet...............................................................................................................................3
[A1] Three Useful excel functions:.....................................................................................................3
[a] Excel IF Function:......................................................................................................................3
[b] Excel AND / OR Function:.........................................................................................................5
[c] LEFT/RIGHT/MID function:.......................................................................................................6
[A2] VLOOKUP Function:...................................................................................................................7
Purpose of VLOOKUP:....................................................................................................................7
Demonstration:..............................................................................................................................8
Part B: Inventory Management.............................................................................................................8
[B1] Perpetual inventory procedure Vs Periodic inventory procedure:.............................................8
Perpetual inventory procedure.....................................................................................................8
Periodic inventory procedure:.......................................................................................................9
Journal entries:..............................................................................................................................9
[B2] Cost of Goods sold using LIFO, FIFO and Average Cost method:..............................................11
LIFO Method:...............................................................................................................................12
FIFO Method:...............................................................................................................................13
Average cost method:..................................................................................................................13
[B3] Which method is appropriate?.................................................................................................14
Part C: Bank Reconciliation..................................................................................................................14
[C1] Requirement 1:........................................................................................................................14
[C2] Requirement 2:........................................................................................................................14
Part D: Bad debt management and financial decision.........................................................................14
Bibliography.........................................................................................................................................17

Part A: Spreadsheet
[A1] Three Useful excel functions:
There are several excel functions that are useful in various ways. Among them, below are three such
functions that are important in many ways:
[a] Excel IF Function:
The excel IF function or commonly referred as IF statement is used to validate a condition and
provide solutions when the condition is true and when the condition is false. In other words the
function is used to come to a solution basis certain condition.
The syntax of IF function is:
=IF(logic_test, value_if true, value_if_false)
The excel IF function can be used in several ways. One such example if SUMIF function. Here, the
function is a combination of excel SUM function and IF function.
The syntax of SUMIF function is:
=SUMIF( range, criteria, [sum_range] )
Another useful example is NESTED IF function. The NESTED IF function is used to check multiple
conditions and return the value when condition is true or false.
The syntax for nested IF function is:
=IF( condition1, value_if_true1, IF( condition2, value_if_true2, value_if_false2 ))
Example of IF function:
Raw data:

Conditions:
Calculations: