Accounting System and Processes: Study Material with Solved Assignments

Running head: ACCOUNTING SYSTEM AND PROCESSES
Accounting system and processes
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Author note
DECLARATION: THE WORK IN THIS ASSIGNMENT IS MY OWN WORK, AND HAS NOT BEEN
PLAGIARISED.

ACCOUNTING SYSTEM AND PROCESSES
Table of Contents
1. Plagiarism:..................................................................................................................................................2
2. Pasting spreadsheets in the doc files:..........................................................................................................2
3. Accounting resources on the internet:........................................................................................................4
4. Professional accounting bodies:..................................................................................................................4
5. Work integrated assessment:......................................................................................................................4
6. Business report:...........................................................................................................................................5
7. P A L E R:...................................................................................................................................................5
8. Balance sheet equation................................................................................................................................6
9. Debit and credit balance:............................................................................................................................7
10. Trial balance............................................................................................................................................7
11. Crossword.............................................................................................................................................12
12. Adjusting entries...................................................................................................................................13
13. Current and non-current liabilities........................................................................................................14
14. Ratios.....................................................................................................................................................14
15. Worksheets and financial reports..........................................................................................................14
References:.......................................................................................................................................................24
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ACCOUNTING SYSTEM AND PROCESSES
1. Plagiarism:
The term plagiarism is defined as the wrongful appreciation and publication and stealing of another
person’s work without giving his any credit. Copying another person’s thought, expressions, ideas and
representing them as his original work is termed as plagiarism. On the other hand, the term collusion is the
situation where the work is completed by a group of students but submitted in the name of only one student.
Hence, collusion is also one form of plagiarism. Plagiarism is not fair treatment for the honest student as the
dishonest student may get more number by copying while the honest student gets less numbers working hard
(Ferro & Martins, 2016).
2. Pasting spreadsheets in the doc files:
Normal view:
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ACCOUNTING SYSTEM AND PROCESSES
Figure 1: spreadsheet captured by Greenshot
(Source: As created by the author)
Formula view:
Figure 2: spreadsheet captured by Greenshot
(Source: As created by the author)
Methods of pasting spreadsheet into word –
 Select the cells that are required to be copied in the doc file
 Press CTRL+C for copying the cells
 Open the word file and press CTRL+V where the copied cells are to be pasted (Brigham & Ehrhardt,
2013).
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ACCOUNTING SYSTEM AND PROCESSES
3. Accounting resources on the internet:
 Accountants Daily – this is a trade publication site that focuses on the relevant news related to
Australian industry. it helps in getting more granular view regarding the happening in Australian
accounting as compared to AFR. The website is – www.accountantsdaily.com.au/
 Accounting Coach – it allows the students to learn new skills related to accounts that improve their
knowledge. The website is – www.accountingcoach.com
 Institute of public accountants – IPA is professional organization for accountants. This website is
widely recognized for wide and practical understanding of total business environment. The website is
- http://www.publicaccountants.org.au/
 The Sleeter Group – this site provides educational resources associated with accounts. The website is
- https://www.sleeter.com/
 International Federation of accountants – this site develops the international standard related to
accounting standards, education, ethics and auditing. The website is - http://www.ifac.org/
 Above the line accounting – this is the chartered accounting and proactive tax firm that provides its
services to the Australian media and entertainment industry with tax, accounting and financing
related advices. The website is - http://abovethelineaccounting.com.au/
4. Professional accounting bodies:
CPA Australia is among the biggest accounting bodies in the world with having global membership
for more than 163,750 members as on 31st December 2017. The organization is working over 125 countries
and various regions around the world. This site has been selected as the main activities of the organization
are to provide educational, technical, advocacy and training services. The website is -
https://www.cpaaustralia.com.au/about-us
5. Work integrated assessment:
Computing environment includes the computer system that interfaces with other systems and the
services offered by the operating system to the users and user’s programmes. Under the workplace various
computing equipments and software that are used are as follows –
 Laptops – laptops are used for all the official works and taking the work in other places. The major
advantage of laptops is its mobility. As compared to the PCs laptops can be used more efficiently
owing to its battery life and availability of various moods like tablet mood and touch screen facility.
 Fax machines – it is used for sending and receiving the documents at short span of time as compared
to the courier service or postal services (Brochet, Jagolinzer & Riedl, 2013).
 Routers for the internet – routers are used for forwarding the data packets within the computer
network. The main activity of router is to manage the traffic in the internet.
 Printers – printers are required for documenting various official documents on daily basis.
 MS Office – Microsoft Office or MS office is used for performing various tasks, making various
calculations, writing business letters and creating presentation using MS Word, MS Excel and Power
point
6. Business report:
Introduction – the report will discuss regarding the lesson that is learned from the case study of ABC
learning. The report will elaborate the case study and will identify various ethical issues associated with the
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ACCOUNTING SYSTEM AND PROCESSES
case study. Another topic that will be included in the report is regarding the major financial reports and their
purposes.
Discussion –
1. Lessons from the video – it has been observed from the video that the case study of ABC Learning
that was the largest child care centre in Australia experienced major fall owing to its faulty policies.
The company went into the administration. The company published its last half year annual report on
31st December 2007. However, the result ending 30th June 2008 revealed that the company has huge
loss that take away the major amount of profits made by the company and finally the company
collapsed in November 2008 (Dalnial et al., 2014). The government also found guilty as it
overlooked the fraudulent policies of the company. As a result the share price of the company
significantly fell to 54 cents from $ 8.60 per share.
2. Major financial reports of any company and the purposes of those reports - the major reports those
are prepared by the companies are the follows –
 Income statement – the income statement shows different incomes and expenses of the company
over the particular period of time. It shows the incomes generated by the company from different
sources and the expenses done by the company for various purposes. This statement is also
known as the profit and loss income. The main purpose of the statement is to reveal the profit or
loss generated by the company from revenue after meeting various expenses (Grant, 2016).
 Balance sheet – it reveals the company’s financial position on the particular date. The balance
sheet of the company mainly has 3 parts, these are – assets, liabilities and equities. The asset part
shows various current assets as well as non-current assets of the company whereas the liabilities
show the current as well as non-current liabilities of the company. The equity part shows the
shareholders share in the assets of the company.
 Cash flow statement – it presents the cash position of the company through showing the cash
generated from various sources and cash expensed for various expenses. The cash movement are
segregated into operating, investing and financing activities.
 Statement of changes in equity - it presents the movement of shareholder’s equity during a
particular period of time. Various items that are taken into consideration while preparing this
statement is the dividend payment, reported profit or loss for the year and issuance or repayment
of share capital (Weygandt, Kimmel & Kieso, 2015).
3. Ethical issues associated with ABC case study –
 The accountant of the company did not follow the proper procedure and only concentrated on profit
aspect. Therefore, the customer’s interests were eventually neglected (Zack, 2013).
 Though there were inherent associated risks with the valuation of assets, it had not been taken care at
all
 When the profit of the company through acquisition were enormously increasing it did not raised any
question for the valuation of the underlying assets (ABC Learning collapse case study, 2018).
Conclusion – from the above discussion it can be concluded that the major reason behind the major fall of
ABC Learning was the company’s unethical accounting policies. The company shall strictly followed the
corporation law to maintain the interest of the investors.
7. P A L E R:
A. The term P A L E R represents credit and debit. It states various accounting terms like P stands for
Proprietorship, A stands for assets, L stands for liability, E stands for expenses and R stands for
Revenues. Decrease in the expenses, increase in the revenues and increase in the owner’s equity is
credit account. On the contrary, increase in the expenses, decrease in the revenues and decrease in
the owner’s equity is debited. On the other hand, decrease in expenses, increase in revenues and
increase in owner’s equity is credited.
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1. Account types
Items Type of account
Mortgage payable Liability
Rent expenses Expense
Cash Asset
Office equipment Asset
Salary expenses Expense
Salaries accrued Liability
Property tax expenses Expense
Prepaid expenses Asset
Office furniture Assets
Electricity and gas expenses Expense
Accounts payable Liability
Smith, capital Proprietorship
Service revenue Revenue
Accounts receivables Asset
Supplies expenses Expenses
Investment Asset
Table 1: Account types
(Source: Created by author)
2. Income statement – Normal view
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Figure 3: Income statement
(Sources: Created by author)
Income statement – formula view
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