logo

Reinstatement of Written Off Amount and Evaluation of Accounts Receivable

   

Added on  2019-10-30

28 Pages3602 Words156 Views
 | 
 | 
 | 
RUNNING HEAD: ACCOUNTING SYSTEMS AND PROCESSESACCOUNTING SYSTEMS AND PROCESSES
Reinstatement of Written Off Amount and Evaluation of Accounts Receivable_1

ACCOUNTING SYSTEMS AND PROCESSES1ContentsQues.1...................................................................................................................................................2Spreadsheet.......................................................................................................................................2Ques.2...................................................................................................................................................2Spreadsheet.......................................................................................................................................3Ques.3...................................................................................................................................................3Spreadsheet.......................................................................................................................................4Ques.4...................................................................................................................................................5Spreadsheet.......................................................................................................................................5Ques.5...................................................................................................................................................6Spreadsheet.......................................................................................................................................6Ques.6...................................................................................................................................................7Handwritten solution.........................................................................................................................8Spreadsheet.......................................................................................................................................9Report..............................................................................................................................................14Ques.7.................................................................................................................................................15Original Version...............................................................................................................................15Second Version................................................................................................................................18Ques.8.................................................................................................................................................20Ques.9.................................................................................................................................................22Ques.10...............................................................................................................................................24Ques.11...............................................................................................................................................25Ques.12...............................................................................................................................................26Ques.13...............................................................................................................................................27
Reinstatement of Written Off Amount and Evaluation of Accounts Receivable_2

ACCOUNTING SYSTEMS AND PROCESSES2Ques.1.Replacement of cell reference with names in workbook is used just to make it understandable to the common man without requiring any knowledge of using excel functions. Further this function is used to grasp the knowledge of formula used. With the availability of this function any individual can compact the data as well as scrutinize the data in a very short span of time. In addition to this, identification of figures or data can also be done with the naming cells in workbook. Below mentioned is an example of using naming cells in workbook:Example No nameWith nameTableD4:D22=HalfyearlyexpendituresReference=SUM(A1:A22)=SUM(Halfyearlyrevenues)SpreadsheetExample:Normal View:Owners’ EquityLiabilitiesAssets58500086000671000Formula View:Owners’ EquityLiabilitiesAssets58500086000=Owners_Equity+LiabilitiesQues.2.There are many reasons of displaying negative numbers in brackets. These are: putting minus sign just before figures, applying red colour to the figures, putting brackets to the figures etc. In spreadsheet, brackets are termed as parentheses and denoted as (). But for the accountancy purpose, the accountant of the company when prepares financial report he puts brackets to the figures in order to denote credit amounts. This method is a
Reinstatement of Written Off Amount and Evaluation of Accounts Receivable_3

ACCOUNTING SYSTEMS AND PROCESSES3conventional/traditional method of using brackets for denoting credit amounts or negative amounts. Moreover, any user of financial instruments can easily identify the negative figures by looking at the brackets. SpreadsheetExample:ParticularsAmount ($)Gross Profit $ 10,00,000.00 Operating Expenses($5,40,000.00)EBIT [gross profit – operating expenses] $ 4,60,000.00 Interest($2,50,000.00)EBT [EBIT – Interest] $ 2,10,000.00 Taxes($50,000.00)Profit after tax [EBT – Taxes] $ 1,60,000.00 Ques.3.Separation of data entry area and report area is required because to display the crystal view about the entity’s financial report and it is very useful for the accountant of the entity to enter lakhs of data and also for the purpose of extensive computations in a workbook with thehelp of using the formulae’s and other function keys in a very short span of time and also the data entered will be accurate and reliable because of using the inbuilt formulae’s. Further addition to this, if any wrong data has mistakenly inserted will be easily deleted plus any proposed data can be easily added without any strain. Hence for gaining the benefits and advantages, accountant of the company should always design spreadsheets with a completely separate data entry area and separate report area.
Reinstatement of Written Off Amount and Evaluation of Accounts Receivable_4

ACCOUNTING SYSTEMS AND PROCESSES4SpreadsheetExample:Normal View:Decade LtdProfit and loss accountFor the year ended 31 August 2017ParticularsAmountIncomesSales 450000Other Incomes210000Total (A)660000ExpendituresSalary160000Depreciation75000Insurance 10000General and administrative Expenses25000Light and Power45000Audit Fees25000Total (B)340000Profit Before Tax (A-B)320000Taxes20000Profit after Tax300000Formula View:Decade LtdProfit and loss accountFor the year ended 31 August 2017ParticularsAmountIncomesSales 450000Other Incomes210000Total (A)=SUM(C8:C9)ExpendituresSalary160000Depreciation75000Insurance 10000General and administrative Expenses25000Light and Power45000Audit Fees25000
Reinstatement of Written Off Amount and Evaluation of Accounts Receivable_5

ACCOUNTING SYSTEMS AND PROCESSES5Total (B)=SUM(C12:C17)Profit Before Tax (A-B)=C10-C18Taxes20000Profit after Tax=C19-C20Ques.4.IF function is used in spreadsheet as a logical function. IF function assessed a condition to be one value is true and the other value must be false.The IF function composition:SpreadsheetExample:Normal View:Decade LtdTrial BalanceFor the year 31 August 2017AccountDebitCreditRevenues4,50,000Land and building1,70,000Machinery1,50,000Accounts payable75,000Accounts receivable90,000Cash and Bank1,50,000Stockholder's Equity3,30,000Cost of goods sold2,40,000General and Administration Expense55,000TOTAL8,55,0008,55,000TRUE0Formula View:Decade LtdTrial BalanceFor the year 31 August 2017AccountDebitCreditRevenues450000
Reinstatement of Written Off Amount and Evaluation of Accounts Receivable_6

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Wesfarmers Investment Analysis
|36
|4795
|29

Accounting System Assessment
|35
|5104
|54

Calculation of Net Profit Using Naming Cell Reference
|24
|3326
|390

Functioning of Spreadsheet and Its Various Merits and Demerits
|14
|2196
|44

ACC566 Accounting Systems & Processes Assignment
|19
|2069
|38

The naming cell reference in MS-Excel
|25
|3510
|82