Accounting: Financial Statements, Ratio Analysis, Bank Account

Accounting

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 1..............................................................................................................................................3
(A) Financial statement of Bob’s account................................................................................................3
(b) Three main features of information for users of financial statements.................................................5
QUESTION 2..............................................................................................................................................6
(2a) Calculation of ratio and interpretation..............................................................................................6
QUESTION 2B...........................................................................................................................................8
A. Writing up the bank account, balancing at the end of each month......................................................8
B. Writing up all the other accounts and balance the accounts at the end of two month period...............8
C. Extracting a trial balance as at 30th April 2018..................................................................................10
QUESTION 2C.........................................................................................................................................10
A. Applying dep with straight line method............................................................................................10
B. Applying dep with reducing balance method....................................................................................11
C. Explanation of meaning and significance of different accounting concepts......................................12
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Accounting is the mechanism for documenting cash activities related to a business. The
financial accounting involves the review, examination and disclosure of these purchases to state
authorities, supervisors and national tax bodies. Financial analysis income accounts are a detailed
description of cash activities across an income statement, restating the activities, financial status
and working capital of a business. Bookkeeping is amongst the most important roles of almost
any company. It can be done by either a housekeeper or administrator in a small company, or
through wide divisions of accounting with hundreds of staff in bigger business. The main goal is
to provide the shareholders with such reports because their money was put in the company. In
this report, the main features of information that are convenient for users are month-end
payments. In addition to this, determine and evaluate information on financial ratio to analyze
the financial performance of the corporation and write up checking account across each couple of
weeks. In addition, implement different methods of devaluation, and understand exactly different
interpretations of financial reporting.
QUESTION 1
(A) Financial statement of Bob’s account
Trading account: The account that is able to assess a company organization’s gross
profit or net receipts is considered trading account. It really should be mentioned that the
company outcome defined via trading account is not an accurate consequence. The actual
outcome is the gross income or massive loss that is ascertained by the consideration of profit and
loss. Financial reporting activity has the basic procedures:
 It is the first phase of a dealing organization's ultimate accounting.
 It is being formulated on the final year of an accounting cycle.
 It just considers direct sales and direct expenditures.
 Over its debit side, specific expenditures are reported, and on its balance sheet, direct
revenues.
Trading Account of Bob’s for the year end 30 April 2019
Particular Debit Particular Credit
To Purchase 15700 By Sales 30000
To Opening stock 4700 By Closing stock 4400
To Shop wages 4420
To Gross Profit 9580
34400 34400