logo

(solved) Analysis of Financial Statements

   

Added on  2020-10-22

16 Pages1265 Words309 Views
Financial accountingProject 1

Table of ContentsINTRODUCTION...........................................................................................................................1PROJECT 1......................................................................................................................................1P1: Double entry bookkeeping system...................................................................................1P2: Formulation of trail balance.............................................................................................6P3: Preparation of financial statements..................................................................................7P4: Preparation of financial statements for sole trader and limited companies.....................8CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14

INTRODUCTIONFinance is one of the vital aspects for an organisation. It is the primary motive ofaccountant and manager is to make collection of various amount of capital from various sources.Finance is one of the reliable field that is associated with proper allocation of total asset and debtobligation that are taken into account in coming future planning. It is a key point or area that isrelated with time value of money that state buying ability of an individual units of total currencyduring an accounting period of time. This project report is providing valuable information aboutvarious stages of financial analysis. The one is related with the recording of transaction by thehelp of using double accounting systems. Another is related with use of accounting techniques inorder to deal with financial issues (Edwards, 2013).PROJECT 1P1: Double entry bookkeeping systemIt has been determining that most of the time managers are looking to make use of variousaccounting tools and techniques which will be helpful in recording of necessary transaction.Double entry system of accounting means that every financial transaction would include twoseparate account. The debit and credit norms while double account keeping should be stated invarious ways. For every accounting transaction, the total amount recorded on left side of thestatement which must be common or equal to total value recorded into other side of the record. Itis based on overall fact that all financial transaction which would be equal and having oppositeeffects in two areas of account. This will be used to satisfy below mentioned equation. Assets= Liabilities + EquityRecording of sales and purchase transaction into a general ledger:It has been found that the general ledger consists of medium and small company’sbusiness statements and every financial transaction would affect those accounts. Businessrecording transfer to general ledger which is being recorded in the form of journal entries. All theentries must be recorded into the business and have both increase or decrease effects on theoverall position of assets and liabilities as well as equity statements of the company. it is vital toinitial make evaluation of all records before posting into various statements (Weil, Schipper andFrancis, 2013). A journal which is happens to be real book of entry is the first step in accounting1

process which will be taken into account while record of financial transactions. Some of theeffective journal entries as on 1 June, 2016 recorded underneath: 2

End of preview

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

Related Documents
Sources and Structure of Auriel's Trail Balances
|8
|1938
|307

Double Entry Bookkeeping System Doc
|15
|1056
|150

Assignment on Financial Accounting (PDF)
|15
|1177
|294

P1: Double entry bookkeeping system of debits and credits
|16
|1395
|327

Financial Accounting Part 1 Introduction
|17
|1393
|275

Finance Accounting Project Assignment
|16
|1725
|386