Business Report Writing Skills

This document discusses the importance of business report writing skills and how it can help in making better decisions and managing a business. It also explores the stakeholders involved in a case study and analyzes if any wrongdoings were done. The document covers topics such as preparation of financial statements, types of documents needed for manual accounting systems, and the benefits of computerized accounting packages.

BUSINESS REPORT
WRITING SKILLS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Case 1..........................................................................................................................................3
Case 2..........................................................................................................................................3
Case 3..........................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term accounting can be defined as a process of recording financial transaction of a
business entity in a systematic manner. The accounting is based on different types of principles
and concepts which are needed to be followed by accountants during recording transactions
(Groomer and Murthy, 2018). The project report is based on three different types of case studies.
The first case study is based on preparation of worksheet, financial statements in accordance of
given data. Second case study covers information about management of accounts payable and
third case study is about partnership.
MAIN BODY
Case 1.
(A) Preparation of a 10-column worksheet for the year ended 30 June 2017:
Account
Trial
balance
Adjusting
entries
Adjusted
trial balance
Income
statement
Balance
sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash at Bank 12600 12600 0 12600 0
Accounts Receivable 11800 11800 0 11800 0
Prepaid Insurance 1800 1340 1800 1340 1800 1340
Land
18020
0
18020
0 0
18020
0 0
Building
19600
0
19600
0 0
19600
0 0
Accumulated
Depreciation – Building 86900 9600 0 96500 0 96500
Equipment 32300 32300 0 32300 0
Accumulated
Depreciation –
Equipment 8800 3680 0 12480 0 12480
Accounts Payable 16400 0 16400 0 16400
Mortgage Payable 64000 0 64000 0 64000

Owner, Capital
23695
0 0
23695
0 0
23695
0
Owner, Drawings 86500 86500 0 86500 0
Fees Earned
26243
0 600 600
26243
0 600
26243
0
Rent Revenue 14400 0 14400 0 14400
Salaries Expense
12460
0 2360
12696
0 0
12696
0 0
Telephone Expense 4520 4520 0 4520 0
Interest Expense 3080 260 3340 0 3340 0
Insurance Expense 36480 1340 37820 0 37820 0
Accrued Fees 600 0 600 0 600
Outstanding Salaries 2360 0 2360 0 2360
Rates Owing 4820 0 4820 4820 4820
Accrued Interest 260 0 260 0 260
Rates 4820 4820 0 4820
Depreciation Expenses-
Equipment 3680 3680 0 3680
Depreciation Expenses-
Building 9600 9600 0 9600
68988
0
68988
0 22660 22660
71254
0
71254
0
19616
0
27683
0
52120
0
43571
0
(B) Preparation of an income statement, a statement of changes in equity and a balance sheet.
Income statement:
Revenues
Fee Earned 261830
Rent Revenue 14400
Total Revenues 276230
Expenses

Salaries Expense 126960
Telephone Expenses 4520
Interest Expenses 3340
Insurance Expenses 35140
Rates 4820
Depreciation-
Equipment 3680
Depreciation-
Building 9600
Total Expenses 178460
Net Income 97770
Balance sheet:
Equity and Liabilities Total Assets Total
Capital 236950 Non Current Assets
Less: Drawings 86500 Tangible Assets
150450 Land 180200
Add: Profit Earned
During the Year 97770 248220 Building 196000
Less: Accumulated
Depreciation – Building 96500 99500
Equipment 32300
Non Current
Liabilities
Less: Accumulated
Depreciation – Equipment 12480 19820
Mortgage 64000
Current Liabilities Current Assets

Accounts Payable 16400 Accounts Receivable 11800
Rates Payable 4820 Prepaid Insurance 460
Unearned Fees 600 Cash at Bank 22520
Interest Payable 260
334300 334300
(C) Journalise the closing entries:
Particulars Debit Credit
Income summary DR 178460
To Salaries Expense CR 126960
To Telephone Expenses CR 4520
To Interest Expenses CR 3340
To Insurance Expenses CR 35140
To Rates CR 4820
To Depreciation-Equipment CR 3680
To Depreciation-Building CR 9600
Fees earned revenue a/c DR 261830
Rent revenue a/c DR 14400
To income summary CR 276230
Income summary a/c DR 97770
To P &L a/c CR 97770

Case 2.
(A) What types of documents will be needed for manual accounting system regards to recording
sales to customer and receipt of cash as well as to assure right payment of money to suppliers?
This is necessary for companies to maintain a systematic record of all types of transaction
so that overall flow of fund can be tracked. For this purpose, there are different types of
documents which are used by companies. Such as in the aspect of given case study, it can be find
out that owner of Magic Thread shop is unable to collect funds from debtors on time due to lack
of systematic records. Herein, below some types of documents are mentioned that can be helpful
for effective debtors and creditors manage such as:
 Sales invoice- This can be defined as a type of document which is prepared by
accountants in order to record information about quantity of goods and services as well as
amount owing to business by a customer (Pritchett and Hayes, 2016). Under it, original
invoice is sent being sent to customer and copy is taken by business. Herein, this is
important to know that it is prepared for both credit and cash sales. Like in the above
shop Magic Thread, owner can use this document with an aim of collecting correct
amount of fund from customers.
 Purchase invoice- It is a type of document that is produced by accountants for recording
information about quantity of goods purchased as well as amount owed by company to
suppliers. The original purchase invoice is provided by supplier to company. The owner
of above shop can manage record of suppliers by whom she purchases raw material for
crafting.
 Credit Note- A credit note or credit memorandum is a trade note given to a customer by a
seller. Credit records serve as the source of the data for the returning report for sale. In
other terms, the credits note is proof of rising sales. In the aspect of above shop's owner,
this document can be useful for management of those transactions which are done on
credit basis.
 Petty cash voucher- It is also known as tinny cash voucher which is being used by
companies in order to manage small cash transaction. This includes information about
both, cash receipts and payments for a particular time frame. In regards to above
mentioned crafting shop, this document can be useful for tracking those transaction
which are regarding to cash payment and receipts.

 Debit note- A debit note is a type of document that is sent to the vendor by a customer, or
in other terms, a customer to his dealer when returning the products obtained on credit.
The intention is to inform the vendor that the customer was debiting them against the
retrieved products. This decreases the amount of payment due to be charged to the vendor
(if the amount due is Nil) then on top of that it requires more transactions. In the context
of above shop's owner this document can be useful for managing those customers
information who returns the goods.
So, these are the documents which can be useful for above mentioned shop's owner in order to
effective management of suppliers, customers payment system.
(B) In what ways could a computerised accounting package help Samantha make better decisions
and manage her business better?
Computerized accounting system is a system that manages the business transactions and
activities in compliance with Generally Accepted Accounting Principles (GAAP) to generate
reports according to client specifications. Every management system has two types, manual or
computerized. The data storage and processing infrastructure in a computerized accounting
system is considered the operational system consisting of both hardware and software wherein
the management system operates. This types of accounting system can be useful in order to take
suitable decisions. Like in the context of above shop's owner the computerised accounting
package can help in such manner:
 Provide all data in a systematic manner- In this type of accounting data regards to all
financial transactions is recorded in a systematic manner (Ghobadian, Stainer, Liu and
Kiss, 2016). By help of it, managers can take advantage by gathering data in quick time.
Similar as for above shop's owner, this accounting system can be helpful to find needed
data at the time of requirement in decision making.
 Automation- Since the program performs all measurements, computerized accounting
removes many of the earthly and time-consuming procedures correlated with manually
accounts. For instance, bills are immediately handled once given, rendering accounting
less time-consuming. Due to this it may become for owner of above shop to generate bill
quickly and to identify those customers whose payment is due even after due date.

 Speed- Using accounting software, the whole cycle of financial management gets faster.
Additionally, statements and reports can be immediately produced by pressing a button.
Managers do not require to wait for long time period to get financial statements when
they need ( Tang, Yan and Kang, 2013). As above stated that owner of Magic Thread
shop have done computerised course of accounting. Due to this, it will become easier for
her to check financial condition in quick time frame.
So these are the key benefits of computerised accounting system in regards to taking suitable
decisions. For above shop's owner this accounting system can be useful in order to track all
financial details by just one click.
Case 3.
(A) Who are the stakeholders in above mentioned case?
Stakeholders- A stakeholder is a person with an involvement in a business and this can
either influence or be influenced by the company. A traditional company's key shareholders are
its owners, workers, consumers and distributors. In the aspect of above case study, there are
below mentioned stakeholders which are as follows:
 Customers- These are the main stakeholders for any type of business. Such as in the
above company, both partners have been involved in retail business. Therefore, they will
have a wide range of customers.
 Investors- It can be defined as a type of stakeholder who makes investment in the
business. Such as in the above retail business, investors are two partners who invested
capital of $ 60000 and $ 50000 each.
 Employees- These are kinds of stakeholders who operates different types of operations
and activities in order to complete overall objective. Such as in the above retail business,
there will be wide range of staff members who will accomplish their different types of
activities and operations.
 Suppliers- These stakeholders provide needed material to business on both credit and
cash basis. For above retail business, this will be a main stakeholders which will be
needed in order to provide needed material.
So, these are the key stakeholders for above retail business in which both partners are involved.

(B) Does Derek appear to be doing anything wrong? Explain your response.
In accordance of above mentioned case study, this can be find out that there are many
indicants which show that Derek did wrong with Kate. Such as Derek withdraw $ 20000 for two
times from invested capital of $ 60000. He did not withdraw money for business purpose. He
used that fund for personal uses. It shows that this is wrong. Derek have enough knowledge
about finance and accounts while Kate does not have knowledge about finance. Due to this, he
took advantage of it and withdraw money. Herein, underneath some points are mentioned which
shows that Derek did wrong:
 Sharing similar % of profit- As Kate has lack of accounting information and due to this
he agreed to distribute generated profits with common share even Derek withdraw the
money from capital. It is wrong task which is performed by Derek. He should not take
similar % of profit from overall generated revenues because he consumed more then 50%
of invested capital for personal usage. In this case, Derek should take responsibility to
explain concept of partnership and profitability. As well as he should take % of profit in
accordance of remained invested capital.
 Withdrawing amount for personal usage- In a business, partners can withdraw amount
only for business usage. In the case when a partner withdraw funds for personal use then
it becomes responsibility of that partner to pay interest on that. On the basis of above
mentioned case study, this can be find out that Derek withdraw sum of money for
personal use that was buying new house. It is indicating that Derek did wrong act here as
he has no right to withdrawing amount from invested capital for personal usage. He did
so because his partner had not enough knowledge about concept of accounts and finance.
In this case, Derek should pay the amount of interest on the fund which he withdraw as
well as should take part of profit in accordance of remained amount of capital.
 Paying equal contribution to management- As mentioned in above points that there was
difference in invested capital such as Derek invested amount of $60000 and Kate
invested capital of $ 50000. In the second year, Derek withdraw amount of 40000 dollars
(20000 + 20000 dollars). In this case, it will be liability of Derek to pay higher amount of
capital with interest to the management as he withdraw almost more then 50 % of capital
for personal work. Along with Kate will pay less amount of contribution to management.

So these are the points which shows that Derek did wrong with Kate as he did not follow any
terms and condition of partnership. As well as Derek did not complete his responsibility towards
another partner as he had lack of accounting and finance knowledge.
(C) Are there any ethical issues involved here? If so, identify them.
Yes, there are different types of ethical issues which evolved due to mistakes done by one
partner. The term ethical issue can be defined as a condition in that a moral conflict raises and
should be addressed. Herein, below some ethical issues are mentioned that are as follows:
 Not communicating all the information- In the above mentioned case study, Kate was
with lack of accounting knowledge and Derek take the advantage of it. He withdrew the
higher amount of funds just for personal use. This shows that there was a an ethical issue
that one partner cheated to another.
 Not completing own responsibilities- Derek was responsible to add on more capital of
40000 pounds which he withdraw. As well as he was not applicable to gain common
share of profitability as another partner. This is showing that there was ethical issue
which raised due to ignorance of own liabilities by one partner.
 Fraud by one partner with another- On the basis of overall analysis of case study of both
partners, this can be stated that Derek did a huge fraud from Kate. Such as he did not
share complete information about concept of accounting and finance as well as taking
same part of profits.
CONCLUSION
On the basis of above project report, this can be concluded that principles of accounting
are too crucial for companies and needed to be followed by accountants. It is so because each of
principle contributes in a significant manner for better management of financial transactions. The
report concludes about three different tasks which are based on various topics. Case one
concludes about various accounts such as income statement, balance sheet. While second case
concludes that computerised accounting system is too crucial for companies for better
management and decision making. End case concludes about concepts of partnerships.

REFERENCES
Books and journal:
Groomer, S. M. and Murthy, U .S., 2018. Continuous auditing of database applications: An
embedded audit module approach. Continuous Auditing. pp.105-124.
Pritchett, J. and Hayes, J., 2016. The occupations of slaves sold in New Orleans: Missing values,
cheap talk, or informative advertising?. Cliometrica. 10(2). pp.181-195.
Ghobadian, A., Stainer, A., Liu, J. and Kiss, T., 2016. A computerised vendor rating system.
In Developments in Logistics and Supply Chain Management (pp. 103-112). Palgrave
Macmillan, London.
Tang, X., Yan, C. and Kang, Y., 2013. The Internal Control of Computerized Accounting in
Information Era. In 2012 International Conference on Information Technology and
Management Science (ICITMS 2012) Proceedings (pp. 437-442). Springer, Berlin,
Heidelberg.