(Doc) Assignment on Financial Accounting

Running head: FINANCIAL ACCOUNTING
Financial accounting
Name of the student
Name of the university
Author note

1FINANCIAL ACCOUNTING
Table of Contents
Exercise 1: Financial statement..................................................................................................2
1. Entry for January.............................................................................................................2
2. Entry for February...........................................................................................................2
3. Entry for March...............................................................................................................3
4. Entry for April.................................................................................................................4
5. Entry for May..................................................................................................................5
6. Entry for June..................................................................................................................6
Exercise 2: Theory.....................................................................................................................9
a. Definition of financial accounting..................................................................................9
b. Financial statement reports.............................................................................................9
c. Difference between financial statements reports..........................................................10
d. Difference among profit, revenue and cash..................................................................10
References................................................................................................................................11

2FINANCIAL ACCOUNTING
Exercise 1: Financial statement
1. Entry for January
Balance sheet
Particulars Amount
Assets
Current assets € -
Non-Current assets € -
Total assets € -
Liabilities
Non-current liabilities € -
Loan capital € 100,000.00
Current liabilities € -
Total liabilities € 100,000.00
Shareholder’s equity
Shareholders capital € 300,000.00
Retained earnings € -
Shareholder's equity € 300,000.00
Total liabilities and shareholder’s equity € 400,000.00
2. Entry for February
Profit and loss statement
Particulars Amount
Revenue € -
Less: Expenses
Depreciation € 10,000.00
Total operating expenses € 10,000.00
Operating revenue € (10,000.00)
Less: Interest expenses € -
Earnings before taxes € (10,000.00)
Less: Taxes € -
Earnings available for shareholders € (10,000.00)

3FINANCIAL ACCOUNTING
Balance sheet
Particulars Amount
Assets
Current assets € -
Non-current assets
Furniture € 360,000.00
Less: Depreciation € 20,000.00
Total non-current assets € 340,000.00
Total assets € 340,000.00
Liabilities
Non-current liabilities € -
Loan capital € 100,000.00
Current liabilities € -
Total liabilities € 100,000.00
Shareholder's equity
Shareholder's capital € 300,000.00
Retained earnings € (10,000.00)
Shareholder's equity € 290,000.00
Total liabilities and shareholder's equity € 390,000.00
3. Entry for March
Profit and loss statement
Particulars Amount
Revenue
Sales of software € 25,000.00
Total revenue € 25,000.00
Less: Expenses
Depreciation € 10,000.00
Monthly rent € 2,000.00
Salaries € 100,000.00
Loan interest € 5,000.00
Interest payment € 5,000.00
Total operating expenses € 122,000.00
Operating revenue € (97,000.00)
Less: Interest expenses € -
Earnings before taxes € (97,000.00)
Less: Taxes € -
Earnings available for shareholders € (97,000.00)