logo

Double Entry Bookkeeping System Doc

   

Added on  2020-12-26

15 Pages1056 Words150 Views
Financial accounting
Double Entry Bookkeeping System Doc_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..............................................................................................................................11REFERENCES .............................................................................................................................12
Double Entry Bookkeeping System Doc_2
INTRODUCTIONFinancial accounting is the process of preparing financial accounts and reports whichsummarises and analyses financial performance of an organisation. The main aim of this conceptis to serve manager and related parties true and fair image of the company. In this project reportDouble entry book keeping system is followed, in order to develop journal entries along withledger accounts. Final accounts of sole proprietorship and company are also prepared in thisproject report to better understand difference between the type of organisations. This reportprovides valuable information about various stages of financial analyses along with properallocation of total assets and debts.PROJECT 1P1: Double entry bookkeeping systemDouble entry book keeping is a system of keeping accounting records so that itrecognises the dual nature of every monetary transaction. Every financial transaction always hasimpact on two accounts due to this book keeping system is considered as the most accurate andreliable method (Lima Crisóstomo, 2011). The primary objective of this system is to balance theboth debit and credit sides. This double entry system is universally followed which bringssimplicity in the activities. This system is followed by various companies in order to develop abuild in error checking system which can determine several errors by matching debit and creditsides of the trial balance. Another reason of following this system is to develop a tracking systemwhich maintains all the accounting equations (Edwards, 2013).1
Double Entry Bookkeeping System Doc_3
2
Double Entry Bookkeeping System Doc_4

End of preview

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

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

Financial Accounting INTRODUCTION 1 TASK 11 Question 1 2 7 TASK 29 Question 1 2 7 CONCLUSION 11 REFERENCES 12 INTRODUCTION
|14
|1243
|343

Financial Accounting Part 1 Introduction
|17
|1393
|275

Accounting: Trial Balance, Matching Concept, Conceptual Framework, Credit Cards and Bad Debts
|25
|5001
|146

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

(solved) Analysis of Financial Statements
|16
|1265
|309