Finance Accounting Project Assignment
Added on 2020-10-23
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Finance Accounting Project 1
TABLE OF CONTENTSTable of Contents.............................................................................................................................2INTRODUCTION...........................................................................................................................1PROJECT 1......................................................................................................................................1P1: Concept about Double entry bookkeeping system...........................................................1P2: Preparation of tail balance................................................................................................6P3: Formation of financial account........................................................................................7P4: Formulation of financial statements for various sole trader and other private companies8CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTION Finance is one of the crucial areas which is related with proper allocation of assets anddebts over a particular period of time. It is more often based on specific kind of situation thoseare related with uncertainty. It is considered as more reliable process of capital management. It iswider term that used to describe various associated activities such as study of moneyarrangement and real process of attaining required capital for an organisation. It is aboutcreation, banking and investment made under various projects of the company. The projectmodule aims at providing specific information about double entry bookkeeping on that basisvarious financial transactions is being recorded into the statements. Another one is associatedwith the use of accounting tools in order to deal with financial problems those related within anorganisation. Apart from this, all the information that are collected from this analysis is beingtaken into account for preparing financial statements of the company (Edwards, 2013). PROJECT 1P1: Concept about Double entry bookkeeping systemIn every business organisation, whether operating as small or large they need to keeptheir statements up to date. For this purpose, they need record all their financial transactions inrespect to attain maximum outcomes in near future time. Double entry system is said to be one ofthe crucial business transaction is having two affects. In case company used to borrows capitalfrom any financial institution, the cash amount gets increase and their debts account such as loanpayable will also get enhanced at the same period of time. This means that every financialtransaction will get involves two specific account. The debit and credit regulation in double entrybookkeeping would be stated in many ways. Such as, every business transaction, the entireamount mentioned on the left side of the statement need to be equal as total amount recorded onthe right side of some other statements (Weil, Schipper and Francis, 2013). It will be basicsystem that is being used by an organisation to record every fiscal business transaction. Doubleentry bookkeeping statements will be reliable in writing for all data must be equal to debit andcredit sider of the reports. It is essential to fulfil all the necessary accounting equation that isstated below:Assets= liability + Equity Posting of all sales and purchase related transaction into general ledger book:1
General ledger accounting is being used by medium and small organisation those are usesthis method for record of various sales and purchase related transactions. Business must beentered before transfer them into general ledger. It is being recorded in respect to all statementswhich are arises from journal entries account. It has been found that all the entries that arerecorded into the books is having increase of decrease effects on their entire businessperformances of assets and debts obligations (Otley and Emmanuel, 2013). All these statementsare held responsible for attaining maximum impacts on the various financial statements of anorganisation. A journal account which will be happens to be taken into account in the firstprocess of accounting. It will be recorded by taking into account as financial transactions. Someof the reliable financial entries collected as on 1st June, 2016 are recorded into the statementswhich is mentioned below:Journal entries for each transaction2
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