Financial Accounting and Its Importance | Mark & Spencer

Added on - 16 Jan 2020

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FINANCIAL ACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Various financial accounting System used by the company............................................31.2 Double Entry Book Keeping............................................................................................41.3 Trail balance with is advantages and the errors................................................................41.4 Benefits of the accounting standards................................................................................5TASK 2............................................................................................................................................52.1 Financial accounting statements.......................................................................................52.2 Preparation of the statement of profit or loss in accordance with IAS.............................62.3 Preparation of the statement of Financial position in accordance with IAS....................62.4 Calculation of ratios.........................................................................................................7TASK 3............................................................................................................................................83.1 Define BRS and why it is required...................................................................................83.2Updation of cash book.......................................................................................................83.3 BRS...................................................................................................................................8TASK 4............................................................................................................................................94.1 Calculate the Total of the Debtors’ balances at 31 Dec 2016 as it was extracted from theSales Ledger...........................................................................................................................94.2Prepare a Statement of Reconciliation of the Totals of the customers’ balances in the SalesLedgerwiththe balances in the Debtors Control Account.....................................................94.3 Redrafting trial balance and suspense account.................................................................94.4 correcting the errors..........................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONThis project report is all about explaining the Financial accounting and the need andimportance of the it to the Mark & Spencer. It includes various business transaction with usingdouble entry book keeping and the trail balance with that advantages in the preparation of thefinal accounts for the company (Weil, Schipper and Francis., 2013).TASK 11.1 Various financial accounting System used by the companyFinancial Accounting :It refers to the tracking of the financial transaction of acompany. Under which the data are record ,summarized and analysed while preparing the finalaccount statement of the company Mark & Spencer.Need of Financial accountingTo record the information and the important data of the business transaction.Book of Prime entry : For any business the ledger is the prime source of entering thefinancial transaction and help to prepare the financial statement for the Marks & Spencer.Book of Double entry : It is based on the concept that each financial transaction are equaland opposite reaction in two different account.Purchase ledger : It is used to record the purchase items and the expense whether theyhave buy or still owe .Sales Ledger : It is used to record the sales made by the Marks & Spencer.Nominal ledger contain all the record of the transaction related to the company account.1.2 Double Entry Book KeepingThe Book keeping or the Accounting says that every business transaction contain twoeffect . For Example if the company take Loan from bank it bill increase the cash account of thecompany and the liability of the loan account will increased(Gassen and Schwedler., 2010.As fro the name suggested every entry in the books requires two entry as correspondingand opposite to the other accounts.Under this the accounting equation is expressed as Assets = Capital + Liabilities.Benefit of the Double accounting or book keeping:The first benefit is to the help in preparation of the financial statement with the ability ofthe double accounting it will easy to make.
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