Financial Accounting: Assignment Sample
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Added on 2020-11-12
Financial Accounting: Assignment Sample
Added on 2020-11-12
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FINANCIALACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1A. Ascertaining the regulations relevant with accounting as discussed in report..................11 Financial accounting............................................................................................................22.Regulations relevant with financial accounting..................................................................23. Rule and regulations of accounting....................................................................................44. Concepts of material disclosure and consistency...............................................................5b. Accounting measurements for portfolio clients.................................................................6CLIENT 1........................................................................................................................................61. Preparing the book of prime entries for Alexandra Study..................................................62. Computing double entry recording with the help of ledger accounts................................93. Completion of each accounts with a contrast of drawing trial balance for 31st January 2018..............................................................................................................................................17M1 Ascertainment of several transactions compiled in Trial balance.................................18D1 Records of all transactions in Trial balance....................................................................18CLIENT 2......................................................................................................................................18A. Drafting income statement for Peter Piper 31st December 2017....................................18B. Preparing financial position statements for Peter Piper as on 31st December 2017.......19CLIENT 3......................................................................................................................................20A. Preparation of income statement for Raintree Ltd...........................................................20B. Preparing balance sheet for Raintree Ltd as on 31st December 2017.............................21C. Discussion over accounting concepts such as prudency and consistency.......................25D. Purpose of formulating depreciation in accounting statements as well as calculating it withvarious methods....................................................................................................................26M2 Evaluating the P&L account, cash flow statement as well as balance sheet of firm.....26D2 Construction of final accounts based on accurate information.......................................26CLIENT 4......................................................................................................................................27A. Ascertaining purpose and reasons behind preparing Bank Reconciliation Statement forKendal Ltd............................................................................................................................27
B. Explaining and listing various areas which causes verification of records in bank statement..............................................................................................................................................27C. Referencing the cash book with preparation of various accounts...................................27M3 Not sufficient funds and process of preparing deposits in transit..................................28D3 Drafting accurate BRS....................................................................................................28CLIENT 5......................................................................................................................................29A. Balancing and preparing books of accounts for Henderson as on January 2018............29B. Explaining terms of preparing Control accounts.............................................................29CLIENT 6......................................................................................................................................29A. Explaining terms and features of preparing suspense accounts......................................29B. Preparation of Trial balance on contrast with balance of control account.......................30C. Preparation of Journal entries with contrast of trial balance failure................................30D. Analysing the differences between Suspense account and Clearing account.................31M4 Types of accounts for framing reconciliation................................................................31D4 Providing appropriate methods of accounting................................................................31CONCLUSION .............................................................................................................................31REFERENCES..............................................................................................................................33
INTRODUCTIONFinancial accounting is the technique which will be assistive and helpful to the firm interms of building the strong capital structure as well as suggesting suitable way to managefinancial operations in firm. In the present report there will be discussion based on variousaccounting principles and regulatory framework of financial institutions which are facilitatingappropriate accounting methods. There will be preparation of various financial accounts whichwill be prepared to resolve financial issues of all clients which are here for operative decision. Itcomprises with several accounts such as journal entries, ledger accounts, trial balance accounts,balance sheet, bank reconciliation statement and suspense accounts. Therefore, such preparationof these accounts will have positive influences as per analysing financial issues and managementof operations.A. Ascertaining the regulations relevant with accounting as discussed in report1
From: Junior AccountantTo: Line managerSubject: Accounting regulations, rules and principles for better financial control in businessSir,On contrary with analysing the operational activities of entity. Therefore, in relationwith operating accounts in premises will need a proper framework and adequate techniques inpreparing them. Discussion will be based on various accounting principles as well asoperational tools which will help in improving business efficiencies. Ascertaining appropriaterules and regulations will be assistive in building suitable financial environment. It highlightsthe methods of preparing financial statements which brings the suitable information among theusers of such accounts (Singleton-Green, 2016). The managerial professionals as well as accounting personnel will have an appropriateknowledge relevant with expenditures and revenues in due period. It benefits the external userssuch as shareholders which seek for the appropriate disclosure of the accounts and financialstatements. They are mainly attracted towards profitability of firm as well as capital structure interms of making capital payments. There is a need to have an appropriate disclosure forAchieving suitable market value for better operational practices of accounts. This will be anassistive tool which brings control over operations.1 Financial accountingThese are the accounts which keep records of all transactions that will be helpful andassistive to unit in terms of making suitable strategies for operational activities as well assuggests techniques to reduce costs implied in such activities. Administration of all financialtransactions will be collected, analysed and summarised into final accounts. It enablesaccounting personnel to have the most appropriate information relevant with accounting controland management of operations (Pawlowski, Nalbantis and Coates, 2018). Usefulness of these accounts is that it brings information relevant with financialoperations as well as uplifts business efficiency in due course. Require information by userssuch as consumers, competitors, investors as well as legal authorities which in turn analyseoperational activities of firm and make necessary operational practices in due period.2.Regulations relevant with financial accounting2
It comprises with various legal regulations which in turn approaches towards preparationof financial accounts for better operational management. Demonstrating the requirement ofpreparing the financial accounts in relation with communicating the information among externalusers (Samreen, 2018). Therefore, influences of various legal authorities will have effectivecontrol over operational practices as well as management of activities.Main motive of implicating regulations in financial operation is that the accountingprofessionals are bound to prepare statements which will be prepared with considering all legaland authentic frameworks (Regulations in Financial Accounting, 2017). It consists all detailssuch as recording of transactions as well as reporting the same among users. It communicatesthe financial health of a business among note only domestic but also gathers internationalinvestors for capital funding. Moreover, there are some regulatory authorities which enforces abusiness in preparation of fruitful financials disclosures such as:Generally Accepted Accounting Principles (GAAP): This organisation developed theprinciples and rules of recoding accounting transactions for the specific period. Preparation ofall rules and principles will be effective and adequate as per managing operational activities of afirm. Concepts and principles used here are the best for funnelling accounting professionals interms of better financial control in organisation as well as management of operational activities(Kouki, 2018). It ascertains proper recording of all transactions in various accounts with theirappropriate methods of recoding transactions.International Financial Reporting Standards (IFRS): These are the standards whichconsists of all information that will be useful to firm in terms of preparation of statements andaccounts that will be useful and appropriate in terms of communicating financial health of entityamong external users (Bloomfield and et.al, 2017). It enables the professionals in makingappropriate decision as well as developing plans and policies as per guiding the accountingprofessionals or auditors to control operational activities in business. These are internationalstandards which comprises with all information and techniques to prepare financial statementsfor business.International Accounting Standard Board (IASB): In accordance with operationalactivities and the operational framework of IASB are based providing the accounting standardamong all the organisation. Th motive is for upgrading the accounting and book-keeping in the3
operational predicates with proper considerations of all the relevant information (Busco andQuattrone, 2018). There are rules and principle relevant with each statement and transaction tobe recorded in the authentic manner. It brings the uniformity in financial disclosure as well ashelps in making proper records of all transactions.Financial Reporting Council (FRC): This is UK's personal financial reporting councilwhich insists that perpetration of financial statements as well as operational regulations(Financial Reporting Council, 2018). Accessibility of this organisation is in UK and Ireland.Therefore, it approaches that the financial disclosure in both translocations needed to beauthenticate and appropriate.Financial Accounting Standard Board (FASB): The purpose of implicating this boardis for monitoring and managing the operational activities which will be effective and helpful asper managing business operations (Constable and Kuasirikun, 2018). It improves the alreadyexisted accounting standards which were being formulated by GAAP.3. Rule and regulations of accountingTo manage transactions in various books and accounts which have an appropriaterecords of all transactions. Regulations and rules incorporated with recording transactions invarious accounts will have effective control over operations of firm (Damodaran, 2016). Theseare the principles which are generally offered by GAAP which insists that the all thetransactions are needed to be recorded properly in the books and have satisfactory analysis overit. Moreover, there will be record of all transactions in accordance with accounting principlessuch as:Going concern principle: These principles comprised with the rule that the firm isoperating the current period or they have initiate business will have long-term operations.Therefore, it will be treated as the continuously operating entity in world. Thus, the firm willbeing never liquidate it will continue to have trade practices in environment.Separate legal entity: This principle comprised with the statements and rule that a firmwill be treat as a separate individual other that its owners. Therefore, itself has the operationalactivities. Revenue, expenditures apart from the personal capital and costs incurred by itsowners (Robson, Young and Power, 2017). Therefore, this principle authorities does not have4
any rights to use the revenue generated by firm in their personal use as they have to makepayment to the dividend holders and settlement of all accounts in right time.Monetary unit: This concept insists rules that all disclosure of financial statements andthe amount listed in the final accounts needed to be converted into US dollars. Therefore, it willbe profitable and helpful as per communicating financial details of firm among internationaluser of such accounts (Beatty and Liao, 2014). Therefore, there will e rise in the capital revenueof a business. This technique will have positive impacts among the investors in terms withanalysing financial health various businesses as per a uniform disclosure of accounts.Time period: This rule insists that disclosure as well as financial audit of the businesswill be based on periodical presentations (Accounting Principles, 2018). Moreover, it boundsthe accounting professionals and auditors of unit in terms of making periodical disclosure inconsiderations with a financial year of a firm.Cost Principles: Accounting is records of all financial transactions on which it can besaid that there will be use of various spendings such as cash or other cash equivalents.Moreover, it can be said that all transactions are needed to be recorded in proper amounts oversuch transactions.Full Disclosure: This principle comprised with the preparation of financial statementsbased on full disclosure of accountants. Therefore, it comprised with framework of accountingdisclosure is that all accounts are needed to be prepared properly and have records in all theaccounts (Bushman, 2014). Therefore, in relation with same it can be said that companies arebound to make disclosure of accounts such as income statement, balance sheet, statement ofchange in equity and cash flow statement.4. Concepts of material disclosure and consistencyMaterial Disclosure: It considered that the all the materialistic informations are to beadded by the professional in the financial disclosure as well as preparation of accounts. Thus,the unrealistic and immaterialist things are not needed to be added in the financial disclosure offirm (Materiality Concept in Accounting, 2018). It is essential that business have implication ofall financial details and disclosure of accounts.Consistency: Similarly, with the going concern concept of business it can be said that5
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