Financial Accounting in the Banking Industry - PDF

FINANCIAL
ACCOUNTING
PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 ....................................................................................................................................................1
Applying double entry book keeping system of debit and credit. Frame general ledger with
transactions of sales and purchase...............................................................................................1
P2...................................................................................................................................................11
Producing trial balance by applying use of balance off rule.....................................................11
P3 ..................................................................................................................................................12
Preparing final accounts with reference of figures of trial balance by adjusting depreciation
and prepayments.......................................................................................................................12
P4 ..................................................................................................................................................17
Analysing Financial statements with BRS................................................................................17
P5...................................................................................................................................................18
A. Framing sales and purchase ledger for the year 2017 (May) of Henderson........................18
B. Evaluation of Control accountant.........................................................................................21
P6...................................................................................................................................................21
A. Explaining suspense account with features..........................................................................21
B. Drafting Trial balance...........................................................................................................21
C. Journal entries.......................................................................................................................22
D. Differentiate between Suspense account and Clearing account ..........................................22
M4 Kinds of accounts and construction of reconciliation........................................................23
D4 Generating adequate accounting methods...........................................................................23
CONCLUSION..............................................................................................................................24
REFERENCES..............................................................................................................................25

INTRODUCTION
Financial accounting is very essential component of each and every organization
especially its principles. Each and every industry has its major use for generating the adequate
return with context of finance and operations of the business. The present report is giving brief
understanding on different accounts such as sales ledger control account and purchase ledger
control account of client 5. Further there is brief understanding about suspense account with its
essential features and its trial balance with proper justification. There are different ways for
fetching the important information for taking appropriate decision regarding profitability. For
measuring profitability and performance there are different financial statements like income
statement, balance sheet, cash flow for analysing different operational task as well.
P1
Applying double entry book keeping system of debit and credit. Frame general ledger with
transactions of sales and purchase.
The double entry book keeping system of debit and credit has been disclosed below by
extracting balance sheet and Income statement of may 2017 of Alexander (Kwok, 2017). With
the help of different accounting techniques in the given duration with transactions are briefed as
follows :
1

2

General Ledger
3

All transactions are included in journal entry of the given dataset. Each account has their
own entries. The cost and gain has been analysed from different sources of all activities by
managers and owners with operation of organization by observing journal entries. The journal
entries plays very significant role in reducing different level of expenses and cost related to
organization.
4