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FINANCIAL ACCOUNTING TABLE OF CONTENTS

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Added on  2020-10-22

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|Particulars ||| |Credit | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |Bank Ac Dr |65000 | |

FINANCIAL ACCOUNTING TABLE OF CONTENTS

   Added on 2020-10-22

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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING TABLE OF CONTENTS_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1..................................................................................................................................1a. Journal entries..........................................................................................................................12. Ledger account.........................................................................................................................23. Trial balance............................................................................................................................5QUESTION 2..................................................................................................................................6QUESTION 1................................................................................................................................10a. Preparing updated cash book as at 28th February 2017..........................................................10a. Stating differences between direct debit and standing order, bank charges, and dishonor ofcheque........................................................................................................................................10QUESTION 2................................................................................................................................11A. Passing journal entries for rectifying each error...................................................................11b. Preparing suspense account which shows the rectification of difference amount................13CONCLUSION .............................................................................................................................13REFERENCES..............................................................................................................................14
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INTRODUCTIONFinancial Accounting is a process of accounting where recording, summarizing,analyzing, reporting of financial transactions over a period of time. Financial statements whichconsists of Balance Sheet, Income Statement etc. are prepared through the accounting processthrough which concern understands their financial viability and helps in making sound economicdecisions. They assist in making decisions to all stakeholders which includes investors, lenders,creditors to invest in entity. These Statements can be means of communication through whichthey can disclose the information regarding its financial performance. The goal of reporting is forenhancing ability in sound judgment about company regarding its economic strength and aboutfuture prospects. So, Investors can have better understanding and can make investment decisionsaptly.QUESTION 1a. Journal entriesThese are recording of transactions in books of accounts of the business. It is first step inaccounting cycle. This starts from accounting period and continues during fiscal year (Hendersonand et.al., 2015). These entries are recorded in general ledger that helps in creating the financialstatements of business.Particulars DebitCreditBank Ac Dr65000To Capital A/c65000(Being Capital Introduced)Purchases A/c Dr8000To Creditors8000(Being Purchases made On Credit)Cash A/c Dr4000To Sales4000(Being 1/4 Cash sales Made)Creditors A/c Dr4000To Bank a/c4000(Being Half Payment Made to the creditors)Insurance a/c Dr75
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To Bank a/c75(Being Insurance Premium paid)Cash A/c Dr12000To Sales12000(Being Cash sales)Purchases A/c Dr10000To Creditors10000(Being Purchases made On Credit)Computer and Equipment’s a/c Dr3000To Cash3000(Being Assets Purchase by cash)Rent a/c Dr150To Bank a/c150(Being Rent Paid)Cash A/c Dr10000To Sales10000(Being 1/2 Sales has been made)Petty Cash A/c Dr100To Bank a/c100(Being cash withdraw for Petty Cash Account)Stationery a/c Dr30To Petty Cash A/c30(Being Stationery Purchased from petty cash)1163551163552. Ledger account Ledgers-: These are books which classify and summarize financial information fromjournals as debits and credits and show their current balances. These are permanent summary ofamounts entered in supporting journals which lists individual transactions by date (Minnis andSutherland, 2017). The Ledger is made of each and every single item such as: 1.Sales2.Purchase
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