Financial Accounting Principles Assignment - (Doc)

FINANCIAL ACCOUNTING
PRINCIPLES

CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Business Report...............................................................................................................................1
(a): Meaning of financial accounting.....................................................................................1
(b): Regulation associated with financial accounting.............................................................2
(c): Accounting principles and regulations.............................................................................3
(d): Accounting convention and concept of consistency and materiality...............................4
CLIENT 1: Journal Entries..............................................................................................................5
P1 Application of double bookkeeping system......................................................................5
P2 Framing of trial balance applying the use of the balance off rule to complete ledger....14
CLIENT 2......................................................................................................................................15
P3 Make final accounts form given trial balance and adjustment of accruals.....................15
CLIENT 3......................................................................................................................................16
P4 final accounts form range of examples contains sole traders, partnerships or limited
company...............................................................................................................................16
P5 Apply the bank reconciliation process to prepare a number of statements.....................18
CLIENT 4......................................................................................................................................19
P6 Process taken to reconcile control accounts and clear suspense accounts using accounts20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Financial accounting is considered as a method, process, procedure subject to analyse the
context in terms of presenting financial information and data in specific manner. There are type
of accounting rules and the principles defined in this context to elaborate the financial
accounting. This report is bifurcated in two parts, first part covers the financial concepts in
business report and second part contains six sections. In first section the double entry system are
illustrated with practical examples. Second section defined the rules related and theories to assist
the ledger posting procedure (Narayanaswamy, 2017).
Third section covers the rules related to trial balance adjustments in terms of depreciation
and prepaid expenses. Section four contains the preparing and forming of final accounts to get
effective management and services in terms of making the statements. Section fifth defines the
concept of bank reconciliation statement and the factors affecting bank reconciliation statement.
Section sixth contains the process to be taken to reconcile control accounts and clear suspense
accounts using account example.
Business Report
(a): Meaning of financial accounting
Financial accounting encounters the important aspect which remain associated with the
accounting standards and the managing the accounting information and the detail in
organisational context. Organisations are adapting the financial accounting rules and principles
in terms of getting the core effectiveness within financial operations and management. There are
some specific guidelines made subject to retaining the financial information and making the
financial plans are defined in this context. Financial accounting principles and the concepts helps
to define the financial position and the financial stability of organisation. Financial accounting
provides a horizontal structure for presenting and keeping the financial records and the
transaction well-structured form. Financial information is provided in various formats as per
their nature and theme. There are some financial statements defined below subject to present the
financial statement (Lundberg and Sundbaum, 2016).
Income statements: there are some transactions happens in respect of revenues and the
expenditure. Income statement provides a path to record the information in organised manner
such as in debit side and credit side. All the revenue related transactions are recorded in credit
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side and all the expenses related transactions are recorded in debit side. It assists the managers
and the accountants whether the organisation is gaining profit or loss.
Balance sheet: Money related association and other partner decide their monetary
articulations for giving adequate credits and putting resources into the organizations
(Cernusca,and Balaciu, 2015). This is by all accounts one of the vital explanations of the
organization which used to give particular data about all detail parts of advantages and obligation
an organization is having with them. By utilizing this announcements, money related position
and security in regard to different organizations positions are considered.
Cash flow statements: This is by all accounts one of the pivotal articulations which will
be utilized to decide inflows and outpourings from different exercises of an association that are
gathered from different working exercises, contributing and financing exercises. This
announcement empowers directors to recognize the general changes of money amid bookkeeping
time frame.
Changes in statement of equity: It records every fundamental change that are done in
capital adjust of an association over a given time frame. It is known as more comparative
proclamations of adjustment of every single vital change in accomplice’s value for a different
citizen’s value for a legislature money related reports (Romolini, Fissi and Gori, 2017).
(b): Regulation associated with financial accounting
Budgetary bookkeeping guidelines is worry with private, non-benefit association those
are setting bodies. Current announcing and practices are having just more association with
general manageability of an association. Be that as it may, UK framework gives an account of
advances towards endeavour to consolidate general needs of manageability into the monetary
general existence of reports. Their part is to set up and make adjustment in GAAP according to
the enthusiasm of open. Controllers used to apply those two viable framework for overseeing and
controlling about administrators report their budgetary results amid a bookkeeping time frame.
There are no any current lawful needs that an organizations used to write about degree to which
their exercises are agreement with fundamental request or supportability advancement. To keep
up all principles and controls, different administrative bodies are made by following IASB and so
forth. The ASB is another vital bookkeeping standards which are utilized by the organization
amid definition of budgetary reports. The money related information clients are wide and
differentiated range according to the monetary bookkeeping. In light of such change the
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information expected to each individual is required for a lot of ways. These standard used to
give bookkeeping control that can help supervisors and bookkeeper in defining monetary records
through utilizing money related information of the organization
(c): Accounting principles and regulations
Cost accounting principles are made in terms of different type of accounting tools
adopted by organisation in terms of managing the cost principles. In each business association, it
depends on different basic tenets and directions that are being received or proposed by utilizing
certain rules those are should have been taken amid definition of fitting explanations. There are
different tenets and ideas that are oversee fitting bookkeeping (Warren and Jones, 2018). It each
industry circulates their money related proclamations to open, it is expected to execute GAAP
standards amid detailing of different explanations. It comprises of real three decides that
essential bookkeeping standards and directions, the point by point tenets and strategies those are
being issued by FASB and their ancestor the bookkeeping standards board. Further, in the event
that organization general stock is traded on an open market and required money related records
be inspected by a gifted bookkeeper. Underneath specified d
 Matching principles: This bookkeeping standards requirement for organizations to make
utilization of gathering premise of information. It can't be measure the future monetary
advantages of everything like notice the bookkeeper charges. This specific standards
require that all costs to be coordinated with add up to profit of the organization
(Henderson and et. al., 2015).
 Going concern principles: This sorts of bookkeeping angles expect that an organization
will keeps on existing for longer time frame so as to accomplish their points and goals
into the assigned time allotment. In the event that bookkeeper trust that, the state of
organization isn't so viable then the bookkeeping books of that specific organizations
bookkeeping books are shut for next coming time.
 Full disclosure principles: there are sure data which is to be made by speculators
through utilizing budgetary explanations that information would be revelation inside
arranged proclamations. It is prerequisites that are connected with openly broker
organizations those are discharging and give free trade of realities that are pertinent to
their proceeding with business tasks. It is connected with fundamental bookkeeping
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