Report on Financial Accounting Principles
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Added on 2020-06-06
Report on Financial Accounting Principles
Added on 2020-06-06
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FINANCIAL ACCOUNTINGPRINCIPLES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1(A)Report for line managers.......................................................................................................1B. Portfolio to carter the various clients and resolving their financial needs..............................3CLIENT 1........................................................................................................................................31 Analysing the journal entries for Alex study............................................................................32 Presenting the double entry recording with the help of various ledger accounts.....................53. Analysing the arithmetical accuracy of double entry system with the help of trail balance.15CLIENT 2......................................................................................................................................16A income statement for the client Peter Piper as on 31st December 2016.................................16B Analysing the financial position of Peter Piper as on 31st December 2016...........................17CLIENT 3......................................................................................................................................19A. Determining the profit and loss statement for Raintree Ltd as per 30th September 2016.....19B. Determining the financial position of Raintree Ltd as on 30th September 2016...................19C. Explaining the accounting concepts for Prudence and Consistency.....................................20D. Analysing the depreciation formulation as well as highlighting the functioning of the twomethods of depreciations...........................................................................................................20CLIENT 4......................................................................................................................................211 Bank reconcilition statement and its purpose.........................................................................212 Analysis of transactions of Kendal Ltd..................................................................................21(3) Analysis of BRS on December 2016...................................................................................21CLIENT 5......................................................................................................................................22A. Control accounts and their balancing....................................................................................22B. Control accounts and their concepts.....................................................................................23CLIENT 6......................................................................................................................................23
A. Suspense account and its main characterisitcs......................................................................23B. Trial balance.........................................................................................................................23C. Journal entries.......................................................................................................................24D. Comparing the Suspense account and Clearing account......................................................24CONCLUSION..............................................................................................................................24REFERENCES..............................................................................................................................25
INTRODUCTIONAccounts is the one of the important domain that have due importance for the firms. Inthe present research study, formal business report is prepared for line managers and for differentclients varied accounts are prepard like income statement and balance sheet. In middle part of thereport, different approaches of depreciation are compared with each other. At end part of thereport, difference is discussed between clearing account and suspense account. In this way, entireresearch work is carried out. (A)Report for line managersTo : Line manager(Small Accountancy Firm)Subject: Accounting rules and principles for the firmsSir,Explanation on financial accountingFinancial accounting is the branch of accounts under which income statement and balancesheet is analysed by using ratio analysis and common size as well as comparative statements.It can be said that there are multiple advantage of financial accounting for the firms. Regulations for financial accountingGAAP: In GAAP accounting standards are given that need to be followed to do recording oftransactions in company books of accounts (Zimmerman and Yahya-Zadeh, 2011). Thesestandards are used by most of the nations of the world.IFRS: In this reporting formats and rules are clearly specified that are followed to preparefinnaicial statements in particular structure.Analysis of accounting rules, procedure and principlesCost principle: Transations that are recorded must be measured in monetary terms and at theiractual cost. Non monetary transactions can not be reocrded in books of accounts.Time period assumption: Current year transactions must be recorded in present year books ofaccounts. Amount of current year transaction can not be carry forward next year (Garrison andet.al., 2010).Monetary unit: Transaction must be meausred in monetary terms.Full disclosure: All accounting transactions with detail must be disclosed in books ofaccounts.Going concern concept: It is assumed that firm will always remain in existence and due to thisreason all transactions are recorded on its names.Consistency and material disclosureConsistency: Only those transactions that are actual and related to busines as well as possibleto be included in financial statements must be recorded in books of accounts.Material disclosure: All relevant details related to transactions must be recorded in companybooks of accounts. 1 | P a g e
B. Portfolio to carter the various clients and resolving their financial needs.CLIENT 11 Analysing the journal entries for Alex study2 | P a g e
3 | P a g e
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