logo

FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS

31 Pages4286 Words270 Views
   

Added on  2020-07-22

About This Document

4 CLIENT 1 4 principle 1 Analysing the journal entries for Alex study 4 2 Presenting the double entry recording with the help of various ledger accounts 6 3. (A)Report preparation for line managers To: Line manager Subject: Accounting rules and principles for the firms Sir/Mam Financial accounting description Financial accounting is the segment of accounting under which varied sort of statements are prepared like income statement, balance sheet and cash flow statement.

FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS

   Added on 2020-07-22

ShareRelated Documents
FINANCIAL ACCOUNTING PRINCIPLES
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1(A)Report preparation for line managers.....................................................................................1B. Portfolio to carter the various clients and resolving their financial needs..............................4CLIENT 1........................................................................................................................................41 Analysing the journal entries for Alex study............................................................................42 Presenting the double entry recording with the help of various ledger accounts.....................63. Analysing the arithmetical accuracy of double entry system with the help of trail balance.16CLIENT 2......................................................................................................................................17A income statement for the client Peter Piper as on 31st December 2016.................................17B Analysing the financial position of Peter Piper as on 31st December 2016...........................18CLIENT 3......................................................................................................................................20A. Determining the profit and loss statement for Raintree Ltd as per 30th September 2016.....20B. Determining the financial position of Raintree Ltd as on 30th September 2016...................20C. Explaining the accounting concepts for Prudence and Consistency.....................................21(D) Depreciation formulation and two approaches of charging depreciation...........................22CLIENT 4......................................................................................................................................23(1)Bank reconcilition statement and its purpose.......................................................................23(2)Analysis of transactions of Kendal Ltd.................................................................................23(3) Analysis of BRS on December 2016...................................................................................24CLIENT 5......................................................................................................................................25A. Control accounts and their balancing....................................................................................25B. Control accounts and their concepts.....................................................................................25CLIENT 6......................................................................................................................................26A. Suspense account and its main characterisitcs......................................................................26
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_2
B. Trial balance.........................................................................................................................27C. Journal entries.......................................................................................................................27D. Comparing the Suspense account and Clearing account......................................................27CONCLUSION..............................................................................................................................28REFERENCES..............................................................................................................................29
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_3
INTRODUCTIONAccounting is the one of the important branch of commerce that have very highimportance for the business firms. There are multiple sort of accounts that are prepared by thefirm like income statement, balance sheet and cash flow statement as well as ledger and trialbalance account. In the business proper recording of all these transactions need to be keep so asto ensure that financial statements will be prepared more accurately. In the current researchstudy, for different clients trial balance are prepared. Along with this, income statement is alsoprepared. Detail discussion is carried out on bank reconcilition method and its significence isdiscussed in detail. At end of the report, conclusion section is prepared. In this way, entireresearch study is done. (A)Report preparation for line managersTo: Line managerSubject: Accounting rules and principles for the firmsSir/MamFinancial accounting descriptionFinancial accounting is the segment of accounting under which varied sort of statements areprepared like income statement, balance sheet and cash flow statement. Business to businessthere is importance of different sort of statements for the firms. For example sole trader alwayswish to know about their businesss profitability and due to this reason they does not give muchimportance to the balance sheet. On other hand, there are companies who make use of all thesestatements (Agoglia, Doupnik and Tsakumis, 2011). Hence, firm to firm significence of thesestatements get changed. Apart from financial statements, common size and comprativestatements are also prepared by the business firms. Company can prepare these statements andcan identify percentage change that happened in sales and expenses in the business. By doingso areas where company is performing well and give poor performance can be identified.Thus, there is due importance of financial accounting for the business firms because by usingsame firm performance can be measured in number of ways and steps can be taken to improvecompany performance. It can be said that financial accounting have significent importance forthe firms.Regulations for financial accountingGAAP: GAPP stands for generally accepted accounting principles and under thisvaried accounting standards are given that need to be followed to perform calculationsin books of acounts. In other words, it can be said that in GAAP already rules thatneed to be followed to perform calculations are given and same must be followed toprepared accounts. Company need to ensure that accountants are following all relevantrules and regulations tightly in their day to day practice so that accounts can beprepared accurately. IFRS: IFRS stands for international financial reporting standards and same need to befollowed while preparing income statement, balance sheet and cash flow statement.Means that in IFRS specific format in which these statements need to be prepared isdetermined (Altamuro and Beatty, 2010). Compliance with IFRS ensured that1 | P a g e
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_4
sharehodlers and other stakeholders will receive true and fair information about thecompany performance. Thus, there is significent importance of IFRS for the businessfirms because it help them in satisfying needs of stakeholders to some extent. Accounting rules, procedure and principlesCost principle: This principle state that all items must be recorded at cost at which theyare purchased. Means that whatever is there market price at time of recording oftransactions does not matter. Price at which asset was purchased or transactionhappened will be taken in to account.Time period principle: Time period principle state that transactions that are related tothe current year period must be recorded in present year books of accounts. Means thattransaction that happened in present year can not be carry forward for next yearduration. This is because all expenses are made in present year and their benefits arealso received in current year. Due to this reason current year expenses can not be carryforward to next year time period.Monetary unit principle: It is the principle which state that only those transactionsmust be recorded in the books of accounts that can be measured in money. Means thatthose transactions in which exchange is made but money is not received till the timecan not be recorded in the books of accounts (Armstrong, Guay and Weber, 2010).Full disclosure principle: It is the principle which state that major transactions must beexplained in detail in the company books of accounts. For example one companyaquire other firm then in that case all information related to transaction must bepresented in the annual report. Going concern concept: Going concern concept is the one of the important conceptwhich state that business firm will always remain in existence and its ownership maychanged. Hence, all transactions are recorded on name of firm not customers.Consistency and material disclosure conceptConsistency: This principle state that business related transactions must be onlyrecorded in the company accounts. Personal expenditures can not be recorded infinancial statement of the company.Material disclosure: All those information that are related to the company must beconsidered which preparing financial statements and all additional information must bepresented in the company accounts. It can be said that there is huge importance of thesequalitative characteristics for the business firms. 2 | P a g e
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_5
B. Portfolio to carter the various clients and resolving their financial needs.CLIENT 11 Analysing the journal entries for Alex study3 | P a g e
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_6
4 | P a g e
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_7
2 Presenting the double entry recording with the help of various ledger accounts5 | P a g e
FINANCIAL ACCOUNTING PRINCIPLES TABLE OF CONTENTS_8

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting Principles Assignment Solved
|37
|6580
|173

Accounting Principles Assignment | Financial Accounting Assignment
|32
|4628
|54

Financial Accounting: Assignment Sample
|37
|5577
|390

Report on Financial Accounting Principles
|27
|2041
|76

Financial accounting Field PDF
|32
|3855
|370

Concepts of the Accounting Techniques
|38
|4538
|35