GAAP Accounting Information Systems

This assignment focuses on GAAP (Generally Accepted Accounting Principles) and related information systems. It provides a collection of scholarly articles examining diverse topics within GAAP, including fair value accounting, intangible values, financial statement comparability, and the role of technology in accounting education. The research papers offer insights into current trends and challenges in applying GAAP principles in real-world scenarios.

Financial Accounting
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Table of Contents
INTRODUCTION................................................................................................................................4
TASK 1.................................................................................................................................................4
1.1Financial accounting...................................................................................................................4
1.2 Regulations related to the financial accounting.........................................................................4
1.3 Accounting Rule and principles.................................................................................................5
1.4 Convention and cost concept related to consistency and material disclosure...........................6
Client 1.................................................................................................................................................7
Primary Book Entry.........................................................................................................................7
1 Journal Entries with computation of capital.................................................................................7
A) Book of primary entry frame work.............................................................................................7
B) Completing Double entry recording System..............................................................................9
B) Trial balance preparation..........................................................................................................18
Client 2...............................................................................................................................................19
A) Framing Financial report Profit and Loss account...................................................................19
B) Making Financials statement for getting current position........................................................22
CLIENT 3.............................................................................................................................................1
A) Organization like Raintree limited and preparation of Gain and loss account ........................1
B) Preparation of statement of financial position or balance sheet for Raintree limited.................1
C) Description of two accounting principles used for preparing financial statements....................2
D) Explanation of WDM and SLM in order to derive amount of depreciation...............................3
CLIENT 4.............................................................................................................................................4
A) Bank reconciliation statement (BRS) along with its purposes...................................................4
B) Determining the causes which lead to create difference among bank records and cash book.. .5
C) Bank Reconciliation Statement for December 2016..................................................................5
Updated cash book...........................................................................................................................6
Bank Reconciliation Statement dated on the 21st December.........................................................6
Client 5.................................................................................................................................................7
A) balance book preparation of Henderson for May 2016 .............................................................7
Sales ledge control account.............................................................................................................7
Purchase ledge control account preparation....................................................................................7
B) Control account and requirements for preparing this account....................................................8
Client 6.................................................................................................................................................9
A) Suspense account and its key features........................................................................................9
B) Trial balance with the help of control account.........................................................................10
C) Journal entries...........................................................................................................................10
D) Difference between Suspense and clearing account.................................................................10
Conclusion..........................................................................................................................................11
References..........................................................................................................................................13
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INTRODUCTION
Financial accounting is the filed or branch of accounting business concern with the summary
,investigation and reporting of financial transaction refer to an enterprise and reports of all the
transaction. Companies issue fiscal statement on a routeing basis like quarterly, half-yearly and
annually as per the business requirement. So this project is about the business transaction using
book keeping, trial balance. Sole trade, partnership, limited company in accordance with the
appropriate principle. Bank reconciliation statement and bank records, Regulations of the financial
accounting, Accounting rules and principles are explained.
TASK 1
1.1Financial accounting
This is the branch of company's accounting which deals with the tracking of financial
concepts of the company. (Deegan, C., 2013). According to its standard criteria the transactions are
summarised, presented and recorded in reporting of financial income statement and balance sheet.
Companies issue financial statement on routine basis(Francis, J., 2013). The statement that consider
external because they are issued and given to outside of the company for people, investors,
stakeholder as well as certain leaders. Other financial reporting and statements are broadly
calculated if a corporation stokes are traded publicaly, it helps to provide information to outside
sources such as customers, employees, labour, competitors and other investment analysts. In US
Financial Accounting Standard Board can be referred as a process of financial accounting which
contains process of transcription, summarising and reporting that varied of transaction resulting
from business operation over a period of time.
1.2 Regulations related to the financial accounting
Some accounting bodies like FASB (Financial accounting standard board) set different
standards by accepting principles of accounting. Talking about the FASB is private non profit
organisation established in US to set general accepted accounting principles in public interest. In
UK Financial reporting standards (FRS) and financial Reporting Exposure draft are followed.
Studying how other standard reflects in financial accounting and the different particular starting of
transactions are governed by International Accounting Standards (IAS). Earlier before, international
standards of accounting were developed by IASC (Board of International Accounting Standards)
but from 2001, the new set for accounting was launched which is International Financials Reporting
standards and issued by IASB. The Basis of fundamental principles in accounting are cost
principles, full disclosure principles, matching principles, revenue recognition principles, economic
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entity principles, monetary assumption principle are, time period principles, going concern concept,
materiality and conservatism principles are included. Last two principles are constrains.
1.3 Accounting Rule and Principles
For any business, full disclosure Principle requires a company to provide all the necessary
information to those people who are engaged in finance related decision making in the company
(Beatty, A. and Lios, S., 2014). The company's Financial statements include any supplementary
schedule and notes. However, management analysis and discussions are included in publicly traded
corporation annual report to U.S. security exchange commission.
Ten basic Principles that make the accounting rules as describes by GAAP are:
 Separate Legal Entity: Legally a business is a separate and legal entity. The activities been
carried out in the business remain separated from its owner. Legally it is said that a business
can survive longer till the existence of promoters and owners.
 Currency specified principle: A currency must be specified for the over all business
transactions. Like in U.S. all currency is represented in dollars and companies who conduct
their business outside their home country then they need to convert their transaction into
USD and they have to use the current exchange rate while reporting the financial statements.
 Specific time period principle: Financial statement always refers to a specific time. All the
income statements have a start and an end date. So, that the readers can identified the
transaction period and business transactions would be carried out.
 Historical Cost: This principle is used for valuing the items. The price at which the items are
bought and sold can be used for valuation. The Real value of the items changes during the
course of time because of inflation, recession, depreciation on assets over time.
 Full disclosure principle: Full disclosure principle is always in keen focus on all accounting
standards in today's world. It states that every company disclose every aspect of financial
statement to their related outsiders.
 Recognition: It states that the company reveal its income and expenses in the same period in
which they have been occur.
 No death principle: It states that business will continue to function eternally and have no
end.
 Matching principle: It states that accrual accounting system to be used and for every debit
there should be a credit and vice-versa.
 Principle of materiality: It states that if there is any error in book keeping then the way to
rectify the error is need to be followed by the organisation. Because there are few principles
which requires the book keeping to use their judgement rather than short tricks.
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 The conservative principle of accounting: It states that every expenses must be recorded
immediately, but incomes are need to be recorded when the actual income has been
received.
1.4 Convention and cost concept related to consistency and material disclosure
Accounting convention consist of guidelines that arises from practice applications of
accounting principles. It is not legal bound practice but is generally accepted convention based on
customs and design to help accountants and overcoming problem that arises at the time of
preparation of financial statement(Benjamin, M., 2015). If an organisations like Safety and
securities of exchange commission (SEC) or financial accounting Standards board (FASB) set a
guidelines that address the same accounting convention, convention is applicable for longer period.
Accounting Property principle: Consistence principle states that ones an adopted accounting
rules, method or time period then need to be followed consistently in future accounting
period(Board, A.P., 2015). Any business can changes accounting principles if Accounting bodies
circulates necessary changes and principles to make change in particular accounting technique.
Accounting audits activities follows the consistency rule so that reports results from period to
period are comparable. An observer may refuse to provide financial views is on a client fiscal
statement if there are clear-cut and unwarrantable violation of rules.
Materiality concept in accounting: It states that an accountancy modular board can be
neglected the gross effect of doing something so has such a little impact on financial statement that
the reader of the financial statement would not be confused. under GAAPS no demand to
implement the provisions of explanation standard if item is incorporeal. Safety and Legal
instrument exchange commission has recommended for the presentation purpose that an item
correspond at least 5% of total assets should be separately disclosed in balance sheet. Smaller or
larger item who have an impact on net profit or loss need to be considered in financial accounting
and is considered as material. A transaction would also be considered as material if that cost change
the ratio and impact on profitability.
CLIENT 1
Primary Book Entry
There are separate journals for recording different type of entries and book keeping and are
collectively known as Book of primary entries, Book of original entries and subsidiary book. All
transaction are recorded in Primary books and original entries (Sangster, A., 2015). Counselling to
programme and system evaluable multiple GAAPS in accounting information systems). The third
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books indicate that these are subsidiaries of journal. There are 8 type of subsidiary book. Petty cash
book, day to day transactions and journal entries are recorded in this book.
1 Journal Entries with computation of capital
A) Book of primary entry frame work
Journal of Alex Studies for the month of May 2016
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B) Completing Double entry recording System
The system in which day to day financial transactions are recorded two times because it can
reflect in two account one in debit and in credit side are called as Dual entry system. The system of
accounting or bookkeeping means that every organization business transaction will involve two
accounts are debit and credit side (Edwards, J.R., 2013). For ex, When companies borrow money
from bank institution cash account will increase and its creditors or liability account payable will
also increased. If company's pay advertisement expenses $400 then its cash will be decrease and
Expenses account will also increase by $400. Dual entry system also allow for explanation equality
like Possession = Liabilities + owner's equity to be always in balance. In the example of
advertisement expenses, the accounting position remain in the balance expenses caused owners
equity is decrease. this ex. cash decrease and owner capital account in owners equity will also
increase.
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B) Trial balance preparation
Trial proportion is type of book-keeping in descriptor of worksheet in which the balance of
all balance of ledger posting are compiled into debit entry and credit entry. The Company prepare a
trial balance sporadically, use at the end of coverage period( Aerts, W., 2014). The basic content of
set up as an trial balance is to assure the entries in companies book keeping system as numerical
correct. Preparing a trial balance for a company serves to detect the any numerical and
mathematical that have come about in double entry accounting system. If the total flake equal to
the total credit, trial balance is reasoned to be a balance and there should be no any mathematical
error in transaction . If transaction classified improperly or misses from system then system adopted
need to be rectified r material accounting error happen and could not be detected by trial balance
procedure.
Items that can be included in trial balance is cash, Accounts receivables, Office supplies,
Office equipment or office and administration expenses, bank balance, Accounts payable, Common
stocks, Operating revenues, Rent expenses, Salaries expenses, Used supplies, Utility expenses etc.
Income statement is fitted out for using revenue and expenses report from the trial balance. Trial
balance is secure that debits equal credits balance. It is important for note that just because trial
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balance, it does not mean that account are right or any mistake did not occur. Key to set up Trial
scale is to make certain then all the accounts balance are recorded under accurate column. The
proper file is as follows like: Assets in debit balance, Liabilities in Credit balance, all Expenses in
Debit balance, all Equity balance in credit side , all revenues in credit entry.
CLIENT 2
A) Framing Financial report and Profit and Loss account
In income account all receipt or revenue,Total Cost and expending are included during
particular time period of time, Use financial quarter or year. This record provide Particular
information about companies quality or deficiency therefore to make profit by increasing revenues,
reduce the cost or both. The financial gain statements is also mentioned as the Statement of profit
and loss account, financial gain, Statement operation, Statement of fiscal results, income and
expenditure. Profit and loss content generally called as the income statement in among one of the
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three financial statement. All public sectors' company's issue every quarterly or annual, along with
the balance sheet and cash flow statement. The financial gain indication like cash flow show
modification in the account over the set of time period. Balance sheet on another hand is shot of
business concern fiscal data that company is owned and what are possession at that particular
instant. Income statement move general form of following belongings like entry of revenue, at top
of the line - cost of operating business (total cost of goods sold, operative expenses, tax expenses,
and interest expenses. Deviation better-known as top line is net income, also called as net profit or
earning. Many tamp lets for calculating profit and loss and preparing can be found in books of
account easily.
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P&L of Peter Pipe for the year ended at 31st December 2016 is as follows:
Income statement
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B) Making Financials statement for getting current position
The last and final step of the accounting process is making financial statement or financial
results for the company. Fiscal content is increment of the written report about the fiscal condition
of the organization and Indicates cash flow condition . They are useful for the following reasons as
 To find out the cognition of the business to generate cash, source and use of that cash,
 To find out whether a business has the capability to pay back or not,
 Evidence financial results in a trend line to spot any looming probability issue
 To derive financial ratio from the statement that can incur the condition of the the business.
 To analyse the details of the certain business transaction as outlined in disclosed that
statement. Standard content is primed of fiscal statement is balance sheet in which the
assets and liabilities are included, Income statement, Cash flow statement and
supplementary notes.
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Statement of financial position of Sole trader Peter Pipe for the year ended at 31st December,
2016
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CLIENT 3
A) Organization like Raintree limited and preparation of income account
Profit and loss account of Rain tree Ltd. At the year End of 30th September 2016
On the behalf of the above calculation, profit and losses can be accounted which occurred in the
company Rain Tree Limited. This information can be utilized in generating the price worth 107
GBP whereas expenditure are generated through the production of goods and services in the
company. The organization Raintree collects the gross profit worth 74 GBP and net profit worth 10
GBP. According to the above calculation it was noted that the company needs to new strategies
along with certain values for minimizing the expenditure which created the final profit 10 GBP. For
the organization Rain tree the suggestion which can be given is they must minimize and they
should focus on their indirect types of expenditure and they must also concentrate on there sales as
it is reducing (Bushman, 2014).
B) Preparation of statement of financial position or balance sheet for Raintree limited

Balance sheets prepaid for Raintree Limited for the year ended at 30th September 2016
The calculation generated for the balance sheet, total assets and liabilities are mentioned for the
Raintree which is calculated to be worth of 137000 GBP which when compared with profit
generation is found to be high. Also, fixed assets have hike in value when compared to its initial
current values. Liabilities calculated in the balance sheet, Raintree is found to contain maximum
proportion of shareholder's equity more than total liabilities. This complete information describes
that the organization lacks in terms of profitability and cash flow. This resulted in the increment in
the capital through share which are invested in the stock market.
C) Description of two accounting principles used for preparing financial statements
Financial statement can be generated by the management with the help of accounting but
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there are certain types of tools, theories, rules as well as principles are present which resides to
accounting. Utilizing this tool, theories, principles manager are required to prepare the data sheet in
proper and effective manner. In the following report some other accounting principles are being
mentioned below where different principles are utilized by organization (Renz, 2016). Following
are the two rule utilized for the preparation of the fiscal statement are discussed below:
Prudence Accounting Principle- This consists the financial details which are created in various
manners. This are commonly known as prudence or conservatism accounting principle. The data are
written in the data-sheet in the immediate basis moreover similar transaction are recorded in
different way. Entities which are developed through the following accounting principle is utilized in
order to resolve the financials problems arise in the organization. In precedence accounting
principle, the accounting treatments calculated for the reserve value are noted which is required
during the time of debt value in the data-sheet. Inappropriate debt can lead to the increment of
expenditure and will deprive the company status.
For Instance: Firm analysing and mentioning the revenue in the accounting, then company then
uses it the actual manner which is recorded and final profit and loss are accounted. While creating
the liabilities the organisation creates them without analysing and justification. The company mark
this type statement as immediate time.
Consistency Accounting Principle – Secondary discussed accounting principles is consistency
accounting principle which can be described in the continuous basic. Following accounting
principle is evaluated every year when the year is going to be closed or ended by firm for
calculation of account and other important statement. Changes ones marked can't be changed
through the complete year. In this principle there are chances of receiving the accounting negative
way. Moreover, if the organization found any changes in the following year then chances of getting
features updates and modification can be noted in the accounting treatment in coming next years.
For illustration: The inventory along with the stock of organization, FIFO methods is used. This
methods is also adopted in the accounting principles. For the following situation in the near years
they utilizes respective method, FIFO method for stock evaluation to assess value of inventory.
D) Explanation of WDM and SLM in order to derive amount of depreciation
D) Explanation of WDM and SLM in order to derive amount of depreciation
Behind the accounting principle there is depreciation which are necessary part accounting
aspects of financials. Residual amount belonged with this period of fiscal year is accounted as
depreciation in the procedure of accountancy (Watrin, Pott and Ullmann, 2012). This expenses
comes under the deducted form the gross profit generated by the company which lead to final profit
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through direct impact. For making depreciation there are various methods used but two basic
methods are described below:
Straight Line Method- Depreciation technique consist of amount along with sum of money. The
depreciation calculated remain constant every year. Same details are used in financial statement of
the next year through which company make decisions due to which cost remain same. In following,
amount of overall depreciation is worth of 12600 GBP then every year same will be recorded in the
loss side of income statement up to the life of asset. For calculation of depreciation as per the SLM
method there are three components are used and in this formula is such as follows:
Depreciation: Initial cost of asset – scrape value / useful life of the asset
For illustration: Cost of individual machine and scrape value found to be 280000 and 80000
GBP severally along with the useful life 7 years then depreciation up to the six years is such as
follows:
Depreciation = 280000 – 80000 = 200000 / 7 = 28571.43 GBP.
Written Down Method- WDM can be described as the respective cost and depreciable amount
both gets reduce in every financial year which increases the financial position or profit. As per the
respective method there are fixed % to charge the depreciation are utilized by the organization
which are used of the depreciable amount. Suppose to there amount and money of the depreciable is
worth of 10000 GBP and company charge 13% then depreciation amount is 1300 GBP (May,
2013). As the fiscal year passes then its amount reduces and ultimately the amount incurred and
recorded in the indirect expense also goes down every year.
For Illustration: Company purchasing an equipment and its price is 250000 GBP and
depreciation % mentioned is 10% whereas in the 1st year depreciation amount comes to be 250000
* 10% = 25000. The following year depreciable amount will be 250000 – 25000 = 225000 GBP
where depreciation will 225000 * 10% = 22500 GBP. Till the end the same procedure continues.
CLIENT 4
A) Bank reconciliation statement (BRS) along with its purposes
BIS is the written statement which is prepared between the organisation and bank at regular
period of internal. Company needs to keep the record in cash book and bank maintains pass book
of the transanaction . At termination of every month the records are compared between the bank
passbook and company cash-book. Records are maintained every month and the transaction
deviation between the cash book and data book is are scrutinized. With the following details the
reconciliation statements are prepared. Following record are used to analyse the data which are
missing and the difference in the pass book and cash book. This is an important part of bookkeeping
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which is processed under the financials accounting process. Organization takes various decision and
can easily estimate the banking transaction. The main benefirt of implemeting the BRS is to identify
the issues which arises during the maintenance of the business transaction with the bank (Macve,
2015).
B) Determining the causes which lead to create difference among bank records and cash book
The bank records mention in the bank reconciliation statement are needed in order to
maintain the financial transactions of cash flow between the institution and customer. There are
various tools rendered by the bank for such transaction such as cash book, cash book, cheque book
and many more to the customer. Although, this is required by both the arrangement in order to have
contract impervious of the cash flow whether its sedimentation of cash or its withdrawal. This bank
records are used to hold back the details like the cheque issued, granted or cancelled, money
deposited or withdrawal. This dealing are recorded and made in dictation to evaluate the caving
analysis of money issued through the bank. There can be difference between the cash flow and the
running book which can be studied by the BRS. For this reason BRS is measured every month so
that dealings is clear and concise. The cross-checking between the bank and arrangement helps the
social group to make strategies for the future investment (Gassen, 2014).
C) Bank Reconciliation Statement for December 2016
Updated cash book
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Bank Reconciliation Statement dated on the 21st December
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CLIENT 5
A)Preparation of balance book of Henderson for May 2016
Gross sales ledge control account
Preparation of acquisition and control account
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B) Control account requirements for preparing this account
Control account is the main element that can be defined as summary of all transaction in an
effective manner (Weil and et.al., 2013). For running the business smoothly it is very important to
obtain the actual information n of financial transactions or related to exchange of funds. Through
this way company can describe all its financial transactions for further operations as well. It is the
activity that helps in presenting the fund allocation tool through which way organization can make
effective decisions for the further operations of the entity. Furthermore, control account is the tool
that monitors the over excess transactions and create a way through which cited firm can utilize its
funds significantly (Wang, 2014.). It is an appropriate technique that helps in analyzing the earning
potential of the entity and supports in building relationship with the collaborative. In this respect
many ideas are created in order to make balance between cash inflow and cash outflow (Grüber,
2014).
Control system or account can be defined as ledge that helps in making balance between
incurred expenditures and the overall revenues. This tool is used by the big organization those
which are transacting high volume products in the market. It is the effectual technique that helps in
measuring the overall performance of the organization and through this way establishment can
create advanced ways that can support in identifying the expenditures and income of the
organization and company can make effectual control over its unneeded expenses significantly
(Seow. and Wong, 2016). It is mostly suitable for the large scale entities, by this way ledger can be
prepared and financial performance of the organization can be measured. The importance of the
control account for adequate financial transactions can be discussed as below:
 It is beneficial tool that helps in providing the in depth information about financial
transactions.
 Through this way companies can determine the demand and according it can manage its
operations.
 It is also beneficial as bottom line for specific company's product (Blankespoor. and et.al,
2013).
 Control account system is the beneficial tool that supports in identifying the expenditures
and revenues of the organization, by this way it can control over the transaction in order to
minimize the expenditures so that balance can be maintained. That gives optimistic results to
the entity in future and income of the cited firm can get increased to great extent (Li and
Sloan, 2015).
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Thus, it can be said that control system is the beneficial tool That supports in making
balance between spending and the income of the organization is increase than the overall
performance of the organization to great extent. Through this way company can improve its
financial management activities and can manage its funds well (Weil and et.al., 2013).
CLIENT 6
A) Suspense account and its key features
Suspense accounts is another essential tool of financial accounting, it is the temporary
account that can be used for resolving the issues of the entity related to the financial transactions.
By this way companies can prepare its accurate income and expenditure accounts that can help in
making balance between revenues and expenditures so that further operations can be run smoothly
(Wang, 2014.). Suspense account records the doubtful transactions and try to resolve the issues in
order to make the transaction clear. Once confirmation has been done then managers can enter this
amount in the income statement and can present the financial performance of the entity
significantly. It identifies the issues which are related with the financial resources and fin d solution
of these fund related problems. With the help of suspense account hidden uncertainties can be
measured by the management and can work to manage the financial transactions well. It can be
defined as “ zeroed out” account that can be explained as any recorded suspense amount will be
transferred to the final account (Seow. and Wong, 2016). That is why the suspense account is
recorded as temporary basses. By this way risk of the entity can be identified easily and necessary
actions can be taken in order to resolve it.
Features:
Suspense accounts are the essential element that can help in identifying the doubtful
transactions. Features of this account are as following:
It is beneficial tool and supports in recording the specific amount on the temporary basis.
Suspense account helps in identifying the errors in the financial transactions and helps in rectified
them on time (Blankespoor. and et.al, 2013).
It can be considered as the tool that helps in checking the errors and preparing the final account with
no mistakes. The main feature of this tool is that through this way company can make balance
between income and expenditures hat helps in further operations of the entity (Grüber, 2014).
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B) Trial balance with the help of control account
C) Journal entries
D) Difference between Suspense and clearing account
Suspense and clearing both are essential tools and considered as temporary accounts that
helps in recording the financial transaction of the entity in effective manner. These tools are used by
the organization in order to prevent the firm from future uncertainties and make balance between all
financial transactions (Li and Sloan, 2015). Clearing accounts are being put on hold in order to add
in balance sheet. Whereas, suspense account helps in tracking the funds problems in order to gain
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good financial information about the business operations.
Another difference in clearing and suspense account are that, clearing account determines
the ongoing transactions and keep records of all financial information. Once confirmation are
gained about both accounts, these amount are transferred to the income expenses statement in order
to identify the impact of these amounts on the performance of the entity (Blankespoor. and et.al,
2013). These are beneficial tools that helps in analysing the mistakes of the entity and through this
way company can resolve the problems significantly. Comparison of both accounts are as
following:
On the bases of recording financial transactions
Clearing account n is appropriate for the waiting settlements that means some financial
amounts which are not clear can be record in this account. Whereas suspense accounts are suitable
for indicating the balancing transactions such as if there are some doubtful transaction then they can
be recorded as suspense account until final confirmation (Grüber, 2014).
On the bases of usefulness
Clearing account is very useful in order to determine the ongoing transactions. On other
Thus, from the above comparison it is cleared that both suspense and clearing accounts are
differed from each others. Clearing accounts are hold dou btful account separately whereas
suspense accounts are for the clearing doubts. After all clarifications amount which are doubtful are
shifted to the final income and expenses account in order to show the real financial performance of
the organization (Weil and et.al., 2013).
hand suspense accounts are useful in evaluating the issues in the financial transactions.
On the bases of time periodicity
Clearing accounts happens for specific time duration on other hand suspense accounts are
for resolving the problems related to financial transactions (Wang, 2014.).
Thus, from the above comparison it is cleared that both suspense and clearing accounts are
differed from each others. Clearing accounts are hold dou btful account separately whereas
suspense accounts are for the clearing doubts. After all clarifications amount which are doubtful are
shifted to the final income and expenses account in order to show the real financial performance of
the organization (Weil and et.al., 2013).
CONCLUSION
In this report it is ended that fiscal explanation is important to instant economical point of
the arrangement. However, importance of fiscal accountancy including modulate and uniformity are
represented for transcription information. Thus, it has been known that fiscal explanation is quite
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important for signalling succinct and reporting economic position of entity that are reasoned as
bases for rising further business concern transaction through this report. However, bank
reconciliation statement and its usefulness is described that affects financial position of
establishment. So in this report Sole trade, partnership, limited company in accordance with the
appropriate principle. bank reconciliation statement and bank records, Regulations of the financial
accounting, Accounting rules and principles are explained.
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