Limited-time offer! Save up to 50% Off | Solutions starting at $6 each  

Financial Accounting Solution - Assignment

Added on - 22 Nov 2020

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 3 of 8 pages
FINANCIAL ACCOUNTINGPROJECT 2
Table of ContentsINTRODUCTION...........................................................................................................................1PROJECT 2......................................................................................................................................1(A): Comparison among direct debit as well as standing orders, banks cost and dishonour ofcheque.........................................................................................................................................1P5: Preparation of bank reconciliation statements......................................................................3P6: Rectification entries and suspense account...........................................................................4(A): Journal entries......................................................................................................................4(B): Suspense account................................................................................................................5CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONFinance is considered as the most vital function of the organisation which assists theorganisation in Functioning efficiently without any hindrances in the operations. This part of theproject performs an analysis and comparison of the banking functions such as Direct debit,standing charges, bank charges and dishonour of cheque(Bank charges. 2018.). This part ofproject also perform rectification of the errors made in the accounts and preparation of suspenseaccount for rectifying difference amount.PROJECT 2(A): Comparison among direct debit as well as standing orders, banks cost and dishonour ofchequeDirect debit:Direct debit is considered as the type of the financial transaction, accordingto which one individual draws the funds from some other person's bank account. This is kind ofpre authorised payment in which the account holder allows the bank to pay certain regular fixedamount to the particular party (such as monthly rents and mortgage payments to the landlordsand banks) or some variable types of payments that are made on regular basis such as bills ,invoices etc., supplier or utility company at the fixed time interval for the material they supply tothe organisation(Porter, and Norton, 2012). By using the process of direct debit, the individualget all the power and right to collect payment from the related party.Direct debit is considered as the most reliable and simple form for the purpose of makingregular payments such as bills, monthly mortgages and rents. Direct debit methods are generallyutilised for many purposes:This function can be used for making many payments but it is generally utilised for thesepurposes:Regular Bills for variable amounts:With Utilising direct debit functions, thecompanies and business can ensure that monthly bills and payments will be made ontimely basis without any delay and they do not have to worry for making the payments.As per the data it has been seen that in 2011 almost 2.4 billion payments has been madeusing direct debit function.Paying on account:Many business provides the functions of direct debit as aninstrument for spreading the cost of the company and making payments on the account.1
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document