Prepare Financial Reports

Running head: PREPARE FINANCIAL REPORTS
Prepare financial reports
Name of the student
Name of the university
Student ID
Author note

1PREPARE FINANCIAL REPORTS
Table of Contents
Activity 2A.................................................................................................................................2
Activity 3A.................................................................................................................................3
General Ledger...........................................................................................................................4
Trial balance as at 30th June (Extract)........................................................................................6
Activity 4A.................................................................................................................................6
4.2 Case study............................................................................................................................8
4.3 project work activity..........................................................................................................10
Reference..................................................................................................................................14

2PREPARE FINANCIAL REPORTS
Activity 2A
Accounting principle Describe and state when used
Double – entry bookkeeping principles Double entry of bookkeeping accounting
system states that each transaction from
business will engage 2 or more accounts. It
also allows to establish the accounting
equation that is Assets = Liabilities +
Equities. Except some small entities standard
method of recording the transactions is
through double entry. Whenever there is a
debit entry there shall be an adjusting credit
entry for the same amount.
General journal and general ledger entries General journal is referred as books of the
original entry. In the journal the accounting
entries are listed in accordance with the
dates. General ledger entries are the set of
numbered accounts used by the businesses
for tracking the financial transactions and
preparing the financial reports. General
journal is used when the entity uses the
double entry book keeping system through
debit and credit to maintain the accounting
equation. On the other hand, the general
ledger entries are passed by the businesses
that employ double entry book keeping
system that is each of the financial
transactions have impact on 2 general ledger
accounts and each entry has debit as well as
credit transaction (Easton and Sommers
2018).
Key provisions of relevant accounting and
auditing standards
Auditing and accounting practices are
regulated with worldwide standards.

3PREPARE FINANCIAL REPORTS
Requirement of developing the auditing and
accounting practices created from birth of the
joint stock companies during the year 1844
that was accompanied with the segregation of
ownership and control. The segregation
required that the management shall report to
owners regarding fairness of stewardship and
resources assigned to them on the periodic
basis. Accounting standards are considered as
major regulatory mechanisms while
preparing general purpose financial
statements. It is concerned about the
measurement scheme and the disclosure
principles. On the other hand, auditing
standards are necessary for subsequent
auditing of the financial statements. It is used
for providing the users of financial
statements with the auditor opinion regarding
whether the financial statements are
presented in fair and material aspect (Lane
and Farleigh 2017).
Goods and services tax (GST) regulation GST is 10% fee added by Australian
government to all the services and goods
those are imported to Australia. All the
Australian businesses having turnover of $
75,000 per annum ($ 150,000 for the non-
profit entities) shall register themselves for
GST. For registering under GST, the business
house must have ABN (Australian business
number).