Financial Reports : Assignment
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Added on 2021-02-19
Financial Reports : Assignment
Added on 2021-02-19
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Financial Reports
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Journal entries for recording purchase of assets, deprecation and accumulated deprecation for
the year ended 30 June 2016 and 2017........................................................................................1
18. Preparation of asset registers.................................................................................................2
19. Preparation of rectification entries.........................................................................................3
20. Calculation of amount of debt and showing preparation of journal entries and ledger
accounts........................................................................................................................................3
TASK 3............................................................................................................................................3
1. Preparation of deprecation worksheet .....................................................................................3
2. Journal entries for depreciation on 30 june 2017.....................................................................4
3. Preparation of ledger accounts ................................................................................................4
4. Preparation of income statement and balance sheet showing adjustments of depreciation.....5
5. Showing journal entries relating to disposal of old truck and purchase of new truck.............5
TASK 4............................................................................................................................................6
1........................................................................................................................................................6
Journal entries .............................................................................................................................6
Ledger accounts ..........................................................................................................................6
2........................................................................................................................................................9
Email...........................................................................................................................................9
4......................................................................................................................................................10
a. Trial Balance .........................................................................................................................10
b. P&L account .........................................................................................................................11
c. Balance sheet .........................................................................................................................12
5......................................................................................................................................................14
Email.........................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Journal entries for recording purchase of assets, deprecation and accumulated deprecation for
the year ended 30 June 2016 and 2017........................................................................................1
18. Preparation of asset registers.................................................................................................2
19. Preparation of rectification entries.........................................................................................3
20. Calculation of amount of debt and showing preparation of journal entries and ledger
accounts........................................................................................................................................3
TASK 3............................................................................................................................................3
1. Preparation of deprecation worksheet .....................................................................................3
2. Journal entries for depreciation on 30 june 2017.....................................................................4
3. Preparation of ledger accounts ................................................................................................4
4. Preparation of income statement and balance sheet showing adjustments of depreciation.....5
5. Showing journal entries relating to disposal of old truck and purchase of new truck.............5
TASK 4............................................................................................................................................6
1........................................................................................................................................................6
Journal entries .............................................................................................................................6
Ledger accounts ..........................................................................................................................6
2........................................................................................................................................................9
Email...........................................................................................................................................9
4......................................................................................................................................................10
a. Trial Balance .........................................................................................................................10
b. P&L account .........................................................................................................................11
c. Balance sheet .........................................................................................................................12
5......................................................................................................................................................14
Email.........................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
INTRODUCTION
Financial reports are summary of all the financial transactions performed by a business
organisation within a specific time period (Lin and et.al, 2019). A company needs to prepare
several financial reports such as income statement, balance sheet, cash flow statements, etc.
These reports help the users in getting information regarding the financial transactions of the
business. In addition, financial reports also helps the users in analysing the actual financial
performance and position of the firm at a certain point of time. The present study shows
calculation of various calculations that have effect over the financial performance of the firm. It
shows preparation of journal entries for recording numerous financial transactions of the
company along with preparation of ledger accounts accordingly. In addition, the study also
shows calculation of deprecation and accumulated depreciation along with their journal entries
and preparation of several ledger accounts in the same context.
Further, the study also shows recording of various financial transactions in the books of
accounts and preparation of financial reports based on such transactions such as statement of
profit and loss accounts and balance sheet of the company.
TASK 2
Journal entries for recording purchase of assets, deprecation and accumulated deprecation for the
year ended 30 June 2016 and 2017.
Journal entries in the books of Andrew
Date Particulars Debit amount Credit amount
01/07/16 Mullum machinery account Dr. 18000
To bench planer account 18000
(Being bench planer purchased from Mullum
machinery)
01/07/16 Danny's drill account Dr. 5000
To standing drill account 5000
(Being Standing drill purchased from
Danny's drill)
30/06/17 Bench planer depreciation account Dr. 2720
Standing drill depreciation account Dr. 1050
To accumulated depreciation account 3770
(Being depreciation on bench planer and
standing drill charged and transferred to
accumulated deprecation account)
1
Financial reports are summary of all the financial transactions performed by a business
organisation within a specific time period (Lin and et.al, 2019). A company needs to prepare
several financial reports such as income statement, balance sheet, cash flow statements, etc.
These reports help the users in getting information regarding the financial transactions of the
business. In addition, financial reports also helps the users in analysing the actual financial
performance and position of the firm at a certain point of time. The present study shows
calculation of various calculations that have effect over the financial performance of the firm. It
shows preparation of journal entries for recording numerous financial transactions of the
company along with preparation of ledger accounts accordingly. In addition, the study also
shows calculation of deprecation and accumulated depreciation along with their journal entries
and preparation of several ledger accounts in the same context.
Further, the study also shows recording of various financial transactions in the books of
accounts and preparation of financial reports based on such transactions such as statement of
profit and loss accounts and balance sheet of the company.
TASK 2
Journal entries for recording purchase of assets, deprecation and accumulated deprecation for the
year ended 30 June 2016 and 2017.
Journal entries in the books of Andrew
Date Particulars Debit amount Credit amount
01/07/16 Mullum machinery account Dr. 18000
To bench planer account 18000
(Being bench planer purchased from Mullum
machinery)
01/07/16 Danny's drill account Dr. 5000
To standing drill account 5000
(Being Standing drill purchased from
Danny's drill)
30/06/17 Bench planer depreciation account Dr. 2720
Standing drill depreciation account Dr. 1050
To accumulated depreciation account 3770
(Being depreciation on bench planer and
standing drill charged and transferred to
accumulated deprecation account)
1
Workings
calculation of depreciation of bench planer
Particulars Amount
Cost 18000
Scrap value 1000
Expected production 5000
Life 2 years
Depreciation on the basis of units of production = original cost – scrap value / total
number of expected production * actual production
Particulars Working Value
Depreciation for the year
ended june 2016 18000-1000/5000*800 2720
Depreciation for the year
ended june 2016 18000-1000/5000*1000 3400
calculation of depreciation of standing drill
Particulars Amount
cost 5000
scrap value 800
life 4 years
Depreciation on the basis of straight line value method = original cost – scrap value / life of
assets
Particulars workings value
deprecation 5000-800/4 1050 per year
18. Preparation of asset registers
2
calculation of depreciation of bench planer
Particulars Amount
Cost 18000
Scrap value 1000
Expected production 5000
Life 2 years
Depreciation on the basis of units of production = original cost – scrap value / total
number of expected production * actual production
Particulars Working Value
Depreciation for the year
ended june 2016 18000-1000/5000*800 2720
Depreciation for the year
ended june 2016 18000-1000/5000*1000 3400
calculation of depreciation of standing drill
Particulars Amount
cost 5000
scrap value 800
life 4 years
Depreciation on the basis of straight line value method = original cost – scrap value / life of
assets
Particulars workings value
deprecation 5000-800/4 1050 per year
18. Preparation of asset registers
2
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