Introduction To Financial Accounting - Doc
Added on 2020-10-22
17 Pages3813 Words269 Views
Finance
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IntroductionToFinancial Accounting
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1TASK 2..........................................................................................................................................11TASK 3..........................................................................................................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONFinancial accounting is core and essential aspect of a business organisation. It is an ongoing and continuous process in which accountants records transactions, summarise and postthem to ledgers, and prepare statement of financial position, income statement and cash flowstatement. It assist in defining actual performance and position of business organisation (Samkin,Low and Taylor, 2012). It also provide comparative analysis of data of one or more period.Financial records are prepared by accountants while considering accounting concepts underfinancial accounting which enhance the reliability of financial data. Ultimate objective offinancial accounting is reporting of financial and profitability position of business organisation tovarious stakeholder like investors, creditors, suppliers etc. This report exhibits variousaccounting concepts such as prudence and accruals and their application in annual accountsalong with practical knowledge of preparation of accounting records and financial statements inthe context of Conga, a sole trader engaged in retail business of toys. This report also describesimportance and requirement of value added tax for Conga. TASK 1Preparation of accounting records and financial statements:Journals:Credit and cash Purchase entriesS.NO.PARTICULARSDEBITCREDIT1Purchase a/c6000To Olivia a/c60002Purchase a/c7500To Smithson a/c75003Purchase a/c8750To Wilma a/c87504Purchase a/c3880To Davidson a/c38805Purchase a/c4070To Jessica a/c40701
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