Introduction to Financial Accounting
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Added on 2020-10-05
Introduction to Financial Accounting
Added on 2020-10-05
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INTRODUCTION TOFINANCIALACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3QUESTION 1 ..................................................................................................................................3QUESTION 2...................................................................................................................................8Explaining prudence concept and accruals (matching) concept by identifying application ofthese concepts in the annual reports of business..........................................................................8QUESTION 3.................................................................................................................................10Explaining importance of use of computerised record keeping system and benefits in business...................................................................................................................................................10CONCLUSION..............................................................................................................................12REFERENCES .............................................................................................................................13
INTRODUCTIONFinancial accounting is crucial for recording transactions on daily basis for up keepingoperational activities. Present report deals with Epic who is small business trader of whichjournal entries will be made followed by ledger accounts. After posting accounts into ledgers,trial balance will be prepared. Moreover, final accounts will be produced from the giveninformation. Accounting concepts of matching and prudence concepts will be enumerated ineffective manner. Moreover, benefits of installing computerised system of record keeping will bedone so that business will be able to reduce errors occurred due to traditional method of keepingrecords and leading to time-saving factor for firm.MAIN BODYQUESTION 1 Journal Entries in the book of Epic are enumerated below: ParticularsAmount (in £)Amount (in £)Rent a/c DrTo cash1012010120Bank a/c DrTo loan a/c1500015000Equipment a/c DrTo Cash a/c1500015000Wages a/c DrTo cash30003000Wages a/c DrTo outstanding wagesa/c12001200Prepaid rent a/c DrTo Rent a/c800800Depreciation a/c DrTo Equipment a/c1200012000Ledgers of Epic ‘Sales day book DateCustomerInvoice No.Amount
Opening balance28940001-SepRita plc1100002-SepVera plc2150003-SepGodwin Plc3120004-SepSush Plc4200005-SepGem Plc5180006-SepCash675007-SepCash755008-SepCash8125010-SepSush Plc4140015-SepGem Plc5100020 SepDiscount allowed3400TOTAL296650Sales Returns Day Book DateCustomerInvoice No.AmountOpening balance140008-SepRita plc120012-SepVera plc2100Total1700Purchase Day Book DateCustomerInvoice No.AmountOpening balance14330001-SepDyna Plc985002-SepPUG Plc1090003-SepABC plc11105004-SepXYZ plc1260005-SepM&S Plc1377006-SepCash14120007-SepCash1535008-SepCash1648013-SepABC plc1195015-SepXYZ plc1252020 Sep.Discount received13150Total147880
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