Impact of Pandemic on Company's Income Statement

PORTFOLIO

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PART 1 ...........................................................................................................................................3
(a).................................................................................................................................................3
(b) ................................................................................................................................................4
PART 2............................................................................................................................................4
PART 3............................................................................................................................................6
(a).................................................................................................................................................6
(b).................................................................................................................................................9
PART 4............................................................................................................................................9
(a).................................................................................................................................................9
(b)...............................................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Accounting information helps the users of the financial statement to shape their decision
according to the information available to them. In this report we discuss the various decision
makers of the organisation, advantages and disadvantages of accounting information system,
how to pass journal entries of transactions, how to post journal entries into the ledger account
and after balancing the account how to prepare trial balance along with trading and profit and
loss account. In this report we also understand that how this pandemic affect the income
statement of the company.
MAIN BODY
PART 1
(a)
Accounting is a process of recording the day to day financial transaction of the business in order
to provide information to decision makers. Decision makers of financial information are
investors, creditors, government etc called external users of accounting information.(Palepu and
et.al., 2020) On the other hand decision makers of managerial information are managers, owners
and employees called internal users of accounting information.(Dewi, Azam, and Yusoff, 2019)
The need of internal decision makers of accounting information of Unilever are:
 Managers: Managers shape their decision about when and where to invest company
funds by using accounting information of Unilever.
 Owners: Owner are always keen to know that whether company is earning satisfactory
income or not and for this purpose owner uses accounting information.
 Employees: Employees wants to know that whether company are able to offer increment
to employees or not.
The need of external decision maker for accounting information of Unilever are:
1. Creditors: Creditors of the Unilever shape its decision on the base that whether company
is able to pay its debt on time or not.
2. Customer: Customer of the Unilever shape its decision by visualising the product of the
company and whether the company provide its product at fair price or not.
3. Governments: Government interference in the company depends on whether they follow
all the policies and procedure of the government or not.
4. Investors: Investors also uses accounting information in order to decide their investment

decision.
5. Banks: Banks uses accounting information in order to known the liquidity status of the
company to shape their decision regarding whether to lend money to the company or not.
6. Stockbrokers: Stockbrokers shape their decision on the basis of the Unilever investment
criteria.
(b)
Accounting is a process of recording the day to day transaction of business.(Minnis, and
Sutherland, 2017) The advantages and disadvantages of accounting information system.
Advantages of accounting information system:
 Cost effectiveness: Accounting information system reduces the manual work of the
company because of the digitalization of whole accounting work. Company is moving
towards the cost reduction by use of artificial intelligence.(Chirițescu, and Dumitru,
2019) Any hacker may amend the information of the company for their personal
benefits.
 Accuracy: Because of the accounting information system, the reliability of data is
increased. There is a very minimum chances of errors while doing accounting records.
With the accounting information system the accurate information is available to the right
person, at the right time or at the right place.
Disadvantages of accounting information system:
 Confidentiality: Confidentiality means do not disclose the information of the organisation
with the third party. There is a chance of hacking of the system which may disclose the
important information of the organisation to the public.
 Virus attack: Because of the virus attack sometimes the stored accounting information is
get modified. And as the accounting information is get changed, getting the accurate
information is become difficult for the company.
PART 2
In the book of David Wise
Journal entries