logo

Solved Financial Accounting - Assignment

   

Added on  2021-02-21

17 Pages4332 Words154 Views
Financial Accounting

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...............................................................................................................................3Question - 01................................................................................................................................3Question - 02...............................................................................................................................5Question - 03................................................................................................................................7Question - 04 ...............................................................................................................................9Question - 05 .............................................................................................................................12CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONFinancial accounting is main field of accounting that is described as collecting, recording,summering, evaluating the financial information in order to prepare the final statement of anorganisation (Nilsson and Stockenstrand, 2015). It is described as that keep the track record of abusiness financial transaction in the company by using the guideline and accounting standard. Itinvolves the creation of the financial statement and reporting by using the business activities tomake available to internal as well as external stakeholder. Firm prepares the financial statementsto analysis the operational activities of the business that happened during the year. This reportincludes the income statement and balance sheet with associated working notes by using thefollowing financial information provided by the company. It is also includes evaluation offinancial condition of the company, the process of statement of bank-reconciliation, detaildiscussion of control account and suspense account to reconcile the business records. Thisanalytical report includes the statement of final account of sole properties and financial reports ofa limited company. MAIN BODYQuestion - 01Sole traders- It is also called sole proprietors. The word sole business trader refers toespecially the individual who run the business without taking help of another person (Wang,2014). The owner of the business prepares the final account by using the financial informationthat happened during the year. The real owner of the business is called sole properties in thebusiness Properties of the particular business created the financial statement of a year by usingthe activities related to business. Final account of a entity consist of profit and loss account andfinal statement. Final statement can be made by helping the primary data such as journal entries,ledger or posting and trial balances. The financial statement that are prepared by sole trader isconsist of: Income statementBalance sheet

Financial statement- Financial statement are the fundamental books of accounts that are preparedby the business owner in order to evaluate the business operation and activities at any of theentity. These are the financial reports that are presented by the management of a company toowners to show the financial position in the market (Zeff, 2016). financial sheet of the businessrepresent the business position in the market. A general object behind the financial statement isknow the performance and actual status of the business. These financial statement are preparedin once in a year after making basic accounting transaction. Types of financial statements: Basically, These statement includes two types of account that arementioned below:Balance sheet- It is a list of business items that includes the assets and obligation of aparticular company. It shows the fiscal condition of an entity. It is statement that includesbusiness's possession, liabilities, capital, short term liabilities and fix assets of a specificbusiness. Balance sheet of a business is based on the equation is as Assets is equals toliabilities plus equity capital. Balance sheet is essential part of the consolidated finalstatement that represent the business position to its internal stakeholders and managementIncome statement- It is refers to statement of trading account and profit and loss account.It is basically core financial statement of a particular business that presents the profit orloss in the business firm (Pinnuck, 2012). It may defined as net revenue generated andtotal expenditure made during the year. It stipulates how a sales volume is transformedinto net profit or net sales. Income statement includes the basic business transaction suchas recording, posting, balance of all data related to operational activities of the firm. Final statement are prepared of Greg palmer as per information of trial balance. Income statement of Greg Palmer are as follows: Income Statement for the year ended 31st April 2019ParticularsAmountParticularsAmountTo Opening stock 160000By Sales revenue 1400000To Purchase840000By Closing stock 100000To Wages440000Add:Outstanding wages20000460000To Gross Profit4000015000001500000To Heats and Lights80000By G. P.40000Add: Outstanding gas expenses 800072000

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Unit 10 - Financial Accounting
|19
|4976
|94

Introduction to financial accounting : Assignment Sample
|14
|4333
|109

HNBS 310 - Financial Accounting Assignment
|18
|2649
|302

Final accounts of a sole trader PDF
|17
|4534
|124

Prepare Final Accounts for Sole Traders and Partnerships
|17
|4525
|110

Importance of Financial Accounting
|13
|2049
|448