Sources and Structure of Auriel's Trail Balances

Added on - Dec 2020

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Finance(PART B)
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................13.1: Assess the source and structure of Auriel's trail balance.....................................................13.2: Adjustments that are made on the trail balance...................................................................43.3: Accruals...............................................................................................................................43.4: Prepayments.........................................................................................................................53.5: Depreciation.........................................................................................................................53.6: Provision for doubtful debts.................................................................................................5CONCLUSION...............................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONFinance is consider as one of the primary aspects for an organisation. It is used for thepurpose of managing and operating their business transaction in regular course of actions. Itconsists of various important resources which are needed to be perform in order to prepare theirfinancial statements in appropriate manner. This project report is all about discussing crucialmatters related with sources and structure of Auriel's trail balances. Apart from this, evaluationof all effect of following end of adjustments and notes on the basis of income statements andbalance sheet. Certain points related with accruals, prepayments and depreciation are explaineffectively under this project (Finance and Network, 2013).TASK 13.1: Assess the source and structure of Auriel's trail balanceA trail balance is one of the appropriate lists that consists of two separate columns whichare known as debit and credit. It is consider as one of the significant part of financial statementsthat are made by the company to check the errors that can be occur during every transactionsrecorded into common accounts. According to this principles of double entry has been correctlyapplied to the recording of transactions in ledger accounts. The total number of debits amountwould be equal to sum of credit balances. The total of debit column would be taken as overallaccount to total of credit column in different trail balance. It has been seen that functions of trailbalance are initial aspects to detect all errors made in recording of financial transaction throughcomparing overall debit and credit column (Brealey and et. al., 2012). Secondly, it is reliable forpreparation of financial statements at the closing an accounting period of time. A trail balance isuses to record bookkeeping worksheet in respect to the balance of all ledgers that are compliedinto debit and credit column. There are various sources through which trail balance can beprepared. Some of them are discussed underneath:Double entity bookkeeping: It is known as one of the effective facts that every financialoperations has equal and opposite affect in at least two various accounts. It is mainly used tosatisfy the equation such as:1
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