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Double Entry System Book Keeping : Assignment

Added on - 30 Nov 2020

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STUDENT ASSESSMENT SUBMISSION ANDDECLARATIONWhen submitting evidence for assessment, each student must sign a declaration confirming that thework is their own.Student name:SHAHZAIB BABARAssessor name:Issue date:Submission date:6/12/2020Submitted on:6/12/2020Programme:HND BUSINESSPEARSONBTECHIGHERNATIONALDIPLOMA INBUSINESS(RQF)Unit:FINANCIAL ACCOUNTINGAssignmentnumberand title:FINANCIAL ACCOUNTINGInternal Verifier : Muhammad Ali Iqbal RajaStudent DeclarationStudentdeclarationI certify that theassignment submissionis entirely my own work and I fully understand theconsequences of plagiarism.I understand that making a false declaration is a form of malpractice.Student signature:SHAHZAIB BABAR1
Table of ContentsLO1: TASK 1:................................................................................................................................................4Introduction:...............................................................................................................................................4What is the double entry book keeping?.....................................................................................................4P2):..............................................................................................................................................................5M1:............................................................................................................................................................10D1:.............................................................................................................................................................10..................................................................................................................................................................12D 1:............................................................................................................................................................12LO2: TASK 2:..............................................................................................................................................13M2:........................................................................................................................................................14Income declaration....................................................................................................................................15D2:.............................................................................................................................................................16LO3 : TASK 3:.............................................................................................................................................16P 4:.............................................................................................................................................................18P 4: BALANCE SHEET:.................................................................................................................................20M3.............................................................................................................................................................21Unpresented Cheques:..............................................................................................................................21Bank Lodgments:.......................................................................................................................................21Standing orders:........................................................................................................................................21Direct Debit:..............................................................................................................................................21D3:.............................................................................................................................................................22SCENARIO 3: TASK 3: P5/ M3/ D3:.............................................................................................................23ADJUSTMENT 1:.........................................................................................................................................24ACCOUNTS RECIEVABLE............................................................................................................................24LO4: TASK 4:..............................................................................................................................................252
Control Accounts.......................................................................................................................................25Reconciliation............................................................................................................................................25M4.............................................................................................................................................................25Different Account Types in Accounting:....................................................................................................26D4:.............................................................................................................................................................26Sales Ledger Control Accounts And Purchases Ledger Control Accounts..................................................26Significance of the balances on the control debts.....................................................................................26SALES LEDGER CONTROL ACCOUNT:.........................................................................................................27SALES LEDGER CONTROL ACCOUNT:.........................................................................................................28ERRORS:.....................................................................................................................................................29SUSPENSE ACCOUNT:................................................................................................................................30TRIAL BALANCE AFTER CORRECTION OF ERRORS:.....................................................................................30Bibliography...............................................................................................................................................313
LO1: TASK 1:Introduction:There is some standard which are set in accounting. The requirements which are carried outthrough accounting are known as the grammar of accounting as grammar is important forEnglish language. Accounting work as a economic machinery to look after the growth of thebusiness and processes. The use of accounting is business is essential to regulate the processinguniformly. The accounting regulates business consisting from normal public to banks,commissioners, creditors and others. The debts are also carried out under the principles ofaccounting to make the processing transparent and uniform.What is the double entry book keeping?In double entry book keeping all the transactions which are carried out in the business arerecorded which usually contain two or more accounts. When a company gets loan from thebank, the capital present for the company will increase and on the other hand liability accountloans will grow. When a company spends its capital on processing, the total capital willdecrease and the expense account will increase.The double entry formula is carried out in a way which can be (things owned = liabilities +owner equity) which will be included in balance. As it is clear from the equation that theexpenses will decrease the owner capital automatically and at the end the revenue generatedwill decide that is the company had profited or not.The double entry book keeping is basically divided into 2 portions which are differentiated asDebit and Credit. The entries of the expenses and revenue generated is added accordingly.Generally, the overall expenses which are made throughout are listed in the debit portion ofthe account and on the other side all the amount which are added in the overall capital aredebited in the accounts which means they are added in the debit portion. Actually, therevenues generated or the capital percentage are added in credit. This data is carried out4
through the balance sheet and at the end the total needs to equal the total credit, it is alsoknown as balancing the both sides of the balance sheet which makes it accurate and error free.All the assets which are used in the small businesses which includes machines, furniture, othersmall expenses which are also a part of it, this makes the accounting system to calculate theloss or benefit which is declared as the result of the working. One of the main things which isapplied on some of the entries is the “depreciation” which changes the original costs.Depreciation is applied to the overall assets whose value decreases with the time span andusage, one of the major examples is the machinery. The change of value of the assets with timeis subtracted from the original value which shows the depreciated value of the asset. The valuewhich comes after the depreciation process clarify the reality of the real value which makes thecompany to think for the future as it already knows the value of its assets.P2):The debts and credits are balanced by using the stability test in the trail balance portion. Trailbalance is usually the listing of the score of debit and credit and ledger bills listing. The financialstatements are also prepared by adjusting the trial balance. Before making or getting ready formonetary statements we can also put the trial stability together and accountants can use trialstability at any time.According to the trail balance the order is in a way that the debts are shown as: revenues,liabilities, assets, dividends etc. The category of assets, the liquid which will be closest tobecome cash, seems first. On the trial balance the debts have to appear in this order: assets,liabilities, fairness, dividends, revenues, and charges. Within the assets category, the maximumliquid (closest to becoming cash) asset seems first and the least liquid seems last. Within theliabilities, the ones liabilities with the shortest maturities appear first. Study the subsequentexample of a trial balance for the More Flowers business. Note that totals for the Debit andCredit entries come from the ending balance of the T-accounts or ledger cards. When using T-money owed, if the left side is greater, the account has a DEBIT stability. If the proper side isgreater, the account has a CREDIT stability.5
The ledger is consisted of the book which maintains the money owed. The e book in whichmoney owed are maintained is called ledger. Generally, one account is opened on each webpage of this ebook, however if transactions relating to a particular account are numerous, itcould expand to a couple of pages. All transactions relating to that account are recordedchronologically. From journal each transaction is published to at least worried debts - debitaspect of one account and credit score aspect of some other account.From the following points we can detect the errors:• Failing to post part of a journal entry.• Posting a debit as a credit score, orvice versa.• Incorrectly figuring out thestability of an account.• Recording the stability of an account incorrectly in the trial balance.• Omitting an account from the trial balance.• Making a transposition or slide blunders within the bills or the magazine6
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