Analysis of Wave's Final Accounts and ITV's Revenue Recognition

This document presents a comprehensive financial accounting assignment solution. It begins with the preparation of Wave's final accounts, including journal entries, ledgers, and a trial balance, providing a detailed view of its financial transactions. The assignment then delves into the analysis of revenue recognition, specifically focusing on ITV's revenue streams and how they are recognized based on the delivery of performance obligations. Furthermore, it explores the application of the consistency principle in accounting, examining how ITV applies this principle in its financial reporting, particularly concerning the valuation of assets and the presentation of financial statements. The assignment offers insights into financial statement analysis, accounting principles, and revenue recognition practices.

INTRODUCTION TO
FINANCIAL ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
1. final accounts of Wave ...........................................................................................................3
2. Explaining usefulness of an information facilitated on the revenue in respect of conceptual
framework.................................................................................................................................12
3. Presenting concept of consistency in determining an application of concept by the ITV to
report of an assets......................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Financial accounting is referred as an area of an accounting that focuses on keeping the
track of the financial transaction of the firm. It is counted as the way of reporting the business
activity and the financial information to all the stakeholders. By making use of the standardised
guidelines, transactions are been recorded, presented an summarised in the financial report like
income statement and the balance sheet. The present study is based on preparing the financial
statements of Wave and making an analysis of the revenue of ITV. Furthermore, it involves
analysing an application of accounting concept as consistency principle in framing of the final
report of ITV and in its reporting.
1. final accounts of Wave
Journal for wave
Sr no. Particulars Debit Credit
02/12/19 Purchase A/c Dr. 5000
To Shyam A/c 5000
04/12/19 Purchase A/c Dr. 15000
To ram A/c 15000
05/12/19 Purchase A/c Dr. 7000
To John A/c 7000
06/12/19 Purchase A/c Dr. 25000
To ABC A/c 25000
07/12/19 Purchase A/c Dr. 12000
To XYZ A/c 12000
09/12/19 Rent a/c Dr. 1000
To cash A/c 1000
10/12/19 Insurance Exp a/c Dr. 800
To cash A/c 800
11/12/19 Electricity exp a/c Dr. 1500
To cash A/c 1500
12/12/19 John A/c Dr. 5000

To Purchase return A/c 5000
12/12/19 ABC A/c Dr. 15000
To Purchase return A/c 15000
13/12/19 XYZ A/c Dr. 12000
To Discount Received
A/c Dr. 600
To cash A/c 11400
14/12/19 Shyam A/c Dr. 5000
To cash A/c 5000
15/12/19 Vijay A/c Dr 21000
To sales A/c 21000
16/12/19 James A/c 32000
To sales A/c 32000
17/12/19 Roy A/c Dr. 11000
To sales A/c 11000
18/12/19 Jacob A/c Dr. 42000
To sales A/c 42000
19/12/19 Mark A/c Dr. 10800
To sales A/c 10800
20/12/19 Cash A/c Dr. 50000
To sales A/c 50000
21/12/19 Cash A/c Dr. 25000
To sales A/c 25000
22/12/19 Cash A/c Dr. 35000
To sales A/c 35000
23/12/19 Sales Return A/c Dr. 7000
To Roy A/c 7000
24/12/19 Sales Return A/c Dr. 28000
To Jacob A/c 28000
25/12/19 Cash A/c Dr. 10584
Discount Allowed A/c 216

Dr.
To Mark A/c 10800
26/12/19 Cash A/c Dr. 32000
To James A/c 32000
27/12/19 Drawings A/c Dr. 8000
To cash A/c 8000
28/12/19
Loan repayment A/c
Dr. 10000
To cash A/c 10000
29/12/19
Accumulated
Depreciation A/c Dr 4000
Cash A/c Dr. 30000
To Equipment 34000
30/12/19
Wages Expense A/c
Dr. 6000
To accrued wages A/c 6000
31/12/19 Depreciation A/c Dr. 36000
To equipment A/c 36000
31/12/19
Bad debt expense A/c
Dr. 1836
To Allowance for
doubtful debts A/c 1836
504736 504736
Ledger accounts
Dr. Purchase A/c Cr.
Date Particulars Amount Date Particulars Amount
02/12/19 To shyam A/c 5000 31/12/19 By bal c/d 64000
04/12/19 To ram A/c 15000
05/12/19 To John A/c 7000
06/12/19 To ABC A/c 25000

07/12/19 To XYZ A/c 12000
64000 64000
Dr. Shyam A/c Cr.
Date Particulars Amount Date Particulars Amount
14/12/19 To cash A/c 5000 02/12/19
By purchase
a/c 5000
5000 5000
Dr. Ram A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 15000 04/12/19
By purchase
a/c 15000
15000 15000
Dr. John A/c Cr.
Date Particulars Amount Date Particulars Amount
12/12/19
To purchase
return A/c 5000 05/12/19
By purchase
a/c 7000
31/12/19 To bal c/d 2000
7000 7000
Dr. ABC A/c Cr.
Date Particulars Amount Date Particulars Amount
12/12/19 To purchase 15000 06/12/19 By purchase 25000

return A/c a/c
31/12/19 To bal c/d 10000
25000 25000
Dr. XYZ A/c Cr.
Date Particulars Amount Date Particulars Amount
13/12/19 To cash A/c 11400 07/12/19
By purchase
a/c 12000
13/12/19
To Discount
Received A/c
Dr. 600
12000 12000
Dr. Rent a/c Cr.
Date Particulars Amount Date Particulars Amount
09/12/19 To cash A/c 1000 31/12/19 By bal c/d 1000
1000 1000
Dr.
Insurance
Exp a/c Cr.
Date Particulars Amount Date Particulars Amount
10/12/19 To cash A/c 800 31/12/19 By bal c/d 800
800 800
Dr. Electricity exp Cr.

a/c
Date Particulars Amount Date Particulars Amount
11/12/19 To cash A/c 1500 31/12/19 By bal c/d 1500
1500 1500
Dr.
Purchase
return A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 20000 12/12/19 By John A/c 5000
12/12/19 By ABC A/c 15000
20000 20000
Dr.
Discount
Received A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 600 13/12/19 By XYZ A/C 600
600 600
Dr. Sales A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 226800 15/12/19 By Vijay A/c 21000
16/12/19 BY James A/c 32000
17/12/19 By Roy A/c 11000
18/12/19 By Jacob A/c 42000

19/12/19 By Mark A/c 10800
20/12/19 By Cash A/c 50000
21/12/19 By Cash A/c 25000
22/12/19 By Cash A/c 35000
226800 226800
Dr. Vijay A/c Cr.
Date Particulars Amount Date Particulars Amount
15/12/19 To Sales A/c 21000 31/12/19 By bal c/d 21000
21000 21000
Dr. James A/c Cr.
Date Particulars Amount Date Particulars Amount
16/12/19 To Sales A/c 32000 26/12/19 By Cash A/c 32000
32000 32000
Dr. Roy A/c Cr.
Date Particulars Amount Date Particulars Amount
17/12/19 To Sales A/c 11000 23/12/19
By Salesreturn
A/c 7000
31/12/19 By bal c/d 4000
11000 11000
Dr. Jacob A/c Cr.
Date Particulars Amount Date Particulars Amount
18/12/19 To Sales A/c 42000 24/12/19 By Salesreturn 28000

A/c
31/12/19 By bal c/d 14000
42000 42000
Dr. Mark A/c Cr.
Date Particulars Amount Date Particulars Amount
19/12/19 To Sales A/c 10800 25/12/19 By Cash A/c 10584
25/12/19
By Dicount
Allowed A/c 216
10800 10800
Dr.
Discount
Allowed A/c Cr.
Date Particulars Amount Date Particulars Amount
25/12/19 To Mark A/c 216 31/12/19 By bal c/d 216
216 216
Dr.
DRAWINGS
A/C Cr.
Date Particulars Amount Date Particulars Amount
27/12/19 To cash A/c 8000 31/12/19 By bal c/d 8000
8000 8000
Dr. Loan
repayment
Cr.

A/c
Date Particulars Amount Date Particulars Amount
28/12/19 To cash A/c 10000 31/12/19 By bal c/d 10000
10000 10000
Dr.
Accumulated
Depreciation
A/c Cr.
Date Particulars Amount Date Particulars Amount
29/12/19
To Equipment
A/c 4000 31/12/19 By bal c/d 4000
4000 4000
Dr.
Equipment
A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 70000 29/12/19 By Cash A/c 30000
29/12/19
By
accumulated
Dep. A/c 4000
31/12/19
By
depreciation 36000
70000 70000
Dr. Wages A/c Cr.
Date Particulars Amount Date Particulars Amount
30/12/19 To wages 6000 31/12/19 By bal c/d 6000

accrued A/c
6000 6000
Dr.
Accrued
Wages A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 6000 30/12/19 By wages A/c 6000
6000 6000
Dr. Bad debt A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19
To allowance
for doubtful
debts 1836 31/12/19 By bal c/d 1836
1836 1836
Dr.
Allowances
A/c Cr.
Date Particulars Amount Date Particulars Amount
31/12/19 To bal c/d 1836 31/12/19
By Bad Debt
A/c 1836
1836 1836
Dr. Cash A/c Cr.
Date Particulars Amount Date Particulars Amount
20/12/19 To sales A/c 50000 09/12/19 By Rent A/c 1000
21/12/19 To sales A/c 25000 10/12/19 By Insurance 800