Detailed Analysis of Accounting System and Process - Finance Course

This document presents a comprehensive solution to an accounting system and process assignment, covering various aspects of financial accounting. The assignment addresses topics such as plagiarism, methods for copying and pasting data from spreadsheets, relevant accounting websites, and professional accounting organizations. It includes a work-integrated assessment, ethical considerations in a case study (ABC Learning), and detailed explanations of different account types, debits and credits, current and non-current liabilities, and the current ratio. The solution provides journal entries, adjusted trial balance, income statements, and balance sheets to provide a comprehensive understanding of accounting principles.

Running head: ACCOUNTING SYSTEM AND PROCESS
Accounting System and Process
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
Answer to question 3:.................................................................................................................5
Answer to question 4:.................................................................................................................6
Answer to question 5:.................................................................................................................6
Answer to question 6:.................................................................................................................7
Answer to question 7:.................................................................................................................8
Requirement 1:...........................................................................................................................8
Requirement 2:...........................................................................................................................9
Requirement 3:...........................................................................................................................9
Requirement 4:.........................................................................................................................10
Answer to Question 8:..............................................................................................................11
Answer to question 9:...............................................................................................................12
Answer to question 10:.............................................................................................................13
Answer to question 11:.............................................................................................................15
Answer to question 12:.............................................................................................................16
Answer to question 13:.............................................................................................................16
Answer to question 14:.............................................................................................................16
Answer to question 15:.............................................................................................................17
Reference list:...........................................................................................................................26

2ACCOUNTING SYSTEM AND PROCESS

3ACCOUNTING SYSTEM AND PROCESS
Answer to question 1:
Plagiarism is referred as the method of replication of the thoughts of others and
demonstrating the idea in the identical words, that is used in the original source without
providing due recognition to it. The students that are honest might be deprived of because of
plagiarism. Several students copy down the assignments without using their own ideas and
obtain higher marks. However, by implying fair means honest students may not get higher
marks. In such scenario students with no subject, fetch higher marks than the honest students
that have worked hard. Therefore, plagiarism is regarded as one of unfair method where the
honest students are deprived of their hard work.
Answer to question 2:
The computer spreadsheet for instance the excel sheets can be used for copying and
pasting the same in the word document with the help of numerous methods(Baxter, 2014).
There are two methods that are involved in pasting the excel sheets which are as follows;
1: Simple Pasting method
The steps involved in simple method comprises of the following steps
a. Selecting the excel sheet together with the headings of rows and column
b. Right click of mouse and then selecting the paste option for paste or instead pressing
Ctrl+C in the keyboard
c. On the word file, right click of mouse and selecting the options of paste or instead
pressing Ctrl+V on the keyboard

4ACCOUNTING SYSTEM AND PROCESS
2: Pasting of an image:
Under the pasting of an image method excel sheets can be pasted in the word document in
the form of image rather than pasting the same as the table, the steps include the following;
a. Selecting the excel sheet together with the headings of row and column
b. Right click of mouse and then selecting the paste option for paste or instead pressing
Ctrl+C in the keyboard
c. On arriving at the word file, Alt+E+S should be pressed on the keyboard and selecting
the image to be pasted

5ACCOUNTING SYSTEM AND PROCESS
Both the above stated method can be applicable for normal and formula view. The
examples are stated below
1: Normal View
a. First Method:

6ACCOUNTING SYSTEM AND PROCESS
B: Second method
Student Name:
Income Statement
for the month ended 31 July 2017
$
INCOME
=E10 =B10+B12+B22
=E15 =B15
TOTAL INCOME =H9+H10
EXPENSES
Office Supplies Expense =B7
=E17 =B8+B9+B13+B16
=E17 =B17+B18
=E11 =B11
=E14 =B14
=E19 =B19
=E20 =B20
=E7 =B20
=E21 =B21
=E6 =B6
TOTAL EXPENSES =SUM(H13:H22)
Profit/(Loss) for the period =H11-H23
Answer to question 3:
The list of five websites that are relevant to accounting are as follows
a. AASB (http://www.aasb.gov.au): This website states the information of accounting
standard that needs to be followed with the objective of recording accounting
transactions and preparing the accounting reports.
b. IFRS (http://www.ifrs.org/): This website helps in describing the international
standards for preparation of financial reports.
c. ATO (https://www.ato.gov.au): This website helps in providing the information’s
related to taxation for accounting and finance in Australia.
d. FASB (http://www.fasb.org): The accounting standards of AASB is based on the
standards of FASB. Hence, they form the part of AASB website. The website is
regarded as helpful source in for important information on the accounting standards.

7ACCOUNTING SYSTEM AND PROCESS
e. GAAP (http://gaap.com.au ): GAAP is one of the another prevalent accounting
principles which is followed in several countries, namely USA (Beatty & Liao, 2014).
Therefore, for international financial reporting, the website is very useful and
beneficial in understanding the policies related to accounting adopted by overseas
nations.
Answer to question 4:
Association of international accountants is regarded as one of most respected and
valued organizations from the numerous professional accounting organizations. The
organizations helps the individuals aspiring to undergo training in accounting (Bonin, 2013).
In addition to this, the accountants that are professional and business organizations can obtain
numerous kinds of monetary and bookkeeping related data from the website of the company.
Answer to question 5:
Work Integrated Assessment
My earlier employment was in the academic institute where students were prepared
for their entrance examination of engineering together with the students of medical field. We
also had computer facilities and existing in the current workplace. My key area of
responsibility was appropriate handling of the documents related to educational institutes. I
carried out the work of documents and systems that were needed to update. In the computer I
had saved the information in data file which was safeguarded from unauthorized access. The
use of network was accessible since it had link with the computer. The programs on which I
worked included Microsoft PowerPoint, Microsoft word, Microsoft Excel and Microsoft
Outlook.Simultaneously by working in the education institute I was able to gain knowledge
about numerous courses which were imparted to the students in order to score good in their
respective entrance examination.

8ACCOUNTING SYSTEM AND PROCESS
At present I am working in the bank where I am employed as assistant manager. I am
provided with the daily bookkeeping records that required making entry related to accounts
and daily business transactions. Secrecy and confidentiality of the information forms the vital
aspect of my job since there are transactions that are often associated with monetary value. I
enjoy working in the gracious and productive environment where we are provided with the
freedom of work.
Answer to question 6:
ABC Learning and ethics- ABC Learning Case study
As evident from the scenario ABC learning experienced a slow but steady to their first
year of business operations. The federal government was largely concerned with the chief
role of development. The company had the access to the media coverage however it was
found that the government purchased the centres of ABC by employing indirect procedure.
The company was sufficiently capable of expanding its operations in international base in the
upcoming years (Deegan, 2013). The share prices of the company was high along with the
asset values that were increasing at a faster rate due to the financial inclusion. However, after
gaining the reports of the company it was found that the financial position and cash flows of
the company declined within a short time (Marshall, 2016). The company had astronomical
amount of debt and inflated the values of assets. It also inflated the values of cross assets
liquidity that contributed to its decline. During the global financial crisis the company
suffered large debt where it owned debt more than 30% of dollar in equity.
The most important ethical issues that contributed to the failure of ABC learning are as
follows;
a. The company provided wrong information about its assets to the public which
resulted the shareholders in losing large sum of money

9ACCOUNTING SYSTEM AND PROCESS
b. There was prevalent of continuous accounting irregularities and the company used the
margin of loan to finance (Hoyle et al., 2015).
It is noteworthy denote that the company failed to realize the financial reality at the time
of deriving profit (Weil et al., 2013). The values of intangible assets were overstated in order
to gain access of the overall business, which ultimately resulted in collapse of the company.
The financial stated reflected the company had overvalued its assets.
Answer to question 7:
Requirement 1:
The types of accounts are provided in the below listed tables;

10ACCOUNTING SYSTEM AND PROCESS
Requirement 2:
Requirement 3:
The amount from the drawing stood for the year was $32,000

11ACCOUNTING SYSTEM AND PROCESS
Requirement 4:

12ACCOUNTING SYSTEM AND PROCESS
Answer to Question 8:

13ACCOUNTING SYSTEM AND PROCESS
Answer to question 9:
There are four accounts that has normal debt balance are stated below
- Salary Expenses A/c
- Drawings A/c
- Plant & Machinery A/c
- Accounts Receivable A/c
There are four accounts that has normal credit balance which are as follows
- Accrued Wages A/c.
- Sales Revenue A/c.
- Capital A/c.
- Accounts Payable A/c.

14ACCOUNTING SYSTEM AND PROCESS
Answer to question 10:

15ACCOUNTING SYSTEM AND PROCESS

16ACCOUNTING SYSTEM AND PROCESS
Answer to question 11:

17ACCOUNTING SYSTEM AND PROCESS
Answer to question 12:
1) Prepaid Rent Adjusted:
Prepaid Rent A/c……Dr.
To, Rent A/c.
2) Outstanding Salary Recorded:
Salary A/c……Dr.
To, Outstanding Salary A/c.
Answer to question 13:
Current liabilities can be defined as that type of liabilities for any individual or
business that are usually paid in the next book-keeping period (Williams, 2014). Current
liabilities are generally established from the regular commercial operations.
Non-current liabilities are generally payable in the long run business operations, they
include long debts etc. these types of liabilities assist the firms in raising capital funds for the
business expansion (Edwards, 2013).
Accounts payable can be defined as the sort of current liability whereas the long term
mortgage can be regarded as the non-current liability (Henderson et al., 2015).
Answer to question 14:
Current ratio is used with the objective of assessing the liquidity position of the any
business firm or organization (Hoskin et al., 2014). It ascertains whether the firm has
sufficient amount of current assets to meet its short term business obligations. Current ratio is
arrived by dividing the current assets from current liabilities of any business.

18ACCOUNTING SYSTEM AND PROCESS
For instance, XYZ Ltd has a current assets of $10,00,000 and its current liabilities are
$6,25,000. Hence the current ration will be
Current ratio = Current Assets/Current Liabilities
= $10,00,000 / $6,25,000
= 1.6
Answer to question 15:
1: Normal View:
In the Books of Colossal Motors
Adjustment Worksheet
as on 30/06/2017
Trial
Balance
Adjustme
nt
Adjusted Trial
Balance
Income
Statement
Balance
Sheet
Particulars
Deb
it
Cre
dit
De
bit
Cre
dit Debit Credit
Debi
t
Cre
dit
Deb
it
Cre
dit
Cash
546
70 54670
546
70
Accounts
Receivable
131
560 600
13216
0
132
160
Supplies
175
60
171
10 450 450
Prepaid
Insurance
345
6 400 3056
305
6
Equipment
347
000
34700
0
347
000
Accumulated
Depreciation
107
890
286
0
11075
0
110
750
Accounts
Payable
145
890
14589
0
145
890
Wages Payable
167
89 500 17289
172
89
Unearned
Service Revenue
123
45
460
0 7745
774
5
Capital
210
802
21080
2
210
802
Drawings
289
00 28900
289
00
Service Revenue 267 520 27309 2730

19ACCOUNTING SYSTEM AND PROCESS
890 0 0 90
Depreciation
Expense
286
0 2860 2860
Wages Expense
165
900 500
16640
0
1664
00
Insurance
Expense 400 400 400
Utilities
Expenses
125
60 12560
1256
0
Supplies
Expense
171
10 17110
1711
0
TOTAL
761
606
761
606
260
70
260
70
76556
6
76556
6
2730
90
1993
30
566
236
492
476
Net Profit
7376
0
737
60
NET TOTAL
761
606
761
606
260
70
260
70
76556
6
76556
6
2730
90
2730
90
566
236
566
236

20ACCOUNTING SYSTEM AND PROCESS

21ACCOUNTING SYSTEM AND PROCESS
2: Formula View:

22ACCOUNTING SYSTEM AND PROCESS

23ACCOUNTING SYSTEM AND PROCESS

24ACCOUNTING SYSTEM AND PROCESS

25ACCOUNTING SYSTEM AND PROCESS
Alternative worksheet:

26ACCOUNTING SYSTEM AND PROCESS

27ACCOUNTING SYSTEM AND PROCESS
Reference list:
Baxter, W. T. (2014). Accounting theory (Vol. 3). Routledge
Beatty, A., & Liao, S. (2014). Financial accounting in the banking industry: A review of the
empirical literature. Journal of Accounting and Economics, 58(2), 339-383.
Bonin, H. (2013). Generational accounting: theory and application. Springer Science &
Business Media.
Deegan, C. (2013). Financial accounting theory. McGraw-Hill Education Australia.
Edwards, J. R. (2013). A History of Financial Accounting (RLE Accounting)(Vol. 29).
Routledge.
Henderson, S., Peirson, G., Herbohn, K., &Howieson, B. (2015). Issues in financial
accounting. Pearson Higher Education AU.
Hoskin, R. E., Fizzell, M. R., & Cherry, D. C. (2014). Financial Accounting: a user
perspective. Wiley Global Education.
Hoyle, J. B., Schaefer, T., &Doupnik, T. (2015). Advanced accounting. McGraw Hill.
Marshall, D. (2016). Accounting: What the numbers mean. McGraw-Hill Higher Education.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
Williams, J. (2014). Financial accounting. McGraw-Hill Higher Education.