Detailed Accounting System and Process Assignment Solution - Finance

This assignment solution covers various aspects of accounting systems and processes. It begins by explaining how cell references can be replaced with names in spreadsheets for user convenience, and then discusses how to make negative numbers more visible using brackets. The solution then differentiates processed and unprocessed data in spreadsheets using data and report areas. It further explains the use of the IF function. The assignment also addresses periodic inventory systems, and provides a ten-column adjusted worksheet. It demonstrates the uses of spreadsheets as accounting tools, including charts, graphs, and formula calculations. Bank reconciliation and journal entries for accounts receivables are also covered. The solution explores the determination of bad debts and financial status analysis through receivable ratios. Finally, the assignment analyzes the Wesfarmers group, including its business operations, revenue statement, financial statement items (dividends, return on equity, earnings per share), risk and its alleviation, corporate governance, and sustainability. The solution concludes with advice for investment and analysis of the company's financial statements.

Running head: ACCOUNTING SYSTEM AND PROCESS
Accounting system and process
Name of the university
Subject code and name
Student name and student ID number
Assignment task number
Author note

1ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Answer no. 1.............................................................................................................................................2
Answer no. 2.............................................................................................................................................2
Answer no. 3.............................................................................................................................................3
Answer no. 4.............................................................................................................................................3
Answer no. 5.............................................................................................................................................4
Answer no. 6.............................................................................................................................................5
Answer no. 7.............................................................................................................................................9
Answer no. 8...........................................................................................................................................10
Answer no. 9...........................................................................................................................................12
Answer no. 10.........................................................................................................................................12
Answer no. 11.........................................................................................................................................13
Answer no. 12.........................................................................................................................................13
Answer no. 13.........................................................................................................................................14
Reference................................................................................................................................................17

2ACCOUNTING SYSTEM AND PROCESS
Answer no. 1
Replacing the cell references with the names assists the user to use the spreadsheet as per his
requirement (Bebbington, Unerman & O'Dwyer, 2014). For instance, the user can format the sheet,
use formula in the sheet only after naming the cell. Example of a spreadsheet that presents the owner’s
equity + Liabilities = Asset is shown below –
Answer no. 2
To make the negative numbers more visible and clear to the users of the sheet, the negative
numbers may be shown within bracket instead representing it with the minus sign (Drury, 2013). The
example that shows the negative numbers within bracket is shown below –

3ACCOUNTING SYSTEM AND PROCESS
Answer no. 3
The spreadsheet includes the processed data as well as the unprocessed data. Therefore, to
differentiate the processed and unprocessed data the spreadsheet shall be segregated into data area and
report area. It will further, assist the user extract different data as per his requirement and process the
data for required purposes. Spreadsheet representing separate report area and data are is below –
Answer no. 4
If function is regarded as the logical function under the spreadsheet; It performs logical test
that is used to analyse whether the particular condition is satisfied or not. If the condition is satisfied,
the IF function returns TRUE value and if not then it returns the FALSE value.

4ACCOUNTING SYSTEM AND PROCESS
Example of IF function under normal view –
Under formula view –
Answer no. 5
Periodic systems of inventory
As per the periodic system, the transaction of sales and purchases are not updated for each
transaction rather the records are updated after the closing of each period say 3 months, 6 months or
year. The purchases are added to the opening stock of inventory (Hoggett et al, 2015). Thereafter, the
closing stock is reduced from that to arrive at the figure for cost of goods sold.
Example -

5ACCOUNTING SYSTEM AND PROCESS
Answer no. 6
Fancy Footwear – ten column adjusted worksheet under normal view
Fancy Footwear – ten column adjusted worksheet under formula view

6ACCOUNTING SYSTEM AND PROCESS
Income statement as normal view

7ACCOUNTING SYSTEM AND PROCESS
Income statement as formula view
Balance sheet as normal view

8ACCOUNTING SYSTEM AND PROCESS
Balance sheet as formula view

9ACCOUNTING SYSTEM AND PROCESS
Uses of spreadsheet as accounting tool –
 Charts and graphs can be used as per the requirement and to make the analysis and
comparisons (Myrelid & Olhager, 2015).
 The calculation becomes easier through the formula that can b e used through spreadsheet
 The data can be formatted as required size, font, numbers and and text
 The cells can be hidden if the particular cell is not required
Answer no. 7
Inventory as normal view
Gross profit calculation as normal view

10ACCOUNTING SYSTEM AND PROCESS
Inventory as formula view
Gross profit calculation as formula view
After changing the data
Inventory
Gross profit
Answer no. 8
Bank reconciliation as normal view

11ACCOUNTING SYSTEM AND PROCESS
Formula view
With changed data
Normal view