Accounting System and Process - [Course Code] Assignment Solution

This document presents a comprehensive solution to an accounting system and process assignment. It begins by defining plagiarism and collusion, followed by the inclusion of spreadsheets in both normal and formula views. The assignment explores relevant accounting websites, the role of the Australian Accounting Standard Board (AASB), and the use of accounting information systems. It examines the ethical issues surrounding the ABC Learning case, detailing financial statements, including income statements and balance sheets, with normal and formula views. The solution covers various accounting concepts, such as debit and credit balances, trial balances, adjusting entries, current and non-current liabilities, and the calculation of the current ratio. It also provides a comprehensive workbook with adjustments, income statements, and balance sheets in both normal and formula views. The solution concludes with a reference list.

Running head: ACCOUNTING SYSTEM AND PROCESS
Subject Code:
Subject Name: Accounting System and Process
Student Name:
Student ID Number:
Name of the University:
Assignment Task Number: 1
List of Questions Attempted: 15
List of Question Not Attempted: 0
Author’s Note:

ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Question 5........................................................................................................................................5
Question 6........................................................................................................................................5
Question 7........................................................................................................................................6
Question 8......................................................................................................................................11
Question 9......................................................................................................................................12
Question 10....................................................................................................................................13
Question 11....................................................................................................................................16
Question 12....................................................................................................................................17
Question 13....................................................................................................................................18
Question 14....................................................................................................................................18
Question 15....................................................................................................................................19
Reference.......................................................................................................................................25
1
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
Question 1
Plagiarism may be defined as the wrongful act of taking the works, ideas and opinions of
others and passing them as their own. In other to plagiarize means to steal the work of other and
pass the works as their own.
Collusion refers to a form of plagiarism where the assignment is done by two or more
persons in order to do a piece of work which is to done by individual person. It is also considered
to be application of unfair means and both plagiarism and collusion are strictly prohibited in
academic writing. Both plagiarism and collusion are unfair to honest students. In case of
plagiarism, the work is taken of a student who has worked hard on his assignment and used the
same work and pass it as own (Fraser, 2014). It is a form of cheating and therefore must be
prohibited. In case of Collusion, assignment which is supposed to be done by an individual
student is done by a group of students which defies the main purpose of assessment criteria of
the assignment and hence it is considered to be unfair for those students who are working
individually for the assignment.
Question 2
Normal View of the Spreadsheet
2
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
Figure 1: (Normal View of the Spreadsheet)
Source: (Created by Author)
Formula view of the Spreadsheet
3
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
Figure 2: (Formula View of the Spreadsheet)
Source: (Created by Author)
Another method which can be used for copying and pasting spreadsheets in word file is
the use of copy and paste option which is present in Microsoft office documents. The user can
copy the spreadsheet by using the function of Control+ C and then paste the spreadsheet in word
file with the application of function Control + V.
Question 3
The websites which are relevant to the process of accounting are given below:
1. Australian Accounting Standard board: The website contains all the standards which are
issued by the Australian Accounting Standard board and also recent amendments in
accounting.
http://www.aasb.gov.au/Home.aspx
2. Australian Financial Review: It contains all the important information, review and
analysis of finance and investments and also accountancy.
http://www.afr.com/
3. Accountants daily: This website is useful as it contains information about updates and
reports and analysis of accountancy reviews. The website contains all the relevant
information which is concerning accounts.
https://www.accountantsdaily.com.au/
4. CPA Australia: This website is the official website for the institute of CPA which is a
professional course which specializes in accounting. The websites contain accounting
information, methods and technique.
4
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
https://www.cpaaustralia.com.au/become-a-cpa
5. Chartered Accountants Australia: The website contains information which are related to
the to the professional course of Chartered Accountants which is a professional course
which deals with accounting aspects. Such chartered accountants are responsible for all
accountant relating work.
https://www.charteredaccountantsanz.com/member-services/resource-centre
6. Financial Observer: This website contains all the necessary information which is related
to the accounting amendments and recent developments in accounting process.
http://www.financialobserver.com.au/
Question 4
Australian Accounting Standard Board (AASB) is an accounting board which is there for
maintaining and issuing of accounting standards. The board is also responsible for also making
amendments to existing standards which were issued previously. The standard which are issued
by the board are the basis on which financial statements are prepared. The resources are
important as it is on the basis on such standard that financial reports are prepared and analyzed.
Question 5
Nowadays in most offices, the management uses computer-based software for the
purpose of recording and classifying information. The use of technology which involves use of
accounting information system allows the companies to improve the overall accountancy
process. The accounting software which were used in the accounting process of the company
were ERP system, integrated software. Such software was used by the businesses to classify,
summarize and analyze the accounting data of the company and also publish the results of the
analysis. The employees of the company are provided with their own systems so that they can
monitor and enter data into the system which can then be used for analysis and record keeping by
accounting information system. The company uses various appliances which are printers, Xerox
machines and computer software. I am currently working in an accounting firm which utilizes
accounting information system such as ERP system to record and analyze the information. The
main activity of the firm is to maintain and analyze the accounting records of the clients.
The firm uses MS excel, ERP system to maintain the accounting records of the client
company and also for the purpose of the analysis of the same. I am given the responsibility to
enter the accounting data of the client’s business in the system and also ensure that there is no
omission and error in the data entry system on the basis of which accounting reports are
published and financial reports are prepared and analyzed.
Question 6
ABC Learning was an Australian Company which was engaged in providing education
services for children. The company was very successful in its initial stages and was a leading
company which provided educational services for children. Then the overall costs and value of
the assets started to rise. This in turn also increased the overall liabilities of the company. As the
financial crisis hit the company, the management of the company started manipulating
accounting records to show profits so that the overall share prices of the company did not fall. As
the crisis continued evidence show that the company started to have problems in repaying long
term debts which the company had taken initially (Sumsion, 2012). Moreover, the financial
5
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
reports of the company had material misstatements which involved cooking up profits or
overstating the assets of the company. The company in 2008 was liquidated due to the financial
crisis which it had been facing.
Further Evidences suggest that the company’s liabilities had also increased for which the
company was having problems in maintaining the cash to settle such liabilities and thus it
resorted to misstating the financial reports and also taking more and more loans to cope up with
the liabilities and losses of the company. The ethical issues which can be pointed out for the
down fall of the company are mentioned below:
1. The material misstatements which the company was doing in order to cover up the real
situation of the financial reports.
2. The inflated value of the intangible assets which lead to the overall increase in the value
of the firm.
3. Improper maintenance of the books of accounts lead to the downfall of the company.
The main contents of the financial reports are the statement of profit and loss, Balance Sheet,
Statement of change in equity, Cash flow statement. The statement of profit and loss depicts
whether the business has earned profit or loss during the year. The statement of change in equity
shows the position of the equity shareholders and capital structure of the company during the
year. The cash flow statement shows the cash inflows and outflows taking place in the year. This
statement also provides a measure of liquidity. The balance sheet shows the financial position of
the company at the end of the year showing all values of assets and liabilities of the company.
Question 7
Account’s
Name
Proprietorshi
p
(P)
Asset
(A)
Liabilities
(L)
Expense
(E)
Revenue
( R )
Mortgage
Payable

Rent
Expenses

Cash 
Office
Equipment

Salary
Expense

Salary
Accrued

Property
Tax
Expenses

Prepaid
Expenses

Office
Furniture

6
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
Electricity
and gas
expenses

Account
Payable

Smith
Capital

Service
Revenue

Account
Receivable

Supplies
Expenses

Investments 
Normal View of Statement of Income and Expenses and Balance Sheet
7
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
Formula View of Statement of Income and Expenses and Balance Sheet
8
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
9
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
10
Student Name:
Student Number:

ACCOUNTING SYSTEM AND PROCESS
Question 8
Balance Sheet Showing Normal View
11
Student Name:
Student Number: