Detailed Analysis of Accounting Systems and Processes Assignment

This document presents a comprehensive solution to an accounting systems and processes assignment. It begins by addressing cell naming in spreadsheets, the representation of negative numbers, and the importance of separating data and report areas. The solution then explores the application of IF functions and contrasts perpetual and periodic inventory systems. It further explains the use of spreadsheets for financial reporting and provides detailed workings and revised data for specific questions. The assignment also delves into the impact of computers on online retail, using eBay as an example. A significant portion of the assignment is dedicated to a case study on Qantas Airways, analyzing its financial statements from 2012 to 2017, including key financial ratios such as Return on Investment, Return on Equity, and Net Profit Margin, to assess its suitability for shareholder investment. The document concludes with a recommendation to postpone investment consideration until the company's profit trend stabilizes. The document includes references to academic sources.

Running head: ACCOUNTING SYSTEMS AND PROCESSES
Accounting Systems and Processes
Name of the Student:
Name of the University:
Author Note

1ACCOUNTING SYSTEMS AND PROCESSES
Table of Contents
Answer to Question 1......................................................................................................................2
Naming the cells in spreadsheets.................................................................................................2
Answer to Question 2......................................................................................................................2
Negative Numbers.......................................................................................................................2
Answer to Question 3......................................................................................................................3
Separation of data and report areas..............................................................................................3
Answer to Question 4......................................................................................................................4
If functions...................................................................................................................................4
Answer to Question 5......................................................................................................................5
Answer to Question 6......................................................................................................................5
Worksheet and financial reports..................................................................................................5
Answer to Question 7......................................................................................................................6
Answer to Question 8......................................................................................................................8
Revised Data:.................................................................................................................................10
Answer to Question 9....................................................................................................................10
Answer to Question 10..................................................................................................................11
Answer to Question 11..................................................................................................................12
Answer to Question 12..................................................................................................................12
Answer to Question 13..................................................................................................................13
Work integrated Assessment case study....................................................................................13
Recommendation or Conclusion................................................................................................16
Reference.......................................................................................................................................17

2ACCOUNTING SYSTEMS AND PROCESSES

3ACCOUNTING SYSTEMS AND PROCESSES
Answer to Question 1
Naming the cells in spreadsheets
The particular requirement of this question is naming the cells in the spreadsheets. The
reference address of the cells is replaced by names so that it can be understood and correlated
with the statements that are provided in the case calculations (Cumming, 2016). The following
example shows the particular process to name cells in the spreadsheet along with the proper
justification:
Calculation of Net Profit:-
Particulars Amount
Sales
Revenue
$15,000
Less: Cost
of Goods
Sold
$2,000
GROSS
PROFIT
$13,000
Less:
Operating
Expenses
$1,000
EBIT $12,000
Less:
Interest
expenses
$1,500
EBT $10,500
Less: Tax
Expenses
$700
NET
PROFIT
$9,800
Answer to Question 2
Negative Numbers
The particular requirement in this question is that the particular way in which the
negative numbers are represented in a spreadsheet has been asked to clarify. The negative

4ACCOUNTING SYSTEMS AND PROCESSES
numbers are represented in brackets as they signify the amount that has to be deducted from a
positive figure (Cumming, 2016). This can be justified with the following example; the negative
numbers have been shown in red brackets:
Answer to Question 3
Separation of data and report areas
It is much important for an accountant for designing spreadsheets in such a format that
the data entry area is different from the report area for the purpose of mitigating the occurrence
of errors in the financial computations. The designing of the spreadsheet is a key measure for the
successful execution of the task being carried out both in terms of short-term and long-term. The
particular advantage provided by the spreadsheet is that it forms an effective tool in the hands of
the user for enhancing, analyzing and obtaining the desired quality of performance and the
decision-making procedure within the business firm. Improper information that is if generated by
the spreadsheet may lead to financial decision making depending on that faulty information that
may affect the business drastically. Thus, such a risk can be mitigated by the proper formatting

5ACCOUNTING SYSTEMS AND PROCESSES
of the spreadsheet that starts with the proper separation of the data and report areas (Cumming,
2016).
Answer to Question 4
If functions
The particular requirement that has been stated in this question is that the understanding
of the IF statement has been aimed at. The advantages of this particular logical function is that
the user can utilize the if function for setting the command, which will in turn help in identifying
the fact that all the conditions have been properly adhered to. In such a case, the matching of the
particular conditional statement with the command would result in the outcome as per the logical
value. If the case is such that the condition does not match then the outcome would be somewhat
different from the logical value.

6ACCOUNTING SYSTEMS AND PROCESSES
Answer to Question 5
The management of the inventory of a particular organization can be handled by two
major procedures that is the perpetual inventory system and the periodic inventory system (Patil
& Singh, 2016). The essential differences between the perpetual inventory system and the
periodic inventory system can be listed down as follows:
Perpetual Inventory System Periodic Inventory System
1. The perpetual inventory systems
involves updating the general ledger
regularly with the occurrence of
inventory related transactions
2. The perpetual inventory system has to
be mandatorily computerized due to the
complex nature of book keeping
involved in the particular system
3. The perpetual inventory system
involves both raw materials inventory
account and the merchandise account
1. The periodic inventory system involves
formation of no cost of goods sold
account until there is a physical count
which is utilized for deriving the cost of
goods sold
2. The simplicity of the periodic inventory
system allows the manual usage of this
particular inventory system
3. Under a periodic inventory system all
he purchases are recorded in the
purchases asset account
Answer to Question 6
Worksheet and financial reports
One of the well-known and globally used tools for the purpose of carrying out the
accounting computations and other related calculations is the spreadsheet. A spreadsheet

7ACCOUNTING SYSTEMS AND PROCESSES
facilitates the utilization of relevant formula and appropriate data for generating a report of the
desired quality. The cells also can be made hidden or visible depending upon the requirements of
the user. The facilities like the providence of the data formatting in terms of font size, texts and
numbers ease the user in forming a quality report. Graphs and charts can also be used for
designing the required report.
Answer to Question 7
Particulars
Average
Cost FIFO LIFO
Sales Revenue $2,20,000 $2,20,000 $2,20,000
Less: Cost of Goods Sold $1,41,440 $1,32,000 $1,52,000
GROSS PROFIT $78,560 $88,000 $68,000
Particulars
Average
Cost FIFO LIFO
Beginning Inventory $1,80,000 $1,80,000 $1,80,000
Net Purchases $2,50,750 $2,50,750 $2,50,750
Cost of Goods Available $4,30,750 $4,30,750 $4,30,750
Ending Inventory $2,89,310 $2,98,750 $2,78,750
Cost of Goods Sold $1,41,440 $1,32,000 $1,52,000
Calculation of Gross Profit:-
Calculation of Gross Profit:-
Workings:

8ACCOUNTING SYSTEMS AND PROCESSES
Date Unit
Cost per
Unit
Total
Amount Unit
Cost per
Unit
Total
Amount Unit
Cost per
Unit
Total
Amount
01-Jan 1500 $120 $1,80,000
10-Jan 500 $130 $65,000 1500 $120 $1,80,000
500 $130 $65,000
2000 $123 $2,45,000
12-Jan 650 $135 $87,750 2000 $123 $2,45,000
650 $135 $87,750
2650 $126 $3,32,750
18-Jan 700 $140 $98,000 2650 $126 $3,32,750
700 $140 $98,000
3350 $129 $4,30,750
31-Jan 1100 $129 $1,41,440 2250 $129 $2,89,310
Purchase Cost of Goods Sold Balance Inventory
Inventory Ledger (Average Method):
Date Unit
Cost per
Unit
Total
Amount Unit
Cost per
Unit
Total
Amount Unit
Cost per
Unit
Total
Amount
01-Jan 1500 $120 $1,80,000
10-Jan 500 130 $65,000 1500 $120 $1,80,000
500 130 $65,000
12-Jan 650 135 $87,750 1500 $120 $1,80,000
500 $130 $65,000
650 $135 $87,750
18-Jan 700 140 $98,000 1500 $120 $1,80,000
500 $130 $65,000
650 $135 $87,750
700 $140 $98,000
31-Jan 1100 $120 $1,32,000 400 $120 $48,000
500 $130 $65,000
650 $135 $87,750
700 $140 $98,000
31-Jan 1100 $1,32,000 2250 $2,98,750
Inventory Ledger (FIFO Method):
Purchase Cost of Goods Sold Balance Inventory

9ACCOUNTING SYSTEMS AND PROCESSES
Date Unit
Cost per
Unit
Total
Amount Unit
Cost per
Unit
Total
Amount Unit
Cost per
Unit
Total
Amount
01-Jan 1500 120 $1,80,000
10-Jan 500 130 $65,000 1500 $120 $1,80,000
500 130 $65,000
12-Jan 650 135 $87,750 1500 $120 $1,80,000
500 $130 $65,000
650 $135 $87,750
18-Jan 700 140 $98,000 1500 $120 $1,80,000
500 $130 $65,000
650 $135 $87,750
700 $140 $98,000
31-Jan 700 $140 $98,000 1500 $120 $1,80,000
400 $135 $54,000 500 $130 $65,000
250 $135 $33,750
0 $140 $0
31-Jan 1100 $1,52,000 2250 278750
Inventory Ledger (LIFO Method):
Purchase Cost of Goods Sold Balance Inventory
Answer to Question 8
Original Data:
Normal View:

10ACCOUNTING SYSTEMS AND PROCESSES
Date Particulars Amount
30/4 Bank Balance as per Pass Book $22,345
Add:
Deposit in Transit $4,567
EFT Insurance Payment $400
Book Error Cheque 1419 $123
NSF Cheque from Customer $2,300
Bank Service Charge $78 $7,468
$29,813
Less:
Outstanding Cheques 2759
EFT Rent Receipt 700
Note Receivable $2,345
$5,804
30/04 Cash Account Balance as of 30th April $24,009
Bank Reconcilaition Statement
As on 30th April
Date Particulars Amount
30/4 Bank Balance as per Pass Book 22345
Add:
Deposit in Transit 4567
EFT Insurance Payment 400
Book Error Cheque 1419 123
NSF Cheque from Customer 2300
Bank Service Charge 78 =SUM(D8:D12)
=E6+E12
Less:
Outstanding Cheques =1789+650+320
EFT Rent Receipt 700
Note Receivable 2345
=SUM(D15:D18)
30/04 =IF(E20>0,"Cash Account Balance as of 30th April","Bank Overdraft Balance as of 30th April") =E13-E18
Bank Reconcilaition Statement
As on 30th April

11ACCOUNTING SYSTEMS AND PROCESSES
Revised Data:
Date Particulars Amount
30/4 Bank Balance as per Pass Book $22,345
Add:
Deposit in Transit $4,560
EFT Insurance Payment $1,245
Book Error Cheque 1419 $459
NSF Cheque from Customer $1,560
Bank Service Charge $27 $7,851
$30,196
Less:
Outstanding Cheques 3897
EFT Rent Receipt 540
Note Receivable $1,750
$6,187
30/04 Cash Account Balance as of 30th April $24,009
Bank Reconcilaition Statement
As on 30th April
Answer to Question 9
Dr. Cr.
Date Amount Amount
04-12-2017 Accounts Receivable A/c. Dr. $8,560
To, Sales A/c. $8,560
30/4/2017 Cash A/c. Dr. $4,280
To, Accounts Receivable A/c. $4,280
30-05-2017 Bad Debts Expenses A/c. Dr. $4,280
To, Accounts Receivable A/c. $4,280
15/6/2017 Cash A/c. Dr. $4,280
To, Bad Debt Recoveree A/c. $4,280
Particulars
In the Books of…
Journal Entries

12ACCOUNTING SYSTEMS AND PROCESSES
Answer to Question 10
Direct Write-Off Method:
Dr. Cr.
Date Amount Amount
05-10-2017 Bad Debts Expenses A/c. Dr. $8,500
To, Accounts Receivable A/c. $8,500
30/6/2017 Profit & Loss A/c. Dr. $8,500
To, Bad Debts Expenses A/c. $8,500
07-05-2017 Cash A/c. Dr. $8,500
To, Bad Debt Recoveree A/c. $8,500
In the Books of…
Journal Entries
Particulars
Allowance Method:
Dr. Cr.
Date Amount Amount
05-10-2017 Bad Debts Expenses A/c. Dr. $8,500
To,
Provision for Doubtful
Debts A/c. $8,500
05-10-2017
Provision for Doubtful Debts
A/c. Dr. $8,500
To, Accounts Receivable A/c. $8,500
30/6/2017 Profit & Loss A/c. Dr. $8,500
To, Bad Debts Expenses A/c. $8,500
07-05-2017 Accounts Receivable A/c. Dr. $8,500
To,
Provision for Doubtful
Debts A/c. $8,500
07-05-2017 Cash A/c. Dr. $8,500
To, Accounts Receivable A/c. $8,500
Particulars
In the Books of…
Journal Entries

13ACCOUNTING SYSTEMS AND PROCESSES
Answer to Question 11
The online retail business has increasingly come to depend on the ability of the
computers. eBay being a leading e -commerce firm has established business through the force of
internet supported by computers. eBay has been a successful online retailer firm and the success
of the firm has been strongly founded on the facility provided by the computers. The entire
computerized market that provides the customer to go through the vast range of products that has
been showcased in the website owned by the retailer firm. The providence of a computer also has
enabled retailer firms like eBay to carry their business to the customers placed in different parts
of the world. However, the availability of internet is also necessary for successful online retailing
(Davari, Iyer & Rokonuzzaman, 2016).
Answer to Question 12
Dr. Cr.
Date Amount Amount
07-05-2017 Accounts Receivable A/c. Dr. $14,050
To, Sales A/c. $14,050
28/7/2017 Notes Receivables A/c. Dr. $14,050
To, Accounts Receivable A/c. $14,050
27/9/2017 Accounts Receivable A/c. Dr. $14,050
To, Notes Receivables A/c. $14,050
10-05-2017 Cash A/c. Dr. $14,050
To, Accounts Receivable A/c. $14,050
In the Books of…
Journal Entries
Particulars

14ACCOUNTING SYSTEMS AND PROCESSES
Dr. Cr.
Date Particulars Amount Date Particulars Amount
28-Jul
Accounts Receivable
A/c. $14,050 27-Sep Accounts Receivable A/c. $14,050
Dr. Cr.
Date Particulars Amount Date Particulars Amount
07-May Sales A/c. $14,050 28-Jul Notes Receivables A/c. $14,050
27-Sep Notes Receivables A/c. $14,050 05-Oct Cash A/c. $14,050
Notes Receivable A/c.
Accounts Receivable A/c.
Answer to Question 13
Work integrated Assessment case study
Introduction
Qantas Airways Limited has been a domestic and international service provider that has
been operating in the global boundaries. Qantas Airways is based in Australia. It had been
identified as one of the major airline companies that facilitate the providence of economical and
elite airline services. The particular airline company has also been dealing in airline courier
services. The particular company has also been undertaking programs like airhostess training and
development programs so that the newcomers can join the industry. In order to assess whether
the company is suitable for shareholder investment the financial statements of the company has
been analyzed. The financial statements explain the financial position of the company and the
performance delivered by it (Chandra 2014).
Analyzing the financial statements of the company
The financial year of 2012, has been a difficult year for Qantas Airways as it has incurred
a profit after tax of $95 million. This was the year when the company had incurred its highest bill
of $4329 million. The amount was as high as 18% greater than the fuel bill that had been realized
in the financial year of 2022.

15ACCOUNTING SYSTEMS AND PROCESSES
The financial year of 2013 had been featured by a turnaround, as the company did incur a
profit before tax of $192 million and the profit after tax amounted to $6 million. The major event
undertake in the financial year of 2013 is that the company went into partnership with Emirates.
The financial year of 2014, observed a loss of $2.8 billion. This was majorly due to the
Qantas Transformation program. Though the figures look bad, the financial year of 2014 marked
the revival phase of the company.
The financial year of 2015, marked the successful business by company as the profit
before tax amounted to $975 million and the profit after tax amounted to $894 million.
Starting from the financial year of 2016, the performance curve of the company signified
a rising trend and the financial year of 2017 followed the same trend.
Significant ratios – An overview into the company performance
Qantas Airways Limited
Financial
Year Net Profit/Loss ($M)
Total Assets
($M)
Average
Shareholder's
Equity ($M)
Net Sales
($M)
2012 -244 21,178 6,020 15,724
2013 6 20,200 5,921.50 15,902
2014 -2922 17,318 4,377.50 15,352
2015 558 17,530 3,166.50 15,816
2016 1029 16,705 3,353.50 16,200
2017 853 17,221 3,396.00 16,057
Significant Ratios
Financial Year 2012 2013 2014 2015 2016 2017
Return on Investment -0.01 0.00030 -0.17 0.03 0.06 0.050
Return on Equity -0.041 0.00101 -0.67 0.18 0.31 0.251
Net Profit Margin -0.016 0.00038 -0.19 0.04 0.06 0.053
The return on investment component that has been calculated in the above table reflect
the fact that the return on investment that has been obtained by the company has gradually

16ACCOUNTING SYSTEMS AND PROCESSES
become stable especially from the year of 2015. This further indicates that the management of
the company has been managing stable returns from the investment projects.
The return on equity component also has been following a rising trend indicating that the
company has been ensuring the optimum utilization of the equity funds. However, the financial
year of 2017, marks a drop in the return on equity.
The Net profit margin further reveals that the company has been following an uprising
trend from the financial year of 2015, which signifies that the company is obtaining desired
amount of profit. However, the financial year of 2017 again marks a drop in the net profit margin
(Chandra 2014).
Financial Year
Net
Profit/Loss
($M)
2012 -244
2013 6
2014 -2922
2015 558
2016 1029
2017 853
2012
2013
20142015
2016
2017
-244
6
-2922
558
1029
853

17ACCOUNTING SYSTEMS AND PROCESSES
Recommendation or Conclusion
The Qantas Airways Limited is in the revival phase. The company is turning around from
the disaster that it has recently been through. Moreover, the financial ratios reflect that the
company has been reviving since the financial year of 2015, but the year of 2017 mark an
unusual drop that should be further investigated.
Thus, the particular recommendation in regards to the shareholder investment is that
investment consideration in Qantas Airways Limited should be postponed. The profit trend of the
company should be further monitored and analyzed for a few more financial years and then the
investment decision should be taken.

18ACCOUNTING SYSTEMS AND PROCESSES
Reference
Chandra, S., Chitgopeker, C. K., Crawford, B., Dwyer, J., & Gao, Y. (2014). Establishing a
benchmark of fuel efficiency for commercial airline operations. Journal of Aviation
Technology and Engineering, 4(1), 6.
Cumming, W. (2016). Resource Capacity Estimation Using Lognormal Power Density from
Producing Fields and Area from Resource Conceptual Models; Advantages, Pitfalls and
Remedies. In 41st Workshop on Geothermal Reservoir Engineering, Stanford University,
Stanford, CA, Feb (pp. 22-24).
Davari, A., Iyer, P., & Rokonuzzaman, M. (2016). Identifying the determinants of online retail
patronage: A perceived-risk perspective. Journal of Retailing and Consumer Services, 33,
186-193.
Patil, R., & Singh, G. (2016, December). Inventory management and analysis in an orthodontic
practice. In Seminars in Orthodontics (Vol. 22, No. 4, pp. 280-288). WB Saunders.