Detailed Solution: Accounting Systems and Processes, Assignment Task 2

This document presents a comprehensive solution to an Accounting Systems and Processes assignment. The solution addresses various aspects of accounting, including the use of spreadsheets, with examples illustrating cell naming and negative number representation. It explores the differences between perpetual and periodic inventory systems, along with detailed explanations of the "IF" function. The assignment also covers the advantages and disadvantages of using spreadsheets in accounting, methods for approximating bad debts (direct write-off and allowance methods), and the role of computers in modern retailing. Furthermore, the solution includes an analysis of Wesfarmers' financial performance, highlighting key metrics such as net profit, earnings per share, and free cash flow, providing insights into the company's financial health and management strategies. The document is designed to help students understand and solve complex accounting problems.

Running head: ACCOUNTING SYSTEM AND PROCESS
Subject Code: ________
Subject Name: Accounting Systems and Processes
Assignment Task Number: 2
List of Questions Attempted: 13
List of Questions Not Attempted: 0

1ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Answer to question 1:.................................................................................................................3
Answer to question 2:.................................................................................................................3
Answer to question 3:.................................................................................................................4
Answer to question 4:.................................................................................................................5
Answer to question 5:.................................................................................................................6
Answer to question 6:.................................................................................................................8
Answer to question 7:...............................................................................................................10
Answer to requirement 1:.........................................................................................................10
Answer to requirement 2:.........................................................................................................11
Answer to question 8:...............................................................................................................11
Answer to A:............................................................................................................................11
Answer to B:............................................................................................................................12
Answer to question 9:...............................................................................................................12
Answer to Question 10:............................................................................................................13
Answer to question 11:.............................................................................................................13
Answer to question 12:.............................................................................................................14
Answer to question 13:.............................................................................................................14
Reference List:.........................................................................................................................18

2ACCOUNTING SYSTEM AND PROCESS
Answer to question 1:
The orientation of the spreadsheet is replaced by their names in each of the cells. The
main objective of substituting the cell names is to facilitate an easy understanding of the
convenience and association with the computations performed with declaration provided in
each of the spreadsheet (Chak & Fung, 2015). Below stated is the example of spreadsheet
with reference to the names of the spreadsheet;
Normal View

3ACCOUNTING SYSTEM AND PROCESS
Formula View:
Answer to question 2:
The negative numbers in the spreadsheet are presented in the form of brackets that are
in red colour. The below stated example provides the illustrations of negative numbers;

4ACCOUNTING SYSTEM AND PROCESS
There is no such rule that states that an accountant cannot represents the negative
numbers in bracket. Therefore presenting the negative numbers in bracket is regarded as
standard practice (Schaltegger & Burritt, 2017). The primary reason for accountant to show
the negative numbers in bracket is to emphasize that figure represents loss or expenditure and
does not constitute a gain.
Answer to question 3:
According to Fayard, (2015) it is vital for the accountants to have a separate
accounting or bookkeeping data. The main objective of having a separate bookkeeping data is
facilitate the representation of the single view for every single row. Similarly for accounting
reports, a distinct area is required as this would enable the accountant to create a detailed
report that covers the required source of information. A wide range of data entry is employed
for recording the raw data whereas the part of report is employed for transmitting the record
to important information.
A relevant affirmation can be made in this regard is that having a separate record
keeping is necessary for recording incorrect accounting records of raw figures in the
spreadsheet (Eldenburg et al., 2016). Therefore the procedure involved in the creation of
separate data entry area provides the facilities of easy recording of data together with the
elimination of unwanted records. The below stated example of spreadsheet provides a better
understanding of the above stated declaration;
Normal View:

5ACCOUNTING SYSTEM AND PROCESS
Formula View:

6ACCOUNTING SYSTEM AND PROCESS
Answer to question 4:
According to Taleb et al., (2015) the “IF” functions is referred as the form of
functions that provides assistance in determining single value. On noticing that “IF” function
criteria is met, the result would be depicted as “True” while on non-fulfilment of the criteria
the result would be stated as incorrect. The “IF” functions helps in rendering the predictable
intellect to the computer database with the assistance of the database and is capable to
execute the decisions in respect of the established conditions together with the ascertainment
of the program sequence. An example of spreadsheet is given below where the “IF” functions
is applied;
Answer to question 5:
As evident from the foot video the resources represents that a periodic method of
inventory system has been followed. The primary reason for such assumption is that the
physical count of each unit is depicted in the video. The differences between the perpetual
and the periodic inventory system are stated below;
Basis of Distinctions Perpetual Inventory System Periodic Inventory System
Accounts In the Perpetual inventory
system a continuous informs
is made either to the general
ledger or the inventory
While under the periodic
inventory system there is no
recording of the cost of
goods sold during the

7ACCOUNTING SYSTEM AND PROCESS
journal since the inventory
connected dealings happen
(Jermias, 2017).
accounting period unless
there is a physical count of
inventory which is later used
to derive the cost of goods
sold (Uyar & Kuzey 2016).
Computer system Under the perpetual
inventory system it is not
possible to manually keep
the record of track for the
reason that there might be
abundant dealings at unit
level in each bookkeeping
period.
Under the period inventory
system it permits the manual
recording of transactions for
a very minor inventories.
Accounting cycle In the perpetual inventory
system it is possible to
obtain the correct counts of
inventory in the real time
(Otley, 2016).
In the periodic inventory
system it is not probable to
implement the sequence
calculation since there is no
such method of gaining
correct inventory sums
during actual time.
Answer to question 6:
Introduction:
Computer spreadsheets which is usually referred as the copy format of the paper
based sheets have been of late used by the accountants and bookkeepers. It is necessary for an

8ACCOUNTING SYSTEM AND PROCESS
organization to separate the spreadsheet complexities and issues of use as the requirements
for control varies from one business to another (Chenhall & Moers, 2015).
Use of Electronic Spreadsheet:
The benefit of using the electronic spreadsheet is that it provides a combination of
rigid layout which is used to keep records of the accounts with an inbuilt adding machine.
Companies are using the spreadsheet as the tracking and monitoring tool of workflow
that helps in supporting the operational processes. This includes unpaid invoices, open claims
and other forms of information that was previously retained in the paper or manual folders
(Titman et al., 2015). Spreadsheets help in implementing control by monitoring and
controlling the financial transactions which is captured by the spreadsheet accurately and
completely. The spreadsheet act as the analytical management information system. The use of
spreadsheet in accounting is regarded as the analytical review and management process of
decision making. This is used to assess the reasonableness of the financial totals (Bekaert &
Hodrick, 2017). Spreadsheets are used by the companies to directly determine the
transactions of financial statements or the balance amounts that are recorded in the general
ledger or the fiscal statements. Spreadsheet generally has wide variety of use and
complexities.
Advantages of Spreadsheet:
The advantages of spreadsheet includes the making easier calculations. With the
application of spreadsheet financial calculations becomes very easy to understand as it
displays the stages of development of sum with the capability of writing the notes and
explaining each of the lines (Lau, 2016). The grid that encase the spreadsheet cells be either
made visible or the same can be hidden at the time of printout which enables the report to be
formatted according to the display of the spreadsheet.
Spreadsheet templates that comprises of the formula for constantly using the
spreadsheet for the purpose of increasing the productivity by eliminating the need for highly
educated operators (Barr, 2018). Spreadsheet forms can be used as the source of interactions
with the database to fill up the required fields, automating most of the overall creation of the
spreadsheet.
Disadvantages of Spreadsheet:
In spite of the several uses and advantages spreadsheet has also surrounded numerous
criticism as well. One of the disadvantages of spreadsheet is that it is deskilling. Workers
would not be required to possess the skills of expert of specialist and may compete with the
inexpensive unskilled labour (Brooks, 2015). Individual spreadsheet are installed in almost
most of the computers in an office and as result it would enable persons to hoard the data and
project their own forecasts without the cooperation of the colleagues. Such phenomenon
results in duplication of data as well as the efforts across the organization. The structure of
spreadsheet forces an increase in the requirements of storage over the necessities of the raw
data.
Conclusion:
With the development made to the spreadsheet it has enhanced its abilities to
exchange the information with the other application which ultimately improves the
advantages of spreadsheet and eliminating the disadvantages (McKinney, 2015). Integrating
the spreadsheet with the graphic and word processing packages helps in raising the

9ACCOUNTING SYSTEM AND PROCESS
productivity of the reports, graphs and enabling figures easier to describe in the spreadsheet.
Integrating the spreadsheet into the data base helps in reducing the disadvantages of hording
data and creates a format overhead to store the raw information in the spreadsheet.
Answer to question 7:
Answer to requirement 1:
Average Method
Unit Cost per Unit (in $) Total Amount (in $) Unit Cost per Unit (in $) Total Amount (in $) Unit Cost per Unit (in $) Total Amount (in $)
01-10-2018 60 57 3,420
03-01-2017 10 65 650
70 58 4,070
12-10-2018 30 70 2,100 100 62 6,170
18-10-2018 70 72 5,040 170 66 11,210
31-01-2017 55 66 3,627 115 66 7,583
Average Method
Date
Purchase Issued Balance Inventory
FIFO Method:
Unit Cost per Unit (in $) Total Amount (in $) Unit Cost per Unit (in $) Total Amount (in $) Unit Cost per Unit (in $) Total Amount (in $)
01-10-2018 60 57 3,420
03-10-2018 10 65 650 10 65 650
12-10-2018 30 70 2,100 60 65 3,900
10 65 650
30 70 2,100
18-10-2018 70 72 5,040 60 65 3,900
10 65 650
30 70 2,100
70 72 5,040
31-10-2016 55 65 3,575 5 65 325
10 65 650
30 70 2,100
70 72 5,040
31-10-2016 55 3,575 115 8,115
FIFO Method
Date
Purchase Cost of Goods Sold Balance Inventory
LIFO Method:
Unit Cost per Unit (in $) Total Amount (in $) Unit Cost per Unit (in $) Total Amount (in $) Unit Cost per Unit (in $) Total Amount (in $)
01-10-2018 60 57 3,420
03-01-2017 10 65 650 10 65 650
12-10-2018 30 70 2,100 60 57 3,420
10 65 650
30 70 2,100
10-10-2018 70 72 5,040 60 57 3,420
10 65 650
30 70 2,100
70 72 5,040
31-01-2017 55 72 3,960 60 57 3,420
10 65 650
30 70 2,100
15 72 1,080
55 72 3,960 115 7,250
Date
Purchase Cost of Goods Sold Balance Inventory
LIFO Method
Answer to requirement 2:

10ACCOUNTING SYSTEM AND PROCESS
Answer to question 8:
Answer to A: Normal View
Formula View:

11ACCOUNTING SYSTEM AND PROCESS