University of Business: Business Accounting - Topic 3 Reflection

This report provides a reflection on Topic 3 of a business accounting course, focusing on sales and purchases, accounting for inventory, and cash management. The report details the student's understanding of retail business operations, including the sales process, GST, and tax invoices. It also covers inventory costing methods like FIFO, LIFO, and weighted average, along with inventory control systems and errors. Furthermore, the report explores cash management, including cash receipts, payments, bank reconciliation, and petty cash funds. The student highlights the application of these concepts and the skills gained, including the importance of internal control systems and cash budgeting. The report concludes with an overall assessment of the learning experience and the development of accounting and technical skills.

Running head: BUSINESS ACCOUNTING
Business Accounting

BUSINESS ACCOUNTING 2
Table of Contents
Introduction 3
Topic 3 3
3.1: Sales and purchases 3
3.2: Accounting for inventory 4
3.3: Cash management 5
Conclusion 6
References 7

BUSINESS ACCOUNTING 3
Introduction
This reflection report presents the learning related to topic 3 that covers the regarding sales and
purchases, accounting for inventory and cash management. It also defines the strength and
challenges related to business accounting. It also demonstrates the skills and competencies
related to accounting.
Topic 3
3.1: Sales and purchases
I have gained my understanding regarding the retail business operation. In this way, I have
learned that the company initially acquire inventory, sell inventory and then collect cash.
Through the course, I have learned that determination of profit is key objectives for a company.
I have built my knowledge regarding the retailing and the GST. In such a manner, it is evaluated
that retail business must register for an Australian business number in case sales of goods exceed
$75000 (Weygandt, Kimmel and Kieso, 2015). This topic has developed my accounting skills. I
have also built my understanding with regards to tax invoices. In such manner, I have learned
that tax invoices are required while sales are over $75. I have also built my knowledge about the
adjustment notes, accounting for sales transactions, and sales return and allowances. This
knowledge would be utilized by me to improve my professional career. During this course, I
have a lack of understanding regarding the cash settlement discount and trade discount. Hence, I
faced challenges in cash settlement and trade discount. Throughout this course, I have increased
my knowledge about the freight outwards, accounting for purchase and cost of sales, periodic
inventory system and perpetual inventory system. This would be beneficial for enhancing my
professional and personal career. In this course, I have improved my learning regarding the
principles of the internal control system and manual accounting systems. This would be

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beneficial for me to control the activities and protect the assets of the company. I have also built
my understanding with respect to cash receipts journal, sales journal, purchase journal and cash
payment journal. This would be beneficial for me to enhance my career in the future.
3.2: Accounting for inventory
During this course, I have developed my understanding regarding accounting for inventory. I
have improved my knowledge associated with determining the cost of inventory of hand. In this
way, I have learned that company should include stock takes, transfer of ownership, goods on
consignment, and cost of inventory (Wild, 2017). I have also generated my knowledge regarding
four techniques of inventory cost assignment such as specific identification, first-in, first out,
last-in, first-out, and averaging method. This technique would be applied by me for managing the
inventory of the company in the future.
I have learned that the FIFO method considered the assumption that the cost of the first units
acquired when the cost of the first units sold. It is assessed that LIFO techniques focus on
assumption that the cost of last units acquired when the cost of first units sold (Horngren and
Harrison, 2015). Along with this, I have learned that the weighted average method measures the
average cost per unit and uses this to cost the ending inventory. This learning has developed my
accounting skills. It is also addressed that inventory costing methods aid to maintain each item of
inventory, keep a general ledger, and subsidiary ledger (Gitman, Juchau, and Flanagan, 2015).
Throughout the learning of the inventory control system, I am able to provide the continuous
record of the transaction. I have also developed my strength related to inventory errors and
estimating inventories. I would like to apply these methods in operation for becoming a good
accounting manager. I have also pointed out that costing methods has an effect on decision
making. As a result, I would consider it in decision making.

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3.3: Cash management
I have generated my knowledge regarding the cash management. In this way, I have learned that
cash involves the money, duplicate of credit cards, EFTPOS sales, and negotiable instruments
(Watts and Zuo, 2016). I have also created my knowledge regarding control of cash as well as
cash receipts. I have also developed my understanding of the control of cash payments, bank
accounts, and reconciliation. I have also generated my knowledge regarding the reconciliation
procedure. This would be beneficial for using reconciliation in an effective manner.
I have pointed out that at the initial level, the accountant should check all errors and items from
last reconciliation. I have also learned that an accountant should compare the cash receipts with
credits in the bank statement. I have also noticed that the accounting manager should update cash
journals for capturing the items by a bank statement. I have also observed that the accountant
should deal with the errors during the reconciliation process. It is evaluated that the accounting
manager emphasizes on total cash journals and post to ledgers (Collier, 2015). These leaning
would be advantageous for me to prepare the bank reconciliation.
I have also created my knowledge about the petty cash fund, and cash budgeting. I have
enhanced my experience regarding cash management. This would be beneficial for maintaining
inventory levels to a minimum. I have also generated my knowledge regarding principles of cash
management. In this way, I have learned that accountant can emphasize revenue collection time
for accounting receivables (Wild, 2017). I have also generated my knowledge that company can
postpone payments for accounts payable as well as can maintain inventory level to a minimum. It
is assessed that cash budgeting is beneficial for estimating the potential payments and receipts
(Christopher, 2016). I have also generated my knowledge regarding petty cash fund. This would
be effective for me to eliminate expenses and difficulty of writing about many cheques may

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create minor expenses. It is observed that different entities use a petty cash fund for avoiding the
minor expenses and developing the fund (Reid, 2018). This knowledge is beneficial for me to
enhance my professional career.
Conclusion
From the above interpretation, it can be concluded that I have developed my understanding
regarding sales and purchases, accounting for inventory and cash management. It can be
summarised that I have developed my accounting and technical skills throughout this accounting
process.

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References
Christopher, M., 2016. Logistics & supply chain management. UK: Pearson.
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision
making.USA: John Wiley & Sons.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. UK: Pearson
Higher Education.
Horngren, C. and Harrison, W., 2015. ACCOUNTING: BSB110. AU: Pearson Higher Education.
Reid, W., 2018. The meaning of company accounts. UK: Routledge.
Watts, R.L. and Zuo, L., 2016. Understanding practice and institutions: A historical perspective.
Accounting Horizons, 30(3), pp.409-423.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. USA:
John Wiley & Sons.
Wild, T., 2017. Best practice in inventory management. UK: Routledge.