Accounts Report: Debt Management, Policies, Procedures, and Analysis

This report provides a comprehensive analysis of debt management within a company's accounts. It examines the importance of a robust credit policy, detailing how a company can effectively manage and recover debts from clients. The report delves into the recording of financial transactions, including the role of accounts receivable, digital accounting systems, and the significance of debit and credit entries in business transactions. It also addresses the handling of bad debts, the provision for doubtful debts, and the adherence to accounting standards and ethical principles. The report discusses the importance of reconciling transactions, implementing credit policies, and developing a debt recovery plan to mitigate financial losses. Overall, the report offers a detailed examination of crucial aspects of financial management, providing valuable insights into how companies can optimize their accounting practices and ensure financial stability.

Running head: Accounts
Accounts
Name of the Student
Name of the University
Author Note

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Table of Contents
Assessment Task 1.....................................................................................................................4
Executive Summary...............................................................................................................4
Clients with Debt Report........................................................................................................4
Assessment Task 2.....................................................................................................................4
Question No 1........................................................................................................................4
Question No 2........................................................................................................................5
Assessment Task 3.....................................................................................................................5
Question No 1........................................................................................................................5
Question No 2........................................................................................................................6
Question No 3........................................................................................................................7
Question No 4........................................................................................................................7
Question No 5........................................................................................................................8
Question No 6........................................................................................................................8
Question No 7........................................................................................................................9
Question No 8........................................................................................................................9
Reference..................................................................................................................................11

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Assessment Task 1
Executive Summary
The report shows about the debt report of the company, as it shows the how the
company is able to meet the debt of the company. It shows how the credit policy as how the
company is able to manage the collection from debtor; it shows the different policy as how
the company is able to recover the procedure to receive the cash from the debtor. This show
about how the company is bale to meet all the credit obligation easily and effectively in the
company.
Clients with Debt Report
This report shows about debt of the company, the company should able to make the
proper adjustment about the debt in the company as it should able to make a hard credit
policy which the company should make about the debtor. The company should make proper
credit policy as 30 days which the company should use with the debtor in regards of the
company financial statement. It can also make proper adjustment in regards of debtor so that
it can get proper amount of return in the company.
Assessment Task 2
Question No 1
The company should record all the information related to debtor in the company
account receivables so that it can get all the information properly and effectively in the
business. As the company should record the amount of transaction which the company have
done as well as the payment credit which company has given to the debtor. It should also
record all the cash and trade discount so that it can make a proper amount of information in
regards of company financial statement. If there is some kind of on approval basic so this
should also be recorded by the company that will help them to get the knowledge of the

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revenue in the company. It should also record the company details of the product which been
sold to the debtor so it can able to manage the selling price with the debtors.
Question No 2
Each company should able to have a digital account so that it can record all the
transaction properly and effectively in the business. As the company is concern it should have
a proper system of accounts so that it records all the transaction of company activities so that
the company is able to get proper record in the business activities. The information is able to
meet all the required transaction so that the company should know all the information of the
business. The company should install proper accounting system so that it can able record
transaction of business activities, it should also able to have a payroll system so that it will
help the company to record all the transaction in the business. Company should able to utilize
the information and able to generate the company report, as the system will help the company
to get the information properly so that the company is getting all the information better and in
a systematic approach this will help the company to get proper report in the business.
Assessment Task 3
Question No 1
Business transaction is the transaction which is done in the company to get proper
activities in the business1. These transactions are properly record so that the company can
know the business activities and able to judge the business performance. These are the events
which the company is able to do in their business activities and how the company is able to
1 Agrawal, Anup, and Tommy Cooper. "Corporate governance consequences of accounting
scandals: Evidence from top management, CFO and auditor turnover." Quarterly Journal of
Finance 7.01 (2017): 1650014.

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perform its business activities in the industry. The transaction is record as debit and credit in
the accounting treatment in the business.
Debit is a kind of accounting entry so this will able increase the expenses and asset in
the business, it can able to decrease the equity or liability of the company. It is mentioned in
the left side of the accounting entry. This is a way from which there is cash out flow of the
business and company have to spend some amount in expense and asset of the company
Credit is a kind of accounting entry so this can increase the equity account and
liability or able to reduce the asset and expenses account of the company. It able to shown in
the right side of the accounting entry. This involve the inflow of cash in the business as this
help the company to carry its business operation more easily and effectively in the business.
Company should follow the golden rules while carrying their accounting of financial
statement, the rules is:
Debit the Receiver, Credit the Giver. It applies for the Personal Accounts
Debit what Comes In, Credit What Goes Out. It applies for Real Accounts
Debit All Expenses and Losses, Credit All Income And Gains.
Question No 2
Company should able to record all the debtor information as the company is not able
to have to proper record of the information2. As the company is able to have credit policy
which is able to be maintain a proper day so if the company is not getting the money, the
company should record and check all the debtor details so that it can know the debtor is
2 Atanasov, Vladimir A., and Bernard S. Black. "Shock-based causal inference in corporate
finance and accounting research." Critical Finance Review 5 (2016): 207-304.

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willing to pay the company or not. It should know that the debtor is not able to pay or having
proper financial position so that it should record the same as bad debt in the company
financial statement. The company should know that the debtor will be insolvent, then it
should record the same as bad debt so it knows that it will not able to get the money back
from the debtor.
Provision of Doubtful Debts is the provision the company made so that it recovers the
amount which should be deducted by the company. This is the provision which the company
makes so that it has to bear the loss which the company have made so that it can make
necessary changes in the financial statement in the company.
Question No 3
Each company should able to follow all the rules and regulation in the company
financial statement, as it should know all the process and procedure in the financial
statement3. It should able to follow Accounting Standard as this show all the related law and
transaction which will help the company to know and preparation of the financial statement.
It should follow all the Accounting Standard which can help them to gain proper information
in the company accounts. It should cover all the APES 110 as this show all the related all the
ethics and principle which the professional should follow in their profession. It should also
know the principle as it show the integrity, objectivity, confidentiality, professional due care
and professional competence and due care in the company.
3 Maas, Karen, Stefan Schaltegger, and Nathalie Crutzen. "Integrating corporate sustainability
assessment, management accounting, control, and reporting." Journal of Cleaner
Production 136 (2016): 237-248.

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Question No 4
The company should able to record the transaction properly and effectively in the
business. It should record the transaction properly, so the company should able to reconcile
the transaction easily and effectively4. The company should reconcile it in a week so the
company should reconcile the financial statement so that it can able to meet the business
activities properly and effectively. As the reconcile the company should able to check the
error and omission which the company has done in the information business activities so that
it can able to meet the information properly and effectively. Company recording all the
transaction can help to have proper details of company information so that it can make
financial statement easily and also company can provide the all the information to financial
user as and when required by them.
Question No 5
Company should able to have proper accounting policies and also it should able to
have credit policy in the business5. Credit policy is the policy which the company is having in
regards of the debtor so that it can able to have proper policy of cash settlement of the
company debt. It should able to have a proper credit policy which the company should have
in regards of debtors as it should have 30 days policy of credit. As this will help the company
to get proper return of the cash in the company and able to get return from the business. 30
days is also very short as well as it can be easy for debtor to gain the advantage of the credit
policy of the company. Accounting policy help the company to know all the details about the
4 Peters, Gary F., and Andrea M. Romi. "Does the voluntary adoption of corporate governance mechanisms
improve environmental risk disclosures? Evidence from greenhouse gas emission accounting." Journal of
Business Ethics 125.4 (2014): 637-666.
5 Schaltegger, Stefan, and Roger Burritt. Contemporary environmental accounting: issues,
concepts and practice. Routledge, 2017.

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financial statement as this will help the company to represent the information more easily and
effectively in the business.
Question No 6
The company should able to have proper creditor policy in the company so that it can
able to have proper payment in the business6. It should able to take authorise from the
management so that it can clear the debt for the easily and effort in the business. Company
should have to proper adjustment about the creditor so that it can able to have proper
adjustment in the business. This is able to meet the requirement as the company can make
proper return of the money to the creditors so it can clear the creditor easily in the company.
Question No 7
The company is able to have proper return in the company so that it can able to get
proper recover of money from the debtor. The company should able to have proper policy of
credit so that it can proper return of the company. It able to make proper strategies so that it
can know the debtor policy as it should record the transaction policy and procedure in the
company7. Company should able to have proper credit policy which can help them to reach
out the debtor so it can recover the money easily from the debtor. The credit policy help the
company to know how much the debtor will pay to them and able to make proper
composition of company so that it can utilized the amount effectively in company business.
6 Schaltegger, Stefan, Igor Álvarez Etxeberria, and Eduardo Ortas. "Innovating corporate
accounting and reporting for sustainability–attributes and challenges." Sustainable
Development 25.2 (2017): 113-122.
7 Schaltegger, Stefan, Roger Burritt, and Holger Petersen. An introduction to corporate
environmental management: Striving for sustainability. Routledge, 2017.

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Question No 8
Debt recovery plan is the plan which the company make to receive the debt of the
company8. It shows the loan policy which the company made in order to recover all its debt
in the company financial statement, the company should able to make the debt plan proper so
that it can reach out of the liability properly and effectively in the business. It should able to
have proper debt recovery plan so that it can have debt collection process as it should make
proper credit policy which can help the company to reach out the debtor easily so that it can
make out proper credit policy in the business. It should make proper rules and regulation so
that it can have proper debt recovery plan in the business. This plan helps the company to get
over all the debt loss which can happen in the company in regards of debt. This help them to
have a proper utilization of company capital in regards of its business.
8 Watson, Luke. "Corporate social responsibility research in accounting." Journal of
Accounting Literature 34 (2015): 1-16.

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Reference
Agrawal, Anup, and Tommy Cooper. "Corporate governance consequences of accounting
scandals: Evidence from top management, CFO and auditor turnover." Quarterly Journal of
Finance 7.01 (2017): 1650014.
Atanasov, Vladimir A., and Bernard S. Black. "Shock-based causal inference in corporate
finance and accounting research." Critical Finance Review 5 (2016): 207-304.
Maas, Karen, Stefan Schaltegger, and Nathalie Crutzen. "Integrating corporate sustainability
assessment, management accounting, control, and reporting." Journal of Cleaner
Production 136 (2016): 237-248.
Peters, Gary F., and Andrea M. Romi. "Does the voluntary adoption of corporate governance
mechanisms improve environmental risk disclosures? Evidence from greenhouse gas
emission accounting." Journal of Business Ethics 125.4 (2014): 637-666.
Schaltegger, Stefan, and Roger Burritt. Contemporary environmental accounting: issues,
concepts and practice. Routledge, 2017.
Schaltegger, Stefan, Igor Álvarez Etxeberria, and Eduardo Ortas. "Innovating corporate
accounting and reporting for sustainability–attributes and challenges." Sustainable
Development 25.2 (2017): 113-122.
Schaltegger, Stefan, Roger Burritt, and Holger Petersen. An introduction to corporate
environmental management: Striving for sustainability. Routledge, 2017.
Watson, Luke. "Corporate social responsibility research in accounting." Journal of
Accounting Literature 34 (2015): 1-16.