Finance Module Assignment: Accounting System and Process Analysis

This assignment delves into various aspects of accounting systems and processes, utilizing spreadsheets for financial calculations, data management, and representation of negative numbers. It covers inventory systems, including periodic systems, and demonstrates the use of spreadsheets as accounting tools, emphasizing formulas, data organization, and the use of charts. The solution includes examples of income statements and balance sheets in both normal and formula views. The assignment addresses bank reconciliations, journal entries for accounts receivable, and bad-debt determination using both write-off and allowance methods. Furthermore, the assignment analyzes a company's turnover ratio, and includes journal entries, and a detailed examination of the Wesfarmers group's business activities, financial statements, and key financial ratios like dividend, EPS, equity return, and working capital ratio, along with risk assessment, sustainability, and provides investment advice. References are included.

Running head: ACCOUNTING SYSTEM AND PROCESS
Accounting system and process
Name of the University
Subject code and name ‘
Student Name and ID
Assignment Task Number
Author Note

1ACCOUNTING SYSTEM AND PROCESS
Table of Contents
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Answer 13:............................................................................................................................................11
References:............................................................................................................................................14

2ACCOUNTING SYSTEM AND PROCESS
Answer 1:
After the cells in the spreadsheet are named, it can be efficiently used for the purpose of
managing, editing, deleting and updating (Arnold, 2013). Further, the users can make various
calculations using the formulas only if the cells are named. Moreover, naming the cells makes it
easier and simpler for using it as table, function and constant.
Answer 2:
Under the spreadsheet the negative numbers may be represented through applying red colour,
parentheses or with minus sign (Baños-Caballero, García-Teruel & Martínez-Solano, 2014). The user
can represent the negative numbers through selecting the specific cell or the cell range and then
pressing the CTRL and 1 key together, the number or the currency is to be selected and under that the
option of negative number is to be selected. Negative data are shown within bracket instead of
showing it with minus sigh make the data more clear and visible.
Example showing the negative numbers within bracket is shown below -

3ACCOUNTING SYSTEM AND PROCESS
Answer 3:
As the spreadsheet includes various data that is inclusive of both processed as well as
unprocessed data, it will be easier for the user to use the data if it is segregated under report area and
data area. Further, it enables the user to make the adjustments from the raw data and put it in the
report area.
An example that shows different data area and the report area is as follows –

4ACCOUNTING SYSTEM AND PROCESS
Answer 4:
IF function under the spread sheet, enables the user to quantify whether the required condition
is satisfied or not. This function is used to find out the logical function like TRUE or FALSE. When
the condition is satisfied the IF functions returns the TRUE value and while it is not satisfied the IF
function returns the FALSE function.
The following is an example of spreadsheet that shows the IF functions for the normal view:
IF functions as formula view

5ACCOUNTING SYSTEM AND PROCESS
Answer 5:
Periodic systems of the inventory:
It is the arrangement of keeping up the inventories. Under the periodic framework, the stock
level and the cost of merchandise sold points of interest are not updated on regular basis (Brigham,
2014). Rather, the buys and sales exchanges are recorded through the single entry of journal at the
end of the period
The example is given as follows:
Answer 6:
Fancy Footwear- Adjusted spreadsheet as normal view:

6ACCOUNTING SYSTEM AND PROCESS
Fancy Footwear- Adjusted spreadsheet as formula view
Statement of Income in normal view:

7ACCOUNTING SYSTEM AND PROCESS
Statement of Income in formula view:

8ACCOUNTING SYSTEM AND PROCESS
Balance Sheet in normal view:

9ACCOUNTING SYSTEM AND PROCESS
Balance Sheet in formula view:

10ACCOUNTING SYSTEM AND PROCESS
The uses of the spreadsheet as an accounting tool:
 In this technique, it winds up noticeably less demanding to do the figuring with the assistance
of the formula, which can be utilized as a part of the spreadsheet.
 The arranging of the information according to the size, numbers, textual style and content
required should likewise be possible (Petty et al., 2015).
 In this specific circumstance, the diagrams and the outlines can likewise be utilized by the
necessity and to break down and analyze the information.
 If a specific cell does not require to be demonstrated then it can be covered up
Answer 7:
Inventory in the normal view:

11ACCOUNTING SYSTEM AND PROCESS
The calculation of Gross Profit as a normal view:
Inventory as the formula view:
The calculation of the Gross Profit as the formula view:
After making the data changes:
Inventory