Financial Accounting: Analysis of Financial Statements Assignment

This document presents a comprehensive solution to a financial accounting assignment. It begins with an introduction to financial accounting, emphasizing its role in analyzing business performance and generating financial reports like income statements, balance sheets, and cash flow statements. The assignment covers preparing journal entries, trial balances, ledger accounts, profit and loss accounts, and statements of financial position. It also delves into depreciation techniques, including straight-line and written-down methods, and explores the concepts of consistency and prudence in accounting. Furthermore, the assignment includes examples of bank reconciliation statements (BRS) and analyses of financial data, providing a practical understanding of key accounting principles and practices. The solution is structured with examples for the client 1, 2 and 3, covering topics such as preparing income statements and statements of financial position, as well as explaining depreciation and accounting concepts. The assignment provides a detailed breakdown of the accounting process and its application in a real-world context.

FINANCIAL ACCOUNTING

INTRODUCTION
The criteria and department of the accounting under which all kinds of the financial and
monetary transactions are to be recorded as well as analysed is identified as the financial
accounting. When the business entity going to assess that company and business entity
performing in which manner such as declining or upward then the financial accounting is the
most helpful criteria for this condition. An entrepreneur when want to check that whether the
financial and profitability position of the company growing or not in the industry then use such
mentioned branch. Apart from this, by considering the financial accounting process the
management able to make the different types of the financial reports and accounts like as income
statement, balance sheet, cash flow etc. In addition to this, all the disclosures and theories,
standards etc. of the accounting are to be analysed and while making the accounts of the
financial (Weil, Schipper and Francis, 2013). The current project is based on the different
number of the accounts from initial or start to end of the financial statements. On the basis of the
present report the reader able to know formate and process to prepare journal entries, trial
balance, ledger account, profit and loss accounts, statement of financial position etc. by
considering such all the statements the management of business organisation able to make the
strategies for the further and next financial periods to make the company healthier in for of the
profitability. In addition to this, about the two types of depreciation techniques, suspense and
clearing account etc. also explained in the current case study. Apart from this, the report shows
about the BRS which states for the bank reconciliation statement used by the companies for
assessing various financial data and conditions in the segment where it existed and operating.
Financial accountancy is the record of accountancy preoccupied with the compact and analysis
and reporting of financial transaction concern to a enterprise.
When make financial statement ,they necessary follows points:-
 Relevance:- Financial accounting which is mind particular.it is very important for
preparation of financial accounting statement of the organization for information to
determiner decisions. Unless this evidence is present ,there is no point in disorderliness
statement.
 Materiality :- materiality is important for reparation of fiscal statement in the
organization because information is materiality if its mistake or statement could
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determiner the economical decisions of exploiter confiscate on the basis of the financial
statement.
 Reliability:- accounting essential be self-governing from important mistake or bias. It
should be easy relied upon by managers. Often message that is extremely applicable.
 Understand-ability:- financial accounting written report should be ununderstood by
those to whom the content.
 Comparability :-- financial reports from different time period should be compare with
one some other in command to conclude meaningful assumption about the tendency in an
entity fiscal presentation and perspective over time.
this point are very important for preparation of correct and valuable financial statement for the
organization.
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CLIENT 1
a) Select Book entry
1. Representation journal entries and calculation of proprietor assets
A. Preparing the account book of Select Entry
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b) Complete double entry recording
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