Comprehensive Financial Accounting Principles Report, Analysis

This report provides a comprehensive overview of financial accounting principles, rules, and regulations. It begins with an introduction to financial accounting, including the different types of financial statements and the importance of following accounting standards and boards like IASB and IFRS. The report then delves into specific accounting principles such as monetary unit, going concern, conservatism, cost, and time period principles, and their relevance to financial decision-making. Several client case studies are presented, with detailed journal entries, ledger accounts, trial balances, income statements, and balance sheets, demonstrating the application of these principles. The report covers topics such as book of prime entries, double-entry recording, trial balance accuracy, income statement and financial position disclosures, bank reconciliation, and control accounts. The analysis includes a discussion on the concepts of prudence and consistency in accounting, and the importance of depreciation methods. Finally, the report concludes with a comparison between suspense and clearing accounts.

Financial Accounting
Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A Presenting report to the line manager about accounting rules, regulations and principles 1
1. Determining the financial accounting................................................................................1
2. Identifying the necessary financial accounting regulations................................................2
3. Defining the rules and principles of accounting.................................................................3
4. Elaborating the concepts and conventions relevant with material disclosure and consistency
................................................................................................................................................4
CLIENT 1........................................................................................................................................5
1. Presenting the book of prime entries..................................................................................5
2. Completion of the double entry recording in the ledgers...................................................7
3. Determining the arithmetical accuracy of with the help of trial balance.........................15
CLIENT 2......................................................................................................................................15
A Disclosure of the income statement for Peter piper for 31st December 2017..................15
B Disclosure of the financial position of Peter piper of 31st December 2017.....................17
CLIENT 3......................................................................................................................................19
A Disclosure of the financial income statement of Raintree limited....................................19
B. Disclosure of the financial postilion of Raintree limited such as....................................20
C. Analysing the concepts of prudence and consistency of accounting...............................24
D. Reason behind analysing depreciation with the help of two methods and their importances
..............................................................................................................................................25
CLIENT 4......................................................................................................................................26
A Determining the purpose of preparing bank statement for Kendal..................................26
B. Factors that influence the causes of recording the transaction of bank statements.........26
C. Disclosure of BRS...........................................................................................................26
CLIENT 5......................................................................................................................................27
A Preparing the purchase and sales ledger control accounts................................................27
B. Analysing the needs of preparing control account...........................................................28
CLIENT 6......................................................................................................................................29
A. Determining the Suspense account and its main features................................................29

B. Preparing the Trial balance on the basis of proposed elements.......................................29
C. Preparing the journal entries on the basis of trial balance adjustments...........................29
D. Determination the comparison between suspense-account and clearing account...........30
CONCLUSION..............................................................................................................................30
REFERENCES..............................................................................................................................31

INTRODUCTION
To estimate the future expenses and having the accurate control over the costs for the
operations held in the premises there is need to have the proper financial control. In order to
analyse various principles and norms of the financial disclosure will be helpful for professionals
in terms of presenting the disclosure of such data set. In the present report there will be
discussion based on various financial accounting, boards, principles, concepts, rules and
regulation that is fruitful in terms of analysing the growth and profitability of entity. There will
be various clients and their transactions will be recoded in various accounting books and they
will be advised to improve the financial growth of firm.
A Presenting report to the line manager about accounting rules, regulations and principles
To: Line manager
Subject: Informations relevant with accounting principles, rules and regulations which
essential for financial growth of organisation.
Sir,
To enhance the profitability and the operational functioning of the organisation in terms
of analysing the costs, expenses and the level of financial spending over each tasks in the
premises. Therefore, it plays the main role in presenting the disclosure of such data set by
following all the rules and regulations which are being set by accounting standards and boards.
However, such tools helps in financial decision making with efficient accuracy such as:
1. Determining the financial accounting
It refers to the record of all the financial transactions in different books or financial
instruments that will be disclosed among the users of such financial informations such as
Owners, accounting professionals and investors. There are 4 kinds of financial statements such
as:
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Illustration 1: Types of financial accounts
(Source: Gordon and et.al., 2017)
Therefore, in consideration with these statements the business will be beneficial in terms
of having accurate decisions relevant with costs control, lowering down the overhead expenses
as well as planning for the expansion of operational activities for business. On the other side the
external stakeholders such as shareholder's they seek the turnover generated by firm during a
period that will benefit them in acquiring the appropriate dividends.
2. Identifying the necessary financial accounting regulations
To present the financial disclosure this is essential that the organisation must follow the
framework of accounting operations. These are the principles which are universally followed
and accepted by each individual or corporations. Therefore, the motive behind such regulations
is that a company can become able to facilitate the financial informations to the worldwide
users as well as they will become able to understand growth and profitability of a business and
they can make investment decision for the firm (Li, Sougiannis and Wang, 2017). It will be
helpful for entity in terms of acquiring the appropriate capital funds for the future operations.
Therefore, there are some accounting standards and boards which are as follows:
IASB:
This is the board of setting the accounting standards that helps in funnelling in terms of
preparing the favourable reports of financial transactions (Kouki, 2018). These boards are
beneficial as it facilitates the adequate information as well as guide the accounting professional
to follow such rules and prepare for the financial disclosure.
FRC:
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This board is constituted by Ireland and UK for their personal regulatory in terms of
financial disclosure and the trade practices between such nations. Therefore, this board is
incorporated with the six relevant operational bodies such as financial reporting review panel,
accounting standards board, accountancy and actuarial discipline board, auditing practices
board, board for actuarial standards and professional oversight board (Financial Reporting
Council, 2018).
IFRS:
This is the board which has facilitated the adequate informations relevant with the
financial disclosure made bay organisation. The norms and principles set by this financial
standard with the motive to facilitate the proper framework of presenting the data set. It
includes preparation of various financial statement such as balance sheet, profit and loss
accounts, change in equity and cash flow statements (Ombati and Shukla, 2018). Therefore,
with the help of such standards the business will be fruitful in terms of attracting the
international investors and that will probably increases capital generation of firm.
3. Defining the rules and principles of accounting
To analyse the business performance and have the strong financial decisions there are
various rules and principles of accounting which are facilitated by the GAAP and various
accounting boards. The motive of presenting board is to present accurate information,
techniques and methods to make disclosure of financial data base by professionals. Therefore,
there are several rules and principles of accounts such as:
Monetary Unit:
These principles lie over the concept that all the transactions must be recorded in the
currency from such as purchase of fixed assets, making payments or revenue gained by firm
(Warren and Jones, 2018). Thus, the motive behind such system is that it will be helpful for the
business in terms of decisions making as well as engaging them in estimating costs incurred in
liabilities and assets of the period.
Going Concern:
This principle lies over the concept that if a business has started operating in the current
time it will be estimated that it will operate in the upcoming time too. It is assumed that it will
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have continues operations which helps in analysing the depreciation value, estimating expenses
and the future investments of the firm (Basic accounting principles, 2017).
Conservatism:
This concept lies over the technique of recording the transactions on the basis of surety
and reliability. Therefore, it can be said that the transactions relevant with liabilities and
expense of organisation which are to be recorded mediately as it incurred while on the other
side to record the transactions relevant with assets and revenue generated by firm there is need
to have surety and adequate research over the sources from where they have incurred (Cairns,
2018). It helps in recognising the losses in the initial level so an accurate decision can be made
in context with overcoming such financial deficits.
Cost principles:
In accordance with this concept it can be said that there is need to have record of all the
transaction such as purchase and sale of products and services on their fair value. Therefore, it
will be helpful in terms of analysing the profits and losses gained by firm while dealing with
such commodities (Marshall, 2016). On the other side, it will be helpful as the determined costs
of such activities will be considers and strong decision will help in lowering down such
expenses.
Time period principles:
The principle is consisted of the time boundedness over the disclosure of the financial
data set. Therefore, it will be fruitful for the organisation in terms of preparing the financial
statement on the periodical basis such as quarterly, half yearly or annually. It can be based on
financial year for making the adequate disclosure of the financial data set (Oulasvirta, 2016).
Hence, with the influence of time limits the professionals in firm ad the external will analyse
growth and performance during such period.
4. Elaborating the concepts and conventions relevant with material disclosure and consistency
Concepts and Conventions of material disclosure:
In term with these accounting principles which lie over the concept that all the data must
be recorded and transit have a material fact and must be authenticate. Therefore, the purchase
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and sales of any product and service should be relevant with the proper source such as there is
need to have record of date, time and consideration which will be beneficial for the operational
development (Pratt, 2016).
Concepts and convention of consistency:
This concept lies over the principle that every financial disclosure must be on the
regular basis such as presenting a data set will have the preparation for the next presentation
(Singleton-Green, 2016). Therefore, it will build the continuity in the operations of the firm.
There will be adequate revenue gathering on the basis of proper business execution.
CLIENT 1
1. Presenting the book of prime entries
The presentation relevant with the journals entries following the transactions incurred
Alexandra Study. It will be based on various adjusting entries relevant with the purchase and
sales of the business such as:
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2. Completion of the double entry recording in the ledgers
In accordance with the Journal entries there has been presentation of ledger accounts of
each transactions and account holders such as:
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