Financial Accounting: Business Performance Analysis Report

This report provides a comprehensive overview of financial accounting, emphasizing its critical role in business operations and performance. It delves into the purpose and scope of financial accounting, highlighting its impact on various stakeholders such as employees, management, government, suppliers, customers, lenders, and the public. The report explores the process of recording, summarizing, and reporting business transactions through financial statements, including income statements, balance sheets, and cash flow statements. It analyzes case studies to illustrate the practical application of financial accounting principles, including the double-entry system and the creation of ledgers and journals. Furthermore, it examines the significance of financial accounting in enabling business efficacy, fostering innovation, and driving revenue growth. The report also provides detailed accounting entries for different clients, showcasing the practical application of accounting principles in real-world scenarios.

Financial Accounting
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Contents
Business Report.............................................................................................................................................2
Answer to Question 1:...................................................................................................................................2
Answer to question 2:...................................................................................................................................4
Client 1..........................................................................................................................................................5
Client 2........................................................................................................................................................21
Client 3........................................................................................................................................................26
Client 4........................................................................................................................................................28
Client 5........................................................................................................................................................29
References...................................................................................................................................................32
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Introduction:
Financial accounting can be understood to be one of the highly essential aspect which
enables business efficacy on longer run formed on functional domains and enable business
paradigms to be framed informatively. The report will be discussing purpose and scope of
financial accounting on business grounds for enlarged vision oriented targets, higher scale goals
and development among various stakeholders by analysing its impact on financial accounting
aspects. The study will be analysing various case studies within use of financial accounting
variably for enlarged functional metrics to develop competent focus on work goals and
determining new competent synergy on new strengths widely. The research will be further
bringing forward larger scale efficacy within report based on financial accounting horizons for
analysing financial accounting impacts and also developing competent diverge determinants on
wider diverse goals (Chandra, 2020).
Financial Accounting
Financial accounting can be understood as the procedure of recording, summarizing and
reporting company business transactions informatively through financial statements where there
are income statements, balance sheets and cash flow statement of retained earnings. The primary
responsibility is to generate varied financial statements and various related disclosures that fairly
reflect financial results and conditions within company performance horizons. Primary
beneficiary are the outsiders, investors, creditors and lenders which are widely enabled to gain
information form various aspects of financial accounting parameters. The financial accounting is
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widely analysed to be competent and widely essential aspects within business horizons for
building functional domains and new strength parameters on new domains. It can be also
analysed that financial accounting brings on keen growth within companies business scale
development, higher innovation and also form stronger range of profound efficacy among
corporate companies commercial targets. Financial accounting up skills new profound progression
within new horizons and also enhance business scale productivity on keen targets profoundly for
larger scale revenue profits and goodwill among shareholders. The financial accounting keenly
improves keen innovation, creative domain strengths and also enhance new determining pace
among wider arenas profoundly.
Purpose of financial accounting
The purpose of financial accounting has high role to enhance functional approach within
shareholders and stakeholders for larger scale efficacy operations for keen domains goals, also to
develop new quest arenas and also to build stronger revenue targets widely and goodwill arenas.
The functional approach and purpose of financial accounting are control of financial policy,
preparation of budgets and cost control and evaluation of employees performance for
strengthening the best prevention of errors and frauds. Financial accounting enables business
revenue targets to be set strategically for future growth paradigms and also develop stronger work
domains on new horizons (Madura, 2020). The financial accounting also restores functional
primitive paradigms to be monitored on informative functional pace scenarios where there are
higher scale profound new work goals and also creatively build new strength structure. It can be
also analysed that financial accounting yield active diversity metrics within keen aspects, also
enables to build benchmarks of work growth avenues profoundly, develop strategic goal diversity
and also promote financial avenues and longer scale goodwill. The eternal and internal
shareholders are profoundly interrelated for analysing financial accounting aspects for stronger
range of revenue targets to be formed on and also for enhanced new domains of cultivated
strengths and new efficacy standards which develops competent diversity on resources structural
usage. It also enables businesses to draw financial work growth goals and competitive business
avenues for technical strengths on longer run.
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Stakeholders for Financial Accounting
 Employees: The employees need to be addressed financial accounting where they are able
to be motivated further for bringing on larger scale growth avenues for building
informative growth on larger avenues. Employees are the most integral part within
financial accounting for bringing on larger profitable work goals, develop competent
performance avenues and also harness creative force further.
 Management (managers): Managers within company need financial accounting to
enhance working targets within revenue aspects, enlarge work goals productively and also
enhance vision among larger domains. Financial accounting determines future scope for
creative strength diversity and also enable competencies to draw larger scale innovation
widely .
 Government: Government use financial accounting for developing analysis within
functional avenues for enlarged domains creative strengthening, also to deliver higher
creative goal to analyse business strengths.
 Suppliers: Suppliers also form stronger role to develop enlarged work growth base and
confident functional base profoundly on informative aspects for larger domains strength
and best services. Suppliers often look at financial statements to develop ideas actively on
companies services where they are important external stakeholders for company growth
paradigms to bring on larger scale functional scope ((Shapiro and Hanouna, 2019).
 Customers: The customers are important external stakeholders highly integral for
companies to enhance its business scope among work growth domains and also to enhance
functional approach for larger vision oriented sale efficacy. Financial statements are often
a gateway for customers to look upon functional details of company essential work
growth targets and also productively bringing on important information profoundly.
 Lenders (creditors): The creditors also functionally focus on bringing wider view for
lending loans in companies before lending loans and variably forming focus on work
domains with high profound efficacy aspects. Lenders also use financial accounting
reports as benchmark for company revenue details and analysing varied new scope
measures for gaining functional domains targets actively.
Public: External shareholders such as public have stronger focus and need of financial accounting
reports where it enables business scope to be developed on significant aspects and also wider scale
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domains. Public often look on financial statements of companies for gaining functional records
and also for further scale investments and also enable larger scale efficacy to evolve on new scope
arenas. Companies use financial accounting to productively use reports among public, for
generating new innovation goals and also enhance new domains informatively within varied
targets on enlarge metrics for keen strengths and working determinants of larger scope horizons
(Paramasivan and Subramanian, 2020).
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Client 1
Double Entry System(explain what is double entry)
Double enter is a term in accountancy or fundamental concept used in bookkeeping that specify
that every transaction has equal and opposite impact on the accounts that is majorly two. As
amount is transferred from one account to another therefore it is a process of debit and credit of
equal amount in two different accounts. Thus, debits stated amount being transferred into the
account while credit specific withdrawal or transferred from account to another.
Journal Entry dated June 01. 2020
In the Books of POPOVSKI
Opening Journal as at 1st June 2020
Assets £ £
Premises 200000
Van 45250
Fixtures 10100
Inventory 13900
Receivables:
P Weets 5400
F Leary 5100
Cash at Bank 70400
Cash in Hand 14600
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Liabilities
Payables:
S Hut 13150
J Brown 18600
Opening Capital 33300
0
364750
36475
0
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Book of Prime entry
Sales Day Book
Date Details £
03-Jun-20 J Wilson 1800
T Cole 1850
F Syme 2600
J Allen 1300
P White 2500
F Leary 1300
09-Jun-20 T Cole 920
J Fox 1850
14120
Sales Returns Day Book
Date Details £
11-Jun-20 J Wilson 380
F Syme 500
880
Purchases Day Book
Date Details £
02-Jun-20 S Hut 1450
D Main 2800
W Tone 1320
R Foot 1950
7520
Purchases Returns Day Book
Date Details £
19-Jun-20 R Foot 260
Cr Purchase returns account 260
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The two columnar cash book
Cash Book
Date Receipts Bank Cash Date Payments Bank Cash
Jun-20 £ £ Jun-20 £ £
01-Jun-20 Balance B/d 70400 14600 01-Jun-20 Storage costs 760
16-Jun-20 P Weets 2800 04-Jun-20 Motor expenses 650
F Leary 4900 07-Jun-20 Drawings 1800
J Wilson 1250 24-Jun-20 S Hut 5900
F Syme 1150 J Brown 6900
R Foot 1500
27-Jun-20 Salaries 5560
30-Jun-20 Business Rates 3420
30-Jun-20 Balance C/f 56460 12150
80500 14600 80500 14600
01-Jul-20 Balance B/d 56460 12150
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Real Ledger
Premises Account
Date Details £ Date Details £
Jun-20 Jun-20
1 Balance B/d 200000 30-Jun-20 Balance c/f 200000
200000 200000
30-Jun-20 Balance B/d 200000
Van Account
Date Details £ Date Details £
Jun-20 Jun-20
1 Balance B/d 45250 30-Jun-20 Balance c/f 45250
45250 45250
30-Jun-20 Balance B/d 45250
Fixtures Account
Date Details £ Date Details £
Jun-20 Jun-20
1 Balance B/d 10100 30-Jun-20 Balance c/f 10100
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