Financial Accounting Report: Client Portfolio and Financial Analysis

This comprehensive financial accounting report provides an in-depth analysis of various accounting principles and practices. It begins with an introduction outlining the importance of accounting for firms and the structure of the report, which includes sections for line managers and different clients. The report delves into financial accounting rules and principles, including GAAP and IFRS, cost principles, and time period assumptions. It then presents a portfolio catering to various clients, analyzing journal entries, double-entry recordings, and the arithmetical accuracy of the double-entry system. The report includes income statements and balance sheets for different clients, along with explanations of accounting concepts like prudence and consistency. Furthermore, it explores depreciation methods, bank reconciliation statements, control accounts, suspense accounts, and clearing accounts, providing a detailed comparison of these accounting tools. The conclusion emphasizes the significance of accurate accounting practices and the importance of careful consideration when preparing suspense and clearing accounts. The report also includes a detailed reference list of books and journals used in the analysis.

FINANCIAL ACCOUNTING
PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
(A)Report for line managers.......................................................................................................1
B. Portfolio to carter the various clients and resolving their financial needs..............................3
CLIENT 1........................................................................................................................................3
1 Analysing the journal entries for Alex study............................................................................3
2 Presenting the double entry recording with the help of various ledger accounts.....................5
3. Analysing the arithmetical accuracy of double entry system with the help of trail balance. 15
CLIENT 2......................................................................................................................................16
A income statement for the client Peter Piper as on 31st December 2016.................................16
B Analysing the financial position of Peter Piper as on 31st December 2016...........................17
CLIENT 3......................................................................................................................................19
A. Determining the profit and loss statement for Raintree Ltd as per 30th September 2016.....19
B. Determining the financial position of Raintree Ltd as on 30th September 2016...................19
C. Explaining the accounting concepts for Prudence and Consistency.....................................20
D. Analysing the depreciation formulation as well as highlighting the functioning of the two
methods of depreciations...........................................................................................................20
CLIENT 4......................................................................................................................................21
1 Bank reconcilition statement and its purpose.........................................................................21
2 Analysis of transactions of Kendal Ltd..................................................................................21
(3) Analysis of BRS on December 2016...................................................................................21
CLIENT 5......................................................................................................................................22
A. Control accounts and their balancing....................................................................................22
B. Control accounts and their concepts.....................................................................................23
CLIENT 6......................................................................................................................................23

A. Suspense account and its main characterisitcs......................................................................23
B. Trial balance.........................................................................................................................23
C. Journal entries.......................................................................................................................24
D. Comparing the Suspense account and Clearing account......................................................24
CONCLUSION..............................................................................................................................24
REFERENCES..............................................................................................................................25

INTRODUCTION
Accounts is the one of the important domain that have due importance for the firms. In
the present research study, formal business report is prepared for line managers and for different
clients varied accounts are prepard like income statement and balance sheet. In middle part of the
report, different approaches of depreciation are compared with each other. At end part of the
report, difference is discussed between clearing account and suspense account. In this way, entire
research work is carried out.
(A)Report for line managers
To : Line manager
(Small Accountancy Firm)
Subject: Accounting rules and principles for the firms
Sir,
Explanation on financial accounting
Financial accounting is the branch of accounts under which income statement and balance
sheet is analysed by using ratio analysis and common size as well as comparative statements.
It can be said that there are multiple advantage of financial accounting for the firms.
Regulations for financial accounting
GAAP: In GAAP accounting standards are given that need to be followed to do recording of
transactions in company books of accounts (Zimmerman and Yahya-Zadeh, 2011). These
standards are used by most of the nations of the world.
IFRS: In this reporting formats and rules are clearly specified that are followed to prepare
finnaicial statements in particular structure.
Analysis of accounting rules, procedure and principles
Cost principle: Transations that are recorded must be measured in monetary terms and at their
actual cost. Non monetary transactions can not be reocrded in books of accounts.
Time period assumption: Current year transactions must be recorded in present year books of
accounts. Amount of current year transaction can not be carry forward next year (Garrison and
et.al., 2010).
Monetary unit: Transaction must be meausred in monetary terms.
Full disclosure: All accounting transactions with detail must be disclosed in books of
accounts.
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Going concern concept: It is assumed that firm will always remain in existence and due to this
reason all transactions are recorded on its names.
Consistency and material disclosure
Consistency: Only those transactions that are actual and related to busines as well as possible
to be included in financial statements must be recorded in books of accounts.
Material disclosure: All relevant details related to transactions must be recorded in company
books of accounts.
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B. Portfolio to carter the various clients and resolving their financial needs.
CLIENT 1
1 Analysing the journal entries for Alex study
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2 Presenting the double entry recording with the help of various ledger accounts
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