Financial Reports: Part B - Analysis of Accounting Statements

This report provides a practical study of financial statements and accounting tools used in financial reporting. It begins with an introduction to financial reports and their importance in identifying business transactions and outcomes. The report includes an analysis of journal entries, general ledgers, depreciation schedules, income statements, balance sheets, and trial balances. Each component is explained in detail, highlighting its role in the accounting process and its contribution to the final financial reports. The report emphasizes the interconnectedness of these tools and how they collectively aid in managing daily financial affairs, identifying financial losses, and facilitating profit-making activities. References to relevant literature are also provided to support the analysis.

Prepare Financial
Reports: Part B

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Journal Entries:............................................................................................................................4
General Ledger:...........................................................................................................................5
Depreciation Schedule:..............................................................................................................11
Income Statement:.....................................................................................................................12
Balance Sheet:............................................................................................................................13
Trial Balance:.............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Financial reports are prepared by accounting analysts to identify the total outcomes of
transactions carried out in a fiscal year by the business (Weil, Schipper and Francis, 2013). A
comprehensive network of centralised accounting system at Golden steer limited has made all
the processes more adaptive and responsive to recurring business issues. Profound Accounting
system includes fundamental tools of accounting like journals, ledgers, trial balance, profit &
loss statements, balance sheet etc. which has empowered accounting system at Golden steer
Limited. This report includes practical study of various financial analysis statements and
accounting statements which helps the business in simulating business transactions into an
accountable and precise format which further aids in finalising financial reports which is
prepared by the management to satisfy stakeholders information seeking needs.
TASK
Journal: They are day to day entries related to the business transactions. All the
economic events happening in a business are recorded in journal entries to systematise daily
activities under a precise format. It helps in easy identification of the transactions, total inflow
and outflow of money and assists in preparation of further statements (Flower and Ebbers, 2018).
Ledger: It is an account prepared solely for the purpose of classifying business activities
under separate heads to bifurcate homogeneous activities under one head. It is often regarded as
'principal book of accounts' and 'book of final entry'. It is really important for the accounting
channel of the firm as it leads to preparation of trial balance which further aids in preparation of
final statements of the business (McKinney, 2015).
Trial balance: It is a statement prepared through taking closing balance of ledgers in
account. It lays foundation for the preparation of financial statements. It is prepared at the
accounting year end to identify net of all economic activities. It is prepared by taking debit and
credit balances of ledgers and segregating them under debit side and credit side head. Items
related to assets and expenditures are mentioned in the debit side whereas items like liabilities,
capital, and income are detailed in the credit side (Botzem, 2012).
Income Statement: Income statement is major part of financial statements applied in
reporting of financial performance in term of profit level of a business entity for accounting

period. It also referred as profit & loss statement, and statement of revenue & expense, it majorly
emphasises on revenues and expenses of business entity.
Balance Sheet: It is vital aspect of financial statement which reports assets, obligations
and capital or equity of company as on specific time point, and also provides groundwork for
assessing rates of return. It evaluates capital structure of a company (Finkler, Smith and
Calabrese, 2018).
Journal Entries:

General Ledger: