Financial Accounting: Preparing Statements and Error Rectification

This report provides a detailed overview of financial accounting principles, covering the recording of business transactions, preparation of journal entries, ledgers, and trial balances, and the creation of various financial statements. It emphasizes the rectification of errors to correct mistakes in transactions. The report includes practical tasks such as preparing journal entries, calculating owner's capital, completing double-entry system recordings, and creating trial balances. It also involves the preparation of profit and loss statements and balance sheets for both sole traders and limited companies, along with explanations of accounting concepts like consistency and prudence, and depreciation methods. Furthermore, the report discusses bank reconciliation statements, control accounts, and suspense accounts, highlighting their purpose and features in managing and rectifying financial discrepancies. The conclusion emphasizes the importance of accurate accounting for assessing financial performance and improving business operations.

FINANCIAL
ACCOUNTING
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INTRODUCTION
Role of accounting gets increases with the passage of time as increasing market
complexities needs to be manged with the time. This project report is all about recording all
transactions in order to prepare journal entries, ledgers, rial balance and preparation of variety of
financial statements. This is also stresses on rectification of errors in order to rectify all the
mistakes incurred in the transactions.
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CLIENT 1
a) Prime Book entry
TASK 1
1. Prepare journal entries and calculation of owners capital
A. Preparing the books of Prime Entry in entity
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b) Complete double entry system recording
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