Reflective Journal on Business Accounting Concepts and Principles

This reflective journal details a student's learning journey in business accounting. The student explores fundamental concepts like contra entries, inventory systems (periodic and perpetual), and the importance of IFRS. The journal highlights the practical application of accounting principles, including the Australian Conceptual Framework. The student reflects on the challenges of understanding inventory management and seeks to improve their knowledge through self-assessment and a planned internship to bridge the gap between theory and practice. The journal emphasizes the significance of international accounting standards and their impact on global trade and professional development.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author Note:

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Reflective Writing on Business Accounting
Accounting is an important subject for commerce stream. Even in day to day life I
have observed the need of accounting knowledge in every aspect. Till now through
understanding and learning the basis of accounting I came to a conclusion that accounting is a
vital part of business through this one can handle the business. I learned various imperative
portions of produce transaction including their recording. Through this I learnt about the
contra entry. The contra account for Sales Return, discounts, Purchase Return, Discount
allowed on purchase. I am obliged that this learning process would help me to analyse my
overall self-evaluation about the inventory system. I have learnt about the basic terms used in
accounts, the equation of accounting and general idea about different aspect of accounting
and its principles. I even came to know that there are several principles laid down for certain
entities. (Bellanca and Vandernoot 2014).
The main result of this portion of accounting is that I came to know the discrepancies
into the accounts recording in numerous countries. I got information about the circumstance
that there are numerous aspects that can absolutely substitute the alteration into the fiscal
declarations. It could be possession, assessment structure, traditional, authorised aspect etc.
Auxiliary the slope of knowledge comprises the importance of IFRS within implementing the
standard accounting arrangement internationally. IFRS on condition that standard directions
of accounting along with the countries who accept the IFRS they can absolutely trail those
guidelines. (Oulasvirta, 2014). I have learnt that it conveys the pellucidity and it also permits
refining the level of worldwide trade. I have learnt the requirement of regulation of
accounting procedures at world-wide level and its advantage are also vibrant to me in a
suitable manner. IASB is an additional consultant body that certifies the internationalization
of accounting standards. The chief benefit is that the worldwide stockholders might be in

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place to evaluate the accounting processes and fiscal concert of indigenous firms. It valour
absolutely supports on the pounded of cultivating the venture judgement and proportion of
capital invasion could be enhanced. This thoughtful of altercation of accounting situations
brings rebellion into the worldwide trade as I have proficient during my studies. Generally
the worldwide accounting measures develops the appliance of accounting along with the
suitable observing of international communications. I could state assertively that erudition
and information improvement into the pitch of international accounting can deliver
probabilities of professional growth as I can take hold of prospects at international level.
(Cohen, Kaimenakis and Venieris 2013).
Inventories are current asset element that are held for sale in the normal course of
corporate or merchandises that would be used or expended in the manufacture of
merchandises to be sold. The explanation along with measurement of inventory necessitate
cautious consideration since the speculation in inventories is regularly the principal current
asset of retailing along with manufacturing businesses. The inventory system and other
aspects related to inventory is important. Inventory management goals at holding of
inventories at cheap probable cost in order to ensure the smooth ongoing of operations. To
make the decision different cost elements has to be taken into consideration such as holding
of inventory, supplying of inventory including its cost. The different methods of inventory
perpetual and periodic inventory system. In periodic inventory system, the entity determines
its Cost of Goods Sold at the completion of the year. Opening inventory is being added with
the purchases of the prevailing period. This provides the goods for selling. Through
subtracting the closing inventory with physical inventory to get the actual figure of cost of
goods sold. In periodic inventory a distinct general ledger account is prepared for every kind
of inventory transaction. Cost of merchandises traded transactions are overlooked throughout
the period as it is recorded at the completion of the period only. Products inventory balance in

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the general ledger is not being updated until the conclusion of the period but does not signify
the importance of inventory on hand. In perpetual inventory all inventory transactions are
being documented under the particular merchandise inventory account in the general ledger
format. Cost of goods sold transactions are logged as incurred during the course of the era.
All inventory transactions are documented as incurred, continuously apprising the rate of
inventory in the general ledger account that signifies the cost of inventory on finger.
(Taleizadeh, Noori-daryan and Cárdenas, 2015).
While following the class notes on inventory I found that only theoretical idea of
inventory is not enough as I am more interested to know how it takes place in a practical way
in day to day course business. Further while learning more about the topic I learned about the
different types of inventory, their function, usage and benefits. As I found problem in
understanding the inventory part I decided to have a self-assessment. To understand the
concept clearly and to retain the concept. The topics covered I found that my concepts are not
that clear which could help me in real business dealings. To gain more knowledge about it
and to hold command on the concepts as I realised the importance of it. I tried and solved
several questions several practical question on basic journal entries upon inventory to clear
my concept on periodic and perpetual inventory. (Yu et al. 2013).
After completing the self-assessment I found that to understand the actual use and
importance of the inventory and its effect in the business is the challenge for me as a learner.
The basic concepts of accounting and the principles laid down in the standards have helped
me in understanding the purpose and role of inventory in any business. While my learning
process I found the topic most vital. In order to overcome my doubts and the problems faced
by me during the study of inventory and the conceptual framework that is being applied. I
have thought to research on the inventory management as well as to monitor the inventory
management in any firm. For this I have applied for the summer internship in many of the

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companies. This would help be to understand the concept better with the theoretical
knowledge.

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Reference:
Bellanca, S. and Vandernoot, J., 2014. International public sector accounting standards
(IPSAS) implementation in the European Union (EU) member states. Journal of Modern
Accounting and Auditing, 10(3).
Cohen, S., Kaimenakis, N. and Venieris, G., 2013. Reaping the benefits of two worlds:
An explanatory study of the cash and the accrual accounting information roles in local
governments. Journal of Applied Accounting Research, 14(2), pp.165-179.
Ibanichucka, E. A. L., and Oyadonghan Kereotu James Aca. "A critique on cash basis of
accounting and budget implementation in Nigeria." Eur J Acc Auditing Financ Res 2, no.
3 (2014): 69-83.
Martí, C., 2013. Performance budgeting and accrual budgeting: A study of the United
Kingdom, Australia, and New Zealand. Public Performance & Management
Review, 37(1), pp.33-58.
Ofoegbu, G.N., 2014. New Public Management and Accrual Accounting Basis for
Transparency and Accountability in the Nigerian Public Sector. IOSR Journal of Business
and Management, 16(7), pp.104-113.
Oulasvirta, L., 2014. The reluctance of a developed country to choose International Public
Sector Accounting Standards of the IFAC. A critical case study. Critical Perspectives on
Accounting, 25(3), pp.272-285.
Taleizadeh, A.A., Noori-daryan, M. and Cárdenas-Barrón, L.E., 2015. Joint optimization
of price, replenishment frequency, replenishment cycle and production rate in vendor
managed inventory system with deteriorating items. International Journal of Production
Economics, 159, pp.285-295.

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Yu, Y., Hong, Z., Zhang, L.L., Liang, L. and Chu, C., 2013. Optimal selection of retailers
for a manufacturing vendor in a vendor managed inventory system. European Journal of
Operational Research, 225(2), pp.273-284.