Solved Accounting Systems and Procedure Assignment Task 1

This document provides a comprehensive solution to an Accounting Systems and Procedure assignment, covering various topics such as defining plagiarism and its implications, using Greenshot for capturing spreadsheets, identifying relevant accounting websites and their uses, exploring resources from professional accounting bodies, describing a computing environment in a workplace, analyzing the ABC Learning case study with its ethical concerns and financial statements, preparing income statements and balance sheets, understanding debit and credit balances, creating trial balances, adjusting journal entries, differentiating between current and non-current assets, and defining financial ratios like current ratio and debt ratio. This assignment aims to provide students with a thorough understanding of accounting systems and procedures. Desklib is a platform where students can find similar solved assignments and past papers to aid in their studies.

Running head: ACCOUNTING SYSTEMS AND PROCEDURE
Subject Code:
Subject Name: Accounting Systems and Processes
Student Name:
Student ID Number:
Assignment Task Number: 1
List of Questions Attempted: 15
List of Questions Not Attempted: 0

1ACCOUNTING SYSTEMS AND PROCEDURE
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
Answer to question 3:.................................................................................................................3
Answer to question 4:.................................................................................................................4
Answer to question 5:.................................................................................................................4
Answer to question 6:.................................................................................................................4
Answer to question 7:.................................................................................................................6
Answer to question 8:.................................................................................................................6
Answer to question 8:.................................................................................................................8
Answer to question 9:.................................................................................................................9
Answer to question 10:.............................................................................................................10
Answer to question 11:.............................................................................................................12
Answer to question 12:.............................................................................................................13
Answer to question 13:.............................................................................................................14
Answer to question 14:.............................................................................................................14
Answer to question 15:.............................................................................................................15
Reference List:.........................................................................................................................19

2ACCOUNTING SYSTEMS AND PROCEDURE
Answer to question 1:
Plagiarism is referred as the art of taking or copying the work of others and
pretending those works or ideas is if they belong to them. In other words plagiarism can be
defined as the act of fraud. It implies stealing the words or ideas of others and lying it about
afterwards. Plagiarism can be considered as unfair to the students since students that takes the
work of others often scores higher marks in comparison to those students that work hard. As
a result of this diligent students fails to undertake the dishonest policy and may find
themselves on the unfavourable situation in comparison to those that adopt unfair means.
Answer to question 2:
Green shot is regarded as the light weighted software tool for capturing screen shot in
Windows. The software of green shot aids in capturing the highlighted portion of the screen
shot. To capture the green shot there are following steps which are as follows;
a. The first step is capturing the highlighted portion of screen
b. Secondly, after capturing the screen shot copy the same to the clipboard
c. In the third step the captured screen shot is sent to the office program
d. In the final step the selected portion of screen shot is captured to the green shot
An illustrations of green shot software tool is highlighted below
Normal View

3ACCOUNTING SYSTEMS AND PROCEDURE
Formula View:
Answer to question 3:
http://www.accountantsaustralia.com.au/ The website of Australian Accountants is
regarded as the professional website that
provides solutions to strategic and financial
assistance to business firms. The websites
makes sure that all the overall achievements
of the business are attained by the clients.
https://www.charteredaccountantsanz.com/ The website of Chartered Accountants ANZ
is regarded as the accounting unit which
strengthens the accounting professionals to
build them as the leaders for successfully
carrying out the accounting work.
http://indigenousaccountants.com.au/ The website of Indigenous Australian
Accountants aims to create awareness
among the accounting benefit for the
accounting group to engage them in the
improving their corporate careers.
https://www.cpaaustralia.com.au/ The website of CPA Australia is regarded as
the leading Australian accounting body
which aims to increase the share of the
individual people through planning and
creating the professionals accounting skills.

4ACCOUNTING SYSTEMS AND PROCEDURE
Answer to question 4:
The “Association of Global Accountants” is regarded as the professional accountancy
body in Australia that offers professional accounting services. The “Association of Global
Accountants” offers financial aids and financing facilities for gaining training in the areas of
professional accountancy and education (Scott, 2015). Along with this, the organization is
regarded to be greatly valuable for the businesspersons as well. The reason for this is that the
official website of this accounting body provides the access to the numerous financial reports
of the leading international multinational firms.
Answer to question 5:
To narrate the experience of my previous office environment it comprised of the
necessary accounting standards since my personal experience from my previous organization.
I worked in a supermarket chain company that provided different forms of retail grocery
products, fashion products and packaged durable products. The job assigned to me required
reviewing of the supermarkets inventory, completing the departmental documentation work
and executing the administrative responsibilities. In order to carry out the documentation
work I was provided with the access of the electronic computer that contained the necessary
office related data in the excel spreadsheet.
With the help of my computer system I was able to keep record a section of inventory
of grocery products where I was required to report the store supervisor regarding the stock re-
order level. The company enabled data protection in order to make sure that on recording the
data in the excel I could access the network that was linked with the inventory records.
Therefore, the networking system provided access to networking system for inventory record
keeping. In addition to this, supermarket retail chain were I worked used several Microsoft
enabled office program namely the MS publisher and MS outlook.
At my current stage of career, I was involved with the popular accounting firm that as
the junior accountant where I am required to carry out the bookkeeping work for my clients. I
am provided with the permission of accessing the numerous accessories in the document such
as invoices of purchase, GST related transactions and record the accounting transactions of
my clients. The company has arranged the work station where I can access the telephone and
heavy manuals as they are located nearer. The amenities provided would help me carrying
out my job duties effectively. Conclusively the place where I work contains both the primary
and secondary accessories for the staff benefit.
Answer to question 6:
ABC learning was once regarded as the largest public listed child care company that
operated in the world. the company had the market capitalization of around $4.1 billion. An
unforeseen fall of 42 per cent was noticed in the profit during the second half of 2007 to
$31.7 million and the company was not capable of servicing its $1.8 billion debt that resulted
in the decline of the organization share price (Schaltegger & Burritt, 2017). A large number
of directors of the organization were later forced to dump millions of shares after getting the
margin calls.
The combined impact resulted the share price to decline by 43% to $2.15 after the
share price traded as low as $1.15. As a result of this ABC learning was suspended in the year
August 2008 following the failure of the company to release its earnings during the financial
crisis of 2007-28 financial year. In addition to the financial trouble the cash base of the
organization also declined with the burden of debt (Williams, 2014). The assets were valued
at the inflationary rates. In spite of selling off the assets the organization fell into the

5ACCOUNTING SYSTEMS AND PROCEDURE
receivership during the month of November following the rising debt servicing obligations
and its auditors were unable to sign off the accounts.
There are three major financial statements namely the income statement, balance
sheet and the statement of cash flows.
The purpose of income statement is that it helps in illustrating the profitability of the
organization (Warren & Jones, 2018). It commences from the revenue line and later
subtracting the numerous expenditure that arrives at the net income. The income statement
covers the particular specified period such as quarter or year.
Apart from the income statement, the balance sheet is not required to keep account for
the entire period instead its purpose is to provide the snapshot of the organization at the
particular period of time such as at the end of the quarter or year (Henderson et al., 2015).
The balance sheet represents the organization resources such as assets and funding for the
resources such as liabilities and stakeholder’s equity.
Finally, the cash flow statement provides magnification of the cash account on the
balance sheet and accounts for the overall period of reconciling the beginning period to the
end of the period cash balances (Mullinova, 2016). The cash flow statement commences with
net income and then adjusted for numerous non-cash expenditure and non-cash income to
arrive at the cash from operations. later the cash from the investing activities and financing
activities are added with the cash flow from operations to determine the net amount of
changes in the cash for the year.
There are three ethical reasons that surrounded the case of ABC learning are as follows;
a. Existence of misdeeds related to accounting and loan margin for funding
b. Providing incorrect information to numerous financial report users leading to loss of
shareholder’s confidence and contributed to the downfall of the organization.
c. The company has inflated the intangible assets to misleadingly increase the value of
the organization (Macve, 2015).

6ACCOUNTING SYSTEMS AND PROCEDURE
Answer to question 7:
Answer to question 8:
Income statement Normal View:
Balance Sheet Normal View:

7ACCOUNTING SYSTEMS AND PROCEDURE
Income statement Formula View:
Balance Sheet Formula View:

8ACCOUNTING SYSTEMS AND PROCEDURE
Answer to question 8:
Balance Sheet Normal View:

9ACCOUNTING SYSTEMS AND PROCEDURE
Formula view of the balance Sheet:
Answer to question 9:
List of two accounts that have normal debit balance includes;
a. Owners drawings accounts

10ACCOUNTING SYSTEMS AND PROCEDURE
b. Salary
List of two accounts that have normal credit balance includes the following;
a. Stakeholders equity account
b. Revenues and sales
Answer to question 10:
Table representing trail balance (Normal View)
Table representing Formula View:

11ACCOUNTING SYSTEMS AND PROCEDURE
Adjusted trial balance with two changes:

12ACCOUNTING SYSTEMS AND PROCEDURE
Answer to question 11:
Blank Crosswords

13ACCOUNTING SYSTEMS AND PROCEDURE
Completed Crosswords puzzle
Answer to question 12:
There are two types of period ending adjusting entries
a. Prepaid rent
b. Accrued expenses
Adjusting Journal Entries
Date Particulars Debit ($) Credit ($)
Dec-31 Prepaid A/c…………………..Dr $ 1,500.00
To Cash A/c $ 1,500.00
Dec-31 Utilities Expenses A/c ………………Dr $ 750.00
To Accrued Expenses A/c $ 750.00

14ACCOUNTING SYSTEMS AND PROCEDURE
Answer to question 13:
Assets are generally divided under two categorise namely the current asset and the non-
current asset.
Current Assets Non-Current Assets
 Current assets are usually listed on
the organizations balance sheet
which is anticipated to be converted
within the span of one financial year
(Dutta & Patatoukas, 2016).
 Conversely unlike the current assets
the non-current assets are the long
term assets which the company
anticipates to hold more than one
financial year which could not be
readily converted to cash within one
financial year (Trotman et al., 2016).
 As current assets are generally
anticipated to be converted into cash
inside one accounting year they
generally comprised of cash,
accounts receivable and inventory
(Waegenaere et al., 2015).
 Unlike the current assets the non-
current assets are considered as the
long term assets that an organization
anticipates to hold for the longer
period of time (Campbell et al.,
2017). The example includes the
long-term fixed assets, intangible
assets and long term investments.
 The current assets help an
organization to carry out the day to
day functions to cover the
expenditures as and when they
originate to make sure that the
business functions are smooth
(Kahng, 2016).
 The cost of non-current assets are
usually spread over the period of
time during which the assets is put
into use instead of distributing the
entire cost of assets during the year
in which the assets was acquired
(Otley, 2016).
Answer to question 14:
Current Ratio: The current ratio can be defined as the liquidity ratio which measures the
organizations ability to pay the short term and the long term debt obligations of the
organization (Fullerton et al., 2014). To measure such ability of the organization the current
ratio takes into the considerations the current assets of the company that are relative to the
organizations total liabilities.
Debt ratio: Debt ratio can be defined as the financial ratio that measures the degree to which
an organization is leverage (Horton, 2018). The debt ratio is referred as the ratio of total debt
to assets which is expressed in the form of decimal or percentage (Eldenburg et al., 2016).
The debt ratio helps in interpreting the proportion of organizations assets that is financed by
debt.
Current Assets = 145,000
Current Liabilities = 85,000
Non-current Assets = $735,000
Non-Current Liabilities = $415,000
Current Ratio = Current Assets / Current Liabilities
= $145,000 / $85,000

15ACCOUNTING SYSTEMS AND PROCEDURE
= 1.71
Debt Ratio = Total Debt / Total Assets
= [($85000+$415,000) / ($145,000+$735,000)]
= 500,000 / 880000 = 0.57
Answer to question 15:
Normal View representation of Ten Column Trial Balance
Formula View representation of Ten Column Trial Balance

16ACCOUNTING SYSTEMS AND PROCEDURE
Normal View of the Income Statement:
Normal view of the Balance Sheet:

17ACCOUNTING SYSTEMS AND PROCEDURE
Formula view of the Income Statement:
Formula view of the Balance Sheet:
Balance Sheet
as on 30/06/2017
Particulars Amount ($) Amount ($)
Cash ='Q15-Normal View'!K8
Accounts Receivable ='Q15-Normal View'!K9
Supplies ='Q15-Normal View'!K10
Prepaid Insurance ='Q15-Normal View'!K11
CURRENT ASSETS =SUM(E6:E9)
Equipment ='Q15-Normal View'!K12 0
Less: Accumulated
Depreciation =-'Q15-Normal View'!L13 =D12+D13
NON-CURRENT
ASSETS =E12+E13
TOTAL ASSETS =E10+E14
Accounts Payable ='Q15-Normal View'!L14
Wages Payable ='Q15-Normal View'!L15
Unearned Service Revenue ='Q15-Normal View'!L16
CURRENT
LIABILITIES =SUM(E19:E21)

18ACCOUNTING SYSTEMS AND PROCEDURE
NON-CURRENT
LIABILITIES 0
Capital ='Q15-Normal View'!L17
Retained Earnings 0
Add: Net Profit ='Q15-Normal View'!J26
Less: Drawings =-'Q15-Normal View'!K18 =D28+D29
EQUITY =SUM(E26:E29)
TOTAL EQUITY &
LIABILITY =E22+E24+E30
Adjusted Ten-Column Worksheet (Normal View)
Adjusted ten-column worksheet (Formula View)

19ACCOUNTING SYSTEMS AND PROCEDURE
Reference List:
Campbell, J. L., Khan, U., & Pierce, S. (2017). The effect of mandatory disclosure on market
inefficiencies: Evidence from Statement of Financial Accounting Standard Number
161.
Dutta, S., & Patatoukas, P. N. (2016). Identifying Conditional Conservatism in Financial
Accounting Data: Theory and Evidence. The Accounting Review, 92(4), 191-216.
Eldenburg, L. G., Wolcott, S. K., Chen, L. H., & Cook, G. (2016). Cost management:
Measuring, monitoring, and motivating performance. Wiley Global Education.
Fullerton, R. R., Kennedy, F. A., & Widener, S. K. (2014). Lean manufacturing and firm
performance: The incremental contribution of lean management accounting
practices. Journal of Operations Management, 32(7-8), 414-428.
Henderson, S., Peirson, G., Herbohn, K., & Howieson, B. (2015). Issues in financial
accounting. Pearson Higher Education AU.
Horton, J. (2018). Advanced Financial Accounting and Reporting: Theory, Practice and
Evidence. Routledge.
Kahng, L. (2016). Perspectives on the Relationship Between Financial and Tax Accounting.
In Controversies in Tax Law(pp. 105-122). Routledge.
Macve, R. (2015). A Conceptual Framework for Financial Accounting and Reporting:
Vision, Tool, Or Threat?. Routledge.
Mullinova, S. (2016). Use of the principles of IFRS (IAS) 39" Financial instruments:
recognition and assessment" for bank financial accounting. Modern European
Researches, (1), 60-64.
Otley, D. (2016). The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, 45-62.
Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues,
concepts and practice. Routledge.
Scott, W. R. (2015). Financial accounting theory (Vol. 2, No. 0, p. 0). Prentice Hall.
Trotman, K., Carson, E., & Gibbins, M. (2015). Financial accounting: an integrated
approach. Cengage Australia.
Waegenaere, A., Sansing, R., & Wielhouwer, J. L. (2015). Financial accounting effects of tax
aggressiveness: Contracting and measurement. Contemporary Accounting
Research, 32(1), 223-242.
Warren, C. S., & Jones, J. (2018). Corporate financial accounting. Cengage Learning.
Williams, J. (2014). Financial accounting. McGraw-Hill Higher Education.