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Business Report Writing Skills

University: Top Education Institute

  • Unit No: 2
  • Level: High school
  • Pages: 19 / Words 4788
  • Paper Type: Case Study
  • Course Code: TACC401
  • Downloads: 290
Question :

This sample will let you know about:

  • What is Business Report?
  • What is writing skills?
  • Explain Income statement.
Answer :
Organization Selected : N/A

INTRODUCTION

Accounting refers to the systematic recording of a business entity's financial transactions. It follows various principles and concepts that guide accountants in accurately documenting these transactions (Groomer and Murthy, 2018). This project report delves into three case studies: the first involves preparing worksheets and financial statements based on provided data, the second focuses on managing accounts payable, and the third centers on partnership accounting. Looking for assignment examples? Our experts are ready to assist!

Case 1.

(A) Preparation of a 10-column worksheet for the year ended 30 June 2017:

Account

Trial balance

Adjusting entries

Adjusted trial balance

Income statement

Balance sheet

 

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash at Bank

12600

 

 

 

12600

0

 

 

12600

0

Accounts Receivable

11800

 

 

 

11800

0

 

 

11800

0

Prepaid Insurance

1800

 

 

1340

1800

1340

 

 

1800

1340

Land

180200

 

 

 

180200

0

 

 

180200

0

Building

196000

 

 

 

196000

0

 

 

196000

0

Accumulated Depreciation – Building

 

86900

 

9600

0

96500

 

 

0

96500

Equipment

32300

 

 

 

32300

0

 

 

32300

0

Accumulated Depreciation – Equipment

 

8800

 

3680

0

12480

 

 

0

12480

Accounts Payable

 

16400

 

 

0

16400

 

 

0

16400

Mortgage Payable

 

64000

 

 

0

64000

 

 

0

64000

Owner, Capital

 

236950

 

 

0

236950

 

 

0

236950

Owner, Drawings

86500

 

 

 

86500

0

 

 

86500

0

Fees Earned

 

262430

600

 

600

262430

600

262430

 

 

Rent Revenue

 

14400

 

 

0

14400

0

14400

 

 

Salaries Expense

124600

 

2360

 

126960

0

126960

0

 

 

Telephone Expense

4520

 

 

 

4520

0

4520

0

 

 

Interest Expense

3080

 

260

 

3340

0

3340

0

 

 

Insurance Expense

36480

 

1340

 

37820

0

37820

0

 

 

Accrued Fees

 

 

 

600

0

600

0

 

 

600

Outstanding Salaries

 

 

 

2360

0

2360

0

 

 

2360

Rates Owing

 

 

 

4820

0

4820

4820

 

 

4820

Accrued Interest

 

 

 

260

0

260

0

 

 

260

Rates

 

 

4820

 

4820

0

4820

 

 

 

Depreciation Expenses-Equipment

 

 

3680

 

3680

0

3680

 

 

 

Depreciation Expenses-Building

 

 

9600

 

9600

0

9600

 

 

 

 

689880

689880

22660

22660

712540

712540

196160

276830

521200

435710

(B) Preparation of an income statement, a statement of changes in equity and a balance sheet.

Income statement:

Revenues

 

Fee Earned

261830

Rent Revenue

14400

Total Revenues

276230

 

 

Expenses

 

Salaries Expense

126960

Telephone Expenses

4520

Interest Expenses

3340

Insurance Expenses

35140

Rates

4820

Depreciation-Equipment

3680

Depreciation-Building

9600

 

 

Total Expenses

178460

Net Income

97770

Balance sheet:

Equity and Liabilities

 

Total

Assets

 

Total

Capital

236950

 

Non Current Assets

 

 

Less: Drawings

86500

 

Tangible Assets

 

 

 

150450

 

Land

 

180200

Add: Profit Earned During the Year

97770

248220

Building

196000

 

 

 

 

Less: Accumulated Depreciation – Building

96500

99500

 

 

 

Equipment

32300

 

Non Current Liabilities

 

 

Less: Accumulated Depreciation – Equipment

12480

19820

Mortgage

 

64000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

Current Assets

 

 

Accounts Payable

 

16400

Accounts Receivable

 

11800

Rates Payable

 

4820

Prepaid Insurance

 

460

Unearned Fees

 

600

Cash at Bank

 

22520

Interest Payable

 

260

 

 

 

 

 

 

 

 

 

 

 

334300

 

 

334300

(C) Journalise the closing entries:

Particulars

Debit

Credit

Income summary DR

178460

 

To Salaries Expense CR

 

126960

To Telephone Expenses CR

 

4520

To Interest Expenses CR

 

3340

To Insurance Expenses CR

 

35140

To Rates CR

 

4820

To Depreciation-Equipment CR

 

3680

To Depreciation-Building CR

 

9600

 

 

 

Fees earned revenue a/c DR

261830

 

Rent revenue a/c DR

14400

 

To income summary CR

 

276230

 

 

 

Income summary a/c DR

97770

 

To P &L a/c CR

 

97770

 

 

 

Case 2.

(A) What types of documents will be needed for manual accounting system regards to recording sales to customer and receipt of cash as well as to assure right payment of money to suppliers?

This is necessary for companies to maintain a systematic record of all types of transaction so that overall flow of fund can be tracked. For this purpose, there are different types of documents which are used by companies. Such as in the aspect of given case study, it can be find out that owner of Magic Thread shop is unable to collect funds from debtors on time due to lack of systematic records. Herein, below some types of documents are mentioned that can be helpful for effective debtors and creditors manage such as:

  • Sales invoice- This can be defined as a type of document which is prepared by accountants in order to record information about quantity of goods and services as well as amount owing to business by a customer (Pritchett and Hayes, 2016). Under it, original invoice is sent being sent to customer and copy is taken by business. Herein, this is important to know that it is prepared for both credit and cash sales. Like in the above shop Magic Thread, owner can use this document with an aim of collecting correct amount of fund from customers.
  • Purchase invoice- It is a type of document that is produced by accountants for recording information about quantity of goods purchased as well as amount owed by company to suppliers. The original purchase invoice is provided by supplier to company. The owner of above shop can manage record of suppliers by whom she purchases raw material for crafting.
  • Credit Note- A credit note or credit memorandum is a trade note given to a customer by a seller. Credit records serve as the source of the data for the returning report for sale. In other terms, the credits note is proof of rising sales. In the aspect of above shop's owner, this document can be useful for management of those transactions which are done on credit basis.
  • Petty cash voucher- It is also known as tinny cash voucher which is being used by companies in order to manage small cash transaction. This includes information about both, cash receipts and payments for a particular time frame. In regards to above mentioned crafting shop, this document can be useful for tracking those transaction which are regarding to cash payment and receipts.
  • Debit note- A debit note is a type of document that is sent to the vendor by a customer, or in other terms, a customer to his dealer when returning the products obtained on credit. The intention is to inform the vendor that the customer was debiting them against the retrieved products. This decreases the amount of payment due to be charged to the vendor (if the amount due is Nil) then on top of that it requires more transactions. In the context of above shop's owner this document can be useful for managing those customers information who returns the goods. Order assignment help from our experts! 

    So, these are the documents which can be useful for above mentioned shop's owner in order to effective management of suppliers, customers payment system.

    (B) In what ways could a computerised accounting package help Samantha make better decisions and manage her business better?

    Computerized accounting system is a system that manages the business transactions and activities in compliance with Generally Accepted Accounting Principles (GAAP) to generate reports according to client specifications. Every management system has two types, manual or computerized. The data storage and processing infrastructure in a computerized accounting system is considered the operational system consisting of both hardware and software wherein the management system operates. This types of accounting system can be useful in order to take suitable decisions. Like in the context of above shop's owner the computerised accounting package can help in such manner:

    • Provide all data in a systematic manner- In this type of accounting data regards to all financial transactions is recorded in a systematic manner (Ghobadian, Stainer, Liu and Kiss, 2016). By help of it, managers can take advantage by gathering data in quick time. Similar as for above shop's owner, this accounting system can be helpful to find needed data at the time of requirement in decision making.
    • Automation- Since the program performs all measurements, computerized accounting removes many of the earthly and time-consuming procedures correlated with manually accounts. For instance, bills are immediately handled once given, rendering accounting less time-consuming. Due to this it may become for owner of above shop to generate bill quickly and to identify those customers whose payment is due even after due date.
    • Speed- Using accounting software, the whole cycle of financial management gets faster. Additionally, statements and reports can be immediately produced by pressing a button. Managers do not require to wait for long time period to get financial statements when they need ( Tang, Yan and Kang, 2013). As above stated that owner of Magic Thread shop have done computerised course of accounting. Due to this, it will become easier for her to check financial condition in quick time frame.

    So these are the key benefits of computerised accounting system in regards to taking suitable decisions. For above shop's owner this accounting system can be useful in order to track all financial details by just one click.

    Case 3.

    (A) Who are the stakeholders in above mentioned case?

    Stakeholders- A stakeholder is a person with an involvement in a business and this can either influence or be influenced by the company. A traditional company's key shareholders are its owners, workers, consumers and distributors. In the aspect of above case study, there are below mentioned stakeholders which are as follows:

    • Customers- These are the main stakeholders for any type of business. Such as in the above company, both partners have been involved in retail business. Therefore, they will have a wide range of customers.
    • Investors- It can be defined as a type of stakeholder who makes investment in the business. Such as in the above retail business, investors are two partners who invested capital of $ 60000 and $ 50000 each.
    • Employees- These are kinds of stakeholders who operates different types of operations and activities in order to complete overall objective. Such as in the above retail business, there will be wide range of staff members who will accomplish their different types of activities and operations.
    • Suppliers- These stakeholders provide needed material to business on both credit and cash basis. For above retail business, this will be a main stakeholders which will be needed in order to provide needed material.

    So, these are the key stakeholders for above retail business in which both partners are involved.

    (B) Does Derek appear to be doing anything wrong? Explain your response.

    In accordance of above mentioned case study, this can be find out that there are many indicants which show that Derek did wrong with Kate. Such as Derek withdraw $ 20000 for two times from invested capital of $ 60000. He did not withdraw money for business purpose. He used that fund for personal uses. It shows that this is wrong. Derek have enough knowledge about finance and accounts while Kate does not have knowledge about finance. Due to this, he took advantage of it and withdraw money. Herein, underneath some points are mentioned which shows that Derek did wrong:

    • Sharing similar % of profit- As Kate has lack of accounting information and due to this he agreed to distribute generated profits with common share even Derek withdraw the money from capital. It is wrong task which is performed by Derek. He should not take similar % of profit from overall generated revenues because he consumed more then 50% of invested capital for personal usage. In this case, Derek should take responsibility to explain concept of partnership and profitability. As well as he should take % of profit in accordance of remained invested capital.
    • Withdrawing amount for personal usage- In a business, partners can withdraw amount only for business usage. In the case when a partner withdraw funds for personal use then it becomes responsibility of that partner to pay interest on that. On the basis of above mentioned case study, this can be find out that Derek withdraw sum of money for personal use that was buying new house. It is indicating that Derek did wrong act here as he has no right to withdrawing amount from invested capital for personal usage. He did so because his partner had not enough knowledge about concept of accounts and finance. In this case, Derek should pay the amount of interest on the fund which he withdraw as well as should take part of profit in accordance of remained amount of capital.
    • Paying equal contribution to management- As mentioned in above points that there was difference in invested capital such as Derek invested amount of $60000 and Kate invested capital of $ 50000. In the second year, Derek withdraw amount of 40000 dollars (20000 + 20000 dollars). In this case, it will be liability of Derek to pay higher amount of capital with interest to the management as he withdraw almost more then 50 % of capital for personal work. Along with Kate will pay less amount of contribution to management.

    So these are the points which shows that Derek did wrong with Kate as he did not follow any terms and condition of partnership. As well as Derek did not complete his responsibility towards another partner as he had lack of accounting and finance knowledge.

    (C) Are there any ethical issues involved here? If so, identify them.

    Yes, there are different types of ethical issues which evolved due to mistakes done by one partner. The term ethical issue can be defined as a condition in that a moral conflict raises and should be addressed. Herein, below some ethical issues are mentioned that are as follows:

    • Not communicating all the information- In the above mentioned case study, Kate was with lack of accounting knowledge and Derek take the advantage of it. He withdrew the higher amount of funds just for personal use. This shows that there was a an ethical issue that one partner cheated to another.
    • Not completing own responsibilities- Derek was responsible to add on more capital of 40000 pounds which he withdraw. As well as he was not applicable to gain common share of profitability as another partner. This is showing that there was ethical issue which raised due to ignorance of own liabilities by one partner.
    • Fraud by one partner with another- On the basis of overall analysis of case study of both partners, this can be stated that Derek did a huge fraud from Kate. Such as he did not share complete information about concept of accounting and finance as well as taking same part of profits.

    CONCLUSION

    On the basis of above project report, this can be concluded that principles of accounting are too crucial for companies and needed to be followed by accountants. It is so because each of principle contributes in a significant manner for better management of financial transactions. The report concludes about three different tasks which are based on various topics. Case one concludes about various accounts such as income statement, balance sheet. While second case concludes that computerised accounting system is too crucial for companies for better management and decision making. End case concludes about concepts of partnerships.

    Read also - Behavioural Aspects of Budgeting and Sequence

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