Financial accounting is considered as a method, process, procedure subject to analyse the context in terms of presenting financial information and data in specific manner. There are type of accounting rules and the principles defined in this context to elaborate the financial accounting. This report is bifurcated into two parts, first part covers the financial concepts in the business report and second part contains six sections. In first section the double entry system are illustrated with practical examples. Second section defined the rules related and theories to assist the ledger posting procedure (Narayanaswamy, 2017).
Third section covers the rules related to trial balance adjustments in terms of depreciation and prepaid expenses. Section four contains the preparing and forming of final accounts to get effective management and services in terms of making the statements. Section fifth defines the concept of bank reconciliation statement and the factors affecting bank reconciliation statement. Section sixth contains the process to be taken to reconcile control accounts and clear suspense accounts using account example.
(a): Meaning of financial accounting
Financial accounting encounters the important aspect which remain associated with the accounting standards and the managing the accounting information and the detail in organisational context. Organisations are adapting the financial accounting rules and principles in terms of getting the core effectiveness within financial operations and management. There are some specific guidelines made subject to retaining the financial information and making the financial plans are defined in this context. Financial accounting principles and the concepts helps to define the financial position and the financial stability of organisation. Financial accounting provides a horizontal structure for presenting and keeping the financial records and the transaction well-structured form. Financial information is provided in various formats as per their nature and theme. There are some financial statements defined below subject to present the financial statement (Lundberg and Sundbaum, 2016).
Income statements: there are some transactions happens in respect of revenues and the expenditure. Income statement provides a path to record the information in organised manner such as in debit side and credit side. All the revenue related transactions are recorded in credit side and all the expenses related transactions are recorded in debit side. It assists the managers and the accountants whether the organisation is gaining profit or loss. &nb