CompanyINTRODUCTION
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.
Business Report
(a): Meaning of Financial Accounting
Financial accounting encounters the important aspects that remain associated with the accounting standards, managing the accounting information, and the details in an organizational 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 defined in this context. Financial accounting principles and concepts help to define the financial position and the financial stability of an organization. Financial accounting provides a horizontal structure for presenting and keeping the financial records and the transaction in a 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 the financial statement (Lundberg and Sundbaum, 2016).
Income statements: there are some transactions that happen in respect of revenues and expenditures. The income statement provides a path to record the information in an organized manner, such as on the debit side and credit side. All the revenue-related transactions are recorded on the credit side, and all the expense-related transactions are recorded on the debit side. It assists the managers and the accountants whether the organisation is gaining profit or loss.&nb
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