Regulations Related to Financial Accounting

1. Being a junior accountant in a small accountancy firm you are asked to prepare a 1000 words report as evidence for awareness of regulations in relation to rules, principles, and conventions of accountancy. Your report will include:

• definition of financial accounting
• explicates the regulations related to financial accounting.
• Explain the accounting principles and rules.
• State the conventions and concepts linked with consistency and material disclosure.

You have to follow this learning outcome in order to prepare the report.

• LO1. Record the business transaction by utilising the double entry bookkeeping in order to make a trial balance.
• P1. apply the double-entry bookkeeping system in order to record the transaction of sales and purchases in a ledger.
• P2. prepare a trial balance by applying the balance of rule method in order to complete the ledger.
• M1. evaluate the sales and purchase transaction in a way to make the trial balance by using double-entry bookkeeping.
• D1. record the correct transaction and prepare the trial balance. And ensure that each recorded transaction is in accordance with accounting principles.
• LO2.  In context with principles, conventions and standards prepare the accounts for partnerships, limited companies, and sole traders.  
• P3. make the final accounts from the given trial balance by making adjustments for the accruals, depreciation, and prepayments.
• P4. make final accounts to an extent for example considers the sole trader, partnership, or limited company.
• M2. examine the final accounts, P&L accounts, and cash flow statements for the given instances.
• D2. make the proper calculation for the construction of final accounts.
• LO3. Make the bank reconciliation statement in order to ensure the company about the correct bank records.
• P5. utilise the process of bank reconciliation in order to form a bank reconciliation statement.
• M3. refer to the reconciliation process to present the use of deposit in transit, outstanding checks, and not sufficient funds checks.
• D3. create an appropriate bank reconciliation that applies the tools and techniques to check the general accounts and balance sheet.
• LO4. Adjust the control accounts and shift recorded transactions from the suspense account to the correct accounts. 
• P6. state the process which has been undertaken to reconcile the controls account and clear the suspense account with the help of given examples.
• M4. present the knowledge of various types of accounts and the process and reason for the reconciliation.
• D4. Render the correct accounts which are reconciled by applying the proper methods.