5 Crucial Steps in Accounting Assignment
The accounting assignments basically deal with the accounting cycle. Students who opt for accounts deal with the journals and balance sheet and thus must most importantly know the golden rules of the accounting procedure because these rules would provide you accounting homework help. So lets first discuss what actually is accounting cycle, and certain terms involved in the process. Accounting Assignment.
An accounting cycle includes various steps or activities of each accounting year. Similarly, Ledger is an account in which we record expense type, equity item, liability, asset, etc.
It is known for recording transactions related to business. A balance sheet is a sort of financial statement that reports about equity and liability which includes shareholders fund, current liability and non-current liability.
On the other hand, it reports about assets such as current assets and noncurrent assets. An accounting cycle includes all these terms and involves five crucial steps:
These documents serve as proof of a particular
done by a person or a company. They can be in the form of invoices, cash slips, receipts, bank deposit slips etc.
Now if you have to figure out your source documents .you must know how to identify the transactions done by the company in the financial year.
A proper record of these documents must be made and studied so that later they can be used as source documents. Their proper record assists the accountants to maintain easy flow of accounting transactions. Accounting Assignment
These entries are the first and foremost entries of debit and credit of each transaction in a chronological manner maintained by a bank.
They also record the debit and credit transactions made by people in their day to day life.
Journal is make when the golden rules of the accounting procedure are apply and then the entry of debit and credit balance is pass accordingly and also we have to provide a statement at the end of every journal entry.
This entry of debit and credit transactions is call double entry accounting. On the other hand, a single entry accounting does not require multiple entries rather it requires just the balance to be state.
T-accounts or Ledger:
Once the transaction is record in the journal, it is later poste into a ledger. The ledger groups the accounts of a particular business.
It is call t-accounts because entries are do in the shape of ‘t’ wherein one side.
we have the debit entries and on the other side we have the credit entries.
The ledger helps the accountant to keep an eye on the financial position and status of the business. Its one of the most commonly referenced account is that of the cash and thus gives information about the cash available.
This is one thing you must have frequently encountered in your accounts written work. Students always require accounting homework help when it comes to matching the total of the balance sheet.
The accounts make up are put to test or trial to see the total of all the debit balances and credit balances are equal or not. This step is do as the final step to cross check the transactions and the financial statement make thereafter
so that any error can be correcte while revisiting the entries.
In addition to correcting the entries, you can also make certain adjustment to match the entries on both the sides.
As mentione above, this report is prepare utilizing the information from the trial balance. This report or this financial statement informs people who have interest in the business of the company about the cash flows,
financial performance and financial position of the business.
It includes the income statement, cash flow statement and the balance sheet. There are two types of financial statements: Common Size and Comparative.
Comparative statement is all about comparing the assets and liabilities of two years and taking out their percentage. Common size is the percentage draw out after comparing several transaction from just one total.
There is one more important step in this accounting cycle.
which is the closing off of entries which is do at the end of each financial year and the financial statement is ready to be evaluat.
This financial statement is analyze as well after the closing date,
for the overall performance of the company in the financial year. The closing of the accounting cycle marks the advent of a new cycle that follows the same steps.
These five crucial steps in accounting cycle helps the accountants .as well as book keepers to keep a proper record of the accounts of the company. It helps not only the accountants but also assists students needing accounting assignment help.
capital and goodwill
The records kept with the company about the various accounts.
so that they could run their business smoothly without any discrepancy.
These statements assists other companies to invest into a particular business seeing its financial background .so that they could attract the partners easily and partners could invest more and more into the business and bring more of capital and goodwill with their admission.
If you require accounting assignment help, with all the above mentioned points, you must also remember that a partnership is followed by retirement of the partner and dissolution of the firm.
At the time of retirement, the goodwill, reserves and funds buy the partner,
are to distribute to the partners left in the firm.
Contrarily, at the time of dissolution of the firm, the partners take away the goodwill,
reserves and funds buy them and the firm is close.