German University of Technology in Oman Finance For Managers Paper Assessment Task “Accounting is a set of concepts and techniques that are used to identi

German University of Technology in Oman Finance For Managers Paper Assessment Task

“Accounting is a set of concepts and techniques that are used to identify, measure, record, classify, summarize and report financial information of an economic unit to the users of the accounting information. The accounting process is three separate types of transactions used to record business transactions in the accounting records. This information is then aggregated into financial statements.”

Required to:

Create and record transactions which involves introduction of capital to the business, purchase of a non-current asset, cash sales, cash purchase, credit sales, credit purchase, payment of rent, payment of salary, receipt of commission, full receipt for credit sales, availing overdraft from bank and cash deposit into the bank for a month showing the closing balances for each account.
Extract a Trial Balance from the prepared Ledger Accounts.
Prepare an Income Statement for the month and Balance Sheet as at month-end. Briefly explain the purpose of Financial Statements.
Analyse the performance of the company using Gross Profit Ratio, Net Profit Ratio and Current Ratio. Also, suggest strategies on how to source capital for a Limited Company.

Additional instructions:

Structure of the assignment is as follows:

Introduction – Discuss the meaning and importance of accounting (approximately 250 words)

Main Body-

1. Create and record (prepare journal) your own transactions as mentioned in question 1 and prepare the ledger accounts for same. You will have 12 transactions and 12 ledger accounts.

2. Need to prepare a Trial Balance which will have the twelve ledger accounts prepared in question 1.

3. Need to prepare the Financial Statements from the Trial Balance that is prepared in question 2. Also, need to explain the purpose of Financial Statements.

4. Need to calculate the three ratios mentioned in question 4 and need to analyse the performance based on the calculated ratio.

Also, need to suggest strategies on how to source capital for a Limited Company.

Conclusion – Summary of the topics discussed in the assignment

The students need to choose a particular month and create their own transactions as mentioned in question no.1 with any amounts.

– At least five (5) references from different sources in Harvard Referencing style.

– As the assignment is based on numbers and calculations, the word count for each question is not specified. The overall word count should be equivalent to 3,000 words.