What is accounting systems? Describe about special journals & subsidiary ledgers.
The company under review is the JB Hi Fi and is the leading retailer of the consumer electronics. The company manufactures the video games and also the blu-rays, DVD’s and the CD’s. The company is the leading chain store which is headquartered in Melbourne.
In the smaller accounting treatment, the book keeper may go on to record the various journal entries. In a company, the general leader accountant is duty bound to record the journal entry and ensure the control over the manner in which the journal entries have been recorded.
In respect of the format of the journal entry, at a minimum, the accounting journal entry must include the following:
It is very much common for the accountants to commit frauds by the use of various journal entries than through the use of the common transactions that exists. This could include the supplier invoices and the creation of the customer invoices. The main reason behind the same is that there are many of the common transactions that would have the controls of the systems built around them and this is designed for many of the different reasons. There are a very lesser number of controls over the journal entries that makes the creation of the fraudulent transactions easier. These are the transactions that are very difficult for the recording of the amounts that are not material and these are not likely to spot the transgressions.
The following is the statement of the cash flows provided in the annual report of the company:
|
Particulars |
(Amounts in $ in thousands) |
||
|
Receipts from customers |
40,12,130 |
38,32,979 |
|
|
Payment to suppliers and employees |
-37,67,211 |
-37,23,982 |
|
|
Interest and bill discounts received |
552 |
402 |
|
|
Interest and other finance costs paid |
-5,689 |
-7,496 |
|
|
Income taxes paid |
-59,886 |
-60,577 |
|
|
Net cash inflow from operating activities |
1,79,896 |
41,326 |
|
|
Acquisition of non-controlling interests |
-2,400 |
-3,000 |
|
|
Payments for plant and equipment |
-42,466 |
-35,914 |
|
|
Proceeds from sale of plant and equipment |
496 |
674 |
|
|
Net cash (outflow) from investing activities |
-44,370 |
-38,240 |
|
|
|
|||
|
Proceeds from issues of equity securities |
3,125 |
21,523 |
|
|
Proceeds / (repayment) of borrowings |
-40,113 |
54,063 |
|
|
Payments for debt issue costs |
-484 |
-64 |
|
|
Payment for shares bought back |
-4,970 |
-25,830 |
|
|
Share issue and buy-back costs |
-24 |
-118 |
|
|
Dividends paid to owners of the Company |
-87,174 |
-77,183 |
|
|
Net cash (outflow) from financing activities |
-1,29,640 |
-27,609 |
|
|
Net increase / (decrease) in cash and cash equivalents |
5,886 |
-24,523 |
|
|
Cash and cash equivalents at the beginning of the financial year |
43,445 |
67,368 |
|
|
Effects of exchange rate changes on cash and cash equivalents |
-200 |
600 |
|
|
Cash and cash equivalents at end of year |
49,131 |
43,445 |
1. Depreciation expense: this is found in the statement of profit or loss.
2. Amortisation expense: this is found in the statement of profit or loss.
3. Employee benefit expense: this is found in the statement of profit or loss.
4. Financial service fees revenue: this is found in the statement of profit or loss.
5. Lease and occupancy expenses: this is found in the statement of profit or loss.
The following is the statement of profit or loss:
|
|
(Amounts in $ in thousands) |
||
|
Particulars |
2015 |
2014 |
|
|
Revenue |
36,52,136 |
34,83,775 |
|
|
Cost of sales |
-28,53,883 |
-27,27,794 |
|
|
Gross profit |
7,98,253 |
7,55,981 |
|
|
Other income |
631 |
520 |
|
|
Sales and marketing expenses |
-3,74,084 |
-3,55,694 |
|
|
Occupancy expenses |
-1,60,216 |
-1,48,969 |
|
|
Administration expenses |
-27,711 |
-27,600 |
|
|
Other expenses |
-35,414 |
-32,716 |
|
|
Finance costs |
-5,927 |
-8,845 |
|
|
|
|
||
|
Profit before tax |
1,95,532 |
1,82,677 |
|
|
Income tax expense |
-59,021 |
-54,230 |
|
|
Profit for the year |
1,36,511 |
1,28,447 |
|
|
Attributable to: |
|||
|
Owners of the Company |
1,36,511 |
1,28,359.00 |
|
|
Non-controlling interests |
88.00 |
||
|
Earnings per share |
|||
|
Basic (cents per share) |
137.91 |
128.39 |
|
|
Diluted (cents per share) |
136.46 |
126.89 |
|
The following is the Balance sheet of the company:
|
|
(Amounts in $ in thousands) |
||
|
Assets |
2,015.00 |
2,014.00 |
|
|
Current assets: |
|||
|
Cash and cash equivalents |
49,131.00 |
43,445.00 |
|
|
Trade and other receivables |
81,480.00 |
70,745.00 |
|
|
Inventories |
4,78,871.00 |
4,58,625.00 |
|
|
Other current assets |
7,416.00 |
5,332.00 |
|
|
Total current assets |
6,16,898.00 |
5,78,147.00 |
|
|
Non-current assets: |
|||
|
Plant and equipment |
1,76,208.00 |
1,81,564.00 |
|
|
Deferred tax assets |
17,363.00 |
14,909.00 |
|
|
Intangible assets |
84,541.00 |
85,218.00 |
|
|
Other financial assets |
3.00 |
3.00 |
|
|
Total non-current assets |
2,78,115.00 |
2,81,694.00 |
|
|
Total assets |
8,95,013.00 |
8,59,841.00 |
|
|
Liabilities |
|||
|
Current liabilities: |
|||
|
Trade and other payables |
3,25,604.00 |
3,02,979.00 |
|
|
Provisions |
40,585.00 |
36,840.00 |
|
|
Other current liabilities |
4,566.00 |
4,111.00 |
|
|
Current tax liabilities |
9,474.00 |
8,184.00 |
|
|
Other financial liabilities |
107.00 |
79.00 |
|
|
Total current liabilities |
3,80,336.00 |
3,52,193.00 |
|
|
Non-current liabilities: |
|||
|
Borrowings |
1,39,461.00 |
1,79,653.00 |
|
|
Provisions |
6,073.00 |
8,699.00 |
|
|
Other non-current liabilities |
25,664.00 |
24,638.00 |
|
|
Other financial liabilities |
– |
25.00 |
|
|
Total non-current liabilities |
1,71,198.00 |
2,13,015.00 |
|
|
Total liabilities |
5,51,534.00 |
5,65,208.00 |
|
|
Net assets |
3,43,479.00 |
2,94,633.00 |
|
|
Equity: |
|||
|
Contributed equity |
56,521.00 |
58,383.00 |
|
|
Reserves |
17,636.00 |
16,265.00 |
|
|
Retained earnings |
2,69,322.00 |
2,19,985.00 |
|
|
Total equity |
3,43,479.00 |
2,94,633.00 |
|
The following are the required journal entries:
|
Transaction |
Particulars |
Debit |
Credit |
|
|
Cash receipt from customers |
Cash |
|||
|
Sales |
||||
|
Cash paid to suppliers |
Accounts payable |
|||
|
Cash |
||||
|
Dividend paid |
Dividend expense |
|||
|
Cash |
||||
|
Payment for plant and equipment |
Plant and equipment |
|||
|
Cash |
||||
|
Depreciation expense |
Depreciation expense |
|||
|
Accumulated depreciation |
||||
|
Amortisation expense |
Amortisation expense |
|||
|
Asset |
||||
|
Employee benefit expense |
Employee benefit expense |
|||
|
Profit and loss account |
||||
|
Financial service fees revenue |
Cash/Accounts receivables |
|||
|
Financial service fees revenue |
||||
|
Lease and occupancy expenses |
Lease and occupancy expenses |
|||
|
Profit and loss |
||||
References:
Accounting Basics for Students. (2016). Basic Accounting Journal Entries.
Accountingtools.com. (2016). Accounting Journal Entries – Accounting Tools.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download