Henry is a new accounting recruit at Green Fields & Co Certified Public Accountants. He has been undergoing a rigorous training and orientation exercise at the firm.
A client of the firm, Grout Industries Company Limited (GICL) whose Accountant left abruptly for greener pastures, has brought a list of account balances to aid in the preparation of the final accounts of the Company. This assignment has been referred to Henry to test his financial accounting skills.
Required:
Q.1.
(a)Taking the role of Henry and using the data provided, show how you would explain the performance of the company for the year ended 31st Dec. 2021.
(b)Discuss the reasons various stakeholders may be interested in the accountsof Grout Industries Company Limited showing, for each of them, their information needs.
©Explain, how in your view ‘you would treat a bad debt that had beenwritten off and the debtor resurfaces and pays towards the end of accounting
d) Evaluate four major ways through which a company like GICL
e) With illustrations, show how you would interpret Financial statements tothe different stake holders using the data provided.
f) Identify what you would consider important to appear in your end of yearFinal accounts for Twekambe industries.
g) Explain the meaning of Non -current Assets in business setting.
h) Explain the rationale of the Accounting Equation to the various beneficiaries of Accounting information can raise capital for expansion purposes
Q.2
a)Using the knowledge you have acquired in this course and as per guidance fromIAS I and IPSAS 1, what would you consider a complete final Accounts ready for publication?
b)Explain how you would interprete Financial statements to the different users of accounting information with illustrations.
c)As per IAS 16: PPE, how would you recognize your company’s assets that wereacquired with the intention of generating Revenue
(d) Explain how you would treat debtors of business?
Q3.
a) In your view, what would cause the cash book of an enterprise to disagree with the bank statement at the of month?
b) Explain what you would include under Cost of sales of an enterprise during the preparation of final accounts for your organization?
c) What do you understand by a financial year as used in accounting and reporting?
d) How would you explain the meaning of ‘’accounting cycle’’ to someone with no accounting background?