Activity 1: Appendix D; Financial Activity Tasks
A: Asset Register
B: Transaction Allocation and Coding
C: Identification of receipts and payments
Coding: R = Revenue, P = Payment, CR = Cash Receipt
D: Allowances and deductions
E: Other statutory reports for a partnership
Annual income tax
The annual income tax does not take into account the cost of personal expenses invested in the business partnership and do not also account the marginal costs. The production costs undergone by the partnership are not reflected in the report. There should be a partnership act to reflect on the mode of cost sharing and profit or revenue management in the business development in the annual reports as well as the annual income tax. The workers employed in the company should be given an evaluation formula on how to evaluate the expected returns at the end of the financial year.
Fringe benefits tax
The fringe benefits are not clearly established in the partnership coordination. No act defines relations on the share of the benefits realized. They are not well stipulated for in the annual report and therefore the business has a floating fringe benefit tax in the reports compiled.
Activity 2: Double Entry Bookkeeping
Double entry bookkeeping method applies that for every transaction made in the business, two accounts must be affected. Therefore, the entry into the book records must be done in two accounts. For instance, a purchase of an asset by cash; will affect two accounts, first, the cash will reduce while the assets increase in the records the following example can be used to illustrate this example. The balance sheet equation must be maintained i.e.
Assets=Liabilities+ Capital
Example 1
Dr Monthly Rent a/c Cr
Dr cash a/c Cr
Example 2
Dr sales a/c Cr
Example 3: The transaction will affect the two accounts as below:
Dr office supplies a/c Cr
NB: cash account had been opened above.
Example 4; the transaction will reduce the amount of cash in the company's account, but increase the same amount in the suppliers account. As the company’s liabilities reduce, supplies asset increase. Therefore, the cash and the suppliers account will be affected as shown.
Dr Possum Plumbing Cr
NB: cash account is opened at the begining.
Activity 3: Digital technologies to report financial activities
Information technology applies the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. The application of technology in the business for accounting purposes has a vast importance and a range of advantages. The trend in financial accounting is to run away from the paper works and the burden of bulky space demand. The application of computers and information technology can help reduce this burden. The accounting information system is a set of interrelated subsystems that work together to collect, process, and store, transform, and distribute information for planning, decisions making and control of the business financial records. Such technologies require utilization of various software.
For the JIMMON CONSTRUCTIONS Company, the application of the STATA technology may be very appropriate. This technology applies advanced management tools to store spatial data in the computer system. It has a huge management database that can put a multitude of data at dispensation. Such a technique will not only help the company to trace the petty cash expenditures, but also manage the day-to-day records of the finance expenditures. It can also help in reducing the number of misplaced documents in the company's operation.
The application of such technology has been known to reduce the headache experienced in financial record balancing. It also helps in the reduction of memory retrievals. It has a combined software system that can analyse the business data from a single entry point. The data is only fed into the system and then the software system automatically analyses the entered data and keeps the records. It can import and export data from and to another application such as the Excel, it can also manipulate the data to generate the desired outcome for the business management purposes.
It has variable managers and can merge different dataset in the database. It supports a variety of data sets and has special capacity and operation design. I think it can help the company to manage the financial records on a fingertip basis with little stress and struggles in the long run.
