NARRATIVE REPORT ON THE PREPARATION OF FINANCIAL STATEMENTS FOR
“TURNS”
The Department of Business Administration held a month-long bazaar event
participated by their students which started on October 24, 2022 and ended on
November 25, 2022. The goal of the said event was to apply and hone the
entrepreneurial skills of the business students. In line with this, the third-year
Management accounting students were tasked to prepare the financial statements of
each designated bazaar. As an accountancy student, I was tasked to aid and supervise
them in their undertaking.
Our first task was to inquire and secure copies of their business plan and sufficient
financial data with regards to their business operation. This is when we first
encountered our problem. Due to pending activities, exams, thesis and long weeks of
no classes, the business students were unable to immediately provide their financial
data to be used in our preparation of financial statements. On December 13, 2022, the
business students were finally able to provide us the weekly summary of inflows and
outflows of their month-long operation. However, we had some difficulty recognizing
their financial data after verifying and analyzing the information they gave because
some weekly reports were not accurately presented. As a result, we were unable to
make any headway in creating financial statements. To address this problem, we
requested additional information regarding the data in conflict from the fourth-year
students. After learning more, we discovered that some business students used their
own money to supplement their existing cash balance during the first week of
operation of their businesses in order to cover additional expenses incurred on the
first day of operation and was subsequently reimbursed at the end of the first week.
After we addressed the aforementioned problems, the preparation went smoothly
and we were able to prepare the financial statements in accordance with the
applicable accounting standards. We double checked each account and transactions
to ensure accurate and fair presentation, considering that our prepared financial
statements will be audited by my fellow accountancy students later on.