Assignment Brief (RQF)

Assignment Brief (RQF)

Higher National Certificate/Diploma in Business
Student Name/ID Number:

Unit Number and Title: Unit 10: FA

Academic Year: Jan-March 2018

Unit Assessor: Muhammad Ehtisham

Assignment Title: Financial Accounting

Issue Date: 16-Jan-2018

Submission Date: 24-March-2018

Internal Verifier Name: Malik Abdul Naveed

Date:

Submission Format:

The submission is in the form of an individual written report. This should be written in a
concise, formal business style using single spacing and font size 12. You are required to
make use of headings, paragraphs and subsections as appropriate, and all work must be
supported with research and referenced using the Harvard referencing system. Please also
provide a bibliography using the Harvard referencing system. The recommended word limit is
4,000 words, although you will not be penalised for exceeding the total word limit.

Unit Learning Outcomes:

LO1 Record business transactions using double entry book-keeping, and be able to extract a
trial

LO2 Prepare final accounts for sole traders, partnerships or limited companies in accordance
with appropriate principles, conventions and standards.

LO3 Perform reconciliations of bank statements, control accounts and clearing

suspense accounts.

LO4 Reconcile control accounts and clear suspense accounts

Unit 10 Financial Accounting
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 Assignment Brief (RQF)

Assignment Brief and Guidance:

Scenario

You are a Junior Accountant in a small accountancy firm and you have been asked by your line
manager to prepare a report as evidence that your firm is aware of regulations relating to
accountancy, as well as the rules, principles and conventions relating to accountancy.

Task 1.1: Define what is Business transactions, Considering the types of business transactions. You
are also required to describe the regulations which apply to financial accounting.

Task 1.2: You are required to explain the concepts of Double Entry. Your answer should include
explanation of Accounting Equation and Rules of Debit and Credit.

Task 1.3: Getting the Trial Balance right is very important in Accounting cycle. You are required to
draw the Trial Balance using the data provided. You need to make journal and Ledger entries also.

Jan 1: Started Business with cash £20,000.

2nd Jan: Open bank Account with £10,000.
3rd Jan: Purchased Furniture for cash £1,000.
4th: Purchased goods for cash £1,000
5th May: Purchased goods from London Store £4,000 on credit
6th: Sold Goods for cash £2,600
7th: Sold Goods to William and Sons for £2,200 on credit.
10th: Cash taken by Smith for his personal use £3,000
13th: Purchased a typewriter for £1,000 and paid by cheque.
15th June: Sold Goods for cash £20,000.
16th: Acquired bank Loan of $3,000 @ 5%.
20th July: Advertisement and legal expenses are £3,000 and £4,000 respectively paid by cash.
20th Sep: Purchased Building for £3,000. Payment was done by Cheque.
1 Oct: Paid rent in $600 in Advance for 6 months. (by cheque)
11th Dec: Paid salaries £400 by cheque (£200 For December Still Outstanding)
Required: Pass necessary Journal entries, post into the ledgers, make a trial balance.

LO2 Prepare final accounts for sole-traders, partnerships and limited companies in accordance with
appropriate principles, conventions and standards

Unit 10 Financial Accounting

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 Assignment Brief (RQF)

Task 2.1: Financial Reports are very important source of financial information. Produce the report
which should include the following,

(a) What is the difference between Financial reports and financial statements?

(b) Different types of financial statements and what they cover.

(c) Adjustments required for accruals, prepayments, bad debts, etc.

Task 2.2: Prepare Final Accounts using the Trial Balance extracted in Task 1.3 and also discuss the
concepts and conventions of consistency, materiality and full disclosure.

LO3 Perform bank reconciliations to ensure company and bank records are correct

Task 3.1: Bank reconciliation is a very important tool to have a control on busniess Cash and Bank
balance, You are required to explain What is meant by bank reconciliation and why is it required. Also
writedown the importance of it and how it is used by business management.

Task 3.2: You are required (Using tools and techniques) Ensuring that all entries relating to a particular
period are correctly entered in the ledger system to check the general ledger accounts and balances
against liquid holdings and cash reserves.

Task 3.3: Perform a Bank reconciliation using the data provided and find out the positive and negative
balance and how to deal with those. (Data Provided in class).

LO4 Reconcile control accounts and shift recorded transactions from the suspense accounts to the
right accounts

Task 4.1: Control Accounts are very important in ensuring the right balance is maintained in Accounts
Receivables and Payables ledgers explain What is menat by control Accounts? How and why are they
used? How do they support effective financial management?

Task 4.2: Perform the reconciliation of Control Accounts using the Debtors and Creditors accounts.
(Data Provided in class).

Task 4.3: Illustrate the difference between control accounts and suspense accounts and how to shift
balance from suspense accouns to the correct/right account.

Learning Outcomes and Assessment Criteria:

Learning Outcome Pass Merit Distinction

Unit 10 Financial Accounting

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 Assignment Brief (RQF)
LO1: Record business
transactions using
double entry book-
keeping, and be able to
extract a trial balance
LO2: Prepare final
accounts for sole-
traders, partnerships
and limited companies
in accordance with
appropriate principles,
conventions and
standards
LO3: Perform bank
reconciliations to ensure
company and bank
records are correct
LO4: Reconcile control
accounts and shift
recorded transactions
from the suspense
accounts to the right
accounts
Recommended Resources
ATRILL, P. and McLANEY, E. (2012) Accounting and Finance for Non-Accounting
Specialists. 8th Ed. Harlow: Pearson.
DYSON, J. R, (2010) Accounting for Non-Accounting Students. 8th Ed. London: Prentice
Hall.
Unit 10 Financial Accounting
P1 Apply the double
entry book-keeping
system of debits and
credits. Record sales
and purchases
transactions in a general
ledger.
P2 Produce a trial
balance applying the
use of the balance off
rule to complete the
ledger.
P3 Prepare final
accounts from given trial
balance figures
adjusting for accruals,
depreciation and
prepayments. P4
Produce final accounts
for a range of examples
that include sole-
traders, partnerships or
limited companies.
P5 Apply the bank
reconciliation process to
prepare a number of
bank reconciliations.
P6 Explain the process
taken to reconcile
control accounts and
clear suspense accounts
using given account
examples.
4
M1 Analyse sales and D1 Record correctly
purchase transactions to transactions and produce
compile a trial balance an accurate trial balance by
using double entry completing the balance off
bookkeeping of ledger accounts,
appropriately and checking that each
effectively. transaction is recorded in
line with accepted
accounting principles
M2 Analyse profit and D2 Apply appropriate and
loss accounts, balance accurate calculations for the
sheet and cash flow constructing of the final
statements appropriate accounts.
for the given examples.
M3 Apply the D3 Prepare accurate bank
reconciliation process reconciliations that apply
demonstrating the use appropriate tools and
of deposit in transit, techniques to check general
outstanding checks and accounts and balance
Not Sufficient Funds sheets.
(NSF) check.
M4 Demonstrate D4 Produce accurate
understanding of the accounts that have been
different types of reconciled applying the
accounts and how and appropriate methods.
why they are reconciled.
 Assignment Brief (RQF)

GLAUTIER, M. (2010) Accounting Theory and Practice. Harlow: Prentice Hall.

LOUGHRAN, M. (2011) Financial Accounting for Dummies. New Jersey: Wiley Publishing.
MCLANEY, E. and ATRILL, P. (2012) Accounting: An introduction. 6th Ed Harlow:
Pearson.
Journals
Journal of Accounting,
Auditing and Finance
Journal of Business Finance and Accounting International
Journal of Managerial and Financial Accounting
Links This unit links to the following related units:
Unit 5: Management Accounting Unit
13: Financial Reporting Unit
14: Advanced Management Accounting Unit
15: Financial Management
Unit: Managing and Running a Small Business

Unit 10 Financial Accounting

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