In the main body of your submission you must give credit to authors on whose research your work is based. Append to your submission a reference list that indicates the books, articles, etc. that you have read or quoted in order to complete this assignment (e.g. for books: surname of author and initials, year of publication, title of book, edition, publisher: place of publication).
Page 1 of 11 LEVEL/ LEFEL 4 MODULE CODE/ COD Y MODIWL: LCBB4001 ACCOUNTING FUNDAMENTALS ASSESSMENT TYPE/ MATH O ASESU: ASSIGNMENT ASSESSMENT/COMPONENT/ ASESIAD/CYDRAN: 1 COMPONENT WEIGHTING/ PWYSAU’R CYDRAN: 50% WORD COUNT/ NIFER Y GEIRIAU: No word count SUBMISSION DETAILS/ MANYLION CYFLWYNO: Make sure that Your Name , Your Student Number, Your Module Title, Assignment Title and Your Module Lecturer’s Name are clearly shown on the front page of your assignment All assignments must be submitted electronically to Moodle. DO NOT put this form into Turnitin or it will match many similarities with other students’ submissions. Page 2 of 11 Programme: BA Business Management Assignment Title: Accounting Fundamentals –Assessment 1 Hand Out Date: The 2ND week of Term Submission deadline: Please refer to the assessments schedule published on Students’ Hall in Moodle and the Assessment Board on campus Referencing: In the main body of your submission you must give credit to authors on whose research your work is based. Append to your submission a reference list that indicates the books, articles, etc. that you have read or quoted in order to complete this assignment (e.g. for books: surname of author and initials, year of publication, title of book, edition, publisher: place of publication). Late submission will result in a late penalty mark, as follows: Up to one week late, maximum mark of 40% for first attempts and 0% for resubmissions. No work will be accepted more than one week after the submission deadline (Academic Quality Handbook 2016/17 7.5 (5)) Learning Outcomes Assessment Criteria To achieve each outcome a student must demonstrate the ability to: Explain the nature, behaviour, and purpose of cost accounting, and apply cost accounting concepts, techniques, and methods to business transactions; Review the basic principles of accounting including use of appropriate software Prepare financial statements from initial data, dealing with both routine and non-routine transactions and analyse financial statements with confidence Tackle a scenario that requires the analysis of financial statements from a theoretical perspective and the formation of suitable solutions using appropriate tools. This will include use of ICT, where appropriate BACHELORS DEGREE ASSIGNMENT SPECIFICATION Page 3 of 11 Task 1 Maxim commenced trading in his bakery on 5 April. All his transactions were on a cash basis, as follows: 5 April Introduced cash into the business of £300 7 April Purchased goods for £200 8 April Received loan from Tatiana of £250 repayable within twelve months 15 April Purchased a motor van for £150 20 April Sold goods for £350 28 April Paid rent of £50 29 April Repaid part of the loan £200 30 April Drew cash from the business £60. At 30 April Maxim had £100 goods in hand. Required: (a) Write up, balance and close the relevant ledger accounts for the above transactions. (8 marks) (b) Prepare the list of account balances at 30 April. (3 marks) (c) Prepare the statement of profit or loss for the month ended 30 April and a statement of financial position at that date. (9 marks) (20 marks) Task 2 P e n d o You are given the following information on the first month’s trading of Pendo, who is in business as a second-hand furniture dealer. All transactions are on a cash basis. 1 January Pendo paid £5,000 into the business 2 January Bought a motor van for £600 3 January Bought goods for £1,300 4 January Received a loan from Sergei £1,000 repayable within twelve months 10 January Paid expenses on the motor van of £200 13 January Sold goods for £300 20 January Sold goods for £500 24 January Paid storage expenses £150 27 January Repaid Sergei part of his loan £350 30 January Withdrew cash from the business £175 31 January Closing inventory was £800. TASK DESCRIPTION Page 4 of 11 Required: (a) Write up the ledger accounts for the above transactions, including dates, descriptions and balances. (10 marks) (b) Prepare the trial balance at 31 January. (2 marks) (c) Prepare the statement of profit or loss for the month ended 31 January and a statement of financial position at that date. (8 marks) (20 marks) Task 3 Mafuta is a retailer and on 1 January his assets were: £ Cash in hand 343 Inventory 458 Furniture and fittings 198 Receivables Smith 18 Harvey 39 Moon 26 His liabilities were to the following suppliers: £ Rich 12 Max 21 His transactions during January were: £ 2 January Goods sold to Harvey on credit 124 5 January Paid wages 12 Bought goods on credit from Rich 150 7 January Smith settled his account 9 January Paid the amount owing to Max 11 January Cash sales 64 14 January Paid wages 14 Bought goods for cash 75 15 January Paid Rich for balance owing on his account 20 January Bought for cash a new office desk 32 21 January Paid wages 17 Cash sales 110 23 January Paid office expenses 3 Harvey paid on account 25 28 January Cash sales 84 Paid wages 15 31 January Cash sales 30 Page 5 of 11 Inventory at cost was 374 Required: (a) Write up and close the relevant ledger accounts. (18 marks) (b) Extract a trial balance at 31 January. (4 marks) (c) Prepare a statement of profit or loss for the month ended 31 January and a statement of financial position at that date. (8 marks) (30 marks) Task 4 Ricardo, a sole trader, had the following transactions for the month of June: 2 June Sold goods to Claire for £8,500 on credit; offered a 5% quick settlement discount. 13 June Bought goods from Georgina for £12,000 on credit; Georgina offered a 7% quick settlement discount. 14 June Sold goods to Hywel for £9,000 after a 5% trade discount. 20 June Sold goods to Jane for £6,000 cash. 21 June Bought goods on credit for £4,500 from Andrew who offered a 2% quick settlement discount. 22 June Claire returned goods sold of £1,000. 24 June (i) Mandy bought goods worth £5,000 and was offered a 3% quick settlement discount. (ii) Claire took advantage of Ricardo’s discount and paid the net amount due after taking the discount offered. 25 June (i) Hywel settled the amount due in full. (ii) Ricardo paid Georgina the amount due after deducting the discount offered. 27 June Ricardo paid Andrew in full, after deducting the discount offered. Required: Prepare the relevant ledger accounts to record the above transactions, extract a trial balance at 27 June and close the relevant ledger accounts. Your answer should clearly show transactions with individual customers and suppliers. (30 marks) Page 6 of 11 GUIDANCE FOR STUDENTS IN THE COMPLETION OF TASKS 1. Research-informed Literature Your work must be informed and supported by scholarly material that is relevant to and focused on the task(s) set. You should provide evidence that you have accessed a wide range of sources, which may be academic, governmental and industrial; these sources may include academic journal articles, textbooks, current news articles, organisational documents, and websites. You should consider the credibility of your sources; academic journals are normally highly credible sources while websites require careful consideration/selection and should be used sparingly. Any sources you use should be current and up to date, typically published within the last five years or so, though seminal works in the field may be older. You must provide evidence of your research/own reading throughout your work, using in-text citations in the main body of your work and a reference list that is alphabetical at the end of your work. Please use the Harvard referencing system. 2. Knowledge and Understanding of Subject Your work must demonstrate the growing extent of your knowledge and understanding of concepts and underlying principles associated with the subject area. Knowledge relates to the facts, information and skills you may have acquired through your learning. You must demonstrate your understanding by interpreting the meaning of facts and information (knowledge). This means that you need to select and include in your work the concepts, techniques, models, theories, etc appropriate to the task set. You should be able to explain the theories, concepts, etc meaningfully to show your understanding. Your mark/grade will also depend upon the extent to which you demonstrate your knowledge and understanding; ideally each should be complete and detailed, with comprehensive coverage. Specific to this assignment: You should be able to demonstrate your knowledge and understanding of the differentiation between different transaction types and how they are processed by a business. 3. Analysis Your work must contain evidence of logical, analytical thinking, evaluation and synthesis. For example, to examine and break information down into parts, make inferences, compile, compare and contrast information. This means not just describing What? but also justifying: Why? How? When? Who? Where? At all times, you must provide justification for your arguments and judgements. Evidence that you have reflected upon the ideas of others within the subject area is crucial to you providing a reasoned and informed debate within your work. Furthermore, you should provide evidence that you are able to make sound judgements and convincing arguments using data and concepts. Sound, valid conclusions are necessary and must be derived from the content of your work. There should be no new information presented within your conclusion. Where relevant, alternative solutions and