Real referral essentials
This is an individual assignment comprising 70% of the module mark and must be your own work any evidence to suggest otherwise will be regarded as an assessment offence. The coursework covers the following learning outcomes:
- Understand the role of accounting in the modern business environment.
- Record business transactions applying accounting concepts and conventions.
- Prepare financial statements for different types of business organisations.
Submission Date and Hand in Requirements: 23.55pm, Friday 31st July 2020.
Online submission via Moodle page turnitin. Guidance on the submission procedure will be available on Moodle. Please do not put your name into the file or the document being uploaded. The name of the file should be: your student number, P21055, Essentials of Financial Accounting. If the coursework is not handed in by the submission date, penalties in accordance with the Examination and Assessment Regulations will apply. Value: Pass/Fail – a mark of 40% or more is required to pass.
Word Count:
The coursework should not exceed 2500 words and any that exceed this will not be read beyond the stated word count. A falsely stated word-count is an assessment offence.
Formatting requirements
The work should be word processed. Font size should be between 11 and 14 and ‘easy to read’ e.g. Calibri, Arial, Times New Roman. Line spacing should be between 1.5 and 2 with (approx.) 4 cm margins all round. The header must include the student number and the Footer must include a page number.
Marks and Feedback
Marks for the portfolio coursework assignment will be available on or before 20 working days after the deadline, (unless the work is submitted after the due date). Marks and feedback will be available on Moodle.
Coursework Assignment Mark Sheet
| Marking Criteria | Mark Awarded | Marks Out Of |
| PART A Preparation of Company Accounts with adjustments Report | 50 | |
| PART B Preparation of the financial statements for a Sole Trader with adjustments. Explanation of accounting terms
| 50 | |
| TOTAL MARK (First marker)
| 100
| |
| TOTAL MARK (Second marker)
| ||
| AGREED MARK (If applicable)
| ||
| Level 4 | |
| 70-80+ | As below plus: § Excellent work that often shows some originality or creativity of insight and approach is well-articulated and demonstrates a good thorough understanding of the subject matter at an introductory level. § Shows evidence of considerable research beyond recommended textbooks and the Internet. There may be some attempt to cite references. References and / or bibliography presented according to subject convention. § Well-presented, well-structured, good organisation with few or no errors in grammar, spelling or punctuation. Presentation of diagrams and / or tables follows required format |
| 60-69 | As below plus: § Very good work which covers the subject matter in a thorough, thoughtful and competent manner with few errors or gaps in content, explanation or accuracy. § Research with sources presented according to subject convention. § Well presented, clearly written, few errors in structure, organisation, expression, grammar, spelling, punctuation, and presentation / use of diagrams and / or tables. § Evidence of research in the topic area and satisfactory use of sources and references § Good organisation, structure, use & flow of language, grammar, spelling, format, diagrams, tables etc. |
| 50-59 | As below plus: § A solid piece of work covering the basic aspects of the topic. § Attempt made at research beyond recommended texts with attempt to present / use references / bibliography according to subject convention. § Generally follows instructions regarding organisation, expression, grammar, spelling, punctuation, and presentation / use of diagrams and / or tables. |
| 40-49 | § Adequate descriptive work that attempts to focus on and show basic grasp of the topic. § Limited research using mainly provided material. Attempts to use and / or present references / bibliography according to convention. § Limited prose style attempting to follow instructions regarding organisation, expression, grammar, spelling, punctuation, and presentation / use of diagrams and / or tables. |
| 30-39 | FAIL – Anything which is inadequate in most or all of the following: length, content, structure, organisation, expression, discussion, explanation, accuracy and relevance. Work in this range attempts to address the question / problem but is substantially incomplete and deficient. Serious problems with a number of aspects of language use are often found in work in this range and the work may be severely under / over-length. |
| 0-29 | FAIL – No serious attempt to address the question / problem, and / or manifests a serious misunderstanding of the requirements of the assignment. Acutely deficient in all aspects. |
Both Section A and Section B has to be completed
SECTION A 50 % of total marks
Company Accounts
The following trial balance has been extracted from the books of account of X-Faster PLC as at 31st December 2017:
| Debit | Credit | |
| £’000 | £’000 | |
| Freehold land and buildings | 22,992 | |
| Authorised and issued share capital: | ||
| Ordinary shares of £1 each | 8,000 | |
| Purchases | 42,378 | |
| Other expenses | 40 | |
| Trade and other receivables | 2,475 | |
| Distribution costs | 698 | |
| Fixtures and fittings (manager office): Cost | 7,500 | |
| Accumulated depreciation for Fixture and Fittings at 1st Jan 2017 | 4,500 | |
| 8% debentures 2022 | 20,000 | |
| Revenue – Turnover | 55,917 | |
| Administrative Expenses | 7,340 | |
| Share premium | 5,471 | |
| Vans and other vehicles (for delivery goods): Cost | 1,080 | |
| Accumulated depreciation for Vans and Cars at 1st Jan 2017 | 648 | |
| Dividend paid | 750 | |
| Plant and machinery (production): Cost | 20,000 | |
| Accumulated depreciation for Plant and Machinery at 1st Jan 2017 | 18,750 | |
| Bad debt | 140 | |
| General reserves | 2,100 | |
| Cash and cash equivalents | 1,821 | |
| Trade and other payables | 1,875 | |
| Retained profits at 1st Jan 2017 | 574 | |
| Inventory at 1st Jan 2017 | 1,560 | |
| Audit fee | 11 | |
| Goodwill | 9,050 | |
| 117,835 | 117,835 | |
[Questions continue over the page]
| NOTES: |
| 1. Depreciation is to be charged as follows: vans and other vehicles 15% on cost, furniture and fittings 10% on cost, plant and machinery 50% on reducing balance basis. |
| 2. The interest for debentures has not been paid yet. |
| 3. Inventory at 31st December 2017 is valued at £1,039,000 |
| 4. The corporation tax liability is estimated to be £320,000 |
| 5. The directors propose to pay a final dividend of 20 pence per ordinary share. |
| 6. Provision is to be made for director bonus of £5,000 |
Required:
A: Prepare the company’s Income Statement for the year to 31st December 2017, and the Statement of Financial Position (Balance Sheet) as at that date in a format suitable for presentation to shareholders.
(30 Marks)
B: Write a report to the directors of X-Faster discuss the following:
- What are the three main sources for company to raise finance? Explain the theory about company’s preferences for the different sources of funds. (5 marks)
- What is the key difference between ordinary shares and preference shares? (5 marks)
- How does a share premium account arise and what purpose does it serve? (5 marks)
Presentation of report – 5 marks
TOTAL 20 marks
[End of Section A]
SECTION B 50% of total marks
Question: Sole trader
The following trial balance has been prepared from the books and records of Taco Supplies as at 31st March 2018. We are also told that the figure have to be amended to take into account further adjustments.
| Debit | Credit | |
| £ | £ | |
| Capital | 85,850 | |
| Drawings | 39,000 | |
| Motor vehicles | 50,000 | |
| Accumulated depreciation for motor vehicles | 27,000 | |
| Trade payables | 38,000 | |
| Trade receivables | 55,000 | |
| Inventories (1st April 2017) | 10,000 | |
| Rent | 14,000 | |
| Telephone | 1,500 | |
| Postage | 350 | |
| Electricity | 1,800 | |
| Bank | 34,000 | |
| Return inwards | 3,000 | |
| Return outwards | 11,400 | |
| Provision for doubtful debts | 800 | |
| Purchases | 152,000 | |
| Sales | 280,000 | |
| Fixtures and Fittings (Cost) | 126,000 | |
| Accumulated depreciation for fixtures and fittings | 37,800 | |
| Discount received | 7,000 | |
| Bank charges | 1,200 | |
| 487,850 | 487,850 | |
Additional information:
- A bad debt of £1,500 has yet to be written off.
- The provision for doubtful debts is to be 2% of trade receivables.
- There are unpaid bills for electricity £600 and telephone £500.
- Rent is payable at £3,900 per quarter this includes a payment for rent for the quarter ended 30th April 2018.
- Depreciation is to be provided on Fixtures and Fittings at 10% straight line method. Depreciation is to be provided on Vehicles this year on reducing balance method at 25%.
- The value of inventories at 31st March 2018 is £14,500.
[Questions continue over the page]
Required:
A: Write down the journal entries for additional information item 1 to item 5. T accounts are not required. (10 marks)
B: Prepare a Profit and Loss Account (Income Statement) and a Statement of Financial Position (Balance Sheet) for Taco Services at the 31st March 2018. (25 marks)
C: Explain the following accounting terms applying to the above accounts: 5 marks for each term
- Prepayments
- Trade Receivables
- Provisions for doubtful debts
(15 marks)
(TOTAL 50 Marks)
[End of Examination]