HigherNationals

Internalverificationofassessmentdecisions–BTEC(RQF)

INTERNALVERIFICATION–ASSESSMENTDECISIONS
Programmetitle HND in Business Management

Assessor A.L.S. Dilrukshi InternalVerifier DilashaRanasinghe

Unit(s) Unit 10 – Financial Accounting

Assignmenttitle Financial Accounting – Assignment 1

Student’sname NehariSenanayake

Listwhichassessmentc Pass Merit Distinction

riteriatheAssessorhas
awarded.
INTERNALVERIFIERCHECKLIST
Dotheassessmentcriteriaawardedm
atchthoseshownintheassignmentbri Y/ Yes assessment crieterias awarded are matching with
ef? N the assignment brief

Isthe Pass/Merit/Distinction Yes assessor has offered pass for the assignment &
gradeawardedjustifiedbytheassessor Y/N has justified it
’s comments on the student work?

Hastheworkbeenassessedac Yes work has been assessed accurately

Y/
curately? N
Isthefeedbacktothestudent: Yes assessor has provided constructive feedback
Givedetails: with relating to the assessment crieterias. Further
assessor has identified the areas which are needed to
• Constructive? be improved by the student.
Y/
• Linkedtorelevantassessmentcr
iteria? NY
Yes
• Identifyingopportunitiesfor /N
improvedperformance?
Yes
• Agreeingactions? Y/
NY Yes

/N

Doestheassessmentdecisionneedam Y/
1
ending? N

Assessorsignature [email protected] Date 10/06/2018

[email protected] 15/06/2018
InternalVerifiersignature Date
Programme Leader
Date
signature(ifrequired)

2
 Confirm actioncompleted
Remedialactiontaken
Givedetails:

Assessorsignature Date
InternalVerifie
Date
rsignature
Programme
Date
Leadersignature(ifr
equired)

3
Higher Nationals - SummativeAssignmentFeedbackForm

StudentName/ID
UnitTitle Unit 10 – Financial Accounting

AssignmentNumber Assignment 1 Assessor

18/04/2018 DateReceived1sts
SubmissionDate
ubmission
DateReceived2ndsubmi
Re-submissionDate
ssion
AssessorFeedback:
LO1 Record business transactions using double entry bookkeeping, and be able to extract a trial
balance.
Pass, Merit & P1 P2 M1 D1
Distinction Descripts

LO2 Prepare final accounts for sole traders, partnerships and limited companies in accordance
with appropriate principles, conventions and standards
Pass, Merit & P3 P4 M2 D2
Distinction Descripts

LO3 Prepare bank reconciliations

Pass, Merit & P5 M3 D3

Distinction Descripts

LO4 Reconcile control accounts and clear suspense accounts

Pass, Merit & P6 M4 D4
Distinction Descripts
Grade: AssessorSignature: [email protected] Date:10/06/2018
ResubmissionFeedback:

Grade:Pass AssessorSignature: Date:

InternalVerifier’sComments: Agree with the given comments by the assessor

Signature&Date: 15/06/2018
* Please note that grade decisions are provisional. They are only confirmed once internal and external
moderation has taken place and grades decisions have been agreed at the assessment board.

4
Assignment Feedback
Formative Feedback: Assessor to Student

 Need to analyze the financial statements & reconciliation statements

 Should provide necessary workings & notes

Action Plan

Should find more about theoretical aspects of accounting

Summative feedback

 Has not given proper analysis

 Has not provided adequate workings

Feedback: Student to Assessor

Lecturer provided enough guidance to complete the assignment successfully

10/06/2018
Assessor signature Date
18/04/2018
Student signature Date

5
 Pearson
Higher Nationals in
Business

Unit 10: Financial Accounting

Assignment 01

Assignment Brief
Student Name /ID Number

Unit Number and Title Unit 10 - Financial Accounting

Academic Year 2017/2018

Unit Tutor

Assignment Title Financial Accounting- Assignment 01

6
Issue Date 15/03/2018

Submission Date 18/04/2018

IV Name & 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.

Unit Learning Outcomes:

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 or 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.

Assignment Brief and Guidance:

Activity 01. Record business transactions using double entry book keeping and be able to extract a
trial balance (Covers LO 01 and P1, P2, M1, D1 )

XYZ PLC has begun professional practice as a system analyst on July 1. He plans to prepare a monthly
financial statement. During July, the owner completed following transactions.

July 1. Owner invested LKR 500,000 cash along with computer equipment that had a market value of
LKR 120,000 two years ago, but was now worth LKR 100,000 only.
July 2. Paid LKR 15,000 cash for the rent of office space for the month.

7
July 4. Purchased LKR 12,000 of additional equipment on credit (due within 30 days).
July 8. Completed a work for a client and immediately collected the LKR 32,000 cash.
July 10. Completed work for a client and sent a bill for LKR 27,000 to be paid within 30 days.
July 12. Purchased additional equipment for LKR 8,000 in cash.
July 15. Paid an assistant LKR 6,200 cash as wages for 15 days.
July 18. Collected LKR 15,000 on the amount owed by the client.
July 25. Paid LKR 12,000 cash to settle the liability on the equipment purchased.
July 28. Owner withdrew LKR 500 cash for personal use.
July 30. Completed work for another client who paid only LKR 40,000 for 50% of the system design.
July 31. Paid salary of assistant LKR 7000.
July 31. Paid PLDT billLKR 1,800 and Meralco bill LKR 3,800.

Requirement
Apply book keeping technique and develop relevant journal entries for give transactions.
Apply the double entry book-keeping system of debits and credits for above given transactions. Record
sales and purchases transactions in a general ledger. (Covers P1)

Produce a trial balance applying the use of the balance off rule to complete the ledger.
(Covers P2)

Important Note:
Learners will be assessed throughout the “Analysis of sales and purchase transactions to compile a trial
balance using double entry book-keeping appropriately and effectively” in achieving Merit Criteria
M1.

Learners will be assessed throughout the “Correct recording of transactions and the production of an
accurate trial balance by completing the balance off of ledger accounts, checking that each
transaction is recorded in line with accepted accounting principles”in achieving Distinction Criteria
D1.

Activity 02. Prepare final accounts for sloe traders, partnerships and limited companies in according
with appropriate principles, conventions and standards. (Covers LO 02 and P3, P4, M2, D2)

Part (a)
The trial balance as at 31.03.2015 of Wiskam PLC which trades electric equipment is given below.
Property, Plant and equipment as at 2014.04.01
Dr. (Rs'000) Cr. (Rs'000)

8
Land 16,000.00
Building 5,000.00
Motor Vehicle 4,200.00
Computer system 600.00
Accumulated depreciation on property, plant and Equipment as at
2014.04.01
Building
1,500.00
Motor Vehicle
1,260.00
Computer system
120.00
Sales
19,300.00
Cost of sales 12,000.00
Trade receivables 1,240.00
Tax paid 175.00
10% bank loan
1,200.00
Lease deposit account 300.00
Advertising expense 200.00
Inventory as at 2015.03.31 (at cost) 350.00
Trade payables
1,650.00
Salary and wages 1,800.00
Stated capital (ordinary share) - share price Rs. 50.00
10,000.00
Dividends paid 500.00
Revaluation reserves as at 2014.04.01
700.00
Retained earnings
7,500.00
Discounts 50.00
120.00
Provisions for doubtful debts as at 2014.04.01
100.00
Sales commission 20.00
Director's fuel and telephone allowances 175.00
Audit fee 60.00
Donations 30.00
Cash Balance 895.00
Bank overdraft
145.00

9
Additional information:
Before preparing the financial statements for the year ending 31.03.2015 the following adjustments have to
be made.
 The cost of inventory as at 31.03.2015 has been valued at First In First Out (FIFO) method.
 A debtor of Rs. 80 000 from trade receivable amount as at 31.03.2015 was bankrupted on 10.04.2015
and out of this amount only 50% could be recovered. Further 10% on the remaining balance of trade
receivable was decided to provide as doubtful debts.
 A agreement was signed with an advertising company for two years by the company to promote the
products on 01.04.2014. Rs 200 000 of paid amount for a period of two years was recorded in the
advertising expense account.
 All property, plant and equipment should be depreciated 10% on cost based on straight line method
annually. All property, plant and equipment are used for administrative purpose.
 Computers of Rs 400 000 which purchased on 01.10.2014 were recorded in the purchase account.
 A machine was acquired on 01.04.2014 under a finance lease for a period of 4 years. A down payment
of Rs 300 000 was paid on this date and it has been recorded in a lease deposit account. Annual lease
installment of Rs 400 000 including of Rs 100 000 annual interest is to be paid at the end of each year.
The bank loan was obtained on 01.04.2014.
 It is reported that land revaluation loss of Rs 1 000 000 on 31.03.2015. because there is a highway in
front of the land but no entrance was to the highway in near the land. The revaluation reserve consists of
land revaluation surplus on 31.03.2010.
 The building of the business was revalued for the first time on 01.04.2015 for it’s fair value of Rs 4 500
000.
 It has been estimated that the income tax for the current year 2014/15 is Rs 220 000.
 The employer and employee contribution to the EPF are 15% and 10% on gross salary and wages
respectively and the employer contributes 3% to ETF. Only the net amount after reducing employees.
contribution has been recorded in salaries and wages account.
 It is decided to capitalized retained earnings 1/5th of the ordinary shares on 31.03.2015.
 The following decisions have been made by the board of directors.
 To pay a dividend of Rs. 1,500 000 to the ordinary shareholders of the company.
 To Transfer Rs. 300 000 for the general reserve

Requirement
Prepare final accounts from given trial balance figures adjusting for accruals, depreciation and
prepayments. (Covers P3 & P4) The final accounts should cover following statements;
 Comprehensive income statement
 Statement of Financial Position

10
  Statement of Changes in Equity
 Relevant Notes

Part (b)
Extractions of the summarized statement of comprehensive income and statement of changes in Equity
for the year ended 31.03.2X15 of Ruba PLC are as follows;
Income Statement Rs.
Sales 20,500.00
Cost of sales (14,000.00)
Gross Profit 6,500.00
Other income (Fized deposit interest) 75.00
Operating expenses (3,500.00)
Other expenses (Computer disposal) (50.00)
Financial Expenses (Loan interest) (760.00)
Profit before tax 2,265.00
Income tax (1,200.00)
Profit for the period 1,065.00

Rs.
Statement of changes in Equity

Balance as at 01.04.2X15 540.00

Total comprehensive income 1,065.00

Dividends (605.00)

Balance of retained earnings as at 31.03.2X15 1,000.00

Additional information
1. Carrying amount of computer disposed on 01.04.2X15 was Rs. 120,000.00
2. The depreciation of Rs. 300,000.00 was included in operating expenses
3. Following balances were extracted from the statement of financial position
Rs.

11
 2X15.03.31 2X14.03.31

Ordinary share capital 15,500.00 15,000.00

Preference share capital 10,000.00 10,000.00

Property, Plant and equipment 7,700.00 8,000.00

Cash and cash equivalents 1,440.00 300.00

Loan interest receivable 40.00 50.00

Other current assests 3,200.00 2,900.00

Provision of income tax 150.00 100.00

Proposed dividends 200.00 250.00

Accrued loan interest 120.00 60.00

Trade Payables/Creditors 860.00 750.00

4. A photocopy machine was purchased during the period but it was not revealed under property plant
and equipment during the year
5. Note that other current assets include stocks worth 1000 and debtors/trade receivables worth 2200 as
at 31.03.20X5 and stocks worth 1500 and debtors/trade receivables worth 1400 as at 31.03.20X6

Requirement

Prepare Cash flow statement and find the cash balance with relevant adjustments for the year ended.
(using indirect method)

Important Note:
Learners will be assessed throughout the “Analyze profit and loss accounts, balance sheet and cash flow
statements appropriate for the given examples.” in achieving Merit Criteria M2.

Learners will be assessed throughout the “Apply appropriate and accurate calculations for the
constructing of the final accounts”in achieving Distinction Criteria D2.

Activity 03. Prepare bank reconciliation (Covers LO 03 and P5, M3, D3 )

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The credit balance of the banks account of Araliya Business as at 31.03.2015 was Rs. 21,500.00. The
book balance was not agreed with the bank statement on that date. The following information were
revealed in the investigations.
(i) Cheques deposit and date f realization are as follows

Cheque number Deposit date Realization date Value (Rs)

043250 30th march 2015 2nd April 2015 4,500.00
215412 31st March 2015 3rd April 2015 33,500.00
721210 31st March 20150 3rd April 2015 16,000.00

(ii) The following deductions were made by bank from business as bank account

Deduction type Value (Rs.)

Cheque book charges 400
Overdraft interest 1800
Bank charges 450

(iii) Leasing installment of Rs. 20,000.00 was paid by bank on 20 th March 2015 on standing order.
But it has not been recorded in a bank account of the business.

(iv) Cheques issued and dates of presented for the payment were as follows;

Cheque number Deposit date Realization date Value (Rs)

010253 26th March 2015 10th March 2015 95,000.00
010262 31st March 2015 04th March 2015 16,500.00
010284 31st March 2015 04th March 2015 21,500.00

(v) Business requested from the bank to stop for the payment for cheque issued for a creditor of
Rs. 12,000.00 on 20th March 2015 and relevant adjustment was made in the business account,
but it is revealed that payment was made by bank.

(vi) An issued cheque of Rs. 8,900.00 already on 15 th March 2015 was recorded in bank account of
the business as Rs. 9,800.00

(vii) Rs. 40,300.00 was directly deposited to the bank by a debtor.

Requirement
Apply the bank reconciliation process to check the book balance with the bank statement balance. You are
required to provide relevant notes and extra calculations to support your answer. (Covers P5)
Important Note:
Learners will be assessed throughout the “Apply the reconciliation process demonstrating the use of
deposit in transit, outstanding checks and NSF check.” in achieving Merit Criteria M3.

13
Learners will be assessed throughout the “Prepare accurate bank reconciliations that apply appropriate
tools and techniques to check general accounts and balance sheets”in achieving Distinction Criteria D3.

Activity 04. Reconcile control accounts and clear suspense accounts (Covers LO 4 and P6, M4, D4)
Creditor Ledger balance of XYZ business as at 01.03.2X14 are as follows;

Creditor Name Value (Rs.)

Asitha 25,000.00
Visitha 44,000.00
Lasith 12,000.00
Total 81,000.00

The summary of the transaction done with the creditors during the month of March 2X14 is given below;

Creditor Purchases (Rs.) Purchases Payment (Rs.) Discount

Return (Rs.) Received (Rs.)
Asitha 160,000.00 - 130,000.00 6,000.00
Visitha 300,000.00 4,000.00 300,000.00 -
Lasitha 120,000.00 - 120,000.00 2,000.00
Rakitha 50,000.00 - 16,000.00 -
Total 630,000.00 4,000.00 566,000.00 8,000.00

As at 01.03.2X14 the total of the creditors ledger balance agreed with the balance of the creditor control
account. As at 31.032X14 the total of the creditors ledger balance did not agree with the balance of the
creditors control account. The reasons for this difference are given Below;
(i) Discount received from Asitha for Rs. 3,000.00 have been debited to creditors control account
and credited to discount received account. No other entries had been made in this regard.
(ii) Debited note of Rs. 4,000.00 sent to Visitha has not been recorded in his account.
(iii) Cash ssales of Rs. 20,000.00 have been credited to creditors control account.
(iv) Purchase invoice dated 28.03.2X14 raised for goods purchased of Rs.12,000.00 from Muditha.
Has not been recorded in the purchase journal.
(v) The total of the purchase journal has been posted to the creditors control account as Rs.
603,000.00.

Requirement

14
Explain the process taken to reconcile control accounts and clear suspense accounts using given account
examples. (Covers P6)
Creditors control account for the month of March 2X14, before making the above adjustments.
A statement reconciling the correct balance of creditors control account with the total of creditor ledger
balance.
The creditors balance to be shown in the statement of Financial Position as at 31.03.2X14.

Important Note:
Learners will be assessed throughout the “Demonstrate understanding of the different types of accounts
and how and why they are reconciled.” in achieving Merit Criteria M4.

Learners will be assessed throughout the “Produce accurate accounts that have been reconciled
applying the appropriate methods”in achieving Distinction Criteria D4.

15
 Outcome(s)/criteria Achieved Feedback
Outcome 1: Record business transactions using double entry book-keeping, and be able to
extract a trial balance.
P1. Apply the double entry book- √ Has followed double entry principle
keeping system of debits and accurately
credits. Record sales and
purchases transactions in a
general ledger.
P2. Produce a trial balance √ Has prepared ledger accounts & TB by
applying the use of the balance following correct process
off rule to complete the ledger.
Outcome 2: Prepare final accounts for sole-traders, partnerships and limited companies in
accordance with appropriate principles, conventions and standards
P3. Prepare final accounts from √ Has prepared financial statements by doing
given trial balance figures correct adjustments
adjusting for accruals,
depreciation and prepayments

Has prepared cash flow statement by

P4. Produce final accounts for a
following correct procedure
range of examples that include
sole traders, partnerships or
limited companies
√
Outcome 3: Perform bank reconciliations to ensure company and bank records are
correct.
P5. Apply the bank reconciliation √ Has applied the correct reconciliation process
process to prepare a number
of bank reconciliations.
Outcome 4: Reconcile control accounts and shift recorded transactions from the suspense
accounts to the right accounts.

P6. Explain the process taken to √ Has followed the correct processto reconcile
reconcile control accounts and control accounts
clear suspense accounts using
given account examples
Grading Rubric - Pass

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 Grade Description (Merit) Achieved Feedback
M1. Analyse sales and purchase
transactions to compile a trial balance
using double entry book-keeping
appropriately and effectively

M2. Analyse profit and loss accounts,

balance sheet and cash flow statements
appropriate for the given examples.

M3. Apply the reconciliation process √ Has apply concepts and basics
demonstrating the use of deposit in of bank reconciliation
transit, outstanding checks and NSF accurately
check.
√ Has applied concepts and basics
M4. Demonstrate understanding of the of suspension and control
different types of accounts and how and accounts accurately
why they are reconciled.

17
 Grade Description (Distinction) Achieved Feedback

D1. Correct recording of transactions and the

production of an accurate trial balance by
completing the balance off of ledger accounts,
checking that each transaction is recorded in line
with accepted accounting principles...

D2. Apply appropriate and accurate calculations for

the constructing of the final accounts
Has prepared bank
D3. Prepare accurate bank reconciliations that apply reconciliations
√
appropriate tools and techniques to check general accurately
accounts and balance sheets
Has prepared accurate
D4. Produce accurate accounts that have been √ control accounts&
reconciled applying the appropriate methods reconciliation
statement

Grading Rubric

18
Acknowledgement

I take this opportunity to express my gratitude to Esoft Metro Campus Lecturer who supported me
throughout the course of this HND project. I am thankful also for aspiring guidance, invaluably
constructive criticism and friendly advice during the project work. I would also like to expand my
deepest gratitude my parents and all the friends who are guided me in writing this assignment.

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Table of content

Activity 1

1.1…………………………………………………………………………………...….20, 21
1.2…………………………………………………………………………………..21, 22, 23
1.3…………………………………………………………………………………………..24

Activity 2 Part A

2.1……………………………………………………………………………………...……25
2.2…………………………………………………………………………………………...27
2.3…………………………………………………………………………………………...27

Part B……………………………………………………………………………..…28. 29, 30

Activity 3

3.1……………………………………………………………………………………………31

Activity 4

4.1…………………………………………………………………………………….………32
4.2…………………………………………………………………………………………….32
4.3…………………………………………………………………………………………….33

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Activity 1
1.1
Debit
Credit
Date Description JF Debit
1-Jul Cash account 500000

Owner Equity 500000

Computer Equipment 100000

Owner 100000
Equipment

2-Jul Additional Equipment 12000

Creditors- Additional 12000
Equp.

4-Jul Office Rent 15000

Cash 15000

8-Jul Cash 32000

Sale 32000

10-Jul Debtors 27000

Sales –Credit 27000

12-Jul Additional Equipment 8000

Cash 8000

15-Jul Wages 6200

Cash 6200

18-Jul Cash 15000

Debtors 15000

Creditor’s additional
25-Jul equp. 12000
Cash 12000
28-Jul Drawings 500
Cash 500

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30-Jul Cash 40000
Sales 40000

Debtors 40000
Sales 40000

31-Jul Salary 7000

Cash 7000

31-Jul PLDT Bill 1800

Cash 1800

Meralco bill 3800

Cash 3800 Commented [D1]: You should write these journal entries in a
General Journal. The format should be there
Commented [HPN2R1]: Agree wit the assessor,
Learner should use proper j ’entry format
1.2

22
Debit Cash Account Credit

Date Particular JF Amount Date Particular JF Amount

Owners’
equity 500000 Office rent 15000
Purchase
Cash sales 32000 equp. 8000
Debtors 15000 Wages 6200
Payment for
Cash sales 40000 creditors 12000
Drawings 500
Salary 7000
PLDT Bill 1800
Meralco
Bill 3800
B/C/D 532700
587000 587000
B/b/f
532700 Commented [D3]: Final balance is Correct

Debit Equity Account Credit

Date Particular JF Amount Date Particular JF Amount

Cash 500000
Computer
Equip. 100000

B/c/d 600000

600000 600000
B/b/f 600000 Commented [D4]: Correct

23
Debit Additional Equipment Credit

Date Particular JF Amount Date Particular JF Amount

Creditors 12000 B/c/d 20000
Cash 8000
20000 20000
B/b/f 20000 Commented [D5]: Correct

Debit Computer Equipment Credit

Date Particular JF Amount Date Particular JF Amount

Equity
Account 100000 B/c/d 100000
100000 100000
B/b/f 100000 Commented [D6]: Correct

Debit Office Rent Credit

Date Particular JF Amount Date Particular JF Amount

Cash 15000 B/c/d 15000
15000 15000
B/b/f 15000 Commented [D7]: Correct

Debit Creditors -

Additional equipment Credit

Date Particular JF Amount Date Particular JF Amount

Additional
Cash 12000 Equip. 12000
12000 12000 Commented [D8]: Correct

24
Debit Sales Credit

Date Particular JF Amount Date Particular JF Amount

B/c/d 139000 Cash 32000
Credit 27000
Cash 40000
Debtors 40000
139000 139000
B/b/f 139000 Commented [D9]:

Debit Debtors Credit

Date Particular JF Amount Date Particular JF Amount

Sale creditors 27000 Cash 15000
Sale creditors 40000 B/c/d 52000
67000 67000
B/b/f 52000 Commented [D10]: correct

Debit Wages Credit

Date Particular JF Amount Date Particular JF Amount

Cash 6200 B/c/d 6200
6200 6200
B/b/f 6200 Commented [D11]: correct

Debit PLDT Bills Credit

Date Particular JF Amount Date Particular JF Amount

Cash Payment 1800 B/c/d 1800
1800 1800
B/b/f 1800 Commented [D12]: Correct

25
Debit Meralco bill Credit

Date Particular JF Amount Date Particular JF Amount

Cash 3800 B/c/d 3800
3800 3800

26
1.3
XYZ PLC
Trial Balance
As at 31st July 2017
Details Debit Credit

500
Drwaings
Cash Account 532700
Equity 600000
Additional Equipment 20000
Office Rent 15000
Sales 139000
Debtors 52000
Wages 6200
PLDT Bill 1800
Meralco Bill 3800
Computer Equipment 100000
Salary 7000
739000 739000

Commented [D13]: Trial balance is tally

Commented [HPN15R14]: Needs formatting improvements

27
Activity
2
2.1 Rs.000"

Wiskam PLC
Comprehensive Income Statement
For the year ended 31ST March 2015
Sales 19300
Cost of sales -11600
Gross profit 7700 Commented [D16]: Correct

Other Income
Discount 120
7820 Commented [D17]: Correct
Admin Expenses 3715

Selling & distribution 230

Finance cost 220
Other expenses 330 (4495)

Profit before tax 3325

(-) Tax -220
Profit after tax 3105 Commented [D18]: Profit after tax is correct

28
2.2

Rs.000"
Wiskam PLC
Statement of financial Position
As at 31 ST march 2015
Non-current assets Cost

PPE 23900
Current Assets
Closing Inventory 350
Debtors 1080
1136
Prepaid expenses 100
Cash 895 2425
26325 Commented [D19]: Total assets amount is correct

Equity & Liabilities

Equity 12000
Reserves
Revaluation reserve 1500
General Reserve 300
Retained earnings 7805 9605
Non- Current Liabilities

Lease Obligation 600

10% bank loan 1200 1800

Current Liabilities
Lease Interest 100
Lease installment 300
Tax payable 45
EPF- Employer 300
ETF 60
EPF- Employee 200
Accrued Interest 120
Trade payable 1650
Bank overdraft 145 2920
26325 Commented [D20]: Total equity & liability amount is correct

29
 Commented [HPN22]: Lerner should use proper structures to
final accounts

Wiskam PLC

Statement of Changes in Equity

As at 31 st of March 2015

Description Share Revaluation General Retained Total

Capital Reserve Reserve Earnings

Bal as at 10,000 700 7,500 18,200

01/04/2014

Dividends (500) (500)

Transfer to 300 (300) -

General Reserve

Bonus 2,000 2,000 -

Land revaluation (700) (700)

Building 1500 1500

revaluation

Profit for the year 3105 3105

Balance as at 12000 1500 300 7805 21605 Commented [D23]: Closing balances are correct

31/03/2015

Rs.000"

2.4

Note 01 - The cost of inventory as at 31.03.2015 has been valued at First in First out (FIFO)
method.

30
Note 02 – Dividend declare of Rs. 1,500 000 to the ordinary shareholders of the company.

Note 03- land revaluation loss of Rs 1 000 000 on 31.03.2015.

31
PPE – Property, Plant & Equipment Commented [HPN24]: Name is incorrect and formats should
be in proper way

Description Land Building M/V Computer Machinery Total

Opening Bal 16000 5000 4200 600 - 25800

Leasing 1200 1200

Purchase 400 400

Reduction (5000) (5000)

Revaluation (1000) 4500 3500

1500 4500 4200 1000 1200 25900

Bal 1500 1260 120 - 2880

Depreciation 500 420 80 120 1120

Removal (2000) 120 (2000)

23900

Description Admin. Ex Sales & Finance Other

distribution

Bad debts 40

Under prov. Of 20
bad debt

Advertising 100

Sales 20
commission

Discount 50

Director allow 175

Audit fee 60

Salaries 2000

32
EPF & ETF 360

Depreciation 1120

Donation 30

Land revaluation 300

loss

Bank loan 120

interest

Lease interest 100

3715 230 220 330 Commented [D25]: Expenses are correct

Commented [D26]: Some required notes & workings are
missing

Dividend

Cash 655 Bal 250

B/D 200 Stat. of. Chg. In eq. 605

855 855

B/F 200

33
Activity

Part B

RUBA PLC
Cash flow statement
Year ended 31 march 2015
Profit before tax 2265
Cash flow from operating activities
Adjustment for :-
Depreciation 300
Disposal loss 50 350
2615

Tax paid 1150

Interest paid 700 -1850

decrease in trade receivable (800)

increase in current liability 110
increase in inventory 500 410

Net cash provided by operating activities 1175

Cash flows from investing activities

Interest received 85
disposal PPE 70

Net cash provided by investing activities 155

Cash flows from financing activities

Issue capital 500
Dividend paid -655

Net cash provided by financing activities -155

34
Net increase in cash 1175 Commented [HPN27]: Wrong answer
Cash- 01.04.2014 300
Cash-31.04.2015 1440 Commented [D28]: Cash balance is correct

Commented [D29]: Correct

Income tax payable

B/B/F 100
Cash 1150 P&L 1200
B/C/D 150
1300 1300

Loan interest payable

B/B/F 60
Cash 700 P&L 760
B/C/D 120
820 820

Loan interest receivable

B/B/F 50
P&L 75 Cash 85
B/C/D 40
125 125

35
Activity 3

3.1

Debit Revised Bank Account Credit

Date Particular JF Amount Date Particular JF Amount

Debtors deposit 40300 B/B/F 21500
Accounting error 900 Leasing installment 20000
Cheque book chargers 400
Overdraft interest 1800
Bank chargers 450

Bank errors 12000

B/C/F 14950
56150 56150
B/B/F 14950

36
 Bank Reconciliation Statement
Balance as per 31.03 @revised bank account (14950)
(+) Outstanding Cheque
10253 95000
10262 16500
10284 21500 133000

(-)Deposit but not clearing cheque

43250 4500
215412 33500
721210 16000

(54000)

Balance of bank statement 64050 Commented [D30]: Correct

Commented [HPN32R31]: Correct, require proper structure

and formats

Assuming 21500 is the cash balance of Araliya business.

Assuming the Issued cheque has been realized in April.

37
Activity 4 Commented [HPN33]: Explanation is required for pass criteria

Total of the purchases day book is understated. The following double entry must be done in
order to posting the 27000 understatements.

Purchases Dr
Control a/c Cr

I. Individual ledger accounts in the payables are posted individually from the purchases day
book, the total of the day books will understate,

It is very much clear that errors have been made in the individual ledger accounts. Hence
corrections should be made to the list of balances.

II. Corrections should be done to the list balances

III. Here error effects to the net of the creditors ledger, corrections should be made by
crediting the control accounts.
IV. In this error, purchased invoice has been missed and not recorded in the purchase journal
at the same time it is not stated that it has been recorded in the individual accounts.
Therefore, correction should be made by posting in to both control account and the
creditors list.

4.1

Debit Creditors control a/c Credit

Date Particular JF Amount Date Particular JF Amount

Purchase return 4000 B/B/F 81000
Discount 8000 Purchase 603000
Cash 566000 Cash sale 20000

B/C/F 126000

704000 704000

38
4.2

Creditors Reconciliation
01.03.2014 Creditors Balance 126000
(+) Add
3000

Discount received- Asitha

Purchase return 4000
Purchase reduction 27000 34000

(-)subtraction
Cash sales 20000 (20000)

140000

39
4.3

Debit Revised creditors control account Credit

Date Particular JF Amount Date Particular JF Amount

Cash sales 20000 B/B/F 126000
Purchase
-
Muditha 12000
Purchase 27000
B/C/D 145000

165000 165000 Commented [D34]: Correct process has been followed

B/B/F 145000 Commented [D35]: Final balance is correct

The creditors balance to be shown in the statement of Financial Position

as at 31.03.2X14 is Rs.145000.00

(That is revised creditors control account balance)

40
Self Criticism
The assignment covers the Financial Accounting , this is my first
assignment, I have gone through most difficulties and hardships. At the
same time, I have learnt most important and valuable information and
gather knowledge about this subject.

Strengths

 Guidance and the support of class teacher

 Finding information become easier
 Able to submit the assignment before due date

Weaknesses

 Finding accurate information become difficult.

41
Gantt chart

JUNE JULY
Description

Week Week Week Week Week 1 Week Week Week

1 2 3 4 2 3 4
Gather
information

Task 1

Task 2

Task 3

Formatting
and
finalizing

42
43