Semester2, 2018/2019
Page 1 of 23
Title of Assessment Assessment Two – Group Case Study
Due Date Thursday 30th May 2019 at 9:00 am
Type Group Case Study
Weighting 35%
Learning Outcomes
1. Demonstrate a detailed knowledge of the foundational
theoretical framework for accounting
2. Apply financial accounting principles in the accounting
process
and interpret outcomes for a business client
3. Prepare financial statements for a sole trader
4. Prepare cash book and bank reconciliation statements for a
given business organization
5. Demonstrate appropriate use of workplace skills and
technology
Submission Requirements
▪ All parts are obligatory.
▪ Show all your workings and calculations.
▪ Use the standard cover page.
▪ Name your file as follow before submission: Group Case S2
2018/2019 – class – group no.
▪ Submit assignment electronically via Moodle.
▪ Submissions should only be in Word doc with the use of
tables.
▪ Dysfunctional groups: The purpose of the group work is to
develop collaborative skills, a student who is unable to
perform well in the group is not displaying these skills so,
he /she will get a fail grade.
▪ The penalty for late submission: 5% deduction for every 24
hours.
▪ Use APA 6th edition & abide by, the assessment policies
including academic honesty.
▪ Behave ethically and responsibly while conducting
assessment tasks and avoid any action that would unfairly
disadvantage another student.
▪ Notify your tutor as soon as possible if difficulties arise
with
timing, online access, availability of resources or other
requirements of the task.
▪ Notify your tutor as soon as possible if difficulties arise
in
terms of substantial absences and apply for Special
Assessment Consideration with the appropriate medical
and/or other certificates.
please I need the solution of the assignment
1. Foundational Theoretical Framework of accounting :-
Accounting simply means recording, classifying and summarising of monetary business transactions and to analyse those business transactins.
a. Recording - Recording means making records of all financial transactions in a book called " Journal".It is evidenced by documents such as purchase bills, sale bills etc.
b. Classifying - Systematic analysis of recorded transactions so as to put transactions of one nature in one account and such account is known as ledger.
c. Summarising - Summarising means presentation of accounting data in Trail Balance, Profit & Loss Account, Balance Sheet and Cash Flow Statement. This information is useful for internal as well as for external users.
d. Analysing - Classification of financial data in financial statements such putting of fixed assets transactions in fixed assets account and sale transactions in sale account.
e. Interpreting - Interpreting means analysis of recorded financial statements so to enable the users of financial statements to understand the financial condition and profitability of the business.
f. Communicating - Commuincating means communication of summarised, analysed and intrepret financial statements to the end users in the form of annual reports so as to make them enable to take rational decisions.
2. Financial Accounting Principles :-
a. The revenue realisation concept - Revenue should be recognised in financial statements only when it is certainly realisable and measurable in monetary terms.
b. The Matching Concept - It states that revenue and expenses should be recognised during the same accounting period in which they are incurred so as to show the correct picture of the financial statements.
c. Full Disclosure Concept - All accounting information should be fully disclosed in the financial statements i.e. proper classification summarisattion and recording of business transactions must be done.
d. Dual Aspect Concept - It states that all accounting transactions have a dual effect on financial statements and it must be recorded in that manner in the financial statements. This is also known as Double Entry system of accounting.
e. Verifiable Objective Evidence Concept - Documentary evidence of transactions must be available so as to support such transactions.
f. Historical Cost Concept - It means that all business transactions must be recorded at their actual cost which will also be used for all subequent business transactions such as charging depreciation in case of building and plant & machinery etc.
3. Financial Statements for a sole trader :-
Balance Sheet
Liabilities Amt. Assets Amt.
Capital 10,00,000 Fixed Assets
+ Net Profit of 1,00,000 11,00,000 Building 7,00,000
C.Y. Furniture & Fixtures 2,00,000
Unsecured Loans 5,00,000 Office Equipment 1,50,000
Provision for current tax 10,000 Investments 3,50,000
Trade Payables 2,00,000 Inventory 2,75,000
Cash 25,000
Bank Balance 50,000
Trade Receivables 60,000
18,10,000 18,10,000
Trading and Profit and Loss Account of Sole Trader
Particulars Amt. Particulars Amt.
To Opening stock 1,00,000 By Sales 9,25,000
To Purchases 8,50,000 By Closing stock 2,75,000
To Direct expenses 50,000
To Gross Profit 2.00.000
12,00,000 12,00,000
By Gross Profit 2,00,000
To Salary 40,000
To Conveyance 15,000
To Printing & Stationery 8,000
To Staff welfare 15,000
To Depreciation 22,000
To Net profit 1,00,000
2,00,000 2,00,000
Bank Reconcilation Statement of Sole Trader
Balance as bank statement = 1,00,000
Less: Cheque issued but not presented for payment = 25,000
Less :Cheque directly credited in bank statement but not
recorded in books of account = 25,000
Balance as per books of account = 50,000
CASH BOOK of Sole Trader
Dr. Cr.
Date Description V.NO. Cash Bank Date Description V.no. Cash Bank
01.04.18 Op. Bal. 20000 30000 08.04.2018 By Purchases 45000
25.04.18 To Sales 30000
28.03.19 To Sales 40,000
29.03.19 To Contra 20,000 29.04.19 By Contra 20,000
31.03.19 By bal c/d 25000 50,000
90,000 50,000 90,000 50,000
Semester2, 2018/2019 Page 1 of 23 Title of Assessment Assessment Two – Group Case Study Due Date Thursday 30th May 2019 at 9:00 am Type Group Case Study Weighting 35% Learning Outcomes 1. Demonstrate...