[Essay Help]: AC1130 Fundamental Of Financial Accounting
AC1130 Fundamental Of Financial Accounting.
Explain the nature & purpose of financial accounting
Record transactions and prepare a Trial Balance using the double entry accounting system
Prepare basic financial statements from Trial Balance and Incomplete Records
Prepare bank reconciliations
Prepare sales ledger and purchase ledger accounts and reconciliations
To promote your business, you have agreed to prepare a report for your local Chamber of Commerce. The aim of the report is to provide knowledge to local businesses on the importance of accurately recording financial information.
Discussion of the type of accounting information recorded and how it is recorded. Demonstrate an understanding of double entry accounting and consider how computerised accounting systems such as SAGE can assist accurate recording.
Discussion of what the accounting information is used for.
Explanation of why rules are needed
Explanation of the rules/guidelines including coverage of the key accounting concepts.
From the information provided, prepare Marshall’s Income Statement for the year ended 31 December 2019 and the Statement of Financial Position as at the 31 December 2019. Show workings in your answer including a sales and purchase ledger control account.
Kelly has also provided you with the following information which is not reflected in the trial balance above:
(i)Inventory at 31 December 2019 has been valued at £12,300.
(ii)Loan interest is 5% per year on the £15,000 borrowed.
(iii)She made a payment of £1,500 for rent on 1 November 2019, which was for the quarter ended 31 January 2020.
(iv)Estimated cost of gas and electricity owing at the year-end was £150.
(v)The wages for the last week in December, amounting to £450 had not yet been paid.
(vi)Kelly makes a provision for bad debts of 1% of the outstanding receivables at the year end.
(vii)Depreciation is charged on fixtures and fittings at 10% on cost and on motor vehicles at 25% using the reducing balance method.
Kelly has used the balance of £15,250 for the bank which is the balance per her accounting records. The balance shown on the business bank statement at 31 December 2019 is £15,580. You identify the following when comparing the bank statement to Kelly’s accounting records and note that Kelly has not produced a bank reconcilation:
1.Amounts received in the last few days of December 2019 totalling £220 did not clear in the bank until 2 January 2020.
2.Kelly paid a garage bill by cheque on 23 December for £550. The cheque had not been cleared through the bank at the year end.
You are required to submit an electronic copy of your written assignment via turn-it-in. The assignment should be presented in Arial 12-point font. Part (A) should be presented in double-spaced text.
- Do not cut and paste phrases or paragraphs from published sources. You should seek to use your own words in your explanation.
- If you wish to refer to specific quotes from published sources, then you must use full Harvard presentation.
- The maximum word count is 3000 words. Penalties for exceeding the word count will be applied as follows: 3,001 to 3,500 words (5% reduction); > 3,500 words (10% reduction). However, penalties applied will not reduce a student’s mark below the 40%.
- Do not share work with other students. The Module Information Pack refers to the University’s procedures regarding cheating, plagiarism and using unfair means to enhance performance. Information regarding assessment is provided in the University’s Academic Regulations available on the University’s website.
AC1130 Fundamental Of Financial Accounting
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