Bangor University International College

Coursework 1
Date of Set 15/07/2021 % of Module Mark: 30%

Total Number of
Date of Submission: 26/07/2021 55
Marks:
Module Title and BIC 0015 - Financial Accounting
Code:
Tutor Name: Sandy Perez- Robles

Instructions to Candidate:

Write using Times New Roman font 12; 1.5 spacing

Do not copy material from any sources for your answer to this question without proper referencing, as this
constitutes plagiarism. You should include a bibliography with your answer to the coursework.

Please submit an electronic copy of your answer via Turnitin by 5pmon JULY 26TH 2021

Examiner Use Only:

Total /XX
MARKING CRITERIA

1
This assignment constitutes 30% of the overall mark for this module.
Question 1:9 marks
Question 2:12marks；minimum 200 words - word limit 400
Question 3:34marks

Question 1: Introduction
(9 marks, 1 mark per item)

2
Which of the following transactions or events should be recorded in the firm’s accounting records
and, which T accounts will you use?

Please answer by “Yes” or “No”, briefly explain your answer, and mention the corresponded T
accounts
i) Mr. Brian started business with capital (brought in cash) £ 10,000.
ii) Paid salaries to Helen £ 3,000.
iii) Purchased equipment for £10,000 in cash.
iv) Placed an order with Apple for goods for £2,000.
v) Opened a Bank account by depositing £5,000.
vi) Received an invoice from bank.
vii) Appointed Ruth as Manager on a salary of £ 6,000 per month.
viii) Received interest from bank £ 100.
ix) Received a price list from Microsoft Company.
Answer:

1) Yes, this transaction Related to Mr. Brian that started a business with Capital will be recorded in the
firm’s accounting record as a Credit balance in the equity head and debit to the bank account and
the equity T- Account will be used.
2) Yes, the salaries paid are also recorded in the firms accounting record as a debit to the income
statement and credit to the Bank account. Salaries wages and expenses T –Account will be used.
3) Yes, the purchase of equipment will be recorded in the firms account record as the purchase of the
equipment will be debit to the Non-Current asset and credit to the bank account. The Corresponding
Non-Current asset T account will be used.
4) Yes, placing an order for the goods purchased considered as Transaction for the purchases Inventory
will be debit and cash or payable will be recorded. The Cost of Goods sold T account will be used.
5) Yes, this transaction will be recorded as debit balance in Current assets and credit the cash from
other bank. The Current asset or Cash T account will be used.
6) If the invoice received from the bank is regarding any services that Mr. Brain used or availed from
the bank then this will be recorded as payable to the bank and payable T-Account will be used.
7) Yes, the appointment of Mr. Ruth as a manager will create a liability to Mr. Brain and the double
entry will be Debit Income statement and credit liability, The Salaries Wages and Expense T account
will be used.
8) Yes, The receiving of the interest from the bank will be recorded in the Company accounting record
in the balance sheet as debit income from interest and credit income statement.. Interest Income T
accounts will be used.
9) No, this will not be recorded to the company accounting Record. As Mr. Brain’s company just
received price list quotation from the Microsoft account. No transaction took place nor was any
liability created. So this cannot be recorded in the company’s Accounting Record.

Question 2: Accounting ethics

3
Discuss1 the importance of accounting ethics using real-time examples. The answers should include a
description of three important qualities “Integrity”, “Due care and Competence” and “Objectivity
and Independence”.
(Minimum 300 words - word limit 400, 12 marks

In much business accounting is the main important function of the business. The
ethical in the accounting and professionalism form a very clear image of the business.
Accountants are strictly told that they should adhere the ethical principles while they
are working as an accountant for the business. Many form of unethical behaviour in
accounting are very rare, proving misleading information to the company stakeholder
both internal and external should lead them to make much wrong decision making,
while misleading information will benefit the single person at one time but will
destroy the whole company and their shareholders will be destroyed.
Integrity is the main important function of the professional accounting, because of
requires accountant that should be honest and work straight forward towards the client
business and provide the Client the right financial values for their decision making,
they should restrict themselves for the personal gains and advantages by the use of the
client secret and confidential information. The use of the integrity means to say that
accountants should adhere to the strict accounting principles through GAAP and
International financial reporting standards. Due to Integrity the stakeholder should
have faith in that company and believe that their balance sheets give true and fair
view.
The third point is about the professional competence and the due care, it is important
that all the accountants have the compulsory obligation to have excellent skills and the
information or data that should be delivered to relevant authorities. They should be
dedicated and committed, so that they should do act according to the standards that are
relevant during the delivery of their services. Whereas the Due care wants the
accountants to follow the required and relevant standards and the consistency and they
should have clear understanding of all the financial information.

CONCLUSION:
From the above points it is concluded that integrity, professional competence and due
care and ethical values plays an important role in the field of the accountancy.
1
Essentially this is a written debate where you are using your skill at reasoning, backed up by carefully selected evidence to make a
case for and against an argument, or point out the advantages and disadvantages of a given context. Remember to arrive at a
conclusion.

4
Following these three points are strictly observed when providing financial
information to all the relevant authorities. There is a principal agent relationship
between the owners and the principle agent of the business and the account should act
very professionally through these three and many other ethical values to provide
relevant and correct information so that the shareholder will be able to make correct
decision on their findings. Without these the financial statement will be useless and
may lead to false decision made on behalf of the false financial information is
provided.
Question 3

Please record the following transactions in a set of double-entry accounts. Balance the relevant
accounts and prepare a trial balance.
34 marks all question
(2 marks each transaction recorded correctly in the T-account, total 22 marks)
1 June Camilo (the owner) put £6,000 into a newly opened business bank account to
start a new business
3 June Bought inventories with cash£2,600
5 June Bought some equipment with cash for £800
6 June Bought inventories costing £3,000 on credit
9 June Paid rent for the month of £250
10 June Paid fuel and electricity for the month of £240
11 June Paid general expenses of £200
15 June Sold inventories for £4,000 in cash; the inventories had cost £2,400
19 June Sold inventories for £3,800 on credit; the inventories had cost £2,300
21 June Camilo withdrew £1,000 in cash for personal use
25 June Paid £2,000 to trade payables
28 June received £2,500 from trade receivables

Remember: Trade receivables (asset account) refers to Customers who owe the company money for
goods and services supplied on credit and – Trade payables (liabilities) refers to the amount owing to
suppliers for goods supplied on credit.

Cash
£ £
1 June Equity 6000 3 June Cash 2600
15 June Sales 4000 5 June Equipment 800

5
28 June Receivable 2500 9 June Rent exp 250
10 June Fuel and electricity 240
11 June general expense 200
25 June payables 2000
21 Jun Cash 1000

C/D 5410
12500 12500

Equity
£ £
1 Jun Cash 6,000
21 June Cash 1000
C/D 5000

6000 6000

Inventories
£ £
3 June Cash 2600 15 June COGS 2400
6 June Payable 3000 19 June COGS 2300
C/D 900
5600 5600

Equipment
£ £
5 June Cash 800
C/D 800

800 800

Trade Payables

6
 £ £
6 June Inventory 3000
25 June cash 2000
C/D 1000

3000 3000

Rent
£ £
9 June Cash 250
I/S 250

250 250

Fuel and electricity

£ £
10 June cash 240

I/S 240

240 240

General expenses
£ £
11 June cash 200
I/S 200

200 200

Sales revenue
£ £
15 June cash 4000

7
 19 June Receivable 3800
I/S 7800

7800 7800

Cost of sales
£ £
15 June Inventory 2400
19 June Inventory 2300
I/S 4700

4700 4700

Trade receivables
£ £
19 June Revenue 3800

28 June Cash 2500

C/D 1300
3800 3800

8
Complete the trial balance at 28 Feb (1 mark per item correct, 12 marks in total)

Debits £ Credits £

Cash 5410

Equity 5000

Inventories 900

Equipment 800

Trade payables 1000

Rent 250

Fuel and electricity 240

General expenses 200

Sales revenue 7800

Cost of sales 4700

Trade receivables 1300

TOTAL 13800 13800

END OF QUESTIONS