Pearson

Higher Nationals in

Business
ASSESSMENT BRIEF
Unit 10 Financial Accounting
:

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 STUDENT ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each student must sign a declaration confirming that
the work is their own.

Student name: D D G S Dodangoda Assessor name: Ms. Imesha Divyanjalee

Issue date: Submission date: Submitted on:

17.12.2021 24.01.2022

Programme:

Higher National Diploma in Business

Unit:

Unit 10 : Financial Accounting

Assignment number and title: Unit 10 Financial Accounting

Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students
who break the rules, however innocently, may be penalised. It is your responsibility to ensure
that you understand correct referencing practices. As a university level student, you are
expected to use appropriate references throughout and keep carefully detailed notes of all your
sources of materialsfor material you have used in your work, including any material downloaded
from the Internet. Please consult the relevant unit lecturer or your course tutor if you need any
further advice.

Student Declaration
Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the
consequences of plagiarism. I understand that making a false declaration is a form of
malpractice.

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Student signature: Date:

Assignment Brief (RQF)

Higher National Diploma in Business
D D G S Dodangoda / 519887
Student Name/ID Number:

Unit Number and Title: Unit 10 : Financial Accounting

Academic Year: 2021/21

Unit Assessor: Ms. Imesha Divyanjalee

Assignment Title: Unit 10 : Financial Accounting

Issue Date: 17.12.2021

Submission Date: 24.01.2022

Internal Verifier Name: Ms. Oshini Liyanage

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 Harvard referencing system. Provide a bibliography using
the Harvard referencing system. The recommended word limit is 2,000–2,500 words, You will
not be penalised for exceeding the total word limit.

LO1 Record business transaction using double entry book keeping and be able to extract a
trail balance.

LO2 Prepare final accounts for sole-traders, partnerships and limited companies in
accordance with appropriate principles, conventions and standards.

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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 account

Assignment Brief and Guidance:

Scenario
Financial Accounting is considered as the “language of business” as it plays a vital
role when running a business. Accounting helps to track revenue income and
expenditure of every business and to ensure statutory compliance and provide
quantitative financial information of an operating period for its stakeholders
which can be used in decisions making. Assume you are the head of finance of
your organization. You have being selected as the trainer of newly recruited
finance interns to your organization. You have been asked to address them while
answering to below mentioned tasks.

Task 01:

1. Explain the importance of financial Accounting for an organization.

2. Explain double entry book keeping system of financial Accounting and how
it relates to business process of your organization.
3. Explain the necessary of maintaining a trail balance sheet for an
organization and how it maintained in your organization.
4. Mention the process of identifying, recording, classifying and summarising
of financial information of your organization.

Task 02:

1. Financial concepts are key factors in financial Accounting. Explain each.

2. Identify how these financial concepts used in your organization business
process.
3. What are the adjustment entries used in financial Accounting? And identify
how these entries used in your finance department?
4. Identify different business structures and mentioned the preparation of
financial statement / financial figures of each.

Task 03:

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 1. When running a business it needs support from some other financial
sectors. Bank plays a vital role in finance industry. Explain the relationship
between your business and bank.
2. Bank statement is a summary of bank transactions done in your
organization. Explain what you can identify through bank statement.
3. What are the decisions you can made by referring bank statement and
cash book of your business.
4. What are the solutions can make for the identified errors from above.

Task 04:

1. Explain type of errors occurred in recording transactions.

2. What type of Accounts and processes used by your organization for error
correction.
3. Identify what kind of accounts maintain in limited companies and its
process.
4. Identify advantages and disadvantages of limited liability company
5. The trial balance of Nova Limited as at 31.03.2021 are given below.

Description Dr Cr
$ Million $ Million
Ordinary Shares 216
General Reserve 14
Retained earnings as at 01.04.2020 62
Plant and machinery Cost 250
Office Equipment 90
Accumulated Depreciation as at 01.04.2020
Plant and machinery 56
Office Equipment 30
Inventory as at 01.04.2020 62
Trade Receivables 84
Trade Payables 76
Provision for doubtful debts as at 01.04.2020 8
Bank balance 8
Purchases 230
Sales 376
Return Inwards 16

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 Return Outwards 12
Salaries 28
Directors fee 10
Telephone cost 12
Rent, Rates and Insurance 8
Heat and Light 16
Printing and stationery 12
Distribution expenses 24
850 850

The details of transactions and events which have not been adjusted in the

books of account.

1. Inventory as at 31.03.2021 was 106 $ Million

2. Distribution expenses include 1$ Million carriage Inwards

3. Prepayments:

Telephone rental = 1 $ Million

Rent and Rates = 2 $ Million

4. Accruals :

Salaries = 3 $ Million

Telephone call Charges = 4 $ Million

Director’s fee = 2 $ Million

Auditors fee = 1 $ Million

5. The following is yet to be accounted for :

Bank Charges = 2 $ Million

6. Bad debts to be written off amount 5 $ Million and the provision for

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 doubtful debts is maintained as 2.5% of debtors.

7. Depreciation of fixed Assets is to be provided as follows:

Plant and Machinery = 10% on cost

Office Equipment’s = 33% on the reducing balance method.

8. Income tax for the financial year ended 31.03.2021 was estimated as 2 $

Million.

9. Board of directors were decided to pay dividend of 318.58 $ Million.

10.Board of directors has proposed to transfer a general reserve of 3 $

Million from retained Earnings.

11.An employee dismissed from employment has filed a legal case against

the company by demanding 2 $ Million as compensation. The board of

directors obtained the company lawyer’s opinion on 31.03.2021 in this

regard and as per his opinion it is not probable that the company will be

liable to pay compensation.

You are Required to prepare,

1. Income Statement for the year ended 31.03.2021

2. Statement of Changes in Equity for the year ending 31.03.2021

3. Balance Sheet as at 31.03.2021

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Learning Outcomes and Assessment Criteria:
Pass Merit Distinction
LO1 Record business transactions using double entry
book keeping, and be able to extract a trial balance
P1 Apply the double entry M1 Analyse sales and
book keeping system of purchase transactions to
debits and credits. Record compile a trial balance D1 Record correctly
sales and purchases using double entry book transactions and produce
transactions in general keeping appropriately and an accurate trial balance by
ledger effectively. completing the balance off
of ledger accounts,
P2 Produce a trial balance checking that each
applying the use of the transaction is recorded in
balance off rule to complete line with accepted
the ledger. accounting principles.
LO2 Prepare final accounts for sole-traders, partnerships
and limited companies in accordance with appropriate
principles, conventions and standards D2 Apply appropriate and
P3 Prepare final accounts M2 Analyse profit and loss accurate calculations for

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 from given trial balance accounts, balance sheet the constructing of the final
figures adjusting for and cash flow statements accounts
accruals, depreciations and appropriate for the given
prepayments. examples

P4 Produce final accounts

for a range of examples that
include sole-traders,
partnerships or limited
companies.
LO3 Perform bank reconciliations to ensure company and
bank records are correct
P5 Apply the bank M3 Apply the reconciliation
reconciliation process to process demonstrating the D3 Prepare accurate bank
prepare a number of bank use of deposit in transit, reconciliations that apply
reconciliations. outstanding checks and appropriate tools and
Not sufficient Funds (NSF) techniques to check general
check. accounts and balance
sheets.

LO4 Reconcile control accounts and shift recorded

transactions from the suspense accounts to the right
accounts
P6 Explain the process M4 Demonstrate D4 Produce accurate
taken to reconcile control understanding of the accounts that have been
accounts and clear different types of accounts reconciled applying the
suspense accounts using and how and why they are appropriate method.
given account examples reconciled.

Higher Nationals –Summative Assignment Feedback Form

Student Name / ID

Unit Title Unit 10 : Financial Accounting

Assignment Number Assessor Ms. Imesha Divyanjalee

24.01.2022 Date Received 1st

Submission Date
submission
Date Received 2nd
Re-submission Date
submission

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Assessor Feedback:

Grade: Assessor Signature: Date:

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Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

* 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.

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