College of Banking and Financial StudiesAssignment Brief – BTEC
Higher National Diploma in Business (Level 5)
Student Name /ID Number
Unit Number and Title
5/Accounting Principles (Y/618/5038)
Academic Year
Spring 2023-24
Unit Assessor
Dr. Lakmal Hettiarachchi (Morning Batch 1)
Dr. Niranjan Shetty (Morning Batch 2)
Dr. Salman Nusrat (Evening Batch)
I. V. Name
Ms. Sujata Suresh, LIVT
Assignment Title
Preparation of basic financial statements for unincorporated and small business
organisations and interpretation of financial statements and preparation of
budgets for planning, control and decision-making using spreadsheets.
Issue Date
16April 2024
Submission Date
For formative feedback: 25 May 2024
For summative feedback: 8 Jun 2024
Actual Date of Submission
Submission Format:
ASSIGNMENT:
1. The submission is in the form of an individual numerical/written report.
2. This should be written in a concise, formal business style using single spacing and font size 12.
3. 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.
4. Provide working notes wherever required.
5. The document must be submitted to Turnitin in word document.
6. Please provide a bibliography using Harvard referencing system if you referred any sources for
theoretical parts or questions.
7. The numbers/numerical statements and calculations must be neatly/clearly shown so that the
assessor assess the work of the learner appropriately.
8. The recommended word limit is 3,000-3,500 words, although you will not be penalised for
exceeding the total word limit.
9. The file must be saved in the format: student ID-AP-Formative-A1, for formative submission and
student ID-AP-Summative-A1, for summative assignment.
10. In case of extenuating situations, the relevant college policies apply
Unit Learning Outcomes:
LO2: Prepare basic financial statements for unincorporated and small business organisations in accordance
with accounting principles, conventions, and standards.
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
1
LO3: Interpret financial statements.
LO4: Prepare budgets for planning, control and decision-making using spreadsheets.
Assignment Brief and Guidance:
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
2
The Scenario
The following financial extracts are made available to you by the chief accountant of your organisation. You
are supposed to analyse each of the following extracts provided to you and prepare the required financial
statements as the heading signifies for the financial year ending Dec 2023 as part of your ensuing performance
appraisal for the same year 2023. The same financial extracts are made available to another team for the same
purpose. Therefore, this task will be significant to you to drag the opportunity being posed by the
organisation.
The financial statements prepared by both the teams will qualify to go for a review under the chief accountant
who will then decide the promotion and the pertinent monetary benefits available to you as per the staff
promotion policy. However, any ambiguities relating to the information provided to you is subject to scrutiny
by the team of experts. Hence, you can discuss the financial material made available to you with the team of
experts attached to you.
I-Extracts for preparing financial statements of sole trading firm:
Coco Sole Trading Firm
Trail Balance for the year ending 31 Dec 2023
Dr
OMR
Sales
Purchases
Opening stock (inventory)
Building
Plant and Machinery
Debtors (Accounts Receivable)
Creditors (Accounts Payable)
Advertising expenses
General expenses
Salaries and wages
Insurance expenses
Provision for depreciation on Building
Provision for depreciation on Plant and Machinery
Provision for bad and doubtful debts
Capital
Drawings
Cash
Bank Loan
Total
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
Cr
OMR
7000
2500
700
5400
560
425
350
150
175
1250
265
250
450
95
5500
500
1920
13845
200
13845
3
Adjustments:
1. Stock (inventory) as at 31-12-2023 is valued at OMR 375
2. Depreciation to be provided as follows;
a. Building: 10% straight line method
b. Plant and Machinery: 10% reducing balance method
3. Wages and salaries outstanding as at 31-12-2023 were OMR 500
4. Insurance expense prepaid as at 31-12-2023 was OMR 120
5. The provision for bad and doubtful debts to be maintained at 4.5% on debtors (Accounts
Receivable)
II-Extracts for preparing financial statements of partnership firm:
Choco Partnership Firm
Trial Balance for the year ending 31 December 2023
Dr
OMR
Capital – Sharif
Capital – Naim
Stock
150000
Machinery (cost)
30000
Machinery (depreciation provision)
Purchases
90000
Administration expenses
60000
Land
310000
Sales
General expenses
45900
Rent
63000
Debtors
125000
Creditors (Accounts Payable)
Commission received
Commission paid
2300
Furniture (cost)
15000
Furniture (depreciation provision)
Cash
13000
Current account – Sharif
Current account – Naim
Total
904200
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
Cr
OMR
250000
125000
10000
351381
62000
4319
1500
60000
40000
904200
4
Adjustments:
1. Closing stock is valued at OMR 125000
2. Salaries of the Partner:
(a) Sharif: OMR 10000
(b) Naim: OMR 10000
3. Profit should be shared equally between the partners
4. Interest allowed on capital is 10% per annum
5. The current account opening balance as on 1-1-2023 was:
(a) Sharif: OMR 70000 less drawings of OMR 10000
(b) Naim: OMR 50000 less drawings of OMR 10000
III-Extracts for preparing financial statements of Not-for-profit organisation:
Receipt and Payments Account
OMR
Balances on 2023 Jan 1:
Balances on 2023 Dec 31:
Cash in Office
500 By Salaries
Cash at Bank
5000 By Rent
Balances on 2023 Dec 31:
By Printing and stationery
To Subscription (including OMR 2000 for
30000 By Stamps and postage
2024)
To Interest on investments (Cost of
15000 By Motor bike (Purchased)
investments OMR 150,000)
To Bank interest
200 By Government bonds
To Sale of Car
7500 By Balances:
Cash in Office
Cash at Bank
58200
OMR
30000
5000
2000
1100
10000
6500
2700
900
58200
Adjustments:
1. Subscriptions include OMR 1000 for 2022.
2. Rent includes OMR 700 paid for Dec 2022.
3. Subscriptions amounting to OMR 800 have still to be collected for the year 2023.
4. Rent for Dec 2023 is still to be paid OMR 550.
5. OMR 175 is outstanding against a stationery bill.
6. The book value of the car was OMR 8200.
IV-Extracts for calculating, comparing, and evaluating ratios (profitability) using
range of measures and benchmarks (horizontal and vertical analysis) based on
financial statements:
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
5
Data to calculate profitability ratios
Balance Sheet (figures in OMR)
Moon Ltd.
Noncurrent (fixed) assets
12130
Current assets
Receivables
8000
Inventory
6620
Total assets
26750
Share capital
16000
10 % Loan
5,000
Current liabilities (payables)
5750
Total Liabilities + Equity
26750
Income Statement (figures in OMR)
Moon Ltd.
Sales revenue
30000
Less: Cost of sales
6000
Gross profit
24000
Less: Expenses
5000
Profit before interest & tax
19000
Less: Interest
175
18825
Less: Tax @ 10 %
1883
Profit after tax
16943
Sun Ltd.
6800
13000
6950
26750
3000
17,000
6750
26750
Sun Ltd.
25000
10000
15000
2000
13000
150
12850
1285
11565
V-Extracts for preparing cashflows for the six-month period ending 31st Dec 2023:
Sure Ltd. is starting up a new business on 1 July 2023 and has provided you with the following information:
Particulars
Quarterly Utilities (payment due in Aug & Nov)
Cash outlay on equipment (payable in Sep)
Monthly planned purchases of stock for re-sale are:
July
August
September
October-December (per month)
Amount (OMR)
136000
300000
164000
172000
188000
120000
All stock is bought on two month’s credit.
The monthly cash outlay on salaries is expected to be OMR 55,000 per month.
Depreciation of equipment in the first half year is computed at OMR 150,000.
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
6
Monthly planned sales are:
July
August
September
October
November
December
Amount (OMR)
140000
150000
160000
180000
150000
130000
All sales are on one month’s credit. A 10% discount will be given to customers for sales above OMR 150000
if payment is made in the same month. Customers normally are happy to have discounts when available.
On 1st July 2023 Sure Ltd. will provide OMR 540000 ordinary share capital.
The budgeted closing stock at the end of Dec 2023 is estimated at OMR 11000.
Critically evaluate financial statements to assess organisational performance using a range of
measures and benchmarks to make justified conclusions and justify budgetary control solutions and
their impact on organisational decision making to ensure efficient and effective deployment of
resources.
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
7
Learning outcome and assessment criteria
LO2 Prepare basic financial statements for unincorporated and small business
organisations in accordance with accounting principles, conventions and standards.
P3 Prepare financial statements
from a given trial balance for
sole traders, partnerships and
not-for-profit organisations, to
meet accounting principles,
conventions and standards.
M2
Produce
financial
statements from a given trial
balance, making appropriate
adjustments.
D2 Critically evaluate
financial statements to
assess
organisational
performance using a range
of measures and
benchmarks
to
make
justified conclusions.
LO3 Interpret financial statements
P4 Calculate and present
financial ratios from a set
of final accounts.
P5 Compare the
performance of an
organisation over time
using financial ratios.
M3 Evaluate the
performance of an
organisation over time.
using financial ratios with
reference to relevant
benchmarks.
LO4 Prepare budgets for planning, control and decision-making using spreadsheets.
P6 Prepare a cash budget
from given data for an
organisation using a
spreadsheet.
P7 Discuss the benefits
and limitations of budgets
and budgetary planning,
and control for an
organisation.
M4 Identify corrective
actions to problems
revealed by budgetary
planning and control for
effective organisational
decision making.
D3 Justify budgetary
control solutions and their
impact on organisational
decision making to ensure
efficient and effective
deployment of resources.
PLEASE READ THIS PAGE CAREFULLY TO ENSURE
YOU COVER WHAT IS REQUIRED TO SATISFY THE
GRADE
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
8
LEARNER ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each learner must sign a declaration confirming that the
work is their own.
Please list the evidence submitted for each task. Indicate the page numbers where the evidence can be
found or describe the nature of the evidence (e.g., video, illustration).
Task ref.
Evidence submitted
Page numbers or
description
Additional comments to the Assessor:
Learner declaration
I certify that the work submitted for this assignment is my own. I have clearly referenced any sources
used in the work. I understand that false declaration is a form of malpractice.
Learner signature:
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
Date:
9
ASSESSMENT RECORD SHEET – FORMATIVE FEEDBACK
Programme
Learner name
BTEC HND Business Level 5
Assignment title
Preparation of basic financial
statements for unincorporated and
small business organisations and
interpretation
of
financial
statements
Assessor name
Unit no. & title
5/Accounting Principles
(Y/618/5038)
Targeted
learning
aims/assessment
criteria
Dr. Nuwan H. Lakmal
(Morning Batch 1)
Dr. Niranjan Shetty
(Morning Batch 2)
Dr. Salman Nusrat
(Evening Batch)
LO2, LO3 and LO4
P3, P4, P5, P6, P7, M2, M3,
M4, D2 and D3
First Submission
For formative feedback: 16 May
2024
For summative feedback: 8 Jun
2024
Deadline
Targeted
criteria
Criteria
achieved
Date submitted
Assessment comments
P3
P4
P5
P6
P7
M2
M3
M4
D2
D3
General comments
Assessor
declaration
Assessor signature
I certify that the evidence submitted for this assignment is the learner’s own. The
learner has clearly referenced any sources used in the work. I understand that false
declaration is a form of malpractice.
Date
Date of feedback
to learner
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
10
Resubmission
authorisation
by Lead Internal
Verifier*
Date
* All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per assignment, providing:
●
The learner has met initial deadlines set in the assignment or has met an agreed deadline extension.
●
The tutor considers that the learner will be able to provide improved evidence without further guidance.
● Evidence submitted for assessment has been authenticated and accompanied by a signed and dated declaration of authenticity by the learner.
**Any resubmission evidence must be submitted within 15 working days of receipt of results of assessment.
ASSESSMENT RECORD SHEET – RESUBMISSION – SUMMATIVE FEEDBACK
Deadline
Target
ed
criteri
a
Date submitted
Criteria
achieved
Assessment comments
P3
P4
P5
P6
P7
M2
M3
M4
D2
D3
General comments
Learner
Declaration
Learner signature
Assessor
declaration
Assessor signature
I certify that the evidence submitted for this assignment is my own. I have clearly
referenced any sources used in the work. I understand that false declaration is a form of
malpractice.
Date
I certify that the evidence submitted for this assignment is the learner’s own. The learner
has clearly referenced any sources used in the work. I understand that false declaration
is a form of malpractice.
Date
Date of feedback to
learner
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5
11
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