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Assignment Front Sheet

Qualification Unit Code / Unit number and title

Pearson BTEC Level 5 Higher National A/508/0496
Diploma in Business (Business Management) Unit 10: Financial Accounting
Student name / BTEC Registration Number Assessor name

Khin Su Su Win

Date issued Hand in deadline Submitted on

IV Name IV Date

Assignment title A2 of 2 Bank Reconciliation Statement and Control Accounts

In this assessment you will have opportunities to provide evidence against stated in the page 2.
Indicate the page numbers where the evidence can be found.

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 the Harvard Referencing System. Please also provide a bibliography using the
Harvard Referencing System. The recommended word limit is 2,500 words, although you will not
be penalised for exceeding the total word limit.

Student 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.

Student signature: Date:

Unit 10 FA A2 Jan 2020 CDC 1

Learning Outcomes and Assessment Criteria

Learning Outcome Distinction Merit Pass

LO3 Perform bank D3 Prepare accurate M3 Apply the P5 Apply the bank
reconciliations to bank reconciliations reconciliation process reconciliation process
ensure company and that apply appropriate demonstrating the use to prepare a number of
bank records are tools and techniques to of deposit in transit, bank reconciliations
correct check general accounts outstanding checks and
and balance sheets Not Sufficient Funds
(NSF) check

LO4 Reconcile control D4 Produce accurate M4 Demonstrate P6 Explain the process

accounts and shift accounts that have been understanding of the taken to reconcile
recorded transactions reconciled applying the different types of control accounts and
from the suspense appropriate methods accounts and how and clear suspense accounts
accounts to the right why they are reconciled using given account
accounts examples

Unit 10 FA A2 Jan 2020 CDC 2

Assignment Brief
Pearson BTEC Level 5 Higher National Diploma in Business
Qualification
(Business Management)
Unit number and title Unit 10: Financial Accounting
Assessor name Khin Su Su Win
Date issued
Hand in deadline

Assignment title A2 of 2 Bank Reconciliation Statement and Control Accounts

Scenario
You are recently jointed as a trainee accountant and need to take time constrained assessment to
demonstrate about bank reconciliations to ensure company and bank records are correct as well
as reconciliation of control accounts.

Part 1: Perform bank reconciliations to ensure company and bank records are correct

At the end of each month, Sarah prepares a bank reconciliation statement for her business bank
account. At 31 May 2019 her ledger balance was $2,759(credit) and her bank statement showed
that she had funds of $131 at the bank. She has the following information:
1. The bank debited Sarah’s account with charges of $129 during May. Sarah has not
recorded these charges.
2. Sarah arranged for $2,500 to be transferred from her personal bank account into the
business bank account. The bank made the transfer on 30 May, but Sarah has not made
any entry for it in her records.
3. On 22 May, Sarah withdrew $100 cash which she did not record.
4. Cheque number 543987, which Sarah issued to a supplier, appears on the bank
statement as $650. Sarah incorrectly recorded the cheque as $560.
5. On 31 May, Sarah lodged $457. On the bank statement, this amount is dated 3 June.
6. Sarah was advised by the bank that she earned $52 interest for the period in May that
her account was in credit. Sarah recorded this in May, but the bank did not credit her
account until June.
7. Three of the cheques issued in May, with a total value of $942, were not debited on the
bank statement until after 31 May.
8. A cheque for $276, issued to a supplier, was cancelled but Sarah has not recorded the
cancellation of the cheque.

Based on the above information, you are required to prepare

 Apply the bank reconciliation process to prepare a number of bank reconciliations
 Apply the reconciliation process demonstrating the use of deposit in transit, outstanding
checks and Not Sufficient Funds (NSF) check.
 Prepare accurate bank reconciliations that apply appropriate tools and techniques to
check general accounts and balance sheets.

Unit 10 FA A2 Jan 2020 CDC 3

 Part 2 : Reconcile control accounts and shift recorded transactions to the right accounts
You are required to prepare sales and purchase ledger control accounts for Sarah’s business as
well, for the month of 31October, 2019. Balances in the books of Sarah at 1 October 2019.

  Debit Credit
Sales Ledger $43,628 $1,240
Purchases Ledger $324 $24,695

  $
Interest charged to debtors 326
Carriage charged to debtors 3,290
Cash purchases 12,735
Returns inwards 1,938
Bad debts written off 853
Cheque payments to suppliers 64,320
Discount received 1,717
Allowance to debtor for damaged goods 500
Cash sales 76,321
Debtor's cheques dishonoured 2,639
Purchases Returns 1,222
Credit sales 132,845
Discount allowed 3,699
Transfer of debit balance in Sales Ledger to Purchases
2,850
Ledger
Credit purchases 70,394
Cheques received from debtors 144,820
Provision for Doubtful debts 4,500
Debit balances in Purchases Ledger at 30 September 2019 563
Credit balances in Sales Ledger at 30 September 2019 2,154

You are required to :

 Explain the process taken to reconcile control accounts and clear suspense accounts
using given account examples
 Demonstrate understanding of the different types of accounts and how and why they are
reconciled.
 Produce accurate accounts that have been reconciled applying the appropriate methods.

Evidence Evidence
Summary of evidence required by student
checklist presented

Perform bank reconciliations to ensure company and bank records are

Part 1
correct

Reconcile control accounts and shift recorded transactions to the right

Part 2
accounts

Unit 10 FA A2 Jan 2020 CDC 4

 Sources of information
 DYSON, J. R, (2010) Accounting for Non-Accounting Students. 8th Ed. London:
Prentice Hall
 BPP Learning, (2010) Business Essentials Finance: Financial Reporting. 1st Edition.
UK. BPP Learning Media Ltd.

Achievement Summary

Pearson BTEC Level 5 Higher

Qualification National Diploma in Business Assessor name Khin Su Su Win
(Business Management)
Unit Number
Unit 10: Financial Accounting Student name
and title
Achieved?
(tick)
Grading Criteria
First
Rework IV
attempt

LO3 Perform bank reconciliations to ensure company and bank records are correct

Prepare accurate bank reconciliations that apply appropriate

D3 tools and techniques to check general accounts and balance
sheets
Apply the reconciliation process demonstrating the use of
M3 deposit in transit, outstanding checks and Not Sufficient
Funds (NSF) check
Apply the bank reconciliation process to prepare a number of
P5
bank reconciliations

Reconcile control accounts and shift recorded transactions from the suspense accounts to
LO4
the right accounts

Unit 10 FA A2 Jan 2020 CDC 5

 Produce accurate accounts that have been reconciled
D4
applying the appropriate methods

Demonstrate understanding of the different types of accounts

M4
and how and why they are reconciled

Explain the process taken to reconcile control accounts and

P6
clear suspense accounts using given account examples

Higher National Diploma - Summative Assignment Feedback Form

Student Name/ID
Unit Title Unit 10: Financial Accounting

Assignment Number Assignment 2 Assessor

Submission Date Date Received 1st

submission
Re-submission Date Date Received Re-
submission
Assessor Feedback:

Signature: Date:

Resubmission Feedback:

Unit 10 FA A2 Jan 2020 CDC 6

Signature: Date:

Internal Verifier’s Comments:

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Unit 10 FA A2 Jan 2020 CDC 7

Unit 10 FA A2 Jan 2020 CDC 8