THE OPEN UNIVERSITY OF SRI LANKA

FACULTY OF ENGINEERING TECHNOLOGY

BACHELOR OF TECHNOLOGY HONOURS IN ENGINERING / BACHELOR OF SOFTWARE
ENGINEERING - 2022/2023

CVM5401/CVM5402 Accounting for Engineers

Mini Project
Q1. In this exercise, you are required to study the accounting operation of a medium-scale
company dealing with the sale of commodities and prepare a report containing answers to the
following sections. You will have to obtain the necessary information from the Head of the
Accounting Department or his nominee.

a) Provide a brief introduction of the company along with the organization chart of
the company.
b) List various types of the source documents used in this company. Present a layout
of each source document and give the purposes of each. Wherever possible attach
samples of these source documents.
c) List the ‘Books of original entry’ used in this company and entre two transactions
taken from the company for each ‘Books of original entry’.
d) Explain the purpose of the Journal and display two sample journal entries taken
from the company.
e) Name the types of accounts used in each of the following types of transactions.
i) Goods bought on credit
ii) Goods bought on cash
iii) Goods sold on credit
iv) Goods sold on cash

For each of the above, take a real transaction extracted from the company records
and enter the transaction in the appropriate accounts.

f) Present a Trial balance of the company for the immediate past accounting year, if
the company is willing to reveal the details of the Trial balance. If not, present the
sample Trail balance obtained from a different company.
Further, explain how you prepare the Trail balance and benefits of a Trial balance.

Q2.

In this exercise, you are required to interview the management of a medium-scale company
dealing with manufacturing and prepare a report containing answers to the following sections.

a) Provide a brief introduction of the company along with the organization chart of the
company.
b) Taking one main product of the organisation, show how it works out its fixed costs,
variable costs or semi fixed costs.
c) Explain how they compute the price of the product.
d) Describe how they decide on the breakeven point.
e) Explain the pricing strategy adopted by the company regarding the selected product.
 a. Explain the extent to which they consider the pricing of the competitors when the
company decides on its own pricing.
b. Explain the methods of calculation of depreciation adopted by the company.

When the company in both cases is not willing to share some of their information with you do
not push for but create imagine such information and complete the report. Your report should be
limited to 2000-2500 words (however the answers should be sufficiently descriptive) excluding
references and appendices. Appendices can carry all additional supporting documents (if any).

The report produced should be the result of your own work and should not be shared with the other colleagues.
If any student is found to have reproduced or allowed to have the work reproduced, he/she would be liable to lose
marks. Plagiarism will also result in reduced or zero marks.

Use ‘Harward referencing standard’, when citing and referencing.