Unit 10 Financial Acoounting

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Unit(s) Unit 10: Financial Accounting
Assignmenttitle Prepare final accounts and perform bank reconciliation
Student’sname Tharushi Roshel Fernando
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Financial accounting
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AssessorFeedback:
LO1 Record business transactions using double entry bookkeeping, and be able to extract a trial balance.
Pass, Merit & Distinction P1 P2 M1 D1

Descripts
LO2 Prepare final accounts for sole traders, partnerships and limited companies in accordance with appropriate
principles, conventions and standards.
Pass, Merit & Distinction P3 P4 M2 D2

Descripts
LO3Perform bank reconciliation to ensure company and bank records are correct.
Pass, Merit & Distinction P5 M3 D3

Descripts
LO4 Reconcile control accounts and shift recorded transactions from the suspense account to the right
account.
Pass, Merit & Distinction P6 M4 D4
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Assignment 01
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Unit 10: Financial Accounting
Assignment 01
Assignment Brief
Student Name /ID Number Tharushi Roshel Fernando/75029
Unit Number and Title
Academic Year 20……
Unit Tutor
Assignment Title Prepare final accounts and perform bank reconciliation
Issue Date
Submission Date

Assignment 01
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IV Name & Date
Submission Format:
The submission should be 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.
Unit Learning Outcomes:

LO1. record business transactions using double entry book-keeping, and be able to extract a trial balance;
LO2. prepare final accounts for sole-traders, partnerships or limited companies in accordance with appropriate
principles, conventions and standards;
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 accounts.
Assignment Brief and Guidance:

Activity 01. Record business transactions using double entry book keeping and be able to extract a trial balance
(Covers LO 01 and P1, P2, M1, D1 )
XYZ PLC has begun professional practice as a system analyst on July 1. He plans to prepare a monthly financial
statement. During July, the owner completed following transactions.
July 1. Owner invested LKR 500,000 cash along with computer equipment that had a market value of LKR 120,000
two years ago, but was now worth LKR 100,000 only.
July 2. Paid LKR 15,000 cash for the rent of office space for the month.
July 4. Purchased LKR 12,000 of additional equipment on credit (due within 30 days).
July 8. Completed a work for a client and immediately collected the LKR 32,000 cash.
July 10. Completed work for a client and sent a bill for LKR 27,000 to be paid within 30 days.
July 12. Purchased additional equipment for LKR 8,000 in cash.
Assignment 01
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July 15. Paid an assistant LKR 6,200 cash as wages for 15 days.
July 18. Collected LKR 15,000 on the amount owed by the client.
July 25. Paid LKR 12,000 cash to settle the liability on the equipment purchased.
July 28. Owner withdrew LKR 500 cash for personal use.
July 30. Completed work for another client who paid only LKR 40,000 for 50% of the system design.
July 31. Paid salary of assistant LKR 7000.
July 31. Paid PLDT billLKR 1,800 and Meralco bill LKR 3,800.
Requirement
 Apply book keeping technique and develop relevant journal entries for given transactions and prepare
general journal..
 Apply the double entry book-keeping system of debits and credits for above given transactions in
general ledger.
 Produce a trial balance applying the use of the balance off rule to complete the ledger.
 Apply trial balance figures to show which statement of financial accounts they will end up in.
Activity 02. Prepare final accounts for sloe traders, partnerships and limited companies in according with
appropriate principles, conventions and standards.
Part (A) – Sole Proprietorship
Saman Trading is a sole proprietorship owned by saman. The trial balance of Saman Trading as at 31 st March 2019
is as follows.
Saman Trading
Trial Balance as at 31st March 2019
Assignment 01
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Description Dr (Rs. ‘000) Cr (Rs. ‘000)
Property Plant and Equipment (at cost)
Land and Building 51000
Motor Vehicle 8800
Office Equipment 5500
Accumulated Depreciation as at 01st April 2018
Building 10000
Motor Vehicle 2880
Office Equipment 1080
Trade Recievables / Trade Payables 13000 15200
Purchases / Sales 30000 71000
Provision for doughtful debts as at 01st April 2018 1240
Stocks as at 01st April 2018 7700
Drawings 2400
Sales Commision 4300
Telephone and Electricity 7600
Insurance 3660
Salaries and Wages 13000
Bank loan - 14% 19000
Cash in hand 5240
Bank Overdraft 3800
Capital as at 01st April 2018 28000
152200 152200
Additional Information –
01. Land Value of Rs. 11,000,000 included in the Land and Building cost.
02. The deprecation policy of the Saman Trading is straight line basis on cost. Depreciation rates as
follows.
Building 5%

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Motor Vehicle 20%
Office Equipment 12%
03. Closing Inventory as at 31st March 2019 was Rs. 6,900,000
04. The telephone and electricity bill of Rs. 710,000 for the month of march 2019 was not paid as at
31st March 2019.
05. Insurance expense of Rs. 1,060,000 is relevant for the next financial year of 2019/20.
06. Trade Recievables from Nuwan Distributors amounting Rs 300,000 to be written off as a bad debt
and provision for doubtful debts to be made for the remaining receivable balance at the year end.
(Rate 2%)
07. The bank loan was obtained on 01st April 2018, payable in two equal instalments with the interest
It is due as at 31st march 2019.And it has been paid on 10th April 2019.
You are required to prepare following –
(a) Statement of Comprehensive Income for the year ended 31st March 2019.
(b) Statement of Financial position as at 31st March 2019.

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Part (B) - Partnership
The summarized trial balance of ABN Associates (Partnership Business) as at 31 st March 2018 is given below.
ABN Associates
Trial Balance as at 31st March 2018
Rs.
Dr Cr
Partners' Capital Accounts
Amal 500000
Bimal 400000
Nimal 400000
Partners' Current Accounts
Amal 225000
Bimal 125000
Nimal 85000
Partners' loan Account - Nimal 200000
Property, Plant& Equipment 900000
Drawings
Amal 275000
Bimal 175000
380000
Sales 0
Inventory 585000
190000
Cost of sales 0
Trade Recievables / Trade Payables 280000 150000
Cash at bank 500000
Operational Expenses 850000
567500 567500
0 0
Adjustments needto be made for the following
01. Depreciation for the year was Rs. 180,000.

02. The profit sharing ratio of Amal, Bimal and Nimal is 4 : 3 : 3 respectively.
03. Interest is payable on Fixed Capital Accounts balances 10% per annum.
04. No entries have been made for Inventory costing Rs. 120,000 taken by Amal.
05. Interest on the partners loan is 20% per annum.
06. Amal took away the other equipment for his own use on 31st March 2018 at a valuation of Rs.

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100,000. The book value of the equipment is Rs. 50,000.
Requirement
Prepare the financial statements for a partnership including appropriation accounts
Part (C) – Limited Liability Company
The trial balance as at 31.03.2015 of Wiskam PLC which trades electric equipment is given below.
Property, Plant and equipment as at 2014.04.01

Dr. (Rs'000) Cr. (Rs'000)
Land 16,000.00
Building 5,000.00
Motor Vehicle 4,200.00
Computer system 600.00
Accumulated depreciation on property, plant and Equipment as at
2014.04.01
Building 1,500.00
Motor Vehicle 1,260.00
Computer system 120.00
Sales 19,300.00
Cost of sales 12,000.00
Trade receivables 1,240.00
Tax paid 175.00
10% bank loan 1,200.00
Lease deposit account 300.00
Advertising expense 200.00
Inventory as at 2015.03.31 (at cost) 350.00
Trade payables 1,650.00
Salary and wages 1,800.00
Stated capital (ordinary share) - share price Rs. 50.00 10,000.00
Dividends paid 500.00
Revaluation reserves as at 2014.04.01 700.00
Retained earnings 7,500.00
Discounts 50.00 120.00
Provisions for doubtful debts as at 2014.04.01 100.00
Sales commission 20.00
Director's fuel and telephone allowances 175.00
Audit fee 60.00
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Donations 30.00
Cash Balance 895.00
Bank overdraft 145.00
Additional information:
Before preparing the financial statements for the year ending 31.03.2015 the following adjustments have to be
made.
 The cost of inventory as at 31.03.2015 has been valued at First in First out (FIFO) method.
 A debtor of Rs. 80 000 from trade receivable amount as at 31.03.2015 was bankrupted on 10.04.2015 and out
of this amount only 50% could be recovered. Further 10% on the remaining balance of trade receivable was
decided to provide as doubtful debts.
 An agreement was signed with an advertising company for two years by the company to promote the products
on 01.04.2014. Rs 200 000 of paid amount for a period of two years was recorded in the advertising expense
account.
 All property, plant and equipment should be depreciated 10% on cost based on straight line method annually.
All property, plant and equipment are used for administrative purpose.
 Computers of Rs 400 000 which purchased on 01.10.2014 were recorded in the purchase account.
 A machine was acquired on 01.04.2014 under a finance lease for a period of 4 years. A down payment of Rs
300 000 was paid on this date and it has been recorded in a lease deposit account. Annual lease installment of
Rs 400 000 including of Rs 100 000 annual interest is to be paid at the end of each year. The bank loan was
obtained on 01.04.2014.
 It is reported that land revaluation loss of Rs 1 000 000 on 31.03.2015. because there is a highway in front of
the land but no entrance was to the highway in near the land. The revaluation reserve consists of land
revaluation surplus on 31.03.2010.
 The building of the business was revalued for the first time on 01.04.2015 for it’s fair value of Rs 4 500 000.
 It has been estimated that the income tax for the current year 2014/15 is Rs 220 000.
 The employer and employee contribution to the EPF are 15% and 10% on gross salary and wages respectively
and the employer contributes 3% to ETF. Only the net amount after reducing employees. contribution has
been recorded in salaries and wages account.
 It is decided to capitalized retained earnings 1/5th of the ordinary shares on 31.03.2015.
 The following decisions have been made by the board of directors.
 To pay a dividend of Rs. 1,500 000 to the ordinary shareholders of the company.
 To Transfer Rs. 300 000 for the general reserve

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Requirement
Prepare final accounts from given trial balance figures
The final accounts should cover following statements;
 Statement of P/L and Other comprehensive income

 Statement of Financial Position
 Statement of Changes in Equity
 Notes to the financials
Part (D) – Cash Flow Statement
Extractions of the summarized statement of comprehensive income and statement of changes in Equity for the
year ended 31.03.2015 of Ruba PLC are as follows;
Income Statement Rs. (‘000)
Sales 20,500.00
Cost of sales (14,000.00)
Gross Profit 6,500.00
Other income (Fized deposit interest) 75.00
Operating expenses (3,500.00)
Other expenses (Computer disposal) (50.00)
Financial Expenses (Loan interest) Rs.(‘000)
(760.00)
Profit before tax 2,265.00
Income tax (1,200.00)
Profit for the period 1,065.00
Statement of changes in Equity

Balance as at 01.04.2015 540.00
Total comprehensive income 1,065.00
Dividends (605.00)
Balance of retained earnings as at 31.03.2015 1,000.00
Additional information
1. Carrying amount of computer disposed on 01.04.2015 was Rs. 120,000.00

2. The depreciation of Rs. 300,000.00 was included in operating expenses
3. Following balances were extracted from the statement of financial position

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Rs. (‘000)
2015.03.31 2014.03.31
Ordinary share capital 15,500.00 15,000.00
Preference share capital 10,000.00 10,000.00
Property, Plant and equipment 7,700.00 8,000.00
Cash and cash equivalents 1,440.00 300.00
Loan interest receivable 40.00 50.00
Other current assests 3,200.00 2,900.00
Provision of income tax 150.00 100.00
Proposed dividends 200.00 250.00
Accrued loan interest 120.00 60.00
Trade Payables/Creditors 860.00 750.00
4. Rs.120,000.00 worth of a photocopy machine was purchased during the period but it was not revealed under
property plant and equipment during the year
5. Note that other current assets include stocks worth 1000 and debtors/trade receivables worth 2200 as at
31.03.2015 and stocks worth 1500 and debtors/trade receivables worth 1400 as at 31.03.2014
Requirement
Prepare Cash flow statement of Ruba PLC. Find the cash balance for the year ended by using relevant
accounting formats.
Part (E)
Compare the essential features of each financial statement (Complete set of Financial Statements) to analyse
the differences between them in terms of purpose, structure, content Etc.
Activity 03. Prepare bank reconciliations
Part (A)
The credit balance of the banks account of Araliya Business as at 31.03.2015 was Rs. 21,500.00. The book balance
was not agreed with the bank statement on that date. The following information were revealed in the
investigations.
(i) Cheques deposit and date f realization are as follows
Cheque number Deposit date Realization date Value (Rs)

Assignment 01
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043250 30th march 2015 2nd April 2015 4,500.00
215412 31st March 2015 3rd April 2015 33,500.00
721210 31st March 20150 3rd April 2015 16,000.00
(ii) The following deductions were made by bank from business as bank account
Deduction type Value (Rs.)

Cheque book charges 400
Overdraft interest 1800
Bank charges 450
(iii) Leasing installment of Rs. 20,000.00 was paid by bank on 20th March 2015 on standing order. But it
has not been recorded in a bank account of the business.
(iv) Cheques issued and dates of presented for the payment were as follows;
Cheque number Deposit date Realization date Value (Rs)

010253 26th March 2015 10thApril 2015 95,000.00
010262 31st March 2015 04thApril 2015 16,500.00
010284 31st March 2015 04thApril 2015 21,500.00
(v) Business requested from the bank to stop for the payment for cheque issued for a creditor of Rs.
12,000.00 on 20th March 2015 and relevant adjustment was made in the business account, but it is
revealed that payment was made by bank.
(vi) An issued cheque of Rs. 8,900.00 already on 15th March 2015 was recorded in bank account of the
business as Rs. 9,800.00
(vii) Rs. 40,300.00 was directly deposited to the bank by a debtor.
Requirement
Apply relevant accounting procedures to check the book balance with the bank statement balance. You are
required to provide relevant notes and extra calculations to support your answer.
Part (B)
Tharindu (Pvt) Ltd’s cash book as at 31st March 2017 had a credit balance of Rs. 227,700. Bank Statement was not

Assignment 01
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agreed with the cash book balance, Bank Statement had a balance of Rs. 90,000 (Credit balance). Following issues
were identified through investigations.
(i) Bank Statement did not include cheques amounting Rs. 522,000 issued by Tharidu(Pvt) Ltd.
(ii) Following cheques deposited during the march 2017.But Its shown in the bank statement of April
2017.
Cheque Number Amount (Rs.)

111201 50000
450222 60000
650108 82000
(iii) Dividend Received Rs. 15,000 to the bank account directly. Which is not recorded in the
cash book.
(iv) Customer deposited Rs. 5,400 directly in the bank during the month of March.Tharindu (Pvt) Ltd
recorded this amount on 06th April 2017 when the bank statement was received.
(v) Cheque issued to a supplier amounting Rs. 76,800 was showed in the bank statement
correctly.ButTharindu (Pvt) Ltd recorded this as a Rs. 78,600 in their books incorrectly.
(vi)Total payment side of a cash book was recorded Rs. 24,000 less.
(vii) Bank Charges was Rs. 10,500. Company has not recorded in the cash book.
Requirement
(i) Prepare the adjusted cash book of Tharindu(Pvt) Ltdfor the month ended 31st March
2017.
(ii) Prepare the bank reconciliation statement as at 31st March 2017.
Activity 04. Reconcile control accounts and clear suspense accounts
Creditor Ledger balance of XYZ business as at 01.03.2014 are as follows;
Creditor Name Value (Rs.)

Assignment 01
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Asitha 25,000.00
Visitha 44,000.00
Lasith 12,000.00
Total 81,000.00
The summary of the transaction done with the creditors during the month of March 2014 is given below;
Creditor Purchases (Rs.) Purchases Return Payment (Rs.) Discount Received

(Rs.) (Rs.)
Asitha 160,000.00 - 130,000.00 6,000.00
Visitha 300,000.00 4,000.00 300,000.00 -
Lasitha 120,000.00 - 120,000.00 2,000.00
Rakitha 50,000.00 - 16,000.00 -
Total 630,000.00 4,000.00 566,000.00 8,000.00
As at 01.03.2014 the total of the creditors ledger balance agreed with the balance of the creditor control account.
As at 31.03.2014 the total of the creditors ledger balance did not agree with the balance of the creditors control
account. The reasons for this difference are given Below;
(i) Discount received from Asitha for Rs. 3,000.00 have been debited to creditors control account and
credited to discount received account. No other entries had been made in this regard.
(ii) Debited note of Rs. 4,000.00 sent to Visitha has not been recorded in his account.
(iii) Cash ssales of Rs. 20,000.00 have been credited to creditors control account.
(iv) Purchase invoice dated 28.03.2014 raised for goods purchased of Rs.12,000.00 from Muditha. Has not
been recorded in the purchase journal.
(v) The total of the purchase journal has been posted to the creditors control account as Rs. 603,000.00.
Requirement
Explain the process taken to reconcile control accounts and provide relevant control accounts with reconciliation
statements to obtain the correct creditor balance in the accounts.

Assignment 01
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Assignment 01
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Grading Rubric - Pass
Feedback
Outcome(s)/criteria Achieved
Outcome 1: Record business transactions using double entry book-keeping, and be able to extract a trial
balance.
P1. Apply the double entry book-keeping system
of debits and credits. Record sales and
purchase transactions in a general ledger.
P2. Produce a trial balance applying the use of

the balance off rule to complete the ledger.
Outcome 2: Prepare final accounts for sole-traders, partnerships and limited companies in accordance with
appropriate principles, conventions and standards
P3. Prepare final accounts from given trial

balance.
P4. Produce final accounts for a range of

examples that include sole traders,
partnerships or limited companies
Outcome 3: Perform bank reconciliation to ensure company and bank records are correct.
P5. Apply the bank reconciliation process to

prepare a number of bank reconciliations.
Outcome 4: Reconcile control accounts and shift recorded transactions from the suspense accounts to the right
accounts.
P6. Explain the process taken to reconcile

control accounts and clear suspense accounts
using given account examples

Assignment 01
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Grading Rubric - Merit
Grade Description (Merit) Achieved Feedback
M1.Analyse transactions to show the progression

from previous trial balance to the next one using
double entry bookkeeping.
M2.Make adjustments to balances of sum accounts.

For example, accruals, depreciations and prepayments
before preparing the final accounts.
M3. Apply the reconciliation process demonstrating

the use of deposit in transit, outstanding checks and
NSF check.
M4. Demonstrate understanding of the different types

of accounts and how and why they are reconciled.

Assignment 01
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Grading Rubric - Distinction
Grade Description (Distinction) Achieved Feedback
D1.Apply trial balance figures to show which

statement of financial accounts they will end up in.
D2.Compare the essential features of each financial

account statement to analyse the differences
between them in terms purpose, structure and
content.
D3. Prepare accurate bank reconciliations that apply

appropriate tools and techniques to check general
accounts and balance sheets
D4. Produce accurate accounts that have been

reconciled applying the appropriate methods

Assignment 01
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Activity 01
XYZ PLC JOURNAL

Date Discription Ref Debit Credit
1-Jul cash 500000
Owner equity 500000
capital
Computer equipment
Owner equipment 100000 100000
(start the business)
2-Jul rent 15000
cash 15000
(paid rent)
4-Jul Additional equipment 12000
Creditors 12000
(purchased of a debtor)
8-Jul cash 32000
Sale 32000
(complete a work)
10-Jul Debtors 27000
Sale 27000
(complete a work for
creditor)
12-Jul Additional equipment 8000
cash 8000
(purchased of a cash)
15-Jul Wages 6200
cash 6200
(paid for assistant)
18-Jul cash 15000
Debtors 15000
(cash from Debtors )
Creditors additional
25-Jul equipment 12000
cash 12000
(paid forCreditors)

Assignment 01
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28-Jul Drawings 500
cash 500
(personal use)
30-Jul cash 40000
Debtors 4000
(work for client)
7000
31 Salary
Cash
7000
Pldt bil
cash 1800
1800
Meralco bill
cash 3800
3800
Asset= Equity+ liability
600000 600000
-15000 -15000
12000 12000
32000 32000
27000 27000
-8000
8000
-6200 -6200
15000 15000
-12000 -12000
-500 -500
40000 40000
-7000 -7000

Assignment 01
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-1800 -1800
-3800 -3800
679700 679700 0
Cash
Owners equity
500000 Rent 15000
Cash sales purchase
32000 d 8000
Debtors
15000 Wages 6200
Payment
Cash sales for
4000 creditors 12000
Drawings 500
7000
Salary 1800
PLDT
bill
3800
balance c/d
532700
587000 587000
Balance b/d
532700
Equity account
balance c/d 600000 Cash 500000
Computer equipment 100000
600000 600000

Assignment 01
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Balance b/d 600000
Additional equipment
Creditors
12000 balance c/d 20000
cash
8000
20000 20000
balance b/d 20000
Computer equipment
Equity account 100000 Balance c/d 100000
100000 100000
Balance b/d 100000
Office rent
Cash 15000 balance c/d 15000

Assignment 01
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15000 15000
balance b/d 15000
Creditors
Additional equipment
Cash 12000 12000
12000 12000
Sales
Balance c/d
139000 Cash 32000
Credit 27000
Cash 40000
Debtor
s 40000
139000 139000
Balanc
e b/d
139000
Debtors
Sale creditors Cash 15000

Assignment 01
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27000
Sale creditors
40000
Balanc
e c/d
52000
67000 67000
Balance b/d 52000
Wages
Balanc
e c/d
Cash 6200 62000
balance c/d
12000
6200 6200
balance b/d
6200
PLDT
bills
balance c/d
cash 1800 1800
1800 1800
balance b/d 1800

Assignment 01
31
Meralco bill
Cash Balance c/d
3800 3800
3800 3800
Balance b/d
3800
XYZ PLC TRIAL BALANCE AS 7/31
Details Dr Cr
drawings 500
cash 532700
equity 600000
additional equipmet 20000
rent 15000
sales 139000
debtors 52000
wages 6200
PLDT bill 1800
meralco bill 3800
computer equipment 100000
salary 7000
739000 749000

Assignment 01
32
Activity 02
Part A- sole proprietorship
Saman
trading
Income
statement
for the year 31st
march 2015
Sales 71000
Stoch as at 1st april 7700
Purchases 30000
37700
(-) Closing inventory -6900 -30800
Gross Profit 40200
(+) Other Income

Provision for doughtful debts 986
41186
(-) office & Administration expensess

Motor Vehi depreciation 1760
Bad debt 300
Sales commision 4300
Provision Doubtful 254 6614
Sales and distribution expensess
Building depreciation 2000

Assignment 01
33
Office Equip 660
Electricity Bill 8310
Salaries & wages 13000 23970
Finance Expensess
Bank loan Intreset 2660 2660

(-) 33244
Net profit for the year 7942
Saman Trading
Statement of financial position
as at 31st march 2019
Non Current Assests Cost Acc.dep NBV
land & building 51000 -12000 39000
Motor Vehi 8800 -4640 4160
Office Equip 5500 -1740 3760
65300 18380 46920
Current Assets
Closing Inventory 6900
Forward Paid Insurance 3660
Trade Recievables 12700-254 12446
Cash in Hand 5240 28246
Total Assests 75166
Equity & Liabilities
Capital 28000
(+) net profit 7942
35942
(-) drawings -2400 33542
Non Current liabilities

Assignment 01
34
14% bank loan 19000
Current Liabilities
Electri Bill to be paid 710

Trade payables 15200
Bank overdraft 3800
Bank loan intrest To be paid 2660 23370
Total Equity & liabilities 75912
ABN Partnership
Trading A/l and appropriation A/c
for the year 31st march 2018
Sales 3800000
(-) Cost of sales 1900000
Gross profit 1900000
Depreciation for Year 180000

Expences 850000 1030000
Profit availble for appropriation 870000
Appropriations
50000
Intrest on Capital A 40000
B 40000 130000
C
Share of profit A 348000

B 261000
C 261000

Assignment 01
35
ABN Partnership
Statement of financial position
as at 31st march 2018
Assests
Non current assests
Property plant equipment 900000
Current Assets
Inventory 585000
Trade Recievables 280000
Cash at bank 500000 1365000
Total Assets 2265000
Capital of liabilities
Capital A/C
A 500000
B 400000
N 400000
Current A/C
A 348000
B 261000
N 261000
Partners loan -Nimal 200000

Assignment 01
36
Current Liabilities
Trade payables 150000

To be paid Intrest 400000
Partners Current A/C
A B N A B N
Balance 125000 85000 Balance 225000

Drwing
s 275000 17500 Intrest of capital 50000 40000 40000
intrest of loan 40000
Share of profit

Assignment 01
37
Part C- limited liability company
Wiskam PLC comprehensive income satement

For 31st March 2015
RS.000"
Sales 19300
Cost of sales -11600
Gross profit 7700
Other Income
Discount 120
7820
Admin expenses 3715
Selling and distribution 230
Finance 220
Assignment 01
38
Other expenses 330 -4495
Profit before tax 3325

(-) tax -220
Profit after tax 3105
Wiskam PLC Statement of financial Position
at 31st march 2015
Non current assets
Property, plant, equipment 23900
Current assets
Closing inventory 350
Debtors 1080

Assignment 01
39
1136
Prepaid expenses 100
Cash 895 2425
26325
Equity and liabilities
Equity 12000
Revaluation reserve 1500
General reverve 300
Retained earnings 7805 9605
Non current liabilities
lease 600
bank loan 1200 1800
Current liabilities
Lease installment 300
Lease interest 100
Tax payable 45

Assignment 01
40
ETF 60
Employer EPF 300
Employee EPF 200
Accrued Interest 120
bank overdraft 145
Trade payable 1650 2920
26325
Wiskam PLC Statmet of changes in equity

As 31st march
2015
Revaluation General Retained

Description Share capital Reserve Reserve Earnings Total
opening Balance 10000 700 7500 18200

Profit for year 3105 3105
Dividends -500 -500
Transfer to General
reserve 300 -300
Bonus 2000 2000
Land revaluation -700 -700
Building revaluation 1500 1500
Total 12000 1500 300 7805 21605
Notes
1. Cost of inventory at 31.03.2015 has been valued at FIFO method

Assignment 01
41
2. Dividend declare of RS. 1500 to the ordinary share holders of the company.
3. Land revaluation lost of 1000 on 31.03.2015
Property, Plant & equipment

Motor
Description Land Building Vehicle Computer Machinery Total
Opening Bal 16000 5000 4200 600 25800
Leasing 1200 1200
Purchase 400 400
Reduction -5000 -5000
Revaluation -1000 4500 3500
15000 4500 4200 1000 1200 25900
Bal 1500 1260 120 2880

Depreciation 500 420 80 120 1120
Removal -2000 120 -2000
Sales &
Description Admin.ex distribution Finance Other
Bad debts 40
under prov. Of
bad d 20
Advertising 100
Sales comm 20
Discount 50
Director Allow 175
Audit fee 60
Salaries 2000
EPF,ETF 360
Depreciation 1120
Donation 30
Land rev. lost 300
Bank loan
Interest 120
Lease interest 100
Assignment 01
42
3715 230 220 330
Part (D) – Cash Flow Statement
RUBA PLC Cash flow statement

AS 31 march 2015
profit before tax 2265
cash flow from operating activities
Adjustment for:
Depreciation 300
Disposal loss 50 350
2615
Tax paid 1150

Interest paid 700 -1850
Des trade receivable -800

incre current loability 110
incre iventory 500 410
Net cash by operating activities 1175
Cash flows from investing activities
Intterest received 85
Dispostal PPE 70
Net cash by Investing Activities 155
Cash flows From Financing Activities

Issue Capital 500
Assignment 01
43
Divident Paid -655
Net Cash Provided by Fiancing activities -155
Non incre in cash 1175

Cash 01.04.2014 300
Cash 31.04.2015 1440
Income tax payable

Cash B/F
1150 100
B/C PL
150 1200
1300 1300
Loan Interest Payable

Cash B/F
700 60
B/C PL
120 760
820 820

Assignment 01
44
Loan Interest receivable
B/F Cash
50 85
PL B/C
75 40
125 125
Part E
Types of Statements
Statements Definition Important Terms

Balance sheet It is a tabular sheet of balances of Current Assets
assets, liabilities, and equity Non-Current Assets,
Property, Plant, and
Equipment,
Long-term Liabilities,
Common Stock,
Preferred Stock and
Retained Earnings etc.
Income Statement It is a statement of calculation of Sales,
the income of a particular period Operating Cost,
showing Net Sales and all types of Depreciation and
expenses. Amortization,
Interest Cost,
Taxes,
Assignment 01
45
Preferred Dividends and
Net Income.
Statement of Cash Flows A cash flow statement is simply a Operating Activities,
statement of cash generation and its Investing Activities, and
use categorized under different Financing Activities
activities
Statement of It is a statement showing the capital Common Stock,
Shareholder’s Equity investment by stockholders and the Retained Earnings
retained earnings of the company
Footnotes to Financial All other information in the annual Inventory valuation method
Statements report other than quantitative Contingent liability,
statements like above are footnotes. Disclosures, etc
Balance Sheet
As the term balance sheet suggests, it is a tabular sheet of balances of assets, liabilities, and equity. Assets are normally
classified as current assets and property plant and equipment. Liabilities are generally further classified into current and
long-term liabilities. Equities are common stock, preferred stock and retained earnings all shown separately. There is a
great significance of each and every line item on a balance sheet.
As we just noted that the balance sheet is nothing but a set of balances. Balances can change every day. Therefore, a
balance sheet is presented at the end of a particular date. The date for presenting a balance sheet for the annual report is the
last date of the financial year. In the US it is 31st December every year
Companies show balances of last year as well as the balances of last to last year for the sake of visible comparison. For
example, if the balance of equity at the end of 2018 is 1,000 million and 900 million at the end of 2017, the change in the
balance of equity by 100 million is clearly visible. The analysts will understand and interpret this change through their skill
of financial analysis.
Income Statement
Unlike balance sheet income statements are presented for a period and not as on a date. Here also, as the income statement
suggests, it is a statement that shows the calculation of the income of a particular period. The main components of an
income statement are net sales, operating cost, depreciation and amortization, the interest cost, taxes, preferred dividends,
and net income. All the components are deducted from net sales to arrive at net income. After deduction of every type of
cost, you arrive at a different interpretation of income which is expressed as below:
Assignment 01
46
 Earnings before Interest Tax Depreciation and Amortization (EBITDA)
 Earnings before Interest and Taxes (EBIT)
 Net Income before Preferred Dividends
 Net Income (NI)
Statement of Cash flows
All the while we have heard the importance of net cash flows in the calculation of the fundamental or intrinsic value of
businesses. Cash generation, therefore, has got more value than income reported in the financial statements. It is simply
because the real source of value creation is cash and not Income reported on the income statement.
A cash flow statement is simply a statement of cash generation and its use by different activities categorized under three
different broad activities i.e.
1. Operating Activities,
2. Investing Activities, and
3. Financing Activities.
There are many factors that make net income totally different from cash balance and they are
 Noncash adjustment to net income

 Changes in working capital
 Investment
 Capital Inflow and Outflow
 Dividend Payment
Statement of Stockholders Equity
It is a statement showing the capital investment by stockholders and the retained earnings of the company. Like the balance
sheet, a statement of stockholders’ equity is also a statement presented as on a particular date. This date is commonly 31st
December in the US. The two main parts of this statement are common stock and retained earnings and the total of both
make it to total equity.
Footnotes to Financial Statements

Assignment 01
47
You may consider footnotes as one of the types of financial statements or additional information to supplement financial
statements. It will be misleading for investors if they do not understand the financial statements in their true sense.
Footnotes help in clarifying how financial statements are prepared. They provide information about inventory valuation
methods, contingent liability, etc. They also provide the disclosures with respect to compliance with
Standardized Accounting Principles. In the US, Generally Accepted Accounting Principles (GAAP) are followed and IFRS
is the International Standard for Reporting
Activity 3
Part A
Revised Bank Account

Debi
t Credit
Date Particular JF Amount Date Particular JF Amount

Debtors
Deposit 40300 B/F 21500
Accounting Leasing
error 900 installment 20000
Cheque book
charges 400
Overdraft
interest 1800
Bank charges 450
Bank errors 12000
B/C
14950

Assignment 01
48
56150 56150
B/F
14950
Bank Reconciliation Statement

Balance as 31.03 at revised bank account -14950
(+) Outstanding Cheque 95000

16500
21500 133000
(-) Deposit but not clearing cheque 4500

33500
16000 -54000
Balance of bank statement 64050
Part b
Adjusted cash book

Balance less note
227700 24000
Direct Recived Bank Charges
5000 10500
Direct diposit
5400
wrong Note
1800

Assignment 01
49
B/F
215400
249900 249900
B/C
215400
Bank Reconciliation Statement

Adjusted cash book balance 215400
(+) Unpresented Cheques 522000
737400
(-) Unrealized Cheques
111201 -50000
450222 -60000
650108 -82000 192000
Balance as per the bank statement 545400
Activity 04- Reconcile control accounts and clear suspense accounts
 Payables ledger accounts posted individually.

 Errors are effected to the creditors ledger.
 Purchased invoice has missed and not recorded in same time.
Assignment 01
50
Creditors Control A/c
Debit Credit
Oparticula Amoun
Date r JF t Date Particular JF Amount
P ret 4000 B/F 81000
Discount 8000 Purchase 603000
Cash 566000 Sale 20000
126000
B/c 704000 704000
B/f 126000
Creditors Reconciliation
1/3 Balance 126000
(+) 3000
Discount
Return 4000
P reducation 27000 34000
(-) Substraction
sale 20000 -20000
140000

Assignment 01
51

Unit 10 Financial Acoounting

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Unit(s) Unit 10: Financial Accounting

Assignmenttitle Prepare final accounts and perform bank reconciliation

Student’sname Tharushi Roshel Fernando

Listwhichassessmentcriter Pass Merit Distinction

Tharushi Roshel Fernando

Tharushi Roshel Fernando

StudentName/ID Tharushi Roshel Fernando/75029

Tharushi Roshel Fernando

Pass, Merit & Distinction P1 P2 M1 D1

Pass, Merit & Distinction P3 P4 M2 D2

Pass, Merit & Distinction P5 M3 D3

Grade: AssessorSignature: Date:

Grade: AssessorSignature: Date:

Tharushi Roshel Fernando

Feedback: Student to Assessor

Tharushi Roshel Fernando

Word Processing Rules

Tharushi Roshel Fernando

1. I know that plagiarism is a punishable offence because it constitutes theft.

Tharushi Roshel Fernando

Student’s Signature: Date:

Unit Number and Title

Academic Year 20……

Assignment Title Prepare final accounts and perform bank reconciliation

Tharushi Roshel Fernando

Unit Learning Outcomes:

Assignment Brief and Guidance:

Part (A) – Sole Proprietorship

Tharushi Roshel Fernando

You are required to prepare following –

Tharushi Roshel Fernando

Adjustments needto be made for the following

01. Depreciation for the year was Rs. 180,000.

Tharushi Roshel Fernando

Prepare the financial statements for a partnership including appropriation accounts

Part (C) – Limited Liability Company

Property, Plant and equipment as at 2014.04.01

Tharushi Roshel Fernando

Prepare final accounts from given trial balance figures

The final accounts should cover following statements;

 Statement of P/L and Other comprehensive income

Part (D) – Cash Flow Statement

Income Statement Rs. (‘000)

Statement of changes in Equity

1. Carrying amount of computer disposed on 01.04.2015 was Rs. 120,000.00

Tharushi Roshel Fernando

Activity 03. Prepare bank reconciliations

(i) Cheques deposit and date f realization are as follows

Cheque number Deposit date Realization date Value (Rs)

Deduction type Value (Rs.)

Cheque number Deposit date Realization date Value (Rs)

(vii) Rs. 40,300.00 was directly deposited to the bank by a debtor.

Tharushi Roshel Fernando

Cheque Number Amount (Rs.)

Activity 04. Reconcile control accounts and clear suspense accounts

Creditor Ledger balance of XYZ business as at 01.03.2014 are as follows;

Creditor Name Value (Rs.)

Creditor Purchases (Rs.) Purchases Return Payment (Rs.) Discount Received

Tharushi Roshel Fernando

P2. Produce a trial balance applying the use of

P3. Prepare final accounts from given trial