Programme HND in Business

Student Name

ANC ID

Unit Number and Title Unit 10 – Recording Financial Transactions

Academic Year 2023 – FA23

Unit Tutor Yasith Jayasundara

Assignment Title Assignment 1

Issue Date 18/11/2023

Submission Date 30/01/2024

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Unit 10: Recording Financial Transactions
Assessment Brief

Unit Number and Title Unit 10 – Recording Financial Transactions

Academic Year 2023 – FA23

Unit Tutor Yasith Jayasundara

Assignment Title Assignment 1

Issue Date 18/11/2023

Submission Date 30/01/2024

Submission Format

The submission is in the form of a formal report. This should be written in a concise,
formal business style following the formatting guidelines provided above. You are
required to make use of headings, paragraphs and subsections as appropriate.

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 4000 - 5000 words, although you will not be penalised for
exceeding the total word limit.

You are required to make use of Microsoft Excel to record your accounts and copy them to
the report. Additionally, you are required to submit the working files (MS Excel files)
along with your report submission.

Note - Failure to submit the MS Excel working files will lead to a failure grade.

Unit Learning Outcomes

LO1 Record business transactions using double-entry bookkeeping, books of prime

entry, journals and ledger accounts
LO2 Prepare a trial balance for a given organisation from data provided
LO3 Perform bank reconciliations to ensure organisation and bank records are correct
LO4 Perform control account reconciliations for accounts receivable and accounts payable
Vocational scenario

You are a junior accountant at Infinity, a small accountancy firm and you have been asked
to record, prepare and produce a range of final accounts for several businesses who are key
clients of Infinity. Once you complete this task you are required to present your work to
your line manager as a formal report.

Assignment activity and guidance

Ceylon Holidays

Ceylon Holidays Ltd commenced trading on 1 March. The following transactions occurred
during the month of March:

Share capital of $50,000 was invested by the owners who also paid $5,000
1 March for the first month’s rent.
Supplies were bought for the bar for $5,000 cheque payment and goods for
2 March the restaurant from Best Supplies Ltd for $1,500, for later payment.
5 March Weekend takings from customers amounted to
$3,750. 8 March Wages paid of $1,600 and general expenses
of $400.
9 March Takings from restaurant and bar sales of $7,100 were banked.
10
A private party was held for I. Dance and an invoice sent for A5,200.
March
15
Wages of $2,300 were
paid. March
21
Clean Company’s laundry bill for $700 was
received. March
25 Best Supplies Ltd was paid but a further delivery of provisions costing
March $2,500 was received.
28
Wages paid of
$1,800. March
30
Takings from customers, $6,100, were
banked. March

You are required to:

a) record the transactions in the accounts;
b) calculate the final balance on each account at the end of the month;
c) analyse the transactions of the hotel with the help of double entry, books of prime
entry, journals and ledgers and describe how these records will help Ceylon
Holidays Ltd. to ensure maintenance of accurate and timely accounting information
of their ventures.
d) prepare a trial balance;
e) identify whether any accounting errors exist in the records. Interpret the identified
accounting errors and present the trial balance after adjustments.
f) draw up a simple income statement and balance sheet as at 31 March.

Tip Top Trading

The cash book of Tip Top Trading for February 2022 is set out below.
Using the information from the bank statement (provided below), complete the cash book
entries for the month. (The transactions to be entered are those which appear on the bank
statement but are not to be found in the cash book as shown above.) You do not need to
reproduce the whole of the cash book given above.

The following additional information is available. The difference between the opening
bank balance at 1 February per the cash book of $922.22 and the opening balance at 1
February per the bank statement of $1,057.62 CR is explained by cheque number 800119
which was recorded in the cash book in January and presented on 7 February.

Prepare a bank reconciliation statement for Tip Top Trading as at 28 February 2022 using
the information given. You are also required to appraise the bank reconciliation process for
Tip Top Trading to identify errors and omissions from a bank statement and cashbook.
Haldance Corp

Haldance Corp is a small-scale construction firm. By going through their financial records,
you have identified that the company is in of performing control account
reconciliations for its accounts receivable and accounts payable. To convince the
management of Haldance Corp. on the need of implementing control account
reconciliation for its account recievables and account payables, you are required to;
a. explain the role and difference between control and suspense accounts and
critically evaluate the importance of these accounts for the effective financial
management at Haldance Corp.
b. evaluate different types of control accounts that can be considered by Haldance
Corp in the context of the double entry and bookkeeping systems.

The balance on the trade accounts payable control account of Haldance Corp as at 31
December 2022 was $110,000. A review of the individual trade accounts payable revealed
the following:
 i. The debit balance on Glenn Co's account was caused by a transposition error when
posting a payment as $1,928 instead of $1,298.The purchase day book has been
added incorrectly overstating the total by $600.
ii. Purchases of $3,800 had not been posted to Hewson's personal account in the
payables ledger.
iii. Discounts received of $1,340 had been posted to the personal accounts concerned
but not to the control account.
iv. An irrecoverable debt of $980 written off Jim Birch's account in the receivables
ledger had been incorrectly posted to the payables control account.

You are required to;

a. Make the necessary corrections to the payables control account.
b. Make the necessary corrections to the payables ledger, ensuring that the
revised control account balance agrees with the adjusted list of balances in
the payables ledger.

Haldance Corp. has a memorandum receivables ledger and a receivables control account,
which is part of the double entry. The balance on the receivables control is $15,091.
However, the list of receivables ledger balances totals $15,320. The following errors are
discovered.
i. A receivable paid $10 in cash. This has been correctly recorded in the receivables
ledger, but no entries have been made in the receivables control account.
ii. One of the receivables had a credit balance of $60. However, this has been
included as a debit
iii. balance in the receivables ledger total.
iv. Returns inwards of $35 have been recorded in the receivables ledger, but not in
the receivables control account.
v. One page of the sales day book has been undercast by $100.
vi. When a sales invoice for $95 was entered in the receivables ledger, the figures
were transposed and shown as $59.
vii. An error has been made in totalling the list of receivables ledger balances, which
has been overcast by $90.

You are required to reconciling the control account balance with the sum of the balances
extracted from the (memorandum) receivables ledger.
Learning Outcomes and Assessment Criteria

Pass Merit Distinction

LO1 Record business transactions using double entry

bookkeeping, books of prime entry, journals and ledger
accounts
P1 Record double entry
bookkeeping transactions in a
timely and accurate way
P2 Apply a range of business
transactions using double
entry bookkeeping, books of
prime entry, journals and
ledgers
D1 Conduct
systematic
gathering,
summarizing and
M1 Analyse a range of recording of business
business transactions using transactions for
double entry, books of prime accurate reporting of
entry, journals and ledgers in organisational
order to provide accurate and efficiency and
timely accounting information performance

LO2 Prepare a trial balance for an organisation from D2 Produce a trial

data provided
P3 Using data provided,
extract ledger balances into a
trial balance for an
organisation to accurately
record transactions
LO3 Perform bank reconciliations to ensure organisation
and bank records are correct
P4 Prepare a bank
reconciliation statement from
given data for an
organisation
LO4 Perform control account reconciliations for accounts
receivable and accounts payable
P5 Explain the role and
differences between control
and suspense accounts
P6 Perform control account
reconciliations for accounts
receivable
and payable from given data
M2 Interpret, identify and
correct accounting errors
through the production of a
trial balance to ensure
accurate accounting records
M3 Appraise the bank
reconciliation process
identifying errors and
omissions from a bank
statement and cashbook
M4 Evaluate the different
types of control accounts
in the context of the double
entry bookkeeping system
balance that is
timely, accurate and
fully
compliant for an
organisation to meet
its
objectives
D3 Producing bank
reconciliations that
are timely,
accurate and fully
compliant
for an organisation to
meet its objectives
D4 Critically
evaluate the
role and purpose of
control and suspense
accounts in supporting
effective financial
management in the
organisation
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 Grading Rubric

Achieved/No
Grading criteria Comment
t Achieved
P1 Record double entry bookkeeping transactions in
a timely and accurate way
P2 Apply a range of business transactions using
double entry bookkeeping, books of prime
entry, journals and ledgers

M1 Analyse a range of business transactions using

double entry, books of prime entry, journals and
ledgers in order to provide accurate and timely
accounting information

D1 Conduct systematic gathering, summarizing

and recording of business transactions for
accurate reporting of organisational efficiency
and performance

P3 Using data provided, extract ledger balances into

a trial balance for an organisation to accurately
record transactions

M2 Interpret, identify and correct accounting

errors through the production of a trial balance to
ensure accurate accounting records
D2 Produce a trial balance that is timely, accurate
and fully compliant for an organisation to meet
its objectives

P4 Prepare a bank reconciliation statement from

given data for an organisation
M3 Appraise the bank reconciliation process
identifying errors and omissions from a bank
statement and cashbook
D3 Producing bank reconciliations that are
timely, accurate and fully compliant for an
organisation to meet its objectives
P5 Explain the role and differences between
control and suspense accounts
P6 Perform control account reconciliations for
accounts receivable and payable from given data

M4 Evaluate the different types of control

accounts in the context of the double entry
bookkeeping system
D4 Critically evaluate the role and purpose of
control and suspense accounts in supporting
effective financial management in the organisation