NATIONAL ECONOMICS UNIVERSITY

INTERNATIONAL SCHOOL OF MANAGEMENT AND ECONOMICS

BTEC HIGHER NATIONAL DIPLOMA IN BUSINESS (RQF)

ASSIGNMENT BRIEF

Unit Code, Number and Title Y/618/5038 RQF - Unit 5: Accounting Principles

Semester and Academic Year Semester 2 / Academic year 2022 - 2023

Nguyen Thi Phuong Hoa/ Pham Thanh Huong/
Unit Assessor(s)
Phan Thi Thanh Loan/ Pham Thi Thuy
AP A2.1: Financial statements and budgeting
Component Number and Title
(Assessment 2 of 2, Individual assignment)
Issue Date Friday, 14th April, 2023
Submission Date 10.00 am on Monday, 29th May, 2023

Student name Bùi Thúy Hằng

NEU Student ID 10220558 Pearson ID 10220558

I certify that the evidence submitted for this assignment is my own. I

Learner declaration have clearly referenced any sources used in the work. I understand that
false declaration is a form of malpractice.

Student name / Signature Hằng Date: 29th May, 2023

Submission format

 This is an individual assignment.

 The submission format is in the form of an E-report. Please refer the “Turnitin Submission Rules”
that was posted on Moodle.
 The file on Turnitin must be in Word format and include the first page of this cover sheet. The
first page of the cover sheet should be in the picture format in order to ensure the accepted
similarity of Turnitin.
 The similarity allowed is up to 30% after excluding references.
 Name of the file includes Student ID_Unit name_Assessment no. (E.g. “1010001_AP_A2.1”)
 Ensure that authenticity declaration has been signed electronically.
 Plagiarism is unacceptable. Students must cite all sources and input the information by
paraphrasing, summarising or using direct quotes. A Referral Grade is given when Plagiarism is

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 identified in your work. There are no exceptions.

 Your evidence/findings must be cited using Harvard Referencing Style. Please refer to
Reference guiding posted on Moodle. The Reference page is compulsory to upload on Turnitin.

 This assignment should be written in a concise, formal business style using Arial 11 or Times
New Roman 13 font size and 1.5 spacing.

 The word limit is 3,500 words (+/- 10%).

 You MUST complete and submit softcopy of your work on the due dates stated on Assignment
brief. All late work is not allowed to submit. This rule is not waived under any circumstances.

 Read ALL Instructions on this Page and review the Pass, Merit and Distinction criteria carefully.
To pass the assignment, you must achieve ALL the Pass Criteria outlined in the marking sheet. To
achieve a Merit, you must achieve ALL the Merit criteria (and therefore the Pass criteria). To
achieve a Distinction, you must achieve ALL the Distinction criteria (and therefore the Pass and
Merit criteria).

Unit Learning Outcomes

LO2: Prepare basic financial statements for unincorporated and small business organisations in
accordance with accounting principles, conventions and standards
LO3: Interpret financial statements
LO4: Prepare budgets for planning, control and decision making using spreadsheets
Vocational Scenario, Assignment activity and guidance
SCENARIO 1
Task 1
Sophie Le, a sole trader, owns a chain of SL Hair and Spa Salons. The trial balance of SL Salons on
December 31, 2022 is as follows.
SL Salons
Trial Balance
December 31, 2022
$ $
Cash 18,000
Receivables 5,000
Supplies 22,000
Prepaid rent 27,000
Equipment 85,000
Accumulated Depreciation — equipment 15,000
Accounts payable 4,000
Overdrafts 10,000
130,000
Sophie’s Capital
126,000
Service Revenue
Salaries and wages expenses 84,000
Depreciation expenses 9,000
Rent expenses 12,000
Utilities expenses 23,000
Total $285,000 $285,000

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Prepare an income statement for the year ending December 31, 2022, and a statement of financial
position as of December 31, 2022.

Task 2
The trial balance of SL Salons before adjustment on January 31, 2023, is as follows.
SL Salons
Trial Balance
January 31, 2023
$ $
Cash 20,000
Receivables 7,500
Supplies 18,000
Prepaid rent 26,000
Equipment 85,000
Accumulated Depreciation— equipment 10,000
Accounts payable 10,000
Sophie’s Capital 128,000
Unearned service revenue 5,000
Service revenue 18,000
Owner’ withdrawals 6,000
Salaries and wages expenses 7,500
Rent expense 1,000
Total $171,000 $171,000

Other data:
a) A count on January 31 shows $16,000 of supplies on hand.
b) The equipment has a 9-year life with $4,000 residual value. It is being depreciated at $750
per month.
c) Salaries of $1,050 unpaid on January 31 were not included.
d) A utility bill of January for $2,000 has not been recorded and will not be paid until next month.
e) Unearned revenue of $4,000 was recognized for services performed prior January 31.

Make appropriate adjustments and produce an income statement for the month ending January
31, 2023, and a statement of financial position as of January 31, 2023.

SCENARIO 2
Sweeties Foodstuff Ltd. is a large chain of grocery stores. The financial statements for Sweeties Ltd. are
given below.
Income statement
for the year ended 31 December
2022 2021
$m. $m.
Revenue 144,000 160,000
Cost of sales 82,000 91,200
Gross profit 62,000 68,800
Selling and distribution expenses 18,500 17,600

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 Administrative expenses 7,500 6,400
Operating profit 36,000 44,800
Interest expense 3,000 400
Profit before taxation 33,000 44,400
Income tax expense 6,600 8,880
Net profit 26,400 35,520

Statement of financial position

as at 31 December
2022 2021
$m. $m.
ASSETS
Non-current assets
Land and buildings 44,000 68,600
Equipment 30,000 35,000
74,000 103,600
Current assets
Inventories 20,000 12,000
Trade receivables 4,000 2,000
Cash 3,000 7,000
27,000 21,000
Total assets 101,000 124,600

EQUITY AND LIABILITIES

Equity
Share capital 54,000 75,600
Retained earnings 10,000 12,000
Total equity 64,000 87,600

Non-current liabilities
Long-term borrowings 30,000 25,000
Current liabilities
Trade payables 5,000
Short-term borrowings 7,000 7,000
7,000 12,000
Total equity and liabilities 101,000 124,600

1. Calculate and present the following ratios for the year 2022:
a) Total assets turnover
b) Average inventory turnover period
c) Average settlement period for trade receivables
d) Average settlement period for trade payables
e) Net profit margin
f) Gross profit margin
g) ROA
h) ROE

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 i) Current ratio
j) Quick ratio
k) Debt-to-equity ratio
l) Interest cover ratio

2. Using the ratios calculated in (1) and ratios below, compare the performance of Sweeties
Ltd. between 2022 and 2021.
Industry
2021 2020 average
1.2 1.
Total assets turnover (times) 8 95 1.65
Average inventory turnover period (days) 32.20 30.50 38.00
Average settlement period for trade receivables (days) 6.15 6.05 6.50
Average settlement period for trade payables (days) 25.00 24.50 26.00
Net profit margin 21.90% 23.00% 18.00%
Gross profit margin 43.00% 43.20% 41.00%
ROA 28.50% 29.40% 27.00%
ROE 40.50% 51.40% 50.00%
Current ratio (times) 1.75 1.83 1.50
Quick ratio (times) 0.75 0.78 0.65
Debt-to-equity ratio (times) 0.42 0.48 0.55
Interest cover ratio (times) 112.00 115.00 50.00
3. Evaluate the performance of Sweeties Ltd. over time using financial ratios with reference to
relevant benchmarks above.
4. Critically evaluate financial statements to assess organisational performance using a range
of measures and benchmarks to make justified conclusions.

SCENARIO 3
KOX Ltd. is a merchandiser. The company has a bank overdraft of $40,000 at the end of December 2022
and an overdraft limit of $100,000. The directors are worried about its liquidity situation over the last
months. As a result, they have recently decided to review their plans for the next three months of the year
2023.
Sales and purchases are as follows: (Unit: $)
November December January February March
(actual) (actual) (expected) (expected) (expected)
Sales revenue 80,000 $100,000 $110,000 $130,000 $140,000
Purchases 40,000 $60,000 $80,000 $90,000 $110,000
Wages 10,000 12,000 16,000 20,000 24,000
Overheads 10,000 10,000 15,000 15,000 15,000
Dividends 20,000
Capital
30,000
expenditures

a) 40% of sales are for cash, the remainder of sales are on credit terms and collected in 2 months
after the month of sales.
b) Purchases are paid in the month following the purchases.
c) 75% of wages are paid in the current month and 25% are paid in the following month.

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 d) Overheads are paid in the month after they are incurred.
e) Rent is $10,000 per month payable quarterly in advance during the first week of each quarter.
f) Dividends are paid 3 months after they are declared.
g) Capital expenditures are paid 2 months after it is incurred.

1. Using spreadsheet, prepare a monthly cash budget for the first quarter of 2023.
2. Discuss the benefits and limitations of budgets and budgetary planning and control for
KOX.
3. Identify corrective actions to problems revealed by budgetary planning and control for
effective organisational decision making in KOX.
4. Justify budgetary control solutions and their impact on organisational decision making to
ensure efficient and effective deployment of resources in KOX.
Recommended Resources
Please note that the resources listed are examples for you to use as a starting point in your research –
the list is not definitive.
Textbooks
ATRILL, P. and McLANEY, E. (2018) Accounting and Finance for Non-Specialists.11th Ed. Harlow: Pearson.
DRURY, C. (2015) Management and Cost Accounting. 9th Ed. Cengage Learning.
SEAL, W. et al (2018) Management Accounting. 6th Ed. Maidenhead: McGraw-Hill.
WEETMAN, P. (2019). Financial and Management Accounting: An Introduction. Harlow: Pearson.
Websites
www.accountingcoach.com
www.accaglobal.com
www.cimaglobal.com
www.corporatefinanceinstitute.com

Learning Outcomes and Assessment Criteria

Pass Merit Distinction

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 M2 Produce financial
traders, partnerships and not-for- statements from a given D2 Critically evaluate financial
profit organisations, to meet trial balance, making statements to assess organisational
accounting principles, appropriate adjustments. performance using a range of
conventions and standards. measures and benchmarks to make
LO3: Interpret financial statements justified conclusions.

P4 Calculate and present financial

M3 Evaluate the performance of
ratios from a set of final accounts.
an organisation over time using
P5 Compare the performance of
financial ratios with reference to
an organisation over time using
relevant benchmarks.
financial ratios.
LO4: Prepare budgets for planning, control and decision D3 Justify budgetary control
making using spreadsheets. solutions and their impact on
organisational decision making
P6 Prepare a cash budget M4 Identify corrective actions to to ensure efficient and effective
from given data for an problems revealed by budgetary deployment of resources.
organisation using a spreadsheet. planning and control for effective
P7 Discuss the benefits and organisational decision making.
limitations of budgets and
budgetary planning, and control

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for an organisation.

* Please note that grades are provisional. They are only confirmed once internal and external verifiers
have taken place, and the final decisions have been agreed by the assessment board.
* This grade only reflects the result of this assignment, not for the whole Unit.

Scenario 2:
1+2
- Gộp chung case 2021, 2022 rồi so sánh làm như cách thi IELTS
- Tạo cột hoặc line để phân tích dễ hơn
- Tăng hay giảm và bao nhiêu
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- Thực hiện đánh giá tài chính qua 3 năm 2020, 2021, 2022 bằng cách vẽ biểu đồ ( cột, … )
- Nhận xét xu hướng tăng hay giảm hay biến động
- Chỉ ra tình hình tài chính cty điểm nào tốt, chưa tốt dựa trên các tiêu chí -> Giai thích điểm
mạnh, yếu giữa các năm xuất phát từ đâu, tiêu chí nào
COVID-19 ảnh hưởng như nào
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- So sánh số liệu của năm 2022 với trung bình ngành ( Nhiều hay ít, bao nhiêu, nguyên nhân
tham khảo của 3)
- Chỉ ra điểm mạnh, yếu của biến động năm nay so với trung bình ngày ( Nguyên nhân bên
trong )
- -> sau đó kết luận về tình hình tài chính của doanh nghiệp

Tips:
- Vẽ ratio cho các năm trên pie chart
- Hoặc sử dụng line chart, combo chart