Accounting- Sills Assignment Reports

1
ACCOUNTING SKILLS
SBS – MBA / MSc
Assignment - Qatar 2019
STUDENT ID
UNIT TITLE / CODE: ___________________________________________________
NAME (in Full): ___________________________________________________
GENERAL INSTRUCTIONS
● All assignments are to be submitted 9th January 2020 on to
[e-mail] and cc to [e-mail].
● Hardcopy submissions to be done 10th January 2020
● If assignment is not submitted on date, will follow with penalty of 10% deduction of
marks for every day.
● If any extension request, has to come 5 days before the submission date with valid
reasons & supported document to [e-mail]
● Similarity between students work is strictly not accepted, any student found with
similar work will be graded Zero and fail for the course. However, Plagiarism is an
academic offence and will not be tolerated under SBS
● Assignment once submitted to exam board is final for marking.
● Total mark will be converted to 90 & class participation of 10 marks.
Total 100 marks
GUIDELINES FOR ASSIGNMENT
1. If assignment is Question & Answer based then.
 Introduction is needed for each question.
 Question has to be answered based on the mark allotted for each question with
references if any idea or information is taken from other source.
2. If assignment is case based then,
 Executive summary
 Table of content
 Body of assignment (questions related to case need to be answered)
 Conclusion / Recommendation if any
 References (in-text + citation) to be used.
©Al Tareeqah Management Studies - 2019

2
PLAGIARISM
Plagiarism is a form of cheating, by representing someone else's work as your own or using
someone else's work (another student or author) without acknowledging it with a reference.
This is a serious breach of the Academic Regulations and will be dealt with accordingly.
Students found to have plagiarised can be excluded from the program.
Plagiarism occurs whenever you do any of the following things without acknowledging
the original source:
 Copy information from any source (including the study guide, books, newspapers,
the internet)
 Use another person's concepts or ideas
 Summarise or paraphrase another person's work.
How do I avoid plagiarism?
To ensure you are not plagiarising, you must acknowledge with a reference whenever you:
 use another person's ideas, opinions or theory
 include any statistics, graphs or images that have been compiled or created by
another person or organization
 Paraphrase another's written or spoken word.
What are the penalties?
The penalties for plagiarism are:
 Deduction of marks,
 A mark of zero for the assignment or the unit, or
 Exclusion from the program.
Plagiarism is dealt with on a case-by-case basis and the penalties will reflect the seriousness
of the breach.
Please note: claiming that you were not aware of need to reference is no excuse.
©Al Tareeqah Management Studies - 2019

3
Answer ALL the following questions
Question 1
a) ‘Accounting is the systematic and comprehensive recording of financial transactions
pertaining to a business and it also refers to the process of summarizing, analysing and
reporting these transactions to oversight agencies and tax collection entities.’
Discuss the Significance of Accounting and also explain the Scope of Accounting.
Answer 1a) The significance of accounting lie in the fact that the same aids in the
preparation and presentation of the financial statements to render the various stakeholders
within an organization with the information, about the conduct of a business. The practice of
accounting involves the systematic records of the business transactions, ascertainment of
profit or loss from the business activities, depiction of the financial results, and providing
information for decision making to the users (Brigham and Houston, 2012). All the recording,
summarizing and the analyzing is to be done in accordance with the guidelines of accounting
issued by the regulators, to make the results comparable and consistent.
b) Prepare an Income statement and Balance sheet of Potus Corporation as at 30.06.19
Particulars Amount($’000)
Sales 37,436
Cash 4,895
Cost of Goods sold 26,980
Accounts Payable 7,156
Accounts Receivable 5,714
Selling & Admin expenses 3,624
Inventory 8,517
Research & Development expense 1,982
Plant & Machinery 7,154
Interest Expense 450
Long term liability 20,105
Land 981
Income tax expense 1,100
©Al Tareeqah Management Studies - 2019

4
Answer 1b)
Potus Corporation
Income statement
(For the year ending 30th June 2019)
Description
Amount (000'
$)
Sales 37436.00
Less: Cost of goods sold 26980.00
Gross Profit 10456.00
Less: Indirect Expenses
Selling and administration Expense 3624.00
Research and development Expense 1982.00
Earning Before Interest and Tax 4850.00
Less: Interest 450.00
Earning Before Tax 4400.00
Less: Income tax expenses 1100.00
Net profit 3300.00
Potus Corporation
Balance Sheet
(As at 30th June 2019)
Description Amount (000' $)
ASSETS
Cash 4895.00
Accounts Receivable 5714.00
Inventories 8517.00
Plant and machinery 7154.00
Land 981.00
Miscellaneous Assets 3300.00
Total Assets 30561.00
LIABILITIES
Long term liability 20105.00
Accounts Payable 7156.00
Total Liabilities 27261.00
EQUITY
Capital
Retained Earnings 3300.00 3300.00
Total Liabilities and Stockholder's equity 30561.00
Question 2
a) Breakeven point analysis is an important financial analysis tool used by business
owners.
©Al Tareeqah Management Studies - 2019