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Unit 10 : financial accounting assignment

   

Added on  2021-05-20

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RECORDING AND FEEDING BACK ON LEARNER ACHIEVEMENTCourse / AwardBTEC HND Business ManagementUnit 10Financial Accounting_A1Student NameNguyen Thi Hoai Thuong_MC72152Assessment criteria that have been achievedAssessment Criteria that are still to be achievedAssessor’s feedback (specific to assessment criteria)Passed with M1, M2, D1, D2Appropriate work provided on each task. Keep it upStudent Name/SignatureRework DueDateAssessor Name / SignatureDateIV Name / SignatureDateAssessor’s feedback on the rework:Student Name/SignatureDateAssessor Name / SignatureDateIV Name / SignatureDateHCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION

INTERNATIONAL EXCHANGE EDUCATION CENTER HO CHI MINH UNIVERSITY OF TECHNOLOGY AND EDUCATIONASSIGNMENT 1: ½ RECORD BUSINESS TRANSACTIONS ANDPREPARE FINAL ACCOUNT FOR D&G LECTURER: MR. SUMITSTUDENT:NGUYEN THI HOAI THUONGCLASS:FINANCIAL ACCOUNTING

Table of ContentsIntroduction.........................................................................................................4LO1: Record business transactions using Double entry book-keeping, and be able to extract a Trial Balance............................................................................5Task 1: Apply the double entry book-keeping system of debits and credits. Record sales and purchases transactions in a general ledger........................................................5I.The Accounting Cycle..................................................................................................................5II.Prepare Journal Entries using Assignment scenario..............................................................10III.Prepare T-account using assignment scenario....................................................................12Task 2: Produce a trial balance applying the use of the balance off rule to complete the ledger.............................................................................................................................181.Why do the company need to prepare the Trial Balance?.....................................................182.Preparing the Trial balance using assignment scenario.........................................................18LO2: Prepare final accounts for sole-traders, partnerships and limited companies in accordance with appropriate principles, conventions and standards............................................................................................................20Task 3: Prepare final accounts from given trial balance figures adjusting for accruals,depreciation and prepayments..........................................................................................20I.What are Accrual, Prepayment, and Depreciation?...............................................................20II.The calculation of Accruals, Prepayment, and Depreciation using assignment scenario. .21Task 4: Produce final accounts for a range of examples that include sole-traders, partnerships or limited companies...................................................................................23I.What is Final accounts with Adjustments?.............................................................................23II.Preparing the Final Accounts with adjustment using assignment scenario.........................24Conclusion.........................................................................................................29Bibliography......................................................................................................303

IntroductionBesides Management Accounting for internal users in the organization to manage and operatethe company, there is Financial Accounting for external users who are not related to thecompany. It helps external users understand the financial position of the company throughfinancial statements such as income statements, balance sheets. To help readers understand whatFinancial Accounting is, the author who is the assistant accountant of D&G company is going totalk about the processes in financial accounting, known as Accounting Cycle. Moreover, in orderfor the reader to visualize the process, the author will have examples such as preparing JournalEntries, Ledger, Trial Balance, Adjustment, and Financial Statements in this report.4

LO1: Record business transactions using Double entry book-keeping, and be able to extract a Trial Balance.Task 1: Apply the double entry book-keeping system of debits and credits.Record sales and purchases transactions in a general ledger.I.The Accounting Cycle1.DefinitionThe accounting cycle is a series of actions including identifying, analyzing, and recording thefinancial transactions of a company. The steps of the cycle begins when accounting eventshappen. Then, it finishes by planning the financial statements. Additional accounting records thatare used in the accounting cycle include the General ledger and Trial Balance. [ CITATIONWil19 \l 1066 ]2.Five steps of the Accounting CycleAccording to Dhull S.(2020), in terms of Financial Accounting, it is the process of preparingaccounts by using the Accounting Cycle. And about that, there are five simple steps in theAccounting Cycle to prepare accounts of a company including Source Document, Journals,Ledger, Trial Balance, and Financial Accounts.5

Source: [ CITATION Sum201 \l 1066 ]2.1Source DocumentAs Dhull S. (2020) said, Source Document is any kinds of information, or transactions.Moreover, book-keepers and accountants have to record and keep source documents for eachtransaction. And every transaction need to contain the date, the description, and the value of thistransaction [ CITATION Acc201 \l 1066 ].2.2JournalsJournals, also known as Book of Prime Entry, are the first step to entry information in companyaccount using Debit and Credit. And, to complete the Journal, there are four steps [ CITATIONSum201 \l 1066 ].Step 1: Find AccountsFirst of all, the accountants identify transactions from Source Document and classify which typesof accounts they belong to. In terms of Accounts, there are five types of Accounts: Assets,Liabilities, Equity, Income/Profit, and Expense/Loss. Assets: Everything that a company owns [ CITATION And19 \l 1066 ], which is classified intotwo kinds: Current Assets and Fixed Assets (that divided into Tangible and Intangible)[ CITATION Sum201 \l 1066 ].6

Liabilities: They are debts that the company is obligated to pay to the creditor or other outsidepersons the company lends money [ CITATION And19 \l 1066 ]. Liabilities are divided into twocategories: Current liabilities and Fixed liabilities [ CITATION Sum201 \l 1066 ]Equity: The equity account is the amount of interest left in the company after paying all debtsand spending, which reflects the company's current value. [ CITATION And19 \l 1066 ]Income/Profit: including money that the company earns. [ CITATION And19 \l 1066 ]Expense/Loss: The amounts paid by the company for purchase or entry as well as payments forits activities.[ CITATION And19 \l 1066 ]Source: [ CITATION Sum201 \l 1066 ]Step 2: Find Accounts increase or decreaseThen, the accountant determines whether the account increases or decreases to be able to classifyDebit or Credit.Step 3: Convert “Increase” and “Decrease” into Debit (Dr) and Credit (Cr)After determining the account type and the increase or decrease of the account, the accountantswill rely on the increase and decrease of the account to convert into Debit (Dr) and Credit (Cr).Each account type has its own Debit (Dr) and Credit (Cr) identification through an increase ordecrease of that account type. The picture below shows the rules for Debit and Credit:7

Source: [ CITATION top19 \l 1066 ]Step 4: Comple the Journal EntryAfter all the data is complete, the accountants will complete the Journal Entry of the transactions.[ CITATION Sum201 \l 1066 ]2.3Ledger (T-Account)T-Account is a graphic representation of a ledger in the form of a "T", which records theaccounting transactions of the company. It includes:The account type name is in the top row of the TDebit side on the leftCredit side on the right[ CITATION Dan19 \l 1066 ]8

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