Introduction to Accounting and Finance Assessment

UGB 163 – INTRODUCTION TO ACCOUNTING AND FINANCE ASSESSMENT

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Part A – Collins Colman Limited............................................................................................................3
Part B – Parks mead Limited.................................................................................................................10
Part C – Skipsey Clifford Plc.................................................................................................................15
CONCLUSION.............................................................................................................................................21
REFERENCES..............................................................................................................................................22

INTRODUCTION
Accounting and finance principles are closely interrelated but separate domains. Accounting
deals mainly with the acknowledgment of sales that can be calculated in quantitative value
(Ainsworth and Deines, 2019). Although the field of finance refers to the analysis of the
company's owners in the form of papers. These two components suggest that sufficient
statements are reported in an appropriate way and transmitted to the various management. They
allow funds to be procured and distributed in a reasonable way on the part of managers are
accountable for making rational decisions about them. The purpose of this study is to provide a
comprehensive account of the basic accounting and managerial accounting structures, principles
and strategies used. For this reason, the principle of preparing of financial reports including such
income statements, balance sheets, expenditure calculation, break-even point, protection margins
in terms of amount and profit is ignored. In addition various financial analysis methods used as a
financial planning method in capital money management actions, alongside advantages and
budget constraints, are studied.
MAIN BODY
Part A – Collins Colman Limited
A corporation tries to calculate the net profit received over a particular time span for a company
and determine whether or not it is likely to expand or step in the path that is in line with its vision
and purpose (Helfaya, 2019). For this purpose, the Income Statement is available to receive in
the interaction of the company's value after getting tax, value, amortization and other expenditure
into account. Thus, supplying the managers as well as shareholders in a single company like
Collins Colman Limited with an analysis of organizational productivity. It is seen as under:
Statement of Income for the year ended 31st December 2019
Particulars £ Particulars £
To Opening Stock - By Revenue3 759600
To Purchases1 630000 By Closing Stock4 273600

To Wages2 143010
To Gross Profit (Balancing
figure) 260190
Total 1033200 Total 1033200
To Electricity Bill Payments5 9270 By Gross Profit b/d 260190
To Van Running Expenses 40320
To Irrecoverable Debts 1800
To Rent paid to owner6 108000
To Rates7 6930
To Depreciation on Van 11000
To Net Profit for the year 82870
Total 260190 Total 260190
Working Notes:
1. Purchases:
Particulars £
Credit Purchases 583200
Cash Purchases incurred 46800
Total Purchases made during the year 630000
2. Wages:

Particulars £
Total Wages paid during the year 140400
Add: Wages owed for the last week of the year 2610
Total Wage Expenses 143010
3. Revenue for the year ended December 31, 2019:
Particulars £
Credit Sales 604800
Cash Sales 154800
Total Sales made during the year 759600
4. Determining Closing Stock Value:
Particulars £
Stock available as on 01.01.2019 -
Add: Total Purchases made during the year1 630000
Less: Cost of Goods Sold (=£291,600+£64,800) (356400)
Stock available as on 31.12.2019 273600
5. Electrical Bills Payments:
Particulars £

Bills paid during the year 6840
Add: Wages owed for the quarter as on 31.12.2019 2430
Total Wage Expenses 9270
6. Rent paid:
Particulars £
Total Rent paid to the owner of the premise 135000
Less: Rent payments made in advance 27000
Total Rent Paid 108000
7. Rates:
Particulars £
Payments for the period 01.01.2019 to 31.03.19 2880
Payments for the period 01.04.2019 to 31.03.2019 (=5400*9/12) 4050
Total Rates for the year 6930
Statement of Financial Position as at 31 December 2019
Another part of financial statements that explains the financial situation of an organization at a
particular time is a description of the balance sheet (Jamil and Seman, 2019). It allows for
standardization with the financial condition of the organization in past years with respect to the