Business School

First Year Accounting & Finance for Managers

2020/21

Assignment One

W/c Monday 9^th November 2020

Deadline for submission: 12 pm Friday 13^th November 2020

Instructions to Candidates

This coursework is the first (of two) component of assessment on this module. You are to complete the following tasks using either one of the following approaches:-

EITHER

Carry out the following instructions using Microsoft Excel and submit your answer via the Coursework One portal on Moodle;

OR

Carry them out by hand on pen and paper and, when you have finished, either scan or photograph your answers and upload them as above on Moodle. If you do it this way then you MUST number each page as Page 1 of X, Page 2 of X and so on with X replaced by the final page number. So if you use six sheets of paper then the first sheet will be Page 1 of 6 and the final one Page 6 of 6. Obviously you won't know the value of X until you finish your answer. Many of you use this pagination style for your notes already and the rest of you should too.

You are provided with the following information which was extracted from the books of

Sean Redgrove on 30 November 2020:-

Account

Debit

Credit

Capital

117,769

Bank Loan

100,000

Drawings

42,000

Fixtures and fittings at cost

28,000

Fixtures and fittings - accumulated depreciation

12,000

Cars at cost

38,000

Cars - accumulated depreciation

18,000

Building at cost

150,000

Trade payables

18,465

Purchases

195,871

Wages

52,647

Rates

8,147

Insurance

4,652

Light and heat

8,113

Car running costs

2,651

Opening inventory

15,962

Stationery and postage

1,841

Telephone

6,425

Bank charges

657

Entertaining

3,224

Advertising

5,862

Repairs and maintenance

3,984

Miscellaneous expenses

326

Trade receivables

41,115

Cash at bank

13,258

Petty cash

500

Rent received

19,000

Sales

341,115

Bad debts

3,114

626,349

626,349

In addition you are provided with the following information :-

1. Rent received relating to the quarter ended 28 February 2021

3,000

2. Further bad debts to be written off

1,115

3. Provision for Doubtful Debts to be established

2

%

Continued

4. Accruals:

Telephone

2,055

Electricity

2,814

5. Included in the insurance costs is a premium for third party cover which runs from

June 1 2020 to May 31 2021 the annual charge for which is:-

1,200

6. The interest on the bank loan has not been charged and the rate

for the year is :

9

%

7. Depreciation is to be charged as follows :

Cars

Straight line

25

%

Fixtures and fittings

Reducing balance

20

%

8. Closing inventory amounts to :

21,147