Luminus Education - Assignment Brief (RQF) Higher National Diploma in business

Student Name Language of assessment (Please tick) Ar En Learners ID (College) Learners ID (Pearson) Unit Number and Title 10 Financial Accounitng Unit Assessor Name Qais Mahmoud Shalatony Academic Year 2nd semester 2020/2021 Assignment number & Title 1 of 2 Recording financial transactions and preparing basic final accounts. Issue Date (1st Submission) 25.04.2021 Completion Date (1st Submission) 30.04.2021 Issue Date (2nd Submission) Completion Date (2nd Submission) Internal Verifier Name Mais Mahammad Disi Approval Date 22.04.2021 Internal Verifier Approval (Signature) Mais Disi

Submission Format: LO1 & LO2 : The submission format is in the form of word document supported by observation sheet that covers LO1 & LO2. Unit Learning Outcomes: LO2 Prepare final accounts for sole-traders, partnerships or limited companies in accordance with appropriate principles, conventions and standards.

Assignment Brief and Guidance: General Scenario You are a Junior Accountant trainee in an accountancy firm which serves a number of clients with different financial needs. At the end of your training period your line manager wants to assess your ability and knowledge in handling some of the main financial accounting issues regarding the process of recording financial transactions and preparing basic final accounts, in order to do so he asked you to conduct some exams to demonstrate your ability and to reflect the knowledge and skills you have gain during your training period. In this exam you are required to handle the following financial problems. . . :

Task 2: learning outcome 2

In this task your line manager wants to assess your understanding and ability to prepare and produce the appropriate final accounts such as profit and loss account, owners equity statement, and balance sheet as well as how these accounts are differed under different forms and types of business. .

Instructions: In this task you have to:

1) Produce the final accounts for a sole trader business (Horizons Programming Company) from task 1 including profit and loss account, owners equity statement, and balance sheet for the Period ended July 31st. using the trial balance that you have produced in problem 2/ task1.

2) Make the adjustments entries for the following transactions before preparing the final accounts for LLC company: On the 25th of November 2021, the business purchased supplies for 10000 cash. On 31st of December, 2021 the business found out that the supplies still on hand were 5000 only. The business has a Equipment with book value of 8000, with annual depreciation rate of 12%. On the1st of August the business purchased a one-year insurance policy for 1800. Prepare the adjusting entry on 31st of December 2021. The employees are paid salaries on the 29th of each month. Prepare the adjusting entry of 5000 of the employees salaries that are not yet paid on the 31st of December, 2021.

3) Use the given adjusted trial balance for Cowell Company, LLC (Table 2) to prepare the final accounts including profit and loss account, retained earnings statement, and balance sheet for the Period ended December 31st.

4) Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. : : 1) Horizons Programming Company , 31 2021. . 2) : 25 , 10000 , 31 5000. 8000. 12 %. 1800. 31 2021. 29 . 5000 31 2021. 3) (adjusted trial balance) Cowell Company LLC ( 2) . 4) , , .

Table 2 Adjusted Trial Balance of the Cowell Company, LLC for the Period ended 31st of December Account Title Dr. Cr. Cash 10,700 Accounts Receivable 20,000 Supplies 2000 Prepaid Insurance 15,000 Equipment 35,000 Accumulated depreciation Equipment 14,000 Unearned Service Revenue 11,000 Taxes Payable 2000 Accounts payable 600 Salaries payable 9,000 Share Capital 24,000 Retained Earnings 12,000 Dividends 1,500 Service Revenue 30,000 Insurance expenses 1,600 Salaries and wages expense 5,000 Depreciation Expense 7,000 Advertising expense 4000 Rent expense 800 Total 102,600 102,600

Learning Outcomes and Assessment Criteria: Learning Outcome number and Title Pass Merit Distinction LO2 Prepare final accounts for sole-traders, partnerships and limited companies in accordance with appropriate principles, conventions and standards P3 Prepare final accounts from given trial balance P4 Produce final accounts for a range of examples that include sole-traders, partnerships and limited companies. M2 Make adjustments to balances of sum accounts for example, accruals, depreciation and prepayments before preparing the final accounts. D2 Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content.

Instructions: In this task you have to: : 1) Produce the final accounts for a sole trader business (Horizons Programming Company) from task 1 including profit and loss account, owners' equity statement, and balance sheet for the Period ended July 31* using the trial balance that you have produced in problem 2/ taskl. 2) Make the adjustments entries for the following transactions before preparing the final accounts for LLC company: , On the 25th of November 2021, the business purchased supplies for 10000 cash. On 31st of December, 2021 the business found out that the supplies still on hand were 5000 only. The business has a Equipment with book value of 8000, with annual depreciation rate of 12%. , %. . On thelst of August the business purchased a one-year insurance policy for 1800. Prepare the adjusting entry on 31st of December 2021. The employees are paid salaries on the 29th of each month. Prepare the adjusting entry of 5000 of the employees' salaries that are not yet paid on the 31st of December, 2021. 3) Use the given adjusted trial balance for Cowell Company, LLC (Table 2) to prepare the final accounts including profit and loss account, retained earnings statement, and balance sheet for the Period ended December 314 4) Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. 1) Horizons Programming Company 31 2021. 2) 25 , 10000 , 31 5000. . 8000. 12%. . 1800. 31 2021. 29 . 5000 31 .2021 3) (adjusted trial balance) Cowell Company LLC ( 2) 4) , Table 2 Adjusted Trial Balance of the Cowell Company, LLC for the Period ended 31* of December Account Title DIA Cr. Cash 10,700 Accounts Receivable 20,000 Supplies 2000 Prepaid Insurance 15,000 Equipment 35,000 Accumulated depreciation - Equipment 14,000 Unearned Service Revenue 11,000 Taxes Payable 2000 Accounts payable 600 Salaries payable 9,000 Share Capital 24.000 Retained Earnings 12.000 Dividends 1,500 Service Revenue 30.000 Insurance expenses 1,600 Salaries and wages expense 5,000 Depreciation Expense 7,000 Advertising expense 4000 Rent expense 800 Total 102.600 102,600