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Learning outcomes and assessment criteria

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 or 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.

Please read this page carefully to reflect requirements of the grades in your answer

Scenario

As the size and the business of the organization grows, it becomes necessary for the management of the organization to take proper steps to maintain the growth of the organization as well as creating the appropriate internal control in the organization for the prevention of fraud & errors. It helps the management to find the possible weak areas of the entity and identifying the major areas which need special attention. Final Accounts is the source for the external components like shareholders and investors to study the status of the entity and the entitys business. Based on the entity, the investors decide whether to invest their funds in the same business industry or not.

As you are one of the team members for ensuring compliance and with recent financial qualification, you are expected to prepare the final accounts for the following two companies.

Moonlight Company (SAOG)
Trial Balance for the year ending 31 December 2020
	Dr	Cr
	OMR	OMR
Ordinary share capital (OMR 2 per Share)		150000
Plant and Equipment at cost	150000
Depreciation on Plant and Equipment		25000
Investments	100000
Vehicles at cost	200000
Depreciation on Vehicles		75000
Inventories as at 1 Jan 2020	25000
Revenue		450000
Purchases	125000
Dividends paid	20000
Dividends received		10000
Retained earnings		50000
Salaries and wages	35000
Trade receivables	30000
Trade payables		15000
Rent paid	20000
Share premium		100000
Cash	230000
10% Debentures		65000
Commission paid	15000
Interest received		10000
	950000	950000

Adjustments:

1. The outstanding rent for the year is OMR 20,000

2. Salaries and wages accrued on 31 December 2020 is OMR 10,000

3. Commission paid in advance on 31 December 2020 is OMR 5,000

4. Debenture interest outstanding for the year 6,500

5. Stock at the year-end OMR 7,500

You are required to compare the essential features of each financial account statement to analyse the differences between them in terms of purpose, structure, and content.

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