Understanding Accounting and Finance

UAFI3008

Understanding Accounting and Finance

Autumn 2017

CourseworkBrief

Deadline for Submission: [2pm, 20th December 2017]

Submit this coursework through the Student Portal with a Turn-it-in Report

Word Limit: [2,000] words (Plus or minus 10%)

Learning outcomes assessed:

1. Demonstrate an understanding of fundamental accounting principles.

2. Understand and apply the essential numeracy skills for bookkeeping and accounting.

3. Record transactions in the appropriate ledger accounts using the double-entry bookkeeping system, balance off ledger accounts and prepare a trial balance.

4. Apply appropriate techniques and procedures in preparing financial statements.

This coursework is worth 100% of the total marks for this module.

UAFI3008 Understanding Accounting and FinanceSummer 2017 Coursework Brief

Coursework Instructions

Please read carefully

•Carefully read the module handbook, the marking criteria and the grade descriptors.

Academic Misconduct

You are responsible for ensuring you understand the policy and regulations about academic misconduct. You must:

•Complete this work alone except where required or allowed by this assignment briefing paper and ensure it has not been written or composed by or with the assistance of any other person.

•Make sure all sentences or passages quoted from other people’s work in this assignment (with or without trivial changes) are in quotation marks, and are specifically acknowledged by reference to the author, work and page.

Blank

Assignment Questions

Task 1:

1) Marc has been in business for a number of years. On 1st of February 2015 his capital account stood at £30,500. At 31st of January 2016 his business balance sheet showed the following:

Fixed assets at cost £45,000; Current assets £18,000; Long-term liability £20,000; Current liabilities £7000.

During the year he paid into the business bank account a National Lottery win of £10,000. His drawings for the year amounted to £21,000.

Required: Calculate the profit and loss made by the business for the year ended 31 January 2016.

Assets / Liabilities / Capital
(a) / £19,500 / £15,000 / £4,500
(b) / £45,000 / £11,500 / 33,500
(c) / £18,750 / £8,000 / £10,750
(d) / £15,700 / £6,350 / £9,350
(e) / £23,693 / £12,058 / £11,635

(10 Marks)

2)The following information relates to the year ended 30November 2016 for the business of Rob Berry:

Stock at 1 December 2007 £1,657; Stock at 30 November 2008 £2,004; Purchases £54,672; Sales £98,651; Returns inwards £421; Returns outwards £803.

Required: Prepare the trading account for the year ended 30 November 2016.

Lionel

Trial balance at 30 April 2016

Dr Cr

£ £

Building at cost 120,000

Fixtures and fittings at cost 45.000

Van at cost 14,500

Motor expenses 4,160

Rent 7,000

Rates 2,400

Insurance 2,100

Cash in hand 120

Balance at bank 3,670

Debtors 850

Creditors 1,200

Sales 260,000

Purchases 140,000 78,600

Capital

(10 Marks)

3)Barbara owns a butchery business. During one week the following financial transactions took place:

She purchasesmeat £210 from Scragg and Co. She will pay for the meat in a couple of weeks.
Barbara’s cash sales for the week amount to £742.
Barbara supplies meat to the Grand Hotel £217. They will pay for the meat at the month end.
Barbara pays her shop rent £75
She pays her telephone bill £43.

Required: Enter the transactions in Barbara’s Ledger.

(5 Marks)

Total marks for task: 25

Task 2

1)Filling in the missing figures:

Asset / Liabilities / Capital
( a ) / £19,500 / £15,000
( b ) / £45,000 / £11,500
( c ) / £18,750 / £10,750
( d ) / £6,350 / £9,350
( e ) / £23,693 / £11,635

(Marks: 5)

2)The following balances have been extracted from the ledgers of Lionel on 30th of April 2016.

Building at cost £120,000; Fixtures and Fittings at cost £45,000; Van £14,500; Motor expenses £4,160; Rent £7,000; Rates £2,400; Insurance £2,100; Cash in Hand £120; Balance at bank £3,670; Debtors £850; Creditors £1,200; Sales £260,000; Purchases £140,000; Capital £78,600.

Required: Prepare a trial balance at 30 April 2016 for Lionel.

(Marks: 10)

3)Consider the following monthly data (accumulating) for Jack Inc. for January through June:

Month / Ending Accounts Receivable / Ending Inventory
January / £ 1,500 / £ 1,000
February / £ 3,000 / £ 2,000
March / £ 11,000 / £ 3,000
April / £ 2,000 / £ 1,500
May / £ 5,000 / £ 900
June / £ 16,000 / £ 4,250

You are required to:

a)Calculate the balance for Jack Inc. should report as Accounts Receivable on its first quarter balance sheet (the balance sheet for the 3 month period ending March 31st 2016)

(Marks: 5)

b)Calculate the balance of Inventory ofJack Inc. balance sheet on its first quarter (Marks: 5)

Total marks for task: 25

Task 3

1)From the following data:

Property / £95,000
Equipment / £14,500
Inventory / £10,312
Trade receivables / £6,545
Bank / £892
Trade payables / £5,999
Capital / £102,311
Net profit for year / £37,118
Drawings / £18,179

Required: Construct a balance sheet for A.Beck as at 30th of June 2016.

(10 Marks)

2)From the following data:

Fixtures and fittings £43,450

Equipment £9,800

Inventory £3,413

Trade receivables £4,340

Bank £432

Trade payables £3,487

Cash £141

Capital £39,500

Net profit for year £21,904

Drawings £8,315

Long-term loan £5,000

Required: Construct a balance sheet for B.Arin as at 30th of April 2016.

(10 Marks)

3) What are the main differences identified between the two balance sheets? (Write a small report up to 300 words).

(5 Marks)

Total marks for task: 25

Task 4

What is meant by the term ‘final accounts’?
Which statement would you prepare to calculate net assets?
Why is capital shown as a liability in a balance sheet?
What is the difference between a debtor and a creditor?
What effect will opening and closing accounts will have on a trading account?

Required: Answer the above questions using at least one example. Each answer should not exceed 200 words. Each question carries 5 marks.

Total marks for task: 25

End of Assignment Brief

Marking Criteria

GSM LONDON GENERIC ASSESSMENT MARKING CRITERIA LEVEL 3

Level 3: prepares students to function effectively at Level 4. Criteria for assessment at Level 3 reflect the preparatory nature of these modules.
Students are expected to demonstrate the acquisition of generic learning skills appropriate for self-managed learning in an HE context. Students are expected to demonstrate that they have acquired the underpinning discipline-specific skills, knowledge and understanding necessary to undertake a programme of higher education
These criteria are designed to be a reference point for assessment criteria in all subjects. Where the generic criteria are deemed to be sufficient, they can be used directly for assessing students' learning.

KNOWLEDGE & UNDERSTANDING / INTELLECTUAL & COGNITIVE SKILLS / GRADUATE SKILLS: TRANSFERABLE, EMPLOYABILITY, PRACTICAL AND ACADEMIC SKILLS
Factual and conceptual knowledge and understanding; use of class materials; independent reading / Critical thinking; conceptualisation; creativity; synthesis, analysis and evaluation; application; problem solving and research/investigation / Written, oral and presentation skills; interpersonal, group and teamwork skills; leadership skills; numeracy; digital skills; practical, professional and academic skills (including referencing/presentation)
MARKING BAND / MODULE LEARNING OUTCOMES / CLASSIFICATION / WEIGHTED AT 50% / WEIGHTED AT 25% / WEIGHTED AT 25%
86 - 100% / Achieved at this level / FIRST (1ST) / Includes all required factual content, accurately summarised. / Well developed, relevant introduction and conclusions. / Within word count or presentation time.
Includes relevant factual content only. / Clearly and logically structured material. / Accurate spelling, grammar, punctuation, paragraphing.
Very accurate identification of pre-defined concepts, theories and/or principles, appropriate to this level. / Information or data selected from highly relevant sources, and categorised, analysed or evaluated using a recommended format. / Fluent, interesting writing style, appropriate to the assignment OR engaging, confident, audible and well- paced presentation.
Excellent understanding of factual and conceptual material, relative to this level. / Well-developed arguments, referencing a range of literature, appropriate to this level. / Appropriate visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are accurate, clearly set out, with explanations. / Relates theory to practice effectively, appropriate to this level. / Correct use of academic conventions, references and bibliography.
Very good independent reading and research, beyond standard texts, appropriate to this level. / Very good application of numerical and statistical methods to defined problems. / Outstanding, consistent delivery of group work obligations, for this level.
Effective use of class materials to develop knowledge and understanding. / Precise, relevant recommendations. Very good awareness of ethical issues, where relevant. / Insightful reflection on own strengths and weaknesses in relation to defined professional and practical skills.
70 - 85% / Achieved at this level / FIRST (1ST) / Includes all required factual content, accurately summarised. / Relevant introduction and conclusions. / Within word count or presentation time.
Includes relevant factual content only. / Clearly structured material. / Accurate spelling, grammar, punctuation, paragraphing.
Accurate identification of pre-defined concepts, theories and/or principles, appropriate to this level. / Information or data selected from relevant sources, and categorised, analysed or evaluated using a recommended format. / Fluent writing style, appropriate to the assignment OR engaging, confident, audible and well-paced presentation.
Very good understanding of factual and conceptual material, relative to this level. / Coherent arguments, referencing a range of literature, appropriate to this level. / Appropriate visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are accurate, clearly set out, with explanations. / Relates theory to practice, appropriate to this level. / Correct use of academic conventions, references and bibliography.
Good independent reading and research, beyond standard texts, appropriate to this level. / Good application of numerical and statistical methods to defined problems. / Very good, consistent delivery of group work obligations, for this level.
Effective use of class materials to develop knowledge and understanding. / Relevant recommendations. Good awareness of ethical issues, where relevant. / Good reflection on own strengths and weaknesses in relation to defined professional and practical skills.
60 - 69% / Achieved at this level / UPPER SECOND (2:1) / Includes most required factual content, mostly accurately summarised. / Mostly relevant introduction and conclusions. / Within word count or presentation time.
Includes relevant factual content only. / Clearly structured material, with a few gaps. / Mostly accurate spelling, grammar, punctuation, paragraphing.
Mainly accurate identification of pre-defined concepts, theories and/or principles, appropriate to this level. / Information or data selected from relevant sources, and categorised, analysed or evaluated using a recommended format, with some gaps or errors. / Mainly fluent writing style, appropriate to the assignment OR mainly engaging, audible and well-paced presentation.
Good understanding of factual and conceptual material, relative to this level. / Mostly coherent arguments, referencing a range of literature, appropriate to this level. / Mostly appropriate visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are mainly accurate, clearly set out, with mostly good explanations. / Relates theory to practice, appropriate to this level, but with some gaps or errors. / Mostly correct use of academic conventions, references and bibliography.
Reasonable independent reading and research, beyond standard texts, appropriate to this level. / Mainly good application of numerical and statistical methods to defined problems. / Good and generally consistent delivery of group work obligations, for this level.
Mostly effective use of class materials to develop knowledge and understanding. / Mostly relevant recommendations. Sound awareness of ethical issues, where relevant. / Clear reflection on own strengths and weaknesses in relation to defined professional and practical skills.
50 - 59% / Achieved at this level / LOWER SECOND (2:2) / Includes most required factual content, but with some gaps or misunderstandings. / Adequate introduction and conclusions. / Within 10% of word count or presentation time.
Includes some irrelevant factual content. / Adequately structured material. / Some mistakes in spelling, grammar, punctuation, paragraphing.
Some identification of pre-defined concepts, theories and/or principles, appropriate to this level. / Information or data selected, categorised, analysed or evaluated with an attempt at using a recommended format and with gaps or errors. / Writing style is mostly appropriate but not always fluent OR a presentation that is not always engaging, audible or well-paced.
Adequate understanding of factual and conceptual material, relative to this level. / Limited arguments referencing limited literature. Includes personal opinion. / Inconsistent visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations may have inaccuracies, or issues relating to set out and explanation. / An attempt to relate theory to practice, appropriate to this level. / Inconsistent use of academic conventions, references and bibliography.
Some limited independent reading and research, beyond standard texts, appropriate to this level. / Adequate application of numerical and statistical methods to defined problems, with gaps or errors. / Inconsistent delivery of group work obligations, for this level.
Adequate use of class materials to develop knowledge and understanding. / Some recommendations. Some awareness of ethical issues, where relevant. / Some evaluation of own strengths and weaknesses in relation to defined professional and practical skills.
40 - 49% / Marginal achievement at this level / THIRD (3RD) / Includes limited factual content, with many gaps or inaccuracies. / Basic introduction and conclusions. / Within 10% of word count or presentation time.
Includes significant irrelevant factual content. / Unevenly structured material. / Frequent mistakes in spelling, grammar, punctuation, paragraphing.
Limited identification of pre-defined concepts, theories and/or principles, appropriate to this level. / Information or data poorly selected, categorised, analysed or evaluated, and may not use recommended format. / Awkward or inappropriate writing style OR a presentation that is not engaging, audible or well-paced.
Limited understanding of factual and conceptual material, relative to this level. / Little argument, mainly descriptive or personal opinion, with little reference to literature. / Inappropriate visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are often inaccurate, with many issues relating to set out and explanation. / Very limited or inadequate attempt to relate theory to practice. / Inconsistent or incomplete use of academic conventions, references and bibliography.
Minimal independent reading and research beyond standard texts, appropriate to this level. / Weak application of numerical and statistical methods to defined problems. / Unreliable delivery of group work obligations, for this level.
Limited use of class materials to develop knowledge and understanding. / Confused recommendations. Little awareness of ethical issues, where relevant. / Limited reflection on own strengths and weaknesses in relation to defined professional and practical skills.
30 - 39% / Marginal failure at this level / FAIL. POSSIBLE COMPENSATION. / Includes insufficient required factual content, with significant gaps or inaccuracies. / Incoherent or irrelevant introduction and conclusions. / More than 10% outside word count or presentation time.
Includes substantial irrelevant factual content. / Incoherently structured material. / Serious mistakes in spelling, grammar, punctuation, paragraphing.
Very limited or inaccurate identification of pre-defined concepts, theories and/or principles, appropriate to this level. / Minimal selection of information or data, and little attempt at collation, categorisation, analysis or evaluation. / Poor writing style OR a presentation that is not engaging, audible or well-paced.
Very limited understanding of factual and conceptual material, relative to this level. / Little or no argument, entirely descriptive or personal opinion, with no reference to literature. / Poor visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are mostly inaccurate, or incorrectly set out or explained. / Theory not related to practice. / Inaccurate or incomplete use of academic conventions, references and bibliography.
Minimal independent reading and research, appropriate to this level. Limited use of standard texts. / Very weak application of numerical and statistical methods to defined problems. / Poor delivery of group work obligations, for this level.
Very limited use of class materials to develop knowledge and understanding. / Irrelevant or no recommendations. Little or no awareness of ethical issues, where relevant. / Very limited reflection on own strengths and weaknesses in relation to defined professional and practical skills.
16 - 29% / Not achieved at this level / FAIL. NO COMPENSATION. / Includes almost no required factual content, and with very significant inaccuracies. / No introduction and conclusions. / More than 10% outside word count or presentation time.
Includes mainly irrelevant factual content. / Very incoherently structured material. / Serious and extensive mistakes in spelling, grammar, punctuation, paragraphing.
No identification of pre-defined concepts, theories and/or principles, appropriate to this level. / No evidence of the selection, categorisation, analysis or evaluation of information or data. / Incoherent writing style OR an inaudible, poorly paced and unengaging presentation.
No understanding of factual and conceptual material, relative to this level. / Little or no argument, entirely descriptive or personal opinion, with no reference to literature. / Very poor visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are inaccurate, with no explanations. / Theory not related to practice. / Very inaccurate or no use of academic conventions, references and bibliography.
No independent reading and research, appropriate to this level. Very minimal use of standard texts. / Minimal application of numerical and statistical methods and techniques to defined problems, with significant errors. / Very poor delivery of group work obligations, where relevant.
Minimal use of class materials to develop knowledge and understanding. / No recommendations. No awareness of ethical issues, where relevant. / Minimal evaluation of own strengths and weaknesses in relation to defined professional and practical skills.
0 - 15% / Not achieved at this level / FAIL. NO COMPENSATION. / Does not include required factual content. / No introduction and conclusions. / More than 10% outside word count or presentation time.
Includes entirely irrelevant factual content. / Very incoherently structured material. / Serious and extensive mistakes in spelling, grammar, punctuation, paragraphing.
No identification of pre-defined concepts, theories and/or principles, appropriate to this level. / No evidence of the selection, categorisation, analysis or evaluation of information or data. / Incoherent writing style OR an inaudible, poorly paced and unengaging presentation.
Demonstrates no understanding of factual and conceptual material and ideas. / No argument, entirely personal opinion, with no reference to sources. / Exceptionally poor visual presentation, including font, spacing, margins, headings, graphics, images and appendices.
Calculations are missing, with no explanations. / Theory not related to practice. / No use of academic conventions, references and bibliography.
No independent reading and research, or use of standard texts, appropriate to this level. / No application of numerical and statistical methods to defined problems. / No delivery of group work obligations, for this level.
No use of class materials to develop knowledge and understanding. / No recommendations. No awareness of ethical issues, where relevant. / No evaluation of own strengths and weaknesses in relation to defined professional and practical skills.

GSM LONDONPage 1 of 13