Double-entry book-keeping (ledger) and introduction to final accounts
Module learning outcomes:
Upon successful completion of this module, students will:
1) Understand the nature and purpose of accounting in business and the principles on which accounting is based
2) Be able to prepare financial statements
3) Understand the use of accounting ratios as a means of assessing the financial position of an organisation
4) Understand the nature and purpose of Management Accounting/Cost accounting
Assignment Title: Double-entry book-keeping (ledger) and introduction to final accounts
This assignment requires that you demonstrate that you:
Understand double entry (ledger) accounts
Understand sole trader final accounts
Your will be marked against the following criteria: See attached
The purpose of this assignment is for learner to show an understanding of the accounting equation and the terminologies used in accounting
This assignment counts for 100% of your module mark and 2% of your overall grade.
The pass mark for this assignment is 40%.
For this assignment you need to answer all questions. The word limit is 600 words and your work should be page-numbered with student’s name and CEG number on the Footer
All coursework (unless direct otherwise by your tutor) must be word processed, double spaced, justified, fully referenced using the Harvard system, and in 12 pitch font, with page numbers and the word count. The word count does not include end of text references or appendices.
UFP: Module 1 formative weekly tasks – no re-sits are possible due to these tasks being formative.
If you are unsure of what is expected of you please speak to your tutor.
Task 1 (24 marks)
Miss Annabel Croft started a hair salon business in July 2014 and at the end of that month, the following transactions were recorded in book of subsidiary entries: –
Record of transaction for the month of July 2014
01/07 Started the business with £12,000 in cash
02/07 Paid £11,700 of the opening cash into a bank account for the business
05/07 Bought Saloon furniture on credit from Dream Ltd for £1,900
08/07 Bought a mini-van paying by cheque £5,250
12/07 Bought equipment from Pearce & Sons on credit £2,300
18/07 Returned faulty Saloon furniture costing £120 to Dream Ltd.
25/07 Sold some of the equipment for £200
26/07 Paid amount owing to Dream Ltd £1,780 by cheque
28/07 Took £130 out of the bank and added to cash
30/07 F Brown lent our business £4,000 – giving the business the money by cheque
From the above recorded transactions, of Miss Annabel Croft,
Produce the required double-entry (Ledgers – 9 in all) for the month of July 2014.
Note: The transactions contain assets, liabilities and capital but you should use the appropriate double-entry title for each account.
Balance off the “cash” and “bank” accounts only to show the amount to be carried forward to the next month
Explain to Miss Annabel Croft why the ledger is also called the double-entry account