Unit 5 Accounting Principles Assignment Help

ELECTRONIC ASSIGNMENT COVERSHEET Course/Unit Information Qualification Pearson BTEC Level 5 Higher National Diploma in Business Unit No and Name Unit 5 Accounting Principles Unit Code Y/618/5038 Validity Date June 2023 to December 2023 Batch Onsite Batch Instructor Information Name Ms. NadeeshaDilrukshi Email ID nadeesha.d@westford.org.uk Contact Number 971 50 330 1705 Assignment Information Schedule Code APRGRM2306A Full/ Part Assignment Full Assignment Date Assignment Issued 06/06/2023 Date Assignment Due 03/07/2023 Student Information (To be filled by the student prior submitting the assignment) Name Student ID Email ID Date of Submission Your assignment should meet the following requirements. Please confirm this by ticking þthe boxes before submitting your assignment o The first page is completely labeled with my name, instructor name and assignment information. o I have completed and ticked the declaration page. o The contents of my assignment have been submitted to Turnitin and I have downloaded the report. o I have strictly followed Harvard ReferencingStyle and Citations. Student Declaration I, _____________________ hereby confirm that this assignment is my own work and not copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All the sources, from which information has been obtained for this assignment, have been referenced as per Harvard Referencing format. I further confirm that I have read and understood the Westford University College rules and regulations about plagiarism and copying and agree to be bound by them. Students Signature : (signed) Student Name : Date : Turn it in : The full Turn it in report in PDF Format must be uploaded on the LMS along with the Assignment Brief. Achievement Feedback Summary Assessor’s Name Pass Merit Distinction Grades Awarded LO1 Examine the context and purpose of accounting P1 Examine the purpose of the accounting function within an organization. M1 Evaluate the context and purpose of the accounting function in meeting organizational, stakeholder and societal needs and expectations. D1 Critically evaluate the role of accounting in informing decision- making to meet organizational, stakeholder and societal needs within complex operating environments. P1 Achieved / Not Achieved P2 Achieved / Not Achieved P2 Assess the accounting function within the organization in the context of regulatory and ethical constraints. M1 Achieved / Not Achieved D1 Achieved / Not Achieved LO2 Prepare basic financial statements for unincorporated and small business organisations in accordance with accounting principles, conventions and standards. P3 Prepare financial statements from a given trial balance for sole traders, partnerships and not-for-profit organizations, to meet accounting principles, conventions and standards M2 Produce financial statements from a given trial balance, making appropriate adjustments. D2 Critically evaluatefinancialstatements to assess organizational performance using a range of measures and benchmarks to make justified conclusions. P3 Achieved / Not Achieved M2 Achieved / Not Achieved D2 Achieved / Not Achieved LO3 Interpret financial statements P4 Calculate and present financial ratios from a set of final accounts. P5 Compare the performance of an organization over time using financial ratios. M3 Evaluate the performance of an organization over time. using financial ratios with reference to relevant benchmarks. P4 Achieved / Not Achieved P5 Achieved / Not Achieved M3 Achieved / Not Achieved D2 Achieved / Not Achieved LO4 Prepare budgets for planning, control and decision making using spreadsheets. P6 Prepare a cash budget from given data for an organization using a spreadsheet. P7 Discuss the benefits and limitations of budgets and budgetary planning, and control for an organization M4 Identify corrective actions to problems revealed by budgetary planning and control for effective organizational decision making. D3 Justify budgetary control solutions and their impact on organizational decision making to ensure efficient and effective deployment of resources. P6 Achieved / Not Achieved P7 Achieved / Not Achieved M4 Achieved / Not Achieved D3 Achieved / Not Achieved Overall Result/Grade PASS/MERIT/DISTINCTION/REDO [To Achieve a PASS, all P grade descriptors should be achieved; To achieve a MERIT, all P and M grade descriptors should be achieved; To achieve a DISTINCTION, all P, M and D grade descriptors should be achieved.] Date: Summative Feedback: Overall Feedback on current work with emphasis on how the student can improve and achieve higher grades in future. GENERAL GUIDELINES (Please read the instructions carefully) Complete the title page with all necessary student details and ensure that the signature of the student is marked in the declaration form. All assignments must be submitted as an electronic document in MS Word to the LMS (Use 12 Times New Roman script). All assignments must be submitted with an accompanying Turnitin report. Assignment that is not submitted to the LMS by the prescribed deadline will be accepted ONLY under the REDO and RESIT submission policy of Westford. The results are declared only if the student has met the mandatory attendance requirement of 75% and/or a minimum of 50% under extenuating circumstances approved and ratified by the Academic Director. The student has to repeat the module (with additional fees applicable) if the attendance is below 50%. The assignment should not contain any contents including references cited from websites likewww.ukessays.com, www.studymode.com, www.slideshare.net, www.scribd.com. Students can refer Wikipedia as a source of information, but the references cited in Wikipedia must be mentioned. Submit the assignment in a MS Word document with the file name being: First Name Last Name_ abbreviation of the subject. Example: John Smith_AP Quick reference Checklist for the Faculty/Instructor to accept/reject the assignment before evaluation: o Adherence to the deadline of submission date. o Original file, cover sheet and format retained. o Student information and signature intact. o Font style and size used as instructed. o Harvard Referencing Style is strictly followed. Assignment title ACCOUNTING PRINCIPLES LO 01 Examine the context and purpose of accounting LO 02 Prepare basic financial statements for unincorporated and small business organisations in accordance with accounting principles, conventions, and standards. LO 03 Interpret financial statements LO 04 Prepare budgets for planning, control and decision making using spreadsheets You have joined as a graduate trainee at an accounting firm, you work closely with sole proprietors and small businesses under the supervision of an account manager, providing assistance with various accounting tasks. Your responsibilities encompass assisting clients in preparing accounting statements, calculating, and analyzing accounting ratios, and assisting with budget preparation. Your support as an accounting trainee plays a crucial role in helping sole proprietors and small businesses manage their accounting tasks effectively. Through preparing accurate statements, ratio analysis, and budget assistance, you contribute to their financial well-being and overall success. You are given the following four tasks by your accounts manager: Task 1: Accounting Blog You are asked to write a blog that will be used to market and promote its accounting firm’s services to new and existing clients. The working title you have been given for the blog is ‘The Role of Accounting in an Organisation’. It must be written in an engaging and practical way, covering relevant academic theory, and making use of, for example, headings, images, and illustrations. ● You must examine and critically evaluate the context and purpose of the accounting function in decision making to meet the needs and expectations of all relevant stakeholders within complex operating environments. You must assess the accounting function within your organization and discuss the regulatory and ethical constraints. Task 2: Preparation of financial statements Your supervisor has asked you to prepare the year-end financial statements for one of their clients who is a sole proprietor. From the Trial Balance given below, you must prepare and produce financial statements for the year ended December 2022, taking into consideration accounting principles, conventions, and standards and make adjustments as necessary. Trial Balance of the sole proprietor for the year ending December 2022: (Amounts in $) Heads of Accounts Amount Heads of Accounts Amount Stock 10,000 Bill Receivables 3,500 Purchase 58,000 Commission allowed 1,800 Wages 4,700 Sundry Debtors 25,400 Return Inwards 3,520 Interest on X's Loan 1,500 Carriage on Purchases 2,360 Drawings 6,000 Carriage on sales 710 Discount Received 750 Office Salaries 4,800 Return Outwards 2,600 Rent and Taxes 2,400 Sales 98,650 Cash 1,100 Bills Payable 3,000 Bank Balance 7,820 Sundry Creditors 5,600 Bad debts 600 Creditors for rent 500 Discount Allowed 640 Capital 40,000 Land and Building 20,000 Loan from X 10,000 Scooter 6,600 Commission Received 1,200 Scooter Repairs 850 Adjustments: 1. Closing stock was $ 22,000. 2. Depreciation on land and building is 10% p.a. 3. The outstanding Salary for the year is $ 1,200. 4. Rent of $ 400 is paid for next year. 5. Further bad debts 600 Task 3: Interpretation of financial statements Based on the financial statements prepared in task 2, you must ● Calculate the following relevant ratios of profitability, liquidity, asset usage/ turnover, and investment on the basis of financial statements prepared in task 2. Compare financial ratios for the year 2022 with the benchmark ratios of 2021 provided below: Financial Ratios for 2021 (Benchmark) 2021 Liquidity Ratio Current Ratio 6.5 Quick Ratio 4 Solvency Ratio Interest Coverage Ratio 3 Debt Ratio 0.35 Profitability Ratio GP Ratio 35 NP Ratio 21 Turnover Ratio Trade Receivable Turnover Ratio 4.12 Inventory Turnover Ratio 5 Investment Ratio ROCE 0.51 ROA 0.38 Interpret the ratios and show the trend analysis (for 2021 and 2022) with reference to the relevant benchmarks. Critically evaluate the performance of the organisation by referring to the ratios, you have calculated in the task above and provide justified recommendations for improving the performance. Task 4. You now have been tasked by your accounts manager to work with a hospitality and catering start-up business that your firm has just taken on as a client. The business is particularly in need of support and guidance with budgeting and how it can be used to inform efficient resource allocation and support effective control and decision-making. The founder of the business is investing $ 150,000 of their own capital and has also secured a business loan of $50,000. 2022/ Months Sales Purchases Wages ProductionExpenses Admin and selling expenses January 40000 35000 20000 10000 5000 February 75000 57000 25000 12000 6000 March 80000 45000 15000 12000 4000 April 90000 45000 18000 10000 4500 May 100000 50000 22000 12000 5000 June 100000 50000 30000 12000 6000 July 110000 62000 38000 14000 6500 August 120000 70000 32000 11000 6000 September 135000 80000 38000 13000 5500 October 150000 75000 35000 13500 6500 November 140000 72000 34000 14000 6600 December 150000 83000 35000 20000 6800 (Amounts in $) The company's sales are made on credit, with 50% of the amount collected in the month of sale and 50% in the month after the sale. Sales for December 2021 were 90,000. The company plans to sell a piece of land in the month of June for $55,000, of which 50% was received in the same month and the remaining after two months. Purchases are paid for 40% in the month of the purchase and the remaining after two months. Purchases for December 2021 were 40,000. The insurance premium is to be paid on a quarterly basis starting from March $ 5000. The opening balance of cash on 1st January 2022 was $25,000. You must prepare the cash budget for 12 months on the basis of the information given above. At the end of the year, the actual amounts for some of the variables were found to be different from the budgeted amounts due to economic causes as shown below: Identify the variances based on the information provided below and recommend corrective actions to the problems revealed by the differences in the cash budget. The cost of raw materials (purchases) increases by 20% per month. Due to demand in the market the sales revenue increased by 20% in October, November, and December. Discuss the benefits and limitations of budgets and budgetary planning and control on organisations. Justify a range of budgetary control solutions to support organizational decision-making and ensure efficient and effective deployment of resources. Submission Format Use a Spreadsheet or Excel sheet to show your calculation in tasks 2, 3, and 4. For task 1 you need to justify your response using supporting evidence from a range of academic sources, including textbooks and journals. The submission on the LMS is in the form of an individual written report. This should be written in a concise, formal business style using single spacing and font size 12. You are required to make use of headings, paragraphs, and subsections as appropriate, and all work must be supported with research and referenced using the Harvard Referencing System. Please also provide a Reference List using the Harvard Referencing System. The recommended word limit is a minimum of 5000 words with a levy of 10%. Suggested Reading Materials & Recommended Resources ATRILL, P. and McLANEY, E. (2018) Accounting and Finance for Non-Specialists. 11th Ed. Harlow: Pearson. DRURY, C. (2015) Management and Cost Accounting.9th Ed. Cengage Learning. SEAL, W. et al (2018) Management Accounting. 6th Ed. Maidenhead: McGraw-Hill. Weetman, P. (2019). Financial and Management Accounting: An Introduction. Harlow: Pearson Websites www.accountingcoach.com-Association of Chartered Certified Accountants (Generalreference) Accounting Coach: Online free courses (General reference) www.accaglobal.com - Chartered Institute of Management Accountants Tutor Resource Hub www.cimaglobal.com - Corporate Finance Institute Resources Weblinks: Accounting Coach courses. Available at: https://www.accountingcoach.com/accounting-basics/explanation The Association of Chartered Certified Accountants ACCA). Available at: https://www. accaglobal.com/gb/en.html Chartered Institute of Management Accountants. Available at: https://www.cimaglobal. com/ Indeed Career Guide to Memo Writing. Available at: https://www.indeed.com/career-advice/career-development/memo-writing-guide