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Unit 10 – Financial Accounting
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Financial Accounting – Assignment 1
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Nehari Senanayake
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UnitTitle Unit 10 – Financial Accounting

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LO1 Record business transactions using double entry bookkeeping, and be able to extract a trial balance.
Pass, Merit & Distinction P1 P2 M1 D1
Descripts

LO2 Prepare final accounts for sole traders, partnerships and limited companies in accordance with appropriate
principles, conventions and standards
Pass, Merit & Distinction P3 P4 M2 D2
Descripts

LO3 Prepare bank reconciliations

Pass, Merit & Distinction P5 M3 D3

Descripts

LO4 Reconcile control accounts and clear suspense accounts

Pass, Merit & Distinction P6 M4 D4
Descripts

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Pearson
Higher Nationals in
Business
Unit 10: Financial Accounting
Assignment 01

5
Assignment Brief
Student Name /ID Number Nehari Senanayake

Unit Number and Title Unit 10 - Financial Accounting

Academic Year 2017/2018

Unit Tutor

Assignment Title Financial Accounting- Assignment 01

Issue Date

Submission Date

IV Name & Date

Submission Format:
The submission 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 bibliography using the Harvard
referencing system.

Unit Learning Outcomes:

LO1. record business transactions using double entry book-keeping, and be able to extract a trial
balance;
LO2. prepare final accounts for sole-traders, partnerships or limited companies in accordance with
appropriate principles, conventions and standards;
LO3. perform bank reconciliations to ensure company and bank records are correct;
LO4. reconcile control accounts and shift recorded transactions from the suspense accounts to the right
accounts.

6
Assignment Brief and Guidance:
Task 01. Record business transactions using double entry book keeping and be able to extract a
trial balance (Covers LO 01 and P1, P2, M1, D1 )

XYZ PLC has begun professional practice as a system analyst on July 1. He plans to prepare a monthly
financial statement. During July, the owner completed following transactions.

July 1. Owner invested LKR 500,000 cash along with computer equipment that had a market value of
LKR 120,000 two years ago, but was now worth LKR 100,000 only.
July 2. Paid LKR 15,000 cash for the rent of office space for the month.
July 4. Purchased LKR 12,000 of additional equipment on credit (due within 30 days).
July 8. Completed a work for a client and immediately collected the LKR 32,000 cash.
July 10. Completed work for a client and sent a bill for LKR 27,000 to be paid within 30 days.
July 12. Purchased additional equipment for LKR 8,000 in cash.
July 15. Paid an assistant LKR 6,200 cash as wages for 15 days.
July 18. Collected LKR 15,000 on the amount owed by the client.
July 25. Paid LKR 12,000 cash to settle the liability on the equipment purchased.
July 28. Owner withdrew LKR 500 cash for personal use.
July 30. Completed work for another client who paid only LKR 40,000 for 50% of the system design.
July 31. Paid salary of assistant LKR 7000.
July 31. Paid PLDT billLKR 1,800 and Meralco bill LKR 3,800.

Requirement
1.1 Apply book keeping technique and develop relevant journal entries for give transactions.
1.2 Apply the double entry book-keeping system of debits and credits for above given transactions.
Record sales and purchases transactions in a general ledger. (Covers P1)

1.3 Produce a trial balance applying the use of the balance off rule to complete the ledger.
(Covers P2)

Important Note:
Learners will be assessed throughout the “Analysis of sales and purchase transactions to compile a trial
balance using double entry book-keeping appropriately and effectively” in achieving Merit Criteria M1.

Learners will be assessed throughout the “Correct recording of transactions and the production of an
accurate trial balance by completing the balance off of ledger accounts, checking that each
transaction is recorded in line with accepted accounting principles” in achieving Distinction Criteria
D1.

7
Task 02. Prepare final accounts for sloe traders, partnerships and limited companies in according
with appropriate principles, conventions and standards. (Covers LO 02 and P3, P4, M2, D2)

Part (a)
The trial balance as at 31.03.2015 of Wiskam PLC which trades electric equipment is given below.
Property, Plant and equipment as at 2014.04.01
Dr. (Rs'000) Cr. (Rs'000)
Land 16,000.00
Building 5,000.00
Motor Vehicle 4,200.00
Computer system 600.00
Accumulated depreciation on property, plant and Equipment as at
2014.04.01
Building 1,500.0
0
Motor Vehicle 1,260.0
0
Computer system 120.0
0
Sales 19,300.0
0
Cost of sales 12,000.00
Trade receivables 1,240.00
Tax paid 175.00
10% bank loan 1,200.0
0
Lease deposit account 300.00
Advertising expense 200.00
Inventory as at 2015.03.31 (at cost) 350.00
Trade payables 1,650.0
0
Salary and wages 1,800.00
Stated capital (ordinary share) - share price Rs. 50.00 10,000.0
0
Dividends paid 500.00
Revaluation reserves as at 2014.04.01 700.0
0
Retained earnings 7,500.0
0
Discounts 50.00 120.0
0
Provisions for doubtful debts as at 2014.04.01 100.0
0
Sales commission 20.00

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 Director's fuel and telephone allowances 175.00
Audit fee 60.00
Donations 30.00
Cash Balance 895.00
Bank overdraft 145.0
0

Additional information:
Before preparing the financial statements for the year ending 31.03.2015 the following adjustments have
to be made.
 The cost of inventory as at 31.03.2015 has been valued at First In First Out (FIFO) method.
 A debtor of Rs. 80 000 from trade receivable amount as at 31.03.2015 was bankrupted on 10.04.2015
and out of this amount only 50% could be recovered. Further 10% on the remaining balance of trade
receivable was decided to provide as doubtful debts.
 A agreement was signed with an advertising company for two years by the company to promote the
products on 01.04.2014. Rs 200 000 of paid amount for a period of two years was recorded in the
advertising expense account.
 All property, plant and equipment should be depreciated 10% on cost based on straight line method
annually. All property, plant and equipment are used for administrative purpose.
 Computers of Rs 400 000 which purchased on 01.10.2014 were recorded in the purchase account.
 A machine was acquired on 01.04.2014 under a finance lease for a period of 4 years. A down payment
of Rs 300 000 was paid on this date and it has been recorded in a lease deposit account. Annual lease
installment of Rs 400 000 including of Rs 100 000 annual interest is to be paid at the end of each year.
The bank loan was obtained on 01.04.2014.
 It is reported that land revaluation loss of Rs 1 000 000 on 31.03.2015. because there is a highway in
front of the land but no entrance was to the highway in near the land. The revaluation reserve consists
of land revaluation surplus on 31.03.2010.
 The building of the business was revalued for the first time on 01.04.2015 for it’s fair value of Rs 4
500 000.
 It has been estimated that the income tax for the current year 2014/15 is Rs 220 000.
 The employer and employee contribution to the EPF are 15% and 10% on gross salary and wages
respectively and the employer contributes 3% to ETF. Only the net amount after reducing employees.
contribution has been recorded in salaries and wages account.
 It is decided to capitalized retained earnings 1/5th of the ordinary shares on 31.03.2015.
 The following decisions have been made by the board of directors.
 To pay a dividend of Rs. 1,500 000 to the ordinary shareholders of the company.
 To Transfer Rs. 300 000 for the general reserve

9
Requirement
2.1 Prepare final accounts from given trial balance figures adjusting for accruals, depreciation and
prepayments. (Covers P3 & P4) The final accounts should cover following statements;
 Comprehensive income statement
 Statement of Financial Position
 Statement of Changes in Equity
 Relevant Notes

Part (b)
Extractions of the summarized statement of comprehensive income and statement of changes in Equity
for the year ended 31.03.2X15 of Ruba PLC are as follows;
Income Statement Rs.
Sales 20,500.00
Cost of sales (14,000.00)
Gross Profit 6,500.00
Other income (Fized deposit interest) 75.00
Operating expenses (3,500.00)
Other expenses (Computer disposal) (50.00)
Financial Expenses (Loan interest) Rs.
(760.00)
Profit before tax 2,265.00
Income tax (1,200.00)
Profit for the period 1,065.00

Statement of changes in Equity

Balance as at 01.04.2X15 540.00
Total comprehensive income 1,065.00
Dividends (605.00)
Balance of retained earnings as at 31.03.2X15 1,000.00
Additional information
1. Carrying amount of computer disposed on 01.04.2X15 was Rs. 120,000.00
2. The depreciation of Rs. 300,000.00 was included in operating expenses
3. Following balances were extracted from the statement of financial position

10
 Rs.

2X15.03.31 2X14.03.31
Ordinary share capital 15,500.00 4. A photocopy machine
15,000.00
Preference share capital 10,000.00 10,000.00 was purchased during the
Property, Plant and equipment 7,700.00 8,000.00 period but it was not
Cash and cash equivalents 1,440.00 300.00 revealed under property
Loan interest receivable 40.00 50.00 plant and equipment
Other current assests 3,200.00 2,900.00 during the year
Provision of income tax 150.00 100.00
Proposed dividends 200.00 5. Note that other current
250.00
Accrued loan interest 120.00 60.00 assets include stocks
Trade Payables/Creditors 860.00 750.00 worth 1000 and
debtors/trade
receivables worth 2200 as at 31.03.20X5 and stocks worth 1500 and debtors/trade receivables
worth 1400 as at 31.03.20X6

Requirement

2.2 Prepare Cash flow statement and find the cash balance with relevant adjustments for the year ended.
(using indirect method)

Important Note:
Learners will be assessed throughout the “Analyze profit and loss accounts, balance sheet and cash flow
statements appropriate for the given examples.” in achieving Merit Criteria M2.

Learners will be assessed throughout the “Apply appropriate and accurate calculations for the
constructing of the final accounts”in achieving Distinction Criteria D2.

Task 03. Prepare bank reconciliation (Covers LO 03 and P5, M3, D3 )

The credit balance of the banks account of Araliya Business as at 31.03.2015 was Rs. 21,500.00. The
book balance was not agreed with the bank statement on that date. The following information were
revealed in the investigations.
(i) Cheques deposit and date f realization are as follows

Cheque number Deposit date Realization date Value (Rs)

043250 30th march 2015 2nd April 2015 4,500.00
215412 31st March 2015 3rd April 2015 33,500.00
721210 31st March 20150 3rd April 2015 16,000.00

(ii) The following deductions were made by bank from business as bank account

11
 Deduction type Value (Rs.)
Cheque book charges 400
Overdraft interest 1800
Bank charges 450

(iii) Leasing installment of Rs. 20,000.00 was paid by bank on 20th March 2015 on standing order.
But it has not been recorded in a bank account of the business.

(iv) Cheques issued and dates of presented for the payment were as follows;

Cheque number Deposit date Realization date Value (Rs)

th th
010253 26 March 2015 10 March 2015 95,000.00
010262 31st March 2015 04th March 2015 16,500.00
010284 31st March 2015 04th March 2015 21,500.00

(v) Business requested from the bank to stop for the payment for cheque issued for a creditor of
Rs. 12,000.00 on 20th March 2015 and relevant adjustment was made in the business account,
but it is revealed that payment was made by bank.

(vi) An issued cheque of Rs. 8,900.00 already on 15th March 2015 was recorded in bank account of
the business as Rs. 9,800.00

(vii) Rs. 40,300.00 was directly deposited to the bank by a debtor.

Requirement
3.1 Apply the bank reconciliation process to check the book balance with the bank statement balance.
You are required to provide relevant notes and extra calculations to support your answer. (Covers P5)
Important Note:
Learners will be assessed throughout the “Apply the reconciliation process demonstrating the use of
deposit in transit, outstanding checks and NSF check.” in achieving Merit Criteria M3.

Learners will be assessed throughout the “Prepare accurate bank reconciliations that apply
appropriate tools and techniques to check general accounts and balance sheets” in achieving
Distinction Criteria D3.

Task 04. Reconcile control accounts and clear suspense accounts (Covers LO 4 and P6, M4, D4)
Creditor Ledger balance of XYZ business as at 01.03.2X14 are as follows;

Creditor Name Value (Rs.)

Asitha 25,000.00
Visitha 44,000.00

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 Lasith 12,000.00
Total 81,000.00

The summary of the transaction done with the creditors during the month of March 2X14 is given below;

Creditor Purchases (Rs.) Purchases Payment (Rs.) Discount

Return (Rs.) Received (Rs.)
Asitha 160,000.00 - 130,000.00 6,000.00
Visitha 300,000.00 4,000.00 300,000.00 -
Lasitha 120,000.00 - 120,000.00 2,000.00
Rakitha 50,000.00 - 16,000.00 -
Total 630,000.00 4,000.00 566,000.00 8,000.00

As at 01.03.2X14 the total of the creditors ledger balance agreed with the balance of the creditor control
account. As at 31.032X14 the total of the creditors ledger balance did not agree with the balance of the
creditors control account. The reasons for this difference are given Below;
(i) Discount received from Asitha for Rs. 3,000.00 have been debited to creditors control account
and credited to discount received account. No other entries had been made in this regard.
(ii) Debited note of Rs. 4,000.00 sent to Visitha has not been recorded in his account.
(iii) Cash ssales of Rs. 20,000.00 have been credited to creditors control account.
(iv) Purchase invoice dated 28.03.2X14 raised for goods purchased of Rs.12,000.00 from Muditha.
Has not been recorded in the purchase journal.
(v) The total of the purchase journal has been posted to the creditors control account as Rs.
603,000.00.

Requirement
Explain the process taken to reconcile control accounts and clear suspense accounts using given account
examples. (Covers P6)
4.1 Creditors control account for the month of March 2X14, before making the above adjustments.
4.2 A statement reconciling the correct balance of creditors control account with the total of creditor
ledger balance.
4.3 The creditors balance to be shown in the statement of Financial Position as at 31.03.2X14.

Important Note:
Learners will be assessed throughout the “Demonstrate understanding of the different types of accounts
and how and why they are reconciled.” in achieving Merit Criteria M4.

Learners will be assessed throughout the “Produce accurate accounts that have been reconciled
applying the appropriate methods”in achieving Distinction Criteria D4.

13
14
 Achieve Feedbac
Outcome(s)/criteria Possible evidence
d k
Outcome 1: Record business transactions using double entry book-keeping, and be able to
extract a trial balance.
Task 1.1 & 1.2
P1. Apply the double entry  Apply book keeping technique and
book-keeping system of develop relevant journal entries for
debits and credits. Record give transactions.
sales and purchases  1.2 Apply the double entry book-
transactions in a general keeping system of debits and credits
ledger. for above given transactions. Record
sales and purchases transactions in a
general ledger.
P2. Produce a trial balance Task 1.3
applying the use of the  Produce a trial balance applying the
balance off rule to complete use of the balance off rule to
the ledger. complete the ledger
Outcome 2: Prepare final accounts for sole-traders, partnerships and limited companies in
accordance with appropriate principles, conventions and standards
P3. Prepare final accounts Task 2
from given trial balance 2.1 Prepare final accounts from given
figures adjusting for accruals, trial balance figures adjusting for
depreciation and prepayments accruals, depreciation and prepayments.
The final accounts should cover
following statements;
 Comprehensive income statement
P4. Produce final accounts for  Statement of Financial Position
a range of examples that  Statement of Changes in Equity
include sole traders,
partnerships or limited  Relevant Notes
companies
2.2 Prepare Cash flow statement and find
the cash balance with relevant
adjustments for the year ended
Outcome 3: Perform bank reconciliations to ensure company and bank records are
correct.
Task 3.1
 Apply the bank reconciliation process
P5. Apply the bank to check the book balance with the
reconciliation process to bank statement balance. You are
required to provide relevant notes and
prepare a number of bank
extra calculations to support your
reconciliations. answer.

15
 Outcome 4: Reconcile control accounts and shift recorded transactions from the suspense
accounts to the right accounts.
Task 4
Explain the process taken to reconcile
control accounts and clear suspense
accounts using given account examples.
4.1 Creditors control account for the
P6. Explain the process taken month of March 2X14, before
to reconcile control making the above adjustments.
accounts and clear 4.2 A statement reconciling the correct
suspense accounts using balance of creditors control account
given account examples with the total of creditor ledger
balance.
4.3 The creditors balance to be shown in
the statement of Financial Position as
at 31.03.2X14.
Grading Rubric - Pass

Grade Possible evidence Achiev Feedback

Description ed
(Merit)

M1. Analyse  Clear understanding of the

given scenario of transactions
sales and

16
purchase and evidence of using book
transactions to keeping techniques properly.
compile a trial  All transactions should be
balance using appropriately and effectively
double entry visible through the final trial
book-keeping balance.
appropriately and
effectively
M2. Analyse
profit and loss  Preparation of Final accounts
accounts, balance for the given scenario as per
sheet and cash Accounting Standards. To
flow statements provide achieve the M2,
appropriate for learner should cover both
the given tasks 2.1 and 2.2.
examples.
M3. Apply the  Apply concepts and basics of
reconciliation bank reconciliation and
process demonstrate the process to
demonstrating obtain the equal balance to
the use of deposit the banks account.
in transit,
outstanding
checks and NSF
check.
M4. Demonstrate  Apply concepts and basics of
understanding of suspension and control
the different accounts for the given tasks
types of accounts of 4.1 , 4.2, 4.3
and how and why
they are
reconciled.

17
 Grading Rubric - Merit
Grade Description Possible evidence Achiev Feedback
(Distinction) ed

D1. Correct
recording of
transactions and the
production of an Record business transactions
accurate trial using double entry book-keeping,
balance by and be able to extract a trial
completing the balance.
balance off of
ledger accounts,  Correct recoding of accounting
checking that each information by using basic
transaction is principles of accounting and
recorded in line preparation of ledger accounts
with accepted accordingly.
accounting
principles...

Prepare final accounts for sole-

D2. Apply traders, partnerships and limited
appropriate and companies in accordance with
accurate
appropriate principles,
calculations for the
conventions and standards
constructing of the

18
  Obtaining the trial balance from
pre-prepared ledger account in
final accounts LO1
 Accuracy of the trial balance

D3. Prepare Perform bank reconciliations to

accurate bank ensure company and bank
reconciliations that records are correct
apply appropriate  Accuracy of calculation
tools and
 Match the book balance to bank
techniques to check
account balance
general accounts
and balance sheets

D4. Produce Reconcile control accounts and

accurate accounts shift recorded transactions from
that have been the suspense accounts to the right
reconciled applying accounts
the appropriate  Prepare accurate control
methods accounts

Acknowledgement

I take this opportunity to express my gratitude to Esoft Metro Campus Lecturer who supported
me throughout the course of this HND project. I am thankful also for aspiring guidance,
invaluably constructive criticism and friendly advice during the project work. I would also like
to expand my deepest gratitude my parents and all the friends who are guided me in writing this
assignment.

19
Table of content

Task 1

1.1…………………………………………………………………………………...….20, 21
1.2…………………………………………………………………………………..21, 22, 23
1.3…………………………………………………………………………………………..24

Task 2 Part A

20
2.1……………………………………………………………………………………...……25
2.2…………………………………………………………………………………………...27
2.3…………………………………………………………………………………………...27

Part B……………………………………………………………………………..…28. 29, 30

Task 3

3.1……………………………………………………………………………………………31

Task 4

4.1…………………………………………………………………………………….………32
4.2…………………………………………………………………………………………….32
4.3…………………………………………………………………………………………….33

Task 1
1.1

1-Jul Cash account Dr 500000

Owner Equity Cr 500000

Computer Equipment Dr 100000

Owner Equipment Cr 100000

2-Jul Additional Equipment Dr 12000

21
 Creditors- Additional Equp. Cr 12000

4-Jul Office Rent Dr 15000

Cash Cr 15000

8-Jul Cash Dr 32000

Sale Cr 32000

10-Jul Debtors Dr 27000

Sales –Credit Cr 27000

12-Jul Additional Equipment Dr 8000

Cash Cr 8000

15-Jul Wages Dr 6200

Cash Cr 6200

18-Jul Cash Dr 15000

Debtors Cr 15000

25-Jul Creditor’s additional equp. Dr 12000

Cash Cr 12000

28-Jul Owner’s Equity Dr 500

Cash Cr 500

30-Jul Cash Dr 40000

Debtors Cr 40000

Cash- sale Dr 40000

Sales- Credit Cr 40000

31-Jul Salary Dr 7000

Cash Cr 7000

31-Jul PLDT Bill Dr 1800

Cash Cr 1800

Meralco bill Dr 3800

Cash Cr 3800

22
1.2

Cash Account
Owners’ equity 500000 Office rent 15000
Cash sales 32000 Purchase equp. 8000
Debtors 15000 Wages 6200
Payment for
Cash sales 40000 creditors 12000
Owners’ Equity 500
Salary 7000
PLDT Bill 1800
Meralco Bill 3800
B/C/D 532700
587000   587000
B/b/f 532700  
 

 
Equity Account
Cash 500 Cash 500000
Computer Equip. 100000
B/c/d 599500  
 
600000   600000
B/b/f 599500
 

Additional Equipment
Creditors 12000 B/c/d 20000
Cash 8000  
20000   20000
 
B/b/f 20000
 
Computer Equipment
Equity Account 100000 B/c/d 100000

23
 100000   100000
B/b/f 100000  
 

Office Rent
Cash 15000 B/c/d 15000
15000   15000
B/b/f 15000  
 
 
  Creditors- Additional equipment  
Cash 12000 Additional Equip. 12000
12000   12000
 
 
  Sales  
B/c/d 139000 Cash 32000
Credit 27000
Cash 40000
Credit 40000
139000   139000
B/b/f 139000
 
 
Salary
Cash 7000 B/c/d 7000
7000   7000
B/b/f 7000  
 

 
Debtors
Sale creditors 27000 Cash 15000
Sale creditors 40000 B/c/d 52000
67000   67000
B/b/f 52000  
 
 

  Wages  

24
Cash 6200 B/c/d 6200
6200   6200
B/b/f 6200  
 
 
PLDT Bills
Cash Payment 1800 B/c/d 1800
1800   1800
B/b/f 1800  
 
 
Meralco bill
Cash 3800 B/c/d 3800
3800   3800
B/b/f 3800  
 

1.3
XYZ PLC
Trial Balance
As at 31st July 2017
  Debit Credit
Cash Account 532700  
Equity   599500
Additional Equipment 20000  
Office Rent 15000  
Sales   139000

25
Debtors 52000  
Wages 6200  
PLDT Bill 1800  
Meralco Bill 3800  
Computer Equipment 100000  
Salary 7000  
  738500 738500
     
     
     
     

Task 2
2.1 Rs.000"

Wiskam PLC
Comprehensive Income Statement
For the year ended 31ST March 2015
Sales   19300
Cost of sales   -11600
Gross profit   7700
     

26
 Other Income    
Discount   120
    7820
Admin Expenses    
Depreciation - Building 500  
Motor Vehicle 420  
Computer 100  
Machinery -lease 375  
EPF 300  
ETF 60  
Telephone 175  
Audit fees 60 1990
     
     
Selling & Distribution
expenses    
Doubtful debts 4  
Advertising 100  
Discount 50  
Sales commission 20  
Donation 30 204
     
     
Finance Expenses    
Bank loan interest 120  
Lease interest 100 220
     
     
Profit before tax   5406
(-) Tax   -220
Profit after tax   5186
(-) Dividend   -500
Net profit   4686

2.2

Rs.000"
Wiskam PLC
Statement of financial Position
As at 31 ST march 2015

27
 Non-current assets Cost Acc. Depreciation Balance
Land 16000   14300
Building 5000 2000 3000
Motor Vehicle 4200 1680 2520
Computer 1000 220 780
Machinery 1500 375 1125
  4275 21725
     
     
Current Assets    
Closing Inventory 350  
Debtors 1240    
(-) Provision (104) 1136  
Prepaid expenses 100  
Cash 895 2481
    24206
Equity & Liabilities    
     
Equity   21186
     
Non- Current Liabilities    

Lease Obligation 800  

10% bank loan 1200 2000
     
Current Liabilities  
Lease Interest 100  
Lease installment 300  
Tax payable 45  
EPF- Employer 300  
ETF 60  
EPF- Employee 200  
Accrued Interest 120  
Trade payable 1650  
Dividend 1500  
Bank overdraft 145 4420
    27606
   
     

2.3

28
 Rs.000"
Wiskam PLC
Statement of Change in equity
As at 31ST March 2015
  ADD SUBSTRACT BALANCE
Balance as @ 01.04.2014 Stated capital 10000   10000
       
Retained earnings 7500 300 9200
  2000    
General Reserve 300   300
Realization Loss (note03) 700 (700+1000) -1000
Profit for the year 4686 2000 2686
      21186
       

2.4

Note 01 - The cost of inventory as at 31.03.2015 has been valued at First in First out (FIFO) method.

Note 02 – Dividend declare of Rs. 1,500 000 to the ordinary shareholders of the company.

Note 03- land revaluation loss of Rs 1 000 000 on 31.03.2015.

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Task

Part B

RUBA PLC
Cash flow statement
Year ended 31 march 2015
Profit before tax   2265
Cash flow from operating activities    
Adjustment for :-    
Depreciation 300  
Disposal loss 50 350
    2615
     
Tax paid 1150  
Interest paid 700 -1850
     
decrease in trade receivable 800  
increase in current liability 110  
increase in inventory -500 410
     
Net cash provided by operating activities   1175
     
Cash flows from investing activities    
Interest received 85  
disposal PPE 70  
     
     
Net cash provided by investing activities   155
   
Cash flows from financing activities  
Issue capital 500  
Dividend paid -655  
   
Net cash provided by financing activities -155
   
   
Net increase in cash 1175
Cash- 01.04.2014 300
Cash-31.04.2015 1440
   

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 PPE
Balance/B/F 8000    
Disposal 300
B/C/D 7700
8000   8000
 
 
   
   

Disposal
PPE 300 Depreciation 180
P&L 50
Cash 70
300   300
 
 

Income tax payable

    B/B/F 100
Cash 1150 P&L 1200
B/C/D 150  
1300   1300
 
 

Loan interest payable

    B/B/F 60
Cash 700 P&L 760
B/C/D 120  
820   820
 

31
  

Loan interest receivable

B/B/F 50    
P&L 75 Cash 85
B/C/D 40
125   125
 
 

Dividend
    B/B/F 250
Cash 655 P&L 605
B/C/D 200  
855   855
 
 

Task 3

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3.1

Revised Bank Account

Debtors deposit 40300 B/B/F 21500
Accounting error 900 Leasing installment 20000
Cheque book
chargers 400
Overdraft interest 1800
B/C/F 2950 Bank chargers 450
 
44150   44150
B/B/F 2950

Bank Reconciliation Statement

Balance as per 31.03 @revised bank account   -2950
(+) Outstanding Cheque    
10253 95000  
10262 16500  
10284 21500 133000
    130050
(-)Deposit but not clearing cheque    
43250 4500  
215412 33500  
721210 16000  
     
Bank errors 12000 -66000
     
Balance of bank statement   64050
     

Assuming 21500 is the cash balance of Araliya business.

Assuming the Issued cheque has been realized in April.

33
Task 4

4.1

Creditors control account

    B/B/F 81000
Discount 3000 Purchase 603000
Cash 566000 Cash sale 20000
 
B/C/F 135000  
704000   704000
B/B/F 135000

4.2

Creditors Reconciliation
01.03.2014 Creditors Balance  
(+) Add  
Purchase 630000
Purchase - Muditha 12000
   
   
(-)subtraction  
Purchase return 4000
Cash 566000
Discount 8000
   
   
   
   

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4.3

Revised creditors control account

P.Return - Visitha 4000 B/B/F
Purchase -
Cash sale 20000 Muditha
Discount 5000 Purchase
B/C/D 145000  
 
170000  
B/B/F

The creditors balance to be shown in the statement of Financial

Position as at 31.03.2X14 is Rs.145000.00

(That is revised creditors control account balance)

Self Criticism

35
The assignment covers the Financial Accounting , this is my
first assignment, I have gone through most difficulties and
hardships. At the same time, I have learnt most important and
valuable information and gather knowledge about this subject.

Strengths

 Guidance and the support of class teacher

 Finding information become easier
 Able to submit the assignment before due date

Weaknesses

 Finding accurate information become difficult.

Gantt chart

36
  JUNE JULY
Description

  Week Week Week Wee Week 1 Week

1 2 3 k4 2
Gather  
information  

Task 1  
 

   
Task 2

Task 3    

   
Formattin
g and
finalizing

37