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see file attached............................TASK ONE ONLY................................................................ fa_3__2_.doc Unformatted Attachment Preview COLLEGE OF BANKING AND FINANCIAL STUDIES DEPARTMENT OF UNDERGRADUATE PROGRAMME B.Sc. in Accounting, Auditing and Finance /BBA ASSIGNMENT BRIEF-Individual Assignment 3 Weightage: 50\% Student Name & ST Number Semester Spring 2019-2020 Assignment Title Importance of Accounting for business, Preparation of T accounts and Final Accounts for a merchandise business. Module Start Date: Financial Accounting 1UG036 5-May-2020 Due Date: 30-May-2020 Assessor: Internal Verifier February - June 2020 Dr. Mohammad Ali Al Lawati Ms. Komal Khakhar Dr.Roslin Required Work, Format and Grading You must submit the following by the assignment due date: ▪ Completed answers to each task, making sure that you fully address each of the outcome criteria. ▪ ▪ Answer all questions separately. Assignments without TURNITIN report will not be accepted. Resources: You need to demonstrate a confident application of the theories to the assignment task. The theoretical underpinning of your observations and deliberations should also demonstrate a good understanding of the subject by the way that your analysis is structured. You can access the Internet to research about the topic. You should demonstrate good academic practice by the appropriate use of academic texts and journals that are properly referenced. Guidelines and further information about assignment: Assignment must be submitted with the “Turnitin” report. If the report generated indicates a similarity index percentage of 20\% or more, a review of your assignment is necessary to ensure the same is reduced to less than 20\%. 1 Student declaration: I certify that the work contained in this assignment was researched and prepared by me: Signature: ___________________________ Date: ___________________ The user ID and Password for submitting the soft copy of the report through TURNITIN is as follows: Class ID: 24397738 Enrolment Password: Spring_FA1 Submission time and date You should submit the assignment by the time and date mentioned otherwise a ‘NA’ will be awarded. Fill in the form cover and staple it with your assignment. Make sure that all the relevant details are complete. Assignments must be submitted by the due date. You may include diagrams, figures etc without word penalty. Plagiarism Writing 1. Plagiarism occurs if you use somebody else’s work in an assignment or exam answer, but fail to state where you got the material from. You need to be also very careful about the amount of words you are using from somebody else’s work. 2. It can happen in any type of assessment where you are given the questions or tasks in advance. 3. If another student uses your work in his/her answer(s), both you and he/she will be punished when caught. 4. Punishments for committing plagiarism can be very severe. 2 Details Plagiarism is a form of cheating in which students use the work of others and present it as their own. It may include all or any one of the following – 1. Copy extensively from the work of others (from sources such as books, magazines, journal, web-sites etc) and submit the work as your own. 2. Copy another students’ work and submit it for assessment under your own name. 3. Allow another student to copy your work and then submit it for assessment under their own name. What happens if you get caught? The examining body of CBFS may punish offending students in any manner that they deem fit. Typical punishments may range from reduction in grades, making students resit modules and even failing students on a module or an entire award. The college considers this form of cheating as a serious offence. Therefore be forewarned! Scenario or Tasks Read the following tasks for different business entities and do as directed. 3 Task 1 (12 Marks) Hashim Trading LLC is a local merchandiser in Oman. From the given Trail balance for the year ending 31.12.2019, prepare final accounts for the business. OMR OMR Sales /turnover 200,000 Purchases 85,000 Buildings 40,000 st Inventory at 1 Jan 2019 8,000 Cash at Bank 12,000 Trade Receivables 75,000 Trade Payables 50,000 Plant and equipment 100,000 Rent and rates 15,000 Sales discount 5,000 Selling expenses 4,000 Wages and salaries 32,000 Bad Debt on Trade receivable 5,000 Bank interest 2,000 Carriage inwards 3,000 Retained earnings as at 1 Jan 2019 26,000 Share Capital at 1 Jan 2019 100,000 10\% Bank loan 20,000 Sales return 8,000 Carriage outwards 2,000 396,000 396,000 The following information is also available:a) Closing Inventory at the 31 December 2019 was valued at OMR 10,000. b) Wages and salaries paid in advance for 3months amounts to OMR 10,000 . c) Rent and rates of OMR 20,000 were still outstanding at the year end. d) Depreciation on building for the year OMR 1,000 and Plant and Machinery OMR 25,000 is not accounted for. Required : (12 Marks) Prepare an Income Statement and Statement of Financial Position for Harshim Trading LLC for the year ending on 31 December 2019 with all relevant workings. 4 Task 2 (12 Marks) Selected Transactions from Al-Mukhaini Transport Services began on June 1, 2019 by Iman: a. Iman invested OMR. 600,000 in the business. b. Trucks were Purchased by business for OMR. 430,000. c. Equipment purchased on credit for OMR. 9,000. d. A bill of OMR.7,200 for transporting goods was sent to Mr. Ashraf Abbasi, a customer. e. Cash of OMR 6,000 is received from the customer who was billed in d. f. Received OMR 22,300 is cash for transporting goods. g. A payment of OMR 5,000 was made on the equipment purchased in c. h. Paid expenses of different types for OMR 1,700 in cash. i. Equipment of OMR 1,200 was withdrawn from business for Iman’s personal use. Required: 1. Arrange the Assets, Liabilities and Owner’s Equity accounts in an Accounting Equation, using the following account titles: Cash, Trucks, Equipment, Account Receivables, Account Payable and Owner’s Equity (9 marks) 2. Prepare the following T Accounts (3 marks) a. Cash account b. Accounts Receivable c. Accounts Payable 5 Task 3 (16 Marks) The importance of accounting concepts and conventions can be seen in preparing the financial statements in assessing the financial viability of the company, where accountants prepares the financial statement and provides the appropriate financial report for the management of any company. However, accounting concepts and conventions are rarely disclosed in the financial statements because they are generally recognized as being the activity of the periodic preparation and presentation of the financial statements; but if the basic concepts and conventions are not followed when preparing and presenting the financial statement, difficulties will be faced during the analysis, interpretation, and reporting of financial statements. Therefore, it is necessary to understand that the earnest interpretation and analysis of financial statements must be taken into account constantly these concepts, assumptions, principles and conventions used in the preparation. Required: (4 marks X 4 = 16 marks) 1. To define if the accounting concepts and conventions function as a guidance in preparing financial statement. 2. To ascertain if accounting concepts and conventions assist in proving useful information for economic decision-making. 3. To ascertain if accounting concepts and convention assists in recognizing in how accounting transactions are looked into. 4. To define if accounting concepts and conventions leads in producing more meaningful and reliable financial reports. 6 Task 4 (10 Marks) Accounting performs an essential part in operation of business administration because it assists you in tracking income and expenses, ensure legal compliance, and supply shareholders, managers, and government authorities with the quantifiable financial information, which then are used for business decision making purpose. There are three main components that are generated by the records, of which the financial statement is made-up: • The income statement, which delivers information about the profit and loss of company • The balance sheet, which provides a clear picture on the financial position of company as on a specific date. • The cash flow statement, which is a bridge between the income statement and balance sheet and provides information about the cash inflow and outflow during a certain phase of time. It is extremely important to keep your financial records solid and up-to-date if you wish to retain your companys financial position robust. You are required to: (10 marks) Explain the reasons why Accounting is important for your business, regardless if it is small or large. ---------------------------------End of Assignment paper--------------------------------- 7 ... Purchase answer to see full attachment