FINANCIAL
ACCOUNTING 2
MAC-4-FA2
REFERRED
COURSEWORK
2010/11
COURSEWORK BRIEF
THE COMPLETED ASSIGNMENT MUST BE SUBMITTED BY:
THERE ARE TWO PARTS TO THIS COURSEWORK AND YOU MUST
COMPLETE BOTH PARTS
PART ONE: Users of Accounting Information (20% of total marks)
You are required to provide a report listing the various users of accounting
Information and their requirements, and explaining how their needs are met by the
accounting statements. (500 words)
PART TWO: Preparation of the year end accounts for the business given in
the appendix (80% of total marks).
This includes –
a) The calculation of necessary adjustments.
b) The preparation of an Extended Trial Balance.
You are required set up a spreadsheet in respect of the ETB and use
it to prepare the ETB.
A copy of your spreadsheet model on a storage device and a
paper copy must be submitted. The paper copy must include a
print out of all the formulae you have used in your spreadsheet
model and detailed notes, which outline the justification for the
design of the spreadsheet model you have produced and any
formulae you have used.
c) The preparation of the Financial Statements.
2
MARKING GUIDELINES
PART ONE:
Marks will be allocated as follows:

The users of accounting information
20

The needs of the users mentioned
20

Examples of how the financial statements meet
those needs
20

Report structure
10

Evidence of relevant research/reading
10

Correct use of referencing
10

Presentation and good use of English,
punctuation, spelling.
10
TOTAL
100
PART TWO:
Marks will be allocated as follows:

Calculation of adjustments

Preparation of ETB –
Design of Spreadsheet
Input of Data
Final Report (including accuracy)

20
30
10
10
Financial Statements
Income Statement
Statement of Financial Position
(Balance Sheet)
15
TOTAL
100
15
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Presentation of your assignment

Your assignment will be structured as per formal requirements.

The report for part one will use correct paragraphing, formal grammar, tenses
and spelling.

The report will be word-processed, formatted as double-spaced and with a font
size of exactly 12 and the pages will be consecutively numbered.

The ETB spreadsheet must follow the accepted layout.

The financial statements will use accepted layouts and must be either
presented as spreadsheets or word processed.

The correct cover sheet must be submitted with your assignment
Referencing and Bibliography

The Harvard Referencing System will be used conventionally to identify all
secondary research

A conventional and complete Bibliography using the Harvard Referencing
System will be included.

Please note that you are NOT allowed to include any reference from the
Wikipedia website – your assessment may be adversely graded if Wikipedia
features in the referencing or Bibliography.

Please see the example below for how a Bibliography should be formatted:
Example Bibliography
Books

Grbich, C. (2007). Qualitative Data Analysis: an introduction. London, Sage
Publications Ltd.

Hart, C. (2005). Doing your Masters Dissertation. London, Sage Publications
Ltd.
Journal Articles

Abdullah, F. (2006). "Measuring Service Quality in higher education:
HEdPERF versus SERVPERF." Marketing Intelligence and Planning 24(1):
31-47.
4

Bignold, D. (2006). "Schooled and Tooled." Caterer & Hotelkeeper 10th
August 2006: 23-26.
Websites

"Foundation Degree Facts." Retrieved 05/01/2007, from
http://www.foundationdegree.org.uk/employers/page_23.shtml.
Word Count Guidelines

You may go 10% above or below the word count – any more either side of
the word count will be detrimental to your assessment grade.
The word count does include: The word count doesn’t include:
References
Tables
Charts
Bibliography
Appendices
Calculations
Title Page & Contents Page
5
The following is the Trial Balance of Yousuf Patel as at 31 March 2010:
DR
CR
£
£
Premises
156,000
Equipment
48,000
Motor Vehicles
29,200
Depreciation at 1 April 2009: Equipment
9,600
Motor Vehicles
5,160
Inventory at 1 April 2009
22,590
Sales
371,600
Purchases
75,820
Returns Inwards
7,600
Returns Outward
3,950
Carriage Inwards
1,650
Carriage Outwards
1,920
Discounts
1,600
2,700
Heating and Lighting
7,670
Telephones
8,160
Motor Expenses
9,060
Insurance
2,340
Wages and Salaries
59,650
Rates
4,860
Miscellaneous
18,540
Loan Interest
1,500
Accounts Receivable
72,610
Accounts Payable
43,670
Allowance for Doubtful Debts
8,500
Bank
5,270
Drawings
30,850
Capital
79,170
Loan
30,000
559,620
559,620
The following information is provided:
1.
Inventory at 31 March 2010 was valued at £29,220.
2.
Depreciation is calculated as follows:
Machinery
- 15% per year on cost
Motor Vehicles - 40% per year on net book value.
3.
A telephone bill was received after 31 March 2010 for £660, and
business rates of £1,100 have been paid in advance. An insurance
premium of £2,000 for the year from 1/1/10 to 31/12/10 is included in
insurance expense above.
4.
Interest is charged on the loan at a rate of 5% pa.
5.
Ms Jones acknowledges that an outstanding debt of £4,310 will not be
paid and therefore should be considered a bad debt.
6.
The Allowance for Doubtful Debts is to be adjusted to 9% of debtors
as at 31 March 2010.
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