Financial Accounting

Financial AccountingABS – BBA
Assignment
STUDENT ID
UNIT TITLE:
___________________________________________________
NAME (in Full):
___________________________________________________
GENERAL INSTRUCTIONS
•
All assignments are to be submitted on 01st August 2024 on
https://lms.atmsstudentgateway.com/
•
Any Assignment submission extension request must come to Azra Fatima (Head:
Examination | Academic) afatima@atmsedu.org 5 days before the date of
submission with a valid reason and supported documentary evidence.
•
APA 7th edition referencing guidelines need to be followed.
• Similarity between student’s work is strictly not accepted, any student found
with similar work will be graded Zero and fail for the course. However,
Plagiarism is an academic offence and will not be tolerated.
• Any revaluation request should come in 5 days of grade release. Any late
request will not be obliged. (Form and other details shall be shared based on
request)
• Revaluation cannot be requested for plagiarized assignments as the assignment
stands as an academic misconduct.
• If a program participant submits the assignment late, but within 1 week after the
submission date a 20%penalty will be applied.
• Re-evaluation request is NOT applicable for any failed courses provided the
mark ranges from 59 to 69. Any grade which is below the range is, however, not
applicable for this request.
• Any rescheduling request can be fulfilled within one week after the actual date of
the assessment. Any late request will not be obliged.
• Assignment once submitted to exam board is final for marking.
• Second extension cannot be provided without supporting documentary evidence.
Program participants are strongly advised to keep a copy of their work in case
the submitted copy should go astray.
PS. Kindly note to adhere to all the above instructions. Failing to read this, ATMS will not
be responsible for any actions taken.
Total Marks _ / 90
PLAGIARISM
Plagiarism is defined as providing material from an uncredited source, or without the
acknowledgement of the original author. For longer submissions and reports, students are
required to provide an Assignment Cover Sheet, which states that submission is their original
work, and has not been submitted for another assignment, either in that course, or another
Plagiarism may have many forms including but not limited to:
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Outright copying another author’s work without acknowledgement
Cut and paste without the correct citation and acknowledgement.
Copying key words but changing the sentence structure without
crediting the original source
Copying the sentence structure but changing some words without
crediting the original source
Following the structure or organization of another author’s
work, or order of presentation of ideas
Submitting work that was created by an unacknowledged third
party (i.e., writing service, or another student)
Copying from published authorities without acknowledgement
Failure to correctly use quotation marks when expressing another
author’s idea
Incorrect or improper use of in-text citation and referencing
Missing or incorrectly presented bibliography or reference list
Pretending ownership of another author’s ideas
Making work available to another person for copying
Falsifying results
The plagiarism tolerance for BBA is 8 %.
In cases where the plagiarism percentage exceeds the tolerance, students are given a
second chance to rework on their assignments and submit. However, if the percentage
continues to exceed the tolerance percentage the student will be awarded one grade
lower than the original grade achieved.
Total: 90 marks
Suggested word count 2000 (Excluding financial statements)
1. What is the goal of Financial Accounting, and why is it important to maintain precise
records of financial transactions?
(10marks)
2. Gulf Residential Services has started a business. During the Month of May 2024, the
following transactions occur:
1st May Introduced 24,000 Capital into the business.
3rd May Bought goods for 7,000.
4th May Sold goods on credit for 4,400 to Bahrain Mgt Co
6th May Paid wages of 800.
8th May Received a 18,000 cash loan from the bank.
10th May Bought goods on credit for 12,000 From Super GCC Supplies
10th May Sold goods for 7,000 cash.
12th May Bought a delivery van for use in the business costing 10,000.
16th May Bought Stationary for 40.
18th May Received and paid an electricity bill for 1000.
20th May Sold goods for 1600 on credit to Jumeriah Estates.
25th May Paid a supplier 3,600.
28th May Received 900 from Bahrain Mgt Co
Required:
a) Show the nominal ledger entries (using T-accounts) for the above transactions
Close off each T-account and prepare an initial trial balance as at 31st May2024
(15 marks)
b) Produce a Statement of Profit or Loss for year ended 31st May 2024 and a Statement
of Financial Position as at 31st May 2024 Note:
Note: Closing inventory was 10,000 for Gulf Residential Supplies
(15 marks)
3.
a) Calculate the 8 financial ratios for GCC Wholesale Plc (Full accounts listed in the
appendix)
(12 marks)
b) Comment on the performance of GCC Wholesale Plc based on the ratios calculated
in part a.
(5 marks)
c) Do you think it is likely that GCC Wholesale might experience problems running
the business with so little cash. Outline some of the challenges?
(5 marks)
d) Despite its drawbacks why do so many analysts rely on ratio analysis
(8 marks)
4.
Explain the following key accounting concepts
• Accruals Concept
• Business Entity Concept and;
• Matching Concept
(10marks)
5.
The Trial Balance is an early indicator of the quality of accounting control systems as
it highlights an equal level of Debit and Credit Accounts. Explain COPCOR errors
and why they might not be highlighted in the Trial Balance.
(10 marks)
Appendix 1.
Financial ratio analysis
Below are the financial statements of GCC Wholesale Plc
Income statement for the year ended 31 December 2023
AED’000 AED’000
Revenue
2,600
Cost of sales
Opening inventory
200
Add purchases
1594
1,794
Less closing
inventory
(205)
(1589)
Gross profit
1,011
Various expenses
(519)
Operating profit
492
Finance costs
(80)
Profit before tax
412
Tax
(64)
Profit after tax
348
Statement of Financial position as at 31 December 2023
AED’000 AED’000
Assets
Non-current Assets
2,813
Current assets
Inventories
204
Trade receivables
270
Cash at bank
20
494
Total assets
3,307
Equity and Liabilities
Equity
Share capital (AED1 each)
900
Retained earnings
1248
2148
Non-current Liabilities
Borrowings
1000
Current liabilities
Trade and other payables
159
Total equity and liabilities
3,307
Required: Calculate the following ratios
Gross Profit Margin
Net Profit Margain
Asset Turnover
Return on Capital Employed (ROCE)
Current Ratio
Quick Ratio
Inventory Days
Capital Gearing