The submission is in the form of a portfolio of evidence compiled from the evidence produced for the assignments that include recording transactions, preparing and producing trial balance, bank reconciliation and control account reconciliations statement. The report must be clearly worded and well-structured and should make use of appropriate business language and terminology. The report should also include clearly labelled tables, charts and appropriately constructed statements for the business.
The word count is 4000–4,500 words, although you will not be penalised for going under or exceeding the total word limit. A bibliography should be provided using the Harvard referencing system. Inaccurate use of referencing may lead to issues of plagiarism if not applied correctly.
LO1 Record business transactions using double-entry bookkeeping, books of prime entry, journals and ledger accounts
LO2 Prepare a trial balance for a given organisation from the data provided.
LO3 Perform bank reconciliations to ensure organisation and bank records are correct
LO4 Perform control account reconciliations for accounts receivable and accounts payable
● Reasoning and analytical skills
● Written communication using a range of media
● Manipulation and interpretation of data using spreadsheets
● Effective communication of relevant information across the organisation and to appropriate stakeholders
● Creation and interpretation of information, showing how that information can be used most effectively to add value to an organisation.
● Ability to use quantitative skills to manipulate data, evaluate, estimate and model business problems
● Application of accounting knowledge to consistently deliver high-quality, accurate data and information in a timely fashion.
Paxora Ltd. is a small retail business located in Leeds, UK, with a reputation for providing excellent customer service since its establishment in 2005. The company has outlined specific objectives to guide its operations, including increasing revenue and profits, expanding business operations, improving cash flow management, reducing costs and expenses, enhancing the business`s reputation and brand image, and improving transparency in record keeping.
As the newly appointed bookkeeper, your primary duties will include recording business transactions, preparing trial balances, and producing bank and control account reconciliations statements. It is important to use appropriate bookkeeping terminology, label tables and charts clearly, and construct financial statements accurately. Additionally, your line manager has requested you to provide some financial insights based on recent business data, which will be presented to you in three parts. Your analysis should align with the company`s objectives, providing accurate and timely information to assist the business owner in making informed decisions to achieve these goals.
Part - 1
You were asked to record a range of business transactions from the last month by applying different bookkeeping concepts, ledgers, and journals. He also asked you to prepare a trial balance by extracting the ledger balances at the end. You have been provided with the following financial transactions for the month ending 31st Jan 2023.
01 Jan 2023, the business commenced with £10,000 in cash.
03 Jan 2023, Purchased goods £290 on credit from D James.
06 Jan 2023, Bought fixtures and fittings £1,150 paying by cheque.
09 Jan 2023, Sold goods for cash £140.
11 Jan 2023, Bought goods on credit £325 from C Monty.
15 Jan 2023, Paid rent by cash £200.
18 Jan 2023, Bought stationery £45, paying in cash.
19 Jan 2023, Goods returned to D James £41.
24 Jan 2023, Received rent of £25 by cheque for sublet of corner space
27 Jan 2023, Sold goods on credit to G Cross for £845.
28 Jan 2023, Bought a van paying by cheque £4,100.
30 Jan 2023, Paid the month’s wages by cash £360.
31 Jan 2023, The proprietor took cash for his own personal use £80.
31 Jan 2023, Cash sales for the month amounted £2000.
Activities: (a) Record and analyse various business transactions by applying books of prime entry, double-entry bookkeeping, journals, and ledger accounts.
(b) Extract a trial balance for Paxora Ltd. as of 31 January 2023. You are also asked to interpret, clarify, and correct any errors by making necessary adjustments while producing the trial balance.
You also need to:
c) Conduct systematic gathering, summarising and recording of business transactions for accurate reporting of organisational efficiency and performance.
Produce a trial balance that is timely, accurate and fully compliant for Paxora Ltd. to meet its objectives.
Part - 2
You were asked to prepare a bank reconciliation statement for Paxora Ltd. You have been provided with the following cash book and bank statement before balancing on the 31st Jan 2023;
Activities: a) Prepare a bank reconciliation statement and appraise the process identifying errors and omissions from the above data for Paxora Ltd on 01 February 2023.
You also need to.
b) Construct bank reconciliations that are timely, accurate and fully compliant for Paxora Ltd. to meet its above-mentioned objectives.
Part - 3
You were asked to demonstrate your knowledge of control and suspense accounts. You were also asked to prepare a control account reconciliations for accounts receivable and payable. You have been provided with the following information taken from their books at 31 January 2023.
Sales ledger balances 1 January £6,340; purchase ledger balances 1 January £13960; credit sales for January £140,100; credit purchases for January £64,300; monies received from debtors for November £139,570; monies paid to creditors in January £63,030; discounts allowed £350; discounts received £180; returns inwards £900; returns outward £600; transfers from sales ledger to purchases ledger £440.
A Schedule of debtors and creditors extracted from Paxora’s Sales and Purchase ledger totals £5,180 and £ 14,010 respectively.
Activities: a) Explain the role and differences between control and suspense accounts .
b) Perform a control account reconciliation on 31 January 2023 for account receivable and payable from the given data.
You also need to;
c) Critically evaluate the different types of control and suspense accounts in the context of the double entry bookkeeping system and their role and purpose in supporting effective financial management in the organization.
▪ Submit a soft copy to Turnitin on the submission date. Use a Normal script with a proper font size of 12.
▪ Attach the front sheet of this assignment brief to your work for assignment submission with signatures on the statement of authenticity.
▪ Assignments submitted after the deadline will not be accepted unless Extenuating Circumstances Form is submitted with third-party evidence.
▪ Collusion and Plagiarism must be avoided. (For further details, please refer to Academic Misconduct Policy and Procedure; Plagiarism Handbook, all available on Moodle)
▪ Start each answer on a new page and pages should be numbered. Highlight each question clearly. Include a Bibliography at the end of the assignment and use the Harvard referencing system.
▪ All work should be comprehensively referenced, and all sources must be fully acknowledged, such as books and journals, websites (include the date of visit), etc.
▪ In order to pass, you need to address all the LOs and meet all the PASS (Ps) criteria within the LO.
In order to get a merit you need to address the characteristics of Pass and then M1, M2 ,M3 and M4then D1, D2, D3, and D4.