1 Recording Business Transactions using double entry bookkeeping
The submission is in the form of a portfolio of evidence compiled from the evidence produced for two assignments that include the following: An informal report with an accompanying Excel spreadsheet (raw data will be supplied by your tutor). You will insert sections of your spreadsheet into the report. The recommended word limit for the report is 1,500–2,000 words, although you will not be penalised for going under or exceeding the total word limit. Referencing should use the Harvard system (or an alternative system).
LO1 Record business transactions using double entry bookkeeping, books of prime entry, journals and ledger accounts. LO2 Prepare a trial balance for an organisation from data provided.
Vocational Scenario You have recently joined ASM Accountants as a Graduate Trainee. ASM Accountants is a large accountancy firm that undertakes extensive business consultancy work for their client base. They have a central London head office and regional offices in Northern Ireland in Belfast and Newry. The firm’s client base in Northern Ireland consists mainly of SME (small and medium enterprises). The firm has a policy of taking on smaller niche clients, where they feel there is potential for fast growth and where electronic accounting and book-keeping systems will support effective financial management. Role Your role consists of offering accountancy and book-keeping services to new fast-growing businesses that require assistance with bookkeeping systems to record business transactions. As part of your ongoing training, you have been asked to undertake some activities. Assignment activity and guidance You are initially working with a small business that started in business earlier this yearand is particularly in need of support and guidance with book-keeping systems and how they can be used to inform the efficiency and performance of the business. Your supervisor, the Accounts Manager has given you summary details extracted from the current paper-based system and asks you toset up and usean electronic bookkeeping and accounting system for the client. The financial data for September and October will be made available by the businesson the last day of each month when stocktake are complete. You are required to complete all work in a timely and accurate way as soon as it becomes available and make the bookkeeping records including books of prime entry, journals, ledger accounts and trial balances available for checking by the first Wednesday of the following month. Note to student: Your tutor will provide you with September’s data at end of September and October’s data at end of October. You are required to upload each month’s bookkeeping records including journals, day books, ledgers and trial balances to Moodle – September’s records by Wednesday, 7 October 2021 and October’s records by Wednesday, 4 November 2021. You have also been asked to prepare an informal reportfor the client that includes the following: An analysis of the different types of business transactions and the importance of accurate and timely recording of these for accounting purposes. An explanation of the main types and components of accounting and book-keeping systems. An outline of the purpose, benefits and limitations of a trial balance including accounting errors that may be highlighted.An evaluation of the role book-keeping systems plays in the accurate reporting of organisational efficiency and performance and in meeting business objectives. Please access HN Global for additional resources support and reading for this unit. For further guidance and support on presentation skills please refer to the Study Skills Unit on HN Global. Link to www.highernationals.com
Learning Outcomes and Assessment Criteria
LO1 Record business transactions using double entry bookkeeping, books of prime entry, journals and ledger accounts.
P1 Record double entry bookkeeping transactions in a timely and accurate way. P2 Apply a range of business transactions using double entry bookkeeping, books of prime entry, journals and ledgers.
M1 Analyse a range of business transactions using double entry, books of prime entry, journals and ledgers in order to provide accurate and timely accounting information.
D1 Conduct systematic gathering, summarising and recording of business transactions for accurate reporting of organisational efficiency and performance.
LO2 Prepare a trial balance for an organisation from data provided.
P3 Using data provided, extract ledger balances into a trial balance for an organisation to accurately record transactions.
M2 Interpret, identify and correct accounting errors through the production of a trial balance to ensure accurate accounting records.
D2 Produce a trial balance that is timely, accurate and fully compliant for an organisation to meet its objectives.