IT Applications for Financial Accounting

Submit this coursework through the Student Portal with a Turn-it-in Report Word Limit: 1000 words (Plus or minus 10%) Learning outcomes assessed: 1. Explain the sales ledger, purchase ledger and nominal ledger. 2. Explain the double-entry bookkeeping system of recording transactions. 3. Design a simple accounting system using accounting codes. 4. Extract a trial balance and prepare financial statements from source documents This coursework is worth 100% of the total marks for this module. Coursework Instructions Please read carefully As part of your coursework, you are required to complete a practical session with SAGE accounting software, and submit your coursework in the required format, by the deadline, shown on the cover page. Submission Instructions: On completion of the coursework, candidates are expected to submit their work via the student portal, only. Important information: Do not include your name, only student ID on cover page. A cover page is provided on the school portal, for download and use. Ensure to submit within the specified deadline. Carefully read the module handbook, the marking criteria and the grade descriptors. Academic Misconduct You are responsible for ensuring you understand the policy and regulations about academic misconduct. You must: • Complete this work alone except where required or allowed by this assignment briefing paper and ensure it has not been written or composed by or with the assistance of any other person. • Make sure all sentences or passages quoted from other people’s work in this assignment (with or without trivial changes) are in quotation marks, and are specifically acknowledged by reference to the author, work and page. Blank Assignment Question Question 1 (Case study – Email from Manager, Smith Chartered Accountants) From: Client Accounting & Reporting Manager – Smith & Co. LLP To: Finance Intern – Smith & Co. LLP Subject: Set-up and Financial Report Preparation for HSC Trading Group LTD. Date: March 2018 Dear Sarah, We have an existing client, HSC Trading Group Ltd, who has been trading for a number of years now. The most recent record of transactions have just been sent to me by the Managing Director, Mr Silver, and we are to prepare their accounts for the trading period, 12 months to 31st March 2018. Attached is a statement of opening position with additional notes, schedules of the trading period, including major customers, vendors, with quantities of products bought and sold, unit prices of products bought and sold, together with other schedules showing gross sales and purchase values. As our firm is now using the SAGE accounting software, I would appreciate your input to do the following: 1) Set-up the company in Sage Accounting 5 Marks 2) Extract the Sales Nominal Ledger for All Products 10 Marks 3) Extract the Trial Balance for the period. 10 Marks 4) Extract the Trading, Profit or Loss Account (P &L) 30 Marks 5) Extract the Statement of Financial Position (BS) 30 Marks 6) Examine and discuss the “Risks” in the use of Electronic accounting systems providing relevant references. 10 Marks Mode of Presentation (5 marks for presentation) Respond to the email, with the work required in report format, which will have a cover page, title page showing the trading company name and trading period for which the report covers. Provide a table of contents to include the learning requirements and a sound introduction stating the purpose of the financial reports and the general nature of client business. Please use the Sage function to extract reports and append to your report, ensuring the screen views are proportionate in size to the page. Ensure that for every aspect of the action requirement, you discuss what work you have done, and how you have achieved this. Finish with a conclusion, discussing your observations on the performance of the company for the year. I look forward to receiving your report, on completion. Warm regards, Darren Bean Senior Partner, Smith & Co. (Chartered Accountants), United Kingdom. Attached: Transaction schedules UNIT PRICES (£) COST PRICE SELLING PRICE 3 PRODUCTS ALPHA 2.8 6.4 BETA 3.12 8.7 SIGMA 4.15 12.2 UNIT QUANTITIES, GROSS VAT VALUE SALES 2017 - 2018 ALPHA Value + VAT BETA Value + VAT SIGMA Value + VAT April 1124 8,632 2100 15,681 1918 28,080 May 1310 10,061 1894 19,773 771 11,287 June 1344 10,322 1709 15,274 2157 31,578 July 1485 11,405 2196 22,926 2075 30,378 August 1172 9,001 1522 15,890 626 9,165 September 603 4,631 1302 13,593 2144 31,388 October 1372 10,537 1743 18,197 2198 32,179 November 1375 10,560 1917 18,197 760 11,126 December 1534 11,781 1301 13,582 2370 34,697 January 227 1,743 2088 21,799 2011 29,441 February 1587 12,188 1933 20,181 2266 33,174 March 1372 10,537 1748 18,249 1015 14,860 Note: The credit policy is for 50% of sales to be settled in month of sales and 50% the following month. All opening debtors balances were cleared (i.e. received) in April 2017 in line with the policy. SUPPLIER INFORMATION Yunshi Trading Partners(Wholesalers) , The Duncan Group 5 Triad Road, Plot 15 Drew Avenue Yacuza State New Birmingham Quandong Province Cheshire People's Republic of China (PRC) CH1 5TT, United Kingdom Alpha & Sigma Products Beta Product UNIT QUANTITIES BOUGHT INVENTORY/STOCK 2017 - 2018 ALPHA NET + VAT BETA NET + VAT SIGMA NET + VAT April 1000 2800 3360 1200 3744 4493 1800 7470 8964 May 1400 3920 4704 1400 4368 5242 560 2324 2789 June 1000 2800 3360 1350 4212 5054 1600 6640 7968 July 1200 3360 4032 1000 3120 3744 1500 6225 7470 August 1000 2800 3360 1150 3588 4306 300 1245 1494 September 900 2520 3024 1305 4072 4886 2000 8300 9960 October 1850 5180 6216 1200 3744 4493 1650 6848 8217 November 1105 3094 3713 1600 4992 5990 560 2324 2789 December 950 2660 3192 1650 5148 6178 1680 6972 8366 January 1200 3360 4032 1500 4680 5616 1560 6474 7769 February 1400 3920 4704 1560 4867 5841 2000 8300 9960 March 1950 5460 6552 1200 3744 4493 600 2490 2988 Note: Payments to suppliers are made one month after purchase.( i.e. April purchases will be paid for in May)   End of Assignment Brief Marking Criteria PRACTICAL ASSESSMENT MARKING CRITERIA Students’ are expected to enter data correctly into SAGE and present accurate report as per below. The report for each question must begin on a new page with the following headings: Task – HSC Trading Group Ltd. • SAGE 50 Company Accounts Set-Up. You should discuss how you have achieved this. • The company information provided should be used in setting up the company. • Setup the various nominal accounts codes, and enter the data. • Extract the reports required and appraise the performance of the company. • Examine and discuss the risk of electronic accounting systems. All work must be submitted via the portal with clearly marked case study number/student number.