Learning Outcomes (LO)
LO1 Record business transactions using double entry book-keeping, and be able
to extract a trial balance.
LO2 Prepare final accounts for sole-traders, partnerships and limited companies in
accordance with appropriate principles, conventions and standards.
LO3 Perform bank reconciliations to ensure company and bank records are
LO4 Reconcile control accounts and shift recorded transactions from the suspense
accounts to the right accounts
You are an accountant and have been asked to prepare an information booklet for
junior trainee accountants as part of the training programme for these employees.
In addition you have been asked to prepare accounts as part of the training
programme to demonstrate accounting techniques to the junior trainee accountants.
Assignment Guidance –Information Booklet
The information booklet should include details of accountancy regulations, rules,
principles and conventions.
The booklet should include an introduction to the scenario and include an
explanation of financial accounting and an explanation of the regulations that relate
to financial accounting.
The information booklet should include the following:
• An explanation of double entry book-keeping and a trial balance, and the
regulations for these.
• The difference between financial reports and financial statements.
• An explanation of accounts for sole traders, partnerships and a limited
company and identify the differences.
• An explanation of the reconciliation process and the tools and techniques
used to check the general ledger accounts. In addition you should explain
variances and the importance of correctly entered figures.
• An explanation of the different control accounts and what these are used for in
• A description of the process to reconcile control accounts and explain why
reconciliation is required.
Version Oct 19
• An explanation of the purpose of suspense accounts and how they differ from
You need to demonstrate and provided examples of calculations, using the case
studies below to generate evidence to include worked examples in your information
Case study 1
ABC is a new business that started on 1 July, the business pays £3,000 into the
business bank account.
a. What is the dual effect of this transaction?
b. What is the accounting equation after this transaction?
Case study 2
XYZ business on started on the 1 January by paying £40,000 into a business bank
account. The business then spent £600 on a second-hand van paid by debit card,
£2,000 on purchases of inventory for cash, took £600 cash for his own use and
bought goods on credit worth £500.
a. What are the two effects of each of these transactions?
b. What would the accounting equation look like after each of these
Case study 3
c. XYZ business then spends £2,000 on purchases of goods for cash. The bank
balance goes down by £2,000 but the business has other assets, inventory of
£3,000. Inventory is a short-term asset as it is due to be sold and is known as
a current asset. The assets of the business are now: £600 (Van) Inventory
£3,000 Bank (£39,400 – £1,000) = £38,400
d. Accounting equation: Assets – Liabilities = Capital £40,000 – £0 = £40,000
e. XYZ business took £600 of cash out of the business. The bank balance has
decreased by £600 and capital has also decreased as the owner has taken
money out of the business – this is known as drawings. The owner is a
completely separate entity from the business itself and if he takes drawings
then this means that the business owes him less.
f. The assets of the business are now: £600 (Van) £3000 Inventory. The capital
of the business is now £ (40,000 – 600) = £39,400.
g. Accounting equation: Assets – Liabilities = Capital £39,400 – £0 = £39,400
Type of service-Academic paper writing
Type of assignment-Essay
Pages / words-15 / 4000
Number of sources-4
Academic level-HNC / HND
Language style-UK English