LSBM005 Introduction To Accounting Assignment Help.

LSBM005 Introduction to Accounting Assignment - Bloomsbury Institute, London, UK

Learning Outcomes for the item of assessment - This item of assessment covers the following learning outcomes.

Understand the role of accounting in business.

Demonstrate use of double entry book keeping accounting system.

Prepare trial balance.

Prepare and analyse final accounts for a sole-trader taking into account appropriate format.

Develop the key skills of: Communication (C01) and the Processing of numerical data.

Assessment Details - Task

Question 1 -

Discuss the two branches of accounting, financial accounting and management accounting. Identify the user groups of each branch of accounting and give examples of the questions each user group might ask and expect the accounting information provided by the relevant branch of accounting to answer.

Question 2 - Sole Trader Financial Statements

Philip is a sole trader who manufactures and sells a single product. In his first month of trading, January 2019, he records the following transactions:

01 January Philip started business and invested 10,000, which he deposited into a business bank account.

02 January Purchased a machine to use in the production of goods for 5,100 and paid by bank transfer.

03 January Bought raw materials from ABC Ltd to use in the production of goods for 1,750 on credit.

03 January Bought stationery for 95 and paid using the company debit card.

05 January Paid 550 by bank transfer for January rent and 360 by bank transfer for annual business insurance for the period 01/01/2019 to 31/12/2019.

08 January Sold finished goods to customers for 2,100, the customers paid cash. The cost of goods sold was 1,500.

12 January Bought raw materials from ABC Ltd to use in the production of goods for 2,900 on credit.

15 January Sold finished goods to customers for 1,330 the customers paid cash. The cost of goods sold was 950.

16 January Sold finished goods on credit to a retail customer for 2,660. The cost of goods sold was 1,900.

18 January Bought raw materials from ABC Ltd to use in the production of goods for 3,500 on credit.

19 January Paid ABC Ltd 4,650 by bank transfer.