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Higher Nationals

Internal verification of assessment decisions – BTEC (RQF)

Programme title

Assessor Internal Verifier


Assignment title

Student’s name
List which assessment Pass Merit Distinction
criteria the Assessor has

Do the assessment criteria awarded match

those shown in the assignment brief? Y/N

Is the Pass/Merit/Distinction grade awarded

justified by the assessor’s comments on the Y/N
student work?
Has the work been assessed
Is the feedback to the student:
Give details:

• Constructive?
• Linked to relevant assessment
criteria? Y/N

• Identifying opportunities for

improved performance? Y/N

• Agreeing actions? Y/N

Does the assessment decision need

Assessor signature Date

Internal Verifier signature Date

Programme Leader signature (if
Confirm action completed
Remedial action taken

Give details:

Assessor signature Date

Internal Verifier

Programme Leader
signature (if required)
Higher Nationals - Summative Assignment Feedback Form

Student Name/ID
Unit Title
Assignment Number Assessor
Date Received 1st
Submission Date
Date Received 2nd
Re-submission Date
Assessor Feedback:
LO1 Record business transactions using double entry bookkeeping, and be able to extract a trial balance.
Pass, Merit & Distinction P1 P2 M1 D1

LO2 Prepare final accounts for sole traders, partnerships and limited companies in accordance with
appropriate principles, conventions and standards.
Pass, Merit & Distinction P3 P4 M2 D2

LO3 Perform bank reconciliation to ensure company and bank records are correct.

Pass, Merit & Distinction P5 M3 D3


LO4 Reconcile control accounts and shift recorded transactions from the suspense account to the right
Pass, Merit & Distinction P6 M4 D4

Grade: Assessor Signature: Date:

Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and grades decisions have
been agreed at the assessment board.

Assignment Feedback
Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor signature Date

Student signature
General Guidelines

1. A Cover page or title page – You should always attach a title page to your assignment. Use previous page as
your cover sheet and make sure all the details are accurately filled .
2. Attach this brief as the first section of your assignment.
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4. All the assignments should print on A4 sized papers. Use single side printing.
5. Allow 1” for top, bottom , right margins and 1.25” for the left margin of each page.

Word Processing Rules

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2. Use 1.5 line word-processing. Left justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function in the word processor to insert Your Name, Subject, Assignment No, and Page Number
on each page. This is useful if individual sheets become detached for any reason.
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Important Points:

1. Check carefully the hand in date and the instructions given in the assignment. Late submissions will not be
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Excuses of any nature will not be accepted for failure to hand in the work on time.
4. You must take responsibility for managing your own time effectively.
5. If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply
(in writing) for an extension.
6. Failure to achieve at least PASS criteria will result in a REFERRAL grade .
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to complete an alternative assignment.
8. If you use other people’s work or ideas in your assignment, reference them properly using HARVARD
referencing system to avoid plagiarism. You have to provide both in-text citation and a reference list.
9. If you were proven guilty for plagiarism or any academic misconduct, your grade could be reduced to A
REFERRAL or at worst you could be expelled from the course.

Student Declaration
I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it as my own
without attributing the sources in the correct way. I further understand what it means to copy another’s work.

1. I know that plagiarism is a punishable offence because it constitutes theft.

2. I understand the plagiarism and copying policy of the Edexcel UK.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the assignments
for this program.
4. I declare therefore that all work presented by me for every aspects of my program, will be my own,
and where I have made use of another’s work, I will attribute the source in the correct way.
5. I acknowledge that the attachment of this document signed or not, constitutes a binding agreement
between myself and Edexcel UK.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: Date:

(Provide E-mail ID) (Provide Submission Date)
Higher Nationals in
Unit 10: Financial Accounting
Assignment 01
Assignment Brief
Student Name /ID Number

Unit Number and Title

Academic Year 2019/20

Unit Tutor

Assignment Title

Issue Date

Submission Date

IV Name & Date

Submission Format:

The submission is in the form of an individual written report. This should be written in a concise, formal
business style using single spacing and font size 12. You are required to make use of headings, paragraphs
and subsections as appropriate, and all work must be supported with research and referenced using the
Harvard referencing system. Please also provide a bibliography using the Harvard referencing system.

Unit Learning Outcomes:

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 or limited companies in accordance with
appropriate principles, conventions and standards;
LO3. perform bank reconciliations to ensure company and bank records are correct;
LO4. reconcile control accounts and shift recorded transactions from the suspense accounts to the right
Assignment Brief and Guidance:
Activity 01. Record business transactions using double entry book keeping and be able to extract a
trial balance (Covers LO 01 and P1, P2, M1, D1 )

XYZ PLC has begun professional practice as a system analyst on July 1. He plans to prepare a monthly
financial statement. During July, the owner completed following transactions.

July 1. Owner invested LKR 500,000 cash along with computer equipment that had a market value of
LKR 120,000 two years ago, but was now worth LKR 100,000 only.
July 2. Paid LKR 15,000 cash for the rent of office space for the month.
July 4. Purchased LKR 12,000 of additional equipment on credit (due within 30 days).
July 8. Completed a work for a client and immediately collected the LKR 32,000 cash.
July 10. Completed work for a client and sent a bill for LKR 27,000 to be paid within 30 days.
July 12. Purchased additional equipment for LKR 8,000 in cash.
July 15. Paid an assistant LKR 6,200 cash as wages for 15 days.
July 18. Collected LKR 15,000 on the amount owed by the client.
July 25. Paid LKR 12,000 cash to settle the liability on the equipment purchased.
July 28. Owner withdrew LKR 500 cash for personal use.
July 30. Completed work for another client who paid only LKR 40,000 for 50% of the system design.
July 31. Paid salary of assistant LKR 7000.
July 31. Paid PLDT bill LKR 1,800 and Meralco bill LKR 3,800.

 Apply book keeping technique and develop relevant journal entries for given transactions.
 Apply the double entry book-keeping system of debits and credits for above given transactions in
general ledger.
 Produce a trial balance applying the use of the balance off rule to complete the ledger.
 Apply trial balance figures to show which statement of financial accounts they will end up in.
Activity 02. Prepare final accounts for sloe traders, partnerships and limited companies in
according with appropriate principles, conventions and standards.

Part (A) – Sole Proprietorship

Saman Trading is a sole proprietorship owned by saman. The trial balance of Saman Trading as at 31st
March 2019 is as follows.

Saman Trading
Trial Balance as at 31st March 2019
Dr (Rs. Cr (Rs.
‘000) ‘000)
Property Plant and Equipment (at cost)
Land and Building 51000
Motor Vehicle 8800
Office Equipment 5500
Accumulated Depreciation as at 01st April 2018
Building 10000
Motor Vehicle 2880
Office Equipment 1080
Trade Recievables / Trade Payables 13000 15200
Purchases / Sales 30000 71000
Provision for doughtful debts as at 01st April 2018 1240
Stocks as at 01st April 2018 7700
Drawings 2400
Sales Commision 4300
Telephone and Electricity 7600
Insurance 3660
Salaries and Wages 13000
Bank loan - 14% 19000
Cash in hand 5240
Bank Overdraft 3800
Capital as at 01st April 2018 28000
152200 152200
Additional Information –
01. Land Value of Rs. 11,000,000 included in the Land and Building cost.
02. The deprecation policy of the Saman Trading is straight line basis on cost. Depreciation rates as
Building 5%
Motor Vehicle 20%
Office Equipment 12%
03. Closing Inventory as at 31st March 2019 was Rs. 6,900,000
04. The telephone and electricity bill of Rs. 710,000 for the month of march 2019 was not paid as at
31st March 2019.
05. Insurance expense of Rs. 1,060,000 is relevant for the next financial year of 2019/20.
06. Trade Recievables from Nuwan Distributors amounting Rs 300,000 to be written off as a bad debt
and provision for doubtful debts to be made for the remaining receivable balance at the year
end.(Rate 2%)
07. The bank loan was obtained on 01st April 2018, payable in two equal instalments with the interest
It is due as at 31st march 2019.And it has been paid on 10th April 2019.

You are required to prepare following –

(a) Statement of Comprehensive Income for the year ended 31st March 2019.
(b) Statement of Financial position as at 31st March 2019.
Part (B) - Partnership
The summarized trial balance of ABN Associates (Partnership Business) as at 31st March 2018 is
given below.

ABN Associates
Trial Balance as at 31st March 2018
Dr Cr
Partners' Capital Accounts
Amal 500000
Bimal 400000
Nimal 400000
Partners' Current Accounts
Amal 225000
Bimal 125000
Nimal 85000
Partners' loan Account - Nimal 200000
Property, Plant & Equipment 900000
Amal 275000
Bimal 175000
Sales 3800000
Inventory 585000
Cost of sales 1900000
Trade Recievables / Trade Payables 280000 150000
Cash at bank 500000
Operational Expenses 850000
5675000 5675000

Adjustments need to be made for the following

01. Depreciation for the year was Rs. 180,000.

02. The profit sharing ratio of Amal, Bimal and Nimal is 4 : 3 : 3 respectively.
03. Interest is payable on Fixed Capital Accounts balances 10% per annum.
04. No entries have been made for Inventory costing Rs. 120,000 taken by Amal.
05. Interest on the partners loan is 20% per annum.
06. Amal took away the other equipment for his own use on 31st March 2018 at a valuation of Rs.
100,000. The book value of the equipment is Rs. 50,000.
Prepare the financial statements for a partnership including appropriation accounts

Part (C) – Limited Liability Company

The trial balance as at 31.03.2015 of Wiskam PLC which trades electric equipment is given below.
Property, Plant and equipment as at 2014.04.01
Dr. (Rs'000) Cr. (Rs'000)
Land 16,000.00
Building 5,000.00
Motor Vehicle 4,200.00
Computer system 600.00
Accumulated depreciation on property, plant and Equipment as at
Motor Vehicle
Computer system
Sales 19,300.00
Cost of sales 12,000.00
Trade receivables 1,240.00
Tax paid 175.00
10% bank loan 1,200.00
Lease deposit account 300.00
Advertising expense 200.00
Inventory as at 2015.03.31 (at cost) 350.00
Trade payables 1,650.00
Salary and wages 1,800.00
Stated capital (ordinary share) - share price Rs. 50.00 10,000.00
Dividends paid 500.00
Revaluation reserves as at 2014.04.01 700.00
Retained earnings 7,500.00
Discounts 50.00 120.00
Provisions for doubtful debts as at 2014.04.01 100.00
Sales commission 20.00
Director's fuel and telephone allowances 175.00
Audit fee 60.00
Donations 30.00
Cash Balance 895.00
Bank overdraft 145.00

Additional information:
Before preparing the financial statements for the year ending 31.03.2015 the following adjustments have
to be made.
 The cost of inventory as at 31.03.2015 has been valued at First in First out (FIFO) method.
 A debtor of Rs. 80 000 from trade receivable amount as at 31.03.2015 was bankrupted on 10.04.2015
and out of this amount only 50% could be recovered. Further 10% on the remaining balance of trade
receivable was decided to provide as doubtful debts.
 An agreement was signed with an advertising company for two years by the company to promote the
products on 01.04.2014. Rs 200 000 of paid amount for a period of two years was recorded in the
advertising expense account.
 All property, plant and equipment should be depreciated 10% on cost based on straight line method
annually. All property, plant and equipment are used for administrative purpose.
 Computers of Rs 400 000 which purchased on 01.10.2014 were recorded in the purchase account.
 A machine was acquired on 01.04.2014 under a finance lease for a period of 4 years. A down payment
of Rs 300 000 was paid on this date and it has been recorded in a lease deposit account. Annual lease
installment of Rs 400 000 including of Rs 100 000 annual interest is to be paid at the end of each year.
The bank loan was obtained on 01.04.2014.
 It is reported that land revaluation loss of Rs 1 000 000 on 31.03.2015. because there is a highway in
front of the land but no entrance was to the highway in near the land. The revaluation reserve consists
of land revaluation surplus on 31.03.2010.
 The building of the business was revalued for the first time on 01.04.2015 for it’s fair value of Rs 4
500 000.
 It has been estimated that the income tax for the current year 2014/15 is Rs 220 000.
 The employer and employee contribution to the EPF are 15% and 10% on gross salary and wages
respectively and the employer contributes 3% to ETF. Only the net amount after reducing employees.
contribution has been recorded in salaries and wages account.
 It is decided to capitalized retained earnings 1/5th of the ordinary shares on 31.03.2015.
 The following decisions have been made by the board of directors.
 To pay a dividend of Rs. 1,500 000 to the ordinary shareholders of the company.
 To Transfer Rs. 300 000 for the general reserve


Prepare final accounts from given trial balance figures

The final accounts should cover following statements;
 Comprehensive income statement
 Statement of Financial Position
 Statement of Changes in Equity
 Relevant Notes

Part (D) – Cash Flow Statement

Extractions of the summarized statement of comprehensive income and statement of changes in Equity
for the year ended 31.03.2015 of Ruba PLC are as follows;
Income Statement Rs. (‘000)
Sales 20,500.00
Cost of sales (14,000.00) Statement of Rs.(‘00
Gross Profit 6,500.00 changes in Equity 0)
Other income (Fized deposit interest) 75.00 Balance as at
Operating expenses (3,500.00) 01.04.2015 540.00
Other expenses (Computer disposal) (50.00) Total
Financial Expenses (Loan interest) (760.00) comprehensive 1,065.0
Profit before tax 2,265.00 income 0
Income tax (1,200.00)
Profit for the period 1,065.00 (605.00
Dividends )
Balance of retained
earnings as at 1,000.0
31.03.2015 0
Additional information
1. Carrying amount of computer disposed on 01.04.2015 was Rs. 120,000.00
2. The depreciation of Rs. 300,000.00 was included in operating expenses
3. Following balances were extracted from the statement of financial position

Rs. (‘000)
2015.03.31 2014.03.31
Ordinary share capital 15,500.00 15,000.00
Preference share capital 10,000.00 10,000.00
Property, Plant and equipment 7,700.00 8,000.00
Cash and cash equivalents 1,440.00 300.00
Loan interest receivable 40.00 50.00
Other current assests 3,200.00 2,900.00
Provision of income tax 150.00 100.00
Proposed dividends 200.00 250.00
Accrued loan interest 120.00 60.00
Trade Payables/Creditors 860.00 750.00

4. Rs.120,000.00 worth of a photocopy machine was purchased during the period but it was not
revealed under property plant and equipment during the year
5. Note that other current assets include stocks worth 1000 and debtors/trade receivables worth 2200 as
at 31.03.2015 and stocks worth 1500 and debtors/trade receivables worth 1400 as at 31.03.2014

Prepare Cash flow statement of Ruba PLC. Find the cash balance for the year ended by using
relevant accounting formats.

Part (E)

Compare the essential features of each financial statement to analyse the differences between them
in terms of purpose, structure, and content.

Activity 03. Prepare bank reconciliations

Part (A)

The credit balance of the banks account of Araliya Business as at 31.03.2015 was Rs. 21,500.00. The
book balance was not agreed with the bank statement on that date. The following information were
revealed in the investigations.
(i) Cheques deposit and date f realization are as follows

Cheque number Deposit date Realization date Value (Rs)

043250 30th march 2015 2nd April 2015 4,500.00
215412 31st March 2015 3rd April 2015 33,500.00
721210 31st March 20150 3rd April 2015 16,000.00

(ii) The following deductions were made by bank from business as bank account

Deduction type Value (Rs.)

Cheque book charges 400
Overdraft interest 1800
Bank charges 450

(iii) Leasing installment of Rs. 20,000.00 was paid by bank on 20th March 2015 on standing order.
But it has not been recorded in a bank account of the business.

(iv) Cheques issued and dates of presented for the payment were as follows;

Cheque number Deposit date Realization date Value (Rs)

010253 26th March 2015 10th April 2015 95,000.00
010262 31st March 2015 04th April 2015 16,500.00
010284 31st March 2015 04th April 2015 21,500.00

(v) Business requested from the bank to stop for the payment for cheque issued for a creditor of
Rs. 12,000.00 on 20th March 2015 and relevant adjustment was made in the business account,
but it is revealed that payment was made by bank.

(vi) An issued cheque of Rs. 8,900.00 already on 15th March 2015 was recorded in bank account of
the business as Rs. 9,800.00

(vii) Rs. 40,300.00 was directly deposited to the bank by a debtor.

Apply relevant accounting procedures to check the book balance with the bank statement balance.
You are required to provide relevant notes and extra calculations to support your answer.

Part (B)

Ahinsa (Pvt) Ltd’s cash book as at 31st March 2017 had a credit balance of Rs. 227,700. Bank Statement
was not agreed with the cash book balance, Bank Statement had a balance of Rs. 90,000 (Credit balance).
Following issues were identified through investigations.

(i) Bank Statement did not include cheques amounting Rs. 522,000 issued by Ahinsa (Pvt) Ltd.
(ii) Following cheques deposited during the march 2017.But Its shown in the bank statement of April

Cheque Number Amount (Rs.)

111201 50000
450222 60000
650108 82000
(iii) Dividend Received Rs. 15,000 to the bank account directly. Which is not recorded in the cash
(iv) Customer deposited Rs. 5,400 directly in the bank during the month of March. Ahinsa (Pvt) Ltd
recorded this amount on 06th April 2017 when the bank statement was received.
(v) Cheque issued to a supplier amounting Rs. 76,000 was showed in the bank statement correctly.But
Ahinsa (Pvt) Ltd recorded this as a Rs. 78,600 in their books incorrectly.
(vi) Total payment side of a cash book was recorded Rs. 24,000 less.
(vii) Bank Charges was Rs. 10,500. Company has not recorded in the cash book.


(i) Prepare the adjusted cash book of Gems (Pvt) Ltd for the month ended 31st March
(ii) Prepare the bank reconciliation statement as at 31st March 2017.

Activity 04. Reconcile control accounts and clear suspense accounts

Creditor Ledger balance of XYZ business as at 01.03.2014 are as follows;

Creditor Name Value (Rs.)

Asitha 25,000.00
Visitha 44,000.00
Lasith 12,000.00
Total 81,000.00

The summary of the transaction done with the creditors during the month of March 2014 is given below;

Creditor Purchases (Rs.) Purchases Payment (Rs.) Discount

Return (Rs.) Received (Rs.)
Asitha 160,000.00 - 130,000.00 6,000.00
Visitha 300,000.00 4,000.00 300,000.00 -
Lasitha 120,000.00 - 120,000.00 2,000.00
Rakitha 50,000.00 - 16,000.00 -
Total 630,000.00 4,000.00 566,000.00 8,000.00

As at 01.03.2014 the total of the creditors ledger balance agreed with the balance of the creditor control
account. As at 31.03.2014 the total of the creditors ledger balance did not agree with the balance of the
creditors control account. The reasons for this difference are given Below;
(i) Discount received from Asitha for Rs. 3,000.00 have been debited to creditors control account
and credited to discount received account. No other entries had been made in this regard.
(ii) Debited note of Rs. 4,000.00 sent to Visitha has not been recorded in his account.
(iii) Cash ssales of Rs. 20,000.00 have been credited to creditors control account.
(iv) Purchase invoice dated 28.03.2014 raised for goods purchased of Rs.12,000.00 from Muditha.
Has not been recorded in the purchase journal.
(v) The total of the purchase journal has been posted to the creditors control account as Rs.
Explain the process taken to reconcile control accounts and clear suspense accounts using given account
 Provide relevant control accounts with reconciliation statements should calculate to obtain the correct
creditor balance.
Grading Rubric - Pass
Outcome(s)/criteria Achieved

Outcome 1: Record business transactions using double entry book-keeping, and be able to extract a
trial balance.
P1. Apply the double entry book-keeping
system of debits and credits. Record sales
and purchase transactions in a general
P2. Produce a trial balance applying the use
of the balance off rule to complete the
Outcome 2: Prepare final accounts for sole-traders, partnerships and limited companies in
accordance with appropriate principles, conventions and standards

P3. Prepare final accounts from given trial


P4. Produce final accounts for a range of

examples that include sole traders, partnerships
or limited companies

Outcome 3: Perform bank reconciliation to ensure company and bank records are correct.

P5. Apply the bank reconciliation process to

prepare a number of bank reconciliations.
Outcome 4: Reconcile control accounts and shift recorded transactions from the suspense accounts
to the right accounts.

P6. Explain the process taken to reconcile

control accounts and clear suspense
accounts using given account examples
Grading Rubric - Merit
Grade Description (Merit) Achieved Feedback

M1. Analyse transactions to show the

progression from previous trial balance to
the next one using double entry

M2. Make adjustments to balances of sum

accounts. For example, accruals,
depreciations and prepayments before
preparing the final accounts.

M3. Apply the reconciliation process

demonstrating the use of deposit in transit,
outstanding checks and NSF check.

M4. Demonstrate understanding of the

different types of accounts and how and why
they are reconciled.
Grading Rubric - Distinction
Grade Description (Distinction) Achieved Feedback

D1. Apply trial balance figures to show

which statement of financial accounts they
will end up in.

D2. Compare the essential features of each

financial account statement to analyse the
differences between them in terms purpose,
structure and content.

D3. Prepare accurate bank reconciliations

that apply appropriate tools and techniques to
check general accounts and balance sheets

D4. Produce accurate accounts that have been

reconciled applying the appropriate methods