Posted: June 17th, 2021
General assignment instructions
1. This assignment is individual based.
2. Use Word Processing software (e.g. Microsoft Word) for Part 1 & Part 2 and Spreadsheet software (e.g. Microsoft Excel) for Part 3 to complete this assignment.
3. Font: size – 12 point; style – Times New Roman; spacing – single
4. Assignment answers will be severely penalised where plagiarism has occurred.
Part 1 (20 marks)
Discuss how financial reports of a business entity can fulfil the needs of five (5) different stakeholder groups.
[Limit: 1,200 words]
Part 2 (20 marks)
In financial accounting and reporting, accrual concept is commonly used as a basis in the preparation of financial statements.
a. Explain the rationale behind accrual accounting. (4 marks)
b. Explain four (4) accounting concepts (other than accrual) which are applied by business entities in the preparation of financial statements. (16 marks)
[Limit: 600 words]
Part 3 (60 marks)
Makuto Lenin has registered as a sole proprietor for trading of IT hardware and accessories. On 15 April 2021, he used his personal savings as start-up capital [refer to Doc 1] for his business named TEKNO Enterprise. There were no other transactions in April 2021.
Recently, Makuto has given you the task of preparing accounts for the month ended 31 May 2021. You are given 18 documents and Makuto note [refer to “Doc” zip file] which can assist you to complete your task.
Your task consists of the following:
a. Record the relevant transactions in the books of prime entry (17 marks)
b. Post the entries to the general ledgers (in “T” account format) (16 marks)
c. Prepare trial balance as at 31 May 2021 (8 marks)
d. Prepare statement of profit or loss for the month ended 31 May 2021 (7 marks)
e. Prepare statement of financial position as at 31 May 2021 (6 marks)
The presentation of the above must be in proper format. (6 marks)
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