Reference no: EM132860813

GAC4008 Financial Accounting - Gulf College

Learning outcome 1: Demonstrate and explain the uses of key accounting systems and the recording of accounting event;
Learning outcome 2: Explain the various types of institution and prepare basic accounting statements for each.

Assessment Task

You have to assume the role of a Book-keeper and carry out the following instructions in the given order. A new business, Star Enterprise, is being set up by Raida Badur. The company is fast-growing and focusing on its core business with the target to supply the Building Materials and Products. The company is carrying on with efficiently managed business and its financial activities includes both credit and cash basis. The Accounting Manager of the company assigned you a task to prepare a report of 1,200 words addressed to Star Enterprise. The structure of the report should be as follows:

I. Introduction (200 words)

a. Explain the objectives of accounting and discuss the qualitative characteristics of Accounting Information. (5 marks)
b. Discuss how the responsibilities of a bookkeeper differ from an accountant. (5 marks)

II. Discussion (800 words)
a. Provide an example for each of the following types of transactions for Star Enterprise:
i. Commenced business with cash as capital.
ii. Purchased goods for cash.
iii. Sold goods on credit.
v. The business pays for its expenses.
vi. Star enterprise withdraws cash for personal use.
vii. Create an accounting equation to show the effect of the above transactions on the company assets, liabilities and capital. (15 marks)

b. Give examples of financial transactions relevant to Star Enterprise:
i. Started business with capital. On the same date, a bank account in Bank Muscat was opened with cash. (2 transactions)
ii. Payment of expenses by cheque (2 transactions)
iii. Goods purchased for cash and credit (2 transactions)
iv. Collection of income by cash (1 transaction)
v. Sale of goods by credit to a customer (1 transaction)
vi. Goods sold and cheque received (1 transaction)
vii. Paid cheque to creditors (1 transaction) (20 marks)

c. From the financial transactions in task b, prepare the templates for the following:
i. Journalise the above financial transactions of Star Enterprise. (25 marks)
ii. Post to the Ledger accounts (10 marks)
iii. Prepare a Trial balance (10 marks)

III. Recommendation (200 words)

a. When transactions are recorded in a journal or posted in ledgers, human errors may be expected. Discuss in detail the following accounting errors with appropriate examples.
i. Error of Principle
ii. Error of commission (10 marks)

References
At least five (5) references in Harvard Referencing style.

Attachment:- Financial Accounting.rar