UNIVERSITY OF TECHNOLOGY, JAMAICA

SCHOOL OF BUSINESS ADMINISTRATION

GROUP ASSIGNMENT

MODULE: FUNDAMENTALS OF ACCOUNTING

DATE DUE: November 27, 2024 at or before 6 p.m.

INSTRUCTIONS:
 Groups must consist of a minimum of three (3) students and a maximum of five (5)
students. Please note individually done projects will not be graded.

 Submission of the printed project must be made to the COBAM Student Affairs
Centre on or before November 27, 2024, at 6 p.m.

 There will be a penalty of 20% reduction of project grade for each day the project is
late.

 Persons submitting the project should sign in the register under your tutor’s name.

 A project management report MUST be submitted with the project which must
CLEARLY indicate dates, duration, members present and places of ALL group
meetings. It must also indicate specific tasks assigned to group members and
what was contributed by each member.

 Where a group member has not contributed to the project his/her name should
not be included on the cover sheet. And the circumstances documented in the
project management report.

 Please include a table of contents, page numbers and references where applicable

 This assignment must be typed. Using times new roman font and a font size of 12 for
the body of the assignment. A larger font size may be used for headings.
(Suggestion: Microsoft Excel is an excellent tool to use for the completion of this
assignment)

 A declaration of authorship MUST be completed by each student and included in the

project. These may be collected at the COBAM Students Affairs office or
downloaded from the University’s website. If this is not completed the University
reserves the right to withhold your project grades.

 Plagiarism is an offence. Please read Regulation 5 in the student handbook re the

repercussions/sanctions. Individuals may be suspended for one year for plagiarized
documents.

Question 1
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Arya Stark has been avid needlepoint embroider for most of her adult years. In 2024, she decided
to start a needle shop, specializing in all types, shapes and lengths of needles. The following
information relates to Arya Stark’s needle business for the month of May 2024:

May 1 started business with, cash, $40,000, building, $750,000 and a motor vehicle $450,000
May 1 received loan repayable by 2028 from the bank, $500,000 by cheque
May 2 paid rent for May by cheque $50,000.
May 3 paid for office furniture by cheque $225,000.
May 3 bought merchandise for resale from Tyrion Bolton, by cheque $120,000.
May 4 sold merchandise to Cersi Lannister, for cash $100,000.
May 5 sold merchandise on credit to Jon Snow $90,000 and Khal Drogo $82,000.
May 6 Jon Snow settled his account with cash receiving a 2% cash discount.
May 6 merchandise valued at $2,000, previously sold on credit to Khal Drogo on May 5, was
returned to Arya. A credit note was given to Khal Drogo.
May 7 bought merchandise on credit from Samwell Tarly $50,000.
May 8 sold merchandise on credit to Bolton Enterprise $78,000.
May 10 bought stationery for cash $12,000.
May 11 paid wages to store attendants by cash $25,000.
May 13 returned unsatisfactory merchandise to Samwell Tarly for $4,000 receiving a credit
note for these goods.
May 15 bought merchandise on credit from Podrick Payne $17,800.
May 16 sold merchandise to Sandor Clegane receiving a cheque for $130,000
May 18 lodged cash of $65,000 to the business bank account.
May 20 paid Samwell Tarly $45,000 in full settlement of the balance outstanding by cheque
having received a discount of $1,000.
May 23 purchased equipment to package the needles on credit from Hayneedle Ltd. for
$150,000.
May 25 paid staff salaries by cheque $155,000.
May 26 received a cheque of $60,000 for commission for services rendered.
May 27 purchased merchandise on credit from Nola’s Stitchery for $18,000.
May 30 Arya withdrew merchandise for private consumption worth $30,000.

REQUIRED:
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 A. Journalize the transactions for the month. (Narrations are not necessary)

B. Post the above transactions in the General ledger.

C. Extract a trial balance as at May 31 2024.

D. Journalize and post the adjusting entries using the following information:

 The monthly rental expense is $40,000.

 One employee complained that their salary was short by $3,400. Investigations

proved that the employee was indeed short paid for the month.

 The Insurance for the motor vehicle was due and payable by May 1st. The

annual premium is $30,000 and the expense is incurred on a pro rata basis.

 It was found that of Bolton Enterprise’s balance, $5,000 must be written off as

bad debts.

 Depreciation for the non-current assets have been considered. The business

uses the straight-line method at a rate of twenty percent (20%) per annum for

all the non-current assets. This needs to be recorded in the accounts per month.

Note: when doing the adjusted T accounts only the accounts that have been
affected need to be done

E. Prepare an adjusted trial balance with the inclusion of the above balances

F. Prepare the Statement of Profit or Loss and the Statement of Financial Position for the

period under review.

Question 2

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 Rebecca Anderson records her weekly cash flow for her business. The below are her
records for the month of May 2024

May 1 Opening balances, overdrawn bank balance at the bank $11,890, Cash
balance $2,300
May 2 Cash sales amounted to $25,690
May 5 Deposited cash in the bank, $25,000
May 6 Paid Purchases by cheque $10,470
May 7 Cashier with draws $2,000 cash from bank for business use
May 8 Owner withdraws cash from bank to pay his house rent $8,000
May 10 Debtor – A Dallas paid with a cheque for $2,000 after he deducted a
$500 cash discount to which he was entitled
May 15 Cash sales immediately deposited to the bank account $31,110
May 16 Payment to creditor -C Barry by cheque $9,900 in full settlement of
amounts owing to him of $10,500
May 19 Purchases paid by the business’ debit card $12,000
May 23 Cash sales $6,840
May 25 Wages paid in cash $5,400
May 29 Paid creditor – B Goode $3,400 by cheque
May 30 Received $3,000, cheque from J Jacobs settling amounts owed

Required:
a) Record the above transactions in the Three Column Cash Book of Rebecca
Anderson. Balance the cash book and bring down the balances.

On June 3, 2024, Rebecca Anderson received a bank statement from the bank for the
month of May which showed an overdrawn balance of $700, it was also noted that there

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 was a debit balance of $3,450 in the cash book. This did not agree with the balance as per
her bank statement; therefore, you were employed as a part time accountant to assist with
the preparation of Rebecca’s bank reconciliation statement. After careful examination, the
following discrepancies and omissions were discovered:

i. Bank charges amounted to $1,500 were not recorded in the cash book
ii. Cheque received from A Dallas on May 10 had been dishonoured
iii. Amount deposited on May 30 from J Jacobs have not been included in the
bank statement
iv. Standing orders for the utility bills of $2,800 had been paid by the bank, this
has not yet been recorded in the cash book,
v. Three of Rebecca’s customers chose to deposit directly to her bank account,
these amounted to $1,750
vi. The cheque which was drawn in the amount of $3,400 for B Goode on May 29
was not among the cheques returned with the bank statement. There was also
no record of it on the bank statement.

Required:
b) Update Rebecca Anderson’s cash book, starting with the closing balance in her
cash book from the required above.

c) Prepare Rebecca Anderson’s bank reconciliation statement for the month of May
2024 using appropriate headings

END OF ASSIGNMENT 😊