Question 1 (Case study – Email from Manager, Smith Chartered Accountants)
From: Client Accounting & Reporting Manager – Smith & Co. LLP
To: Finance Intern – Smith & Co. LLP
Subject: Set-up and Financial Report Preparation for HSC Trading Group LTD.
Date: March 2018
We have an existing client, HSC Trading Group Ltd, who has been trading for a number of years now. The most recent record of transactions have just been sent to me by the Managing Director, Mr Silver, and we are to prepare their accounts for the trading period, 12 months to 31st March 2018.
Attached is a statement of opening position with additional notes, schedules of the trading period, including major customers, vendors, with quantities of products bought and sold, unit prices of products bought and sold, together with other schedules showing gross sales and purchase values.
As our firm is now using the SAGE accounting software, I would appreciate your input to do the following:
1) Set-up the company in Sage Accounting 5 Marks
2) Extract the Sales Nominal Ledger for All Products 10 Marks
3) Extract the Trial Balance for the period. 10 Marks
4) Extract the Trading, Profit or Loss Account (P &L) 30 Marks
5) Extract the Statement of Financial Position (BS) 30 Marks
6) Examine and discuss the “Risks” in the use of Electronic
accounting systems providing relevant references. 10 Marks
Mode of Presentation (5 marks for presentation)
Respond to the email, with the work required in report format, which will have a cover page, title page showing the trading company name and trading period for which the report covers. Provide a table of contents to include the learning requirements and a sound introduction stating the purpose of the financial reports and the general nature of client business.
Please use the Sage function to extract reports and append to your report, ensuring the screen views are proportionate in size to the page.
UNIT PRICES (£)
COST PRICE SELLING PRICE
3 PRODUCTS ALPHA 2.8 6.4
BETA 3.12 8.7
SIGMA 4.15 12.2
UNIT QUANTITIES, GROSS VAT VALUE SALES
2017 – 2018 ALPHA Value + VAT BETA Value + VAT SIGMA Value + VAT
April 1124 8,632 2100 15,681 1918 28,080
May 1310 10,061 1894 19,773 771 11,287
June 1344 10,322 1709 15,274 2157 31,578
July 1485 11,405 2196 22,926 2075 30,378
August 1172 9,001 1522 15,890 626 9,165
September 603 4,631 1302 13,593 2144 31,388
October 1372 10,537 1743 18,197 2198 32,179
November 1375 10,560 1917 18,197 760 11,126
December 1534 11,781 1301 13,582 2370 34,697
January 227 1,743 2088 21,799 2011 29,441
February 1587 12,188 1933 20,181 2266 33,174
March 1372 10,537 1748 18,249 1015 14,860
Note: The credit policy is for 50% of sales to be settled in month of sales and 50% the following month. All opening debtors balances were cleared (i.e. received) in April 2017 in line with the policy.
Yunshi Trading Partners(Wholesalers) , The Duncan Group
5 Triad Road, Plot 15 Drew Avenue
Yacuza State New Birmingham
Quandong Province Cheshire
People’s Republic of China (PRC) CH1 5TT, United Kingdom
Alpha & Sigma Products Beta Product
UNIT QUANTITIES BOUGHT INVENTORY/STOCK
2017 – 2018 ALPHA NET + VAT BETA NET + VAT SIGMA NET + VAT
April 1000 2800 3360 1200 3744 4493 1800 7470 8964
May 1400 3920 4704 1400 4368 5242 560 2324 2789
June 1000 2800 3360 1350 4212 5054 1600 6640 7968
July 1200 3360 4032 1000 3120 3744 1500 6225 7470
August 1000 2800 3360 1150 3588 4306 300 1245 1494
September 900 2520 3024 1305 4072 4886 2000 8300 9960
October 1850 5180 6216 1200 3744 4493 1650 6848 8217
November 1105 3094 3713 1600 4992 5990 560 2324 2789
December 950 2660 3192 1650 5148 6178 1680 6972 8366
January 1200 3360 4032 1500 4680 5616 1560 6474 7769
February 1400 3920 4704 1560 4867 5841 2000 8300 9960
March 1950 5460 6552 1200 3744 4493 600 2490 2988
Note: Payments to suppliers are made one month after purchase.( i.e. April purchases will be paid for in May)
data correctly into SAGE and present accurate report as per below. The report for each question must begin on a new page with the following headings:
Task – HSC Trading Group Ltd.
• SAGE 50 Company Accounts Set-Up. You should discuss how you have achieved
• The company information provided should be used in setting up the company.
• Setup the various nominal accounts codes, and enter the data.
• Extract the reports required and appraise the performance of the company.
• Examine and discuss the risk of electronic accounting systems.
CE 3.1 As an understudy of second last semester of Bachelor’s Degree, I arranged a work report as a person on a title called ‘Constant Improvement in Production of Lamination Department’. This last profession scene depicts about this work report finished at the personnel of work situation 2, Jayco, 1 Jayco Dr., Dandenong, Australia. The task was proficient in two months from Oct 2015 to Nov 2015. I sought after my Bachelor’s Degree in Engineering Technologist and spent significant time in Mechatronic from Chisholm Institute, Australia. I got steady help from Daniel and Jeffery and picked up preparing from them. Foundation CE 3.2 Nature of undertaking Jayco Australia, had a few issues emerging in their overlay office, it was prompting time wastage of work and cost. Jayco is a recreational vehicle items producer in Australian market. They needed to correct the issue, for this reason I had archived a report in light of some of these issues. The report was archive to record the errands performed at the work arrangement in cover bureau of Jayco. I needed to comprehend the position and part I would add to the organization in light of the way the organization runs. I was acquainted with the organization and my obligations, errand, timing, and division was doled out to me. I comprehended its authoritative structures and obligation and the assembling forms that occurred in cover division. Issue articulations were recognized subsequent to identifying the issues and the reason for its event. CE 3.3 Overlay process comprises of 4 noteworthy stages. They are: Stage 1 – Welding (Framing) – includes cutting the rails of aluminum or handle, welding them together, crushing the surfaces and composing body number for distinguishing proof. Stage 2 – Filming – fill the casings with Styrofoam, Gal strips and pieces. Stage 3 – Pressing – apply glue to append the casings and put it under press machine. Stage 4 – Routing – here, it is trimmed and inordinate spots are expelled out from the overlay. CE 3.4 Objectives The essential goal of the undertaking was to address the issues emerging in the creation and to give a conceivable and reasonable arrangement that would redress the issue and help in enhancing the productivity of the generation exceptionally in the Saws and Lamination division. It would likewise enlarge the cost. My venture is separated into three distinct targets and objectives, that depends on a few subjects emerging in the organization subsequent to understanding the its part. A venturing stone is taken forward towards my essential point by finishing one of these three objectives. Target 1 – Full depiction to PM (Preventive/Proactive Maintenance) from RM (Reactive support) and CLPR (Cut List per Run) from BOS (Bulk Ordering System) Target 2 – prescribing and recommending refreshes on the illustrations. Target 3 – Rectifying the misalignment between the arrangement, illustrations and cut records. CE 3.5 The graph of hierarchical structure The underneath diagram demonstrates my situation for my work report. It is regarding my college administrator and the departmental chief of JAYCO. CE 3.6 Duties Inside and out research and studies was done on cover process. In view of my investigation, I arranged different conceivable arrangement that coordinated the necessities. Exhibited my destinations and parts to the organization supervisor for endorsement. Designs and work designs were made. Scientific computations were required for choosing the sizes of each part/segment. Learnt how CNC shield is worked and G code is customized. Performed on the web and pragmatic testing on the working machine. Thought about different parts previously choosing them. Arranged different building drawing for usage of my venture with the assistance of designing instruments. Assignment was separated into little parts for accomplishing higher exactness. Kept great relations with manager. Detailing the advancement of the venture to the lab administrator and facilitator. Consistent gatherings were kept with the administrator to get criticism of the advance. Individual ENGINEERING ACTIVITY CE 3.7 I began to deal with my first target where the issue was that the consistent issue in stock of the squares was causing wastage in labor time and cost. I distinguished that the issue was identified with the Saws office and filling area. To amend this issue, I recommended full progress to PM from RM and CLPR from BOS. To examine the issue, a turn around following procedure was connected of the underlying driver. I arranged a procedure diagram that portrayed every one of the procedures it included. Machine down time was noted in the Saws division hide to responsive support, it was causing delay in plans. At that point the pieces were not getting conveyed on time, so requesting of squares was required in BOS in cover office, and in filling area, due to the sort and method for conveyance, there was wastage in labor time and cost. CE 3.8 I at that point began my exploration on what precisely BOS and CLPR are and its capacity. So fundamentally, from my exploration work and notes, I went to a point that BOS shows restricted measure of data all in all and CLPR is more information particular and spotlights significantly on each run. In the present piece creation framework in the Saws division is making utilization of BOS i.e. mass request framework which is the significant concern. In such circumstance, the perfect method of creation would utilize CLPR. I arranged a stream display for the working of CLPR. CE 3.9 From my examination and review, it was discovered that the Saws division progressed from RM to PM and square creation of CLPR to BOS. CLPR expanded the focal point of significance per Run and diminishes the piece. It likewise improved the creation cost and spares time alongside disposing of manual procedures, for example, stock checking, requesting procedure and printed material stream. Also, by utilizing PM upkeep write, it limits the danger of creation deferral, and gives more exact data. It was discovered that the representatives still propose RM for utilize instead of PM at its on beginning periods. CE 3.10 For my second goal, there was a recommendation on refreshing the plans as they were excessively old. In this way, I chose to run with that, and it was discovered that there was wastage of materials and overhang hinders on entryway side edges. Thus, I attempted to examine the issue and discover the answer for increment the proficiency of the generation. I made couple of attracting utilizing building apparatuses to comprehend the fundamental working of the side casing and the reason of overhang of the squares. IMG_1639.JPG CE 3.11 It was discovered that there was full length of shade of the pieces at the front and the back part. Also, there was obstructs in blend of full length alongside best and base. On understanding the circumstance, it could be outlined that there must be a refresh in the illustrations identified with the progressing action and the organization had begun taking those recommendations. The conceivable arrangements could be as yet done by offering the clients the alternative of joining the electric overhangs. CE 3.12 In this way, after legitimate innovative work on each assignment and issues, different recommendations were suggested. For target 1, I proposed to mastermind a framework that records the points of interest of the machine down circumstances and at whatever point recognized it ought to be set out to maintain a strategic distance from unsettling influence in the stream of creation. Pareto graph can be built up according to the discoveries of the machine down circumstances and can be influenced use to discover to and improve the PM structure. Considering the goal 2, by sorting out a structure that would decide the degree of pieces can be killed and correlations can be made between the real prerequisite of the square and estimations for finish unit per Run. By thusly, plausibility of wastage can be diminished and the workload can be limited which comes about is proficient and practical creation. Furthermore, in the event of target 3, there was a hole of correspondence between the offices which can be corrected by advancing the strong correspondence framework and investigating it by limiting the human mistakes that happen at the arranging stage.>