center4500480695Unit 8: Accounting SystemsAssessor Name: Yaw Sarpong
11540067000Unit 8: Accounting SystemsAssessor Name: Yaw Sarpong
centerbottomWest Thames College
1154000West Thames College
4112260000Learner Assessment Submission and Declaration
When submitting evidence for assessment, each learner must sign a declaration confirming that the work is their own.
Learner name: Neha Pindoria Assessor name: Yaw Sarpong
Issue date: 10/09/18 Submission date: 28/09/18 Submitted on: 28/09/18
BTEC Level 3 Diploma in Business
Assignment reference and title: Accounting Systems
Please list the evidence submitted for each task. Indicate the page numbers where the evidence can be found or describe the nature of the evidence (e.g. video, illustration).
Task ref. Evidence submitted Page numbers or
P1 Business documents 2-3
P2 Day books 4-5
P3 Benefits of computerised accounting 6-7
Additional comments to the Assessor:
I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.
Learner signature: Date: 28/09/18
Describe the following identified business documents used in recording business transactions.
In this assignment I will be explaining the different documents, who prepares the documents, to whom it’s prepared to, its purpose and other details of it.
1 A purchase order: A purchase order is a formal document that is prepared by the buyer and given to the seller. It indicates the number of purchase order, quantity, signature of person authorised to issue the order and the prices for product and services that the seller delivers to the buyer.
2 Sales order: A sales order is a document prepared by the seller that explains and authorises the sale of listed items for the given amount.
3 A letter of enquiry: A letter of enquiry is a document that is prepared by the buyer wishing to find out information about the products. The letter may include: Details of the good, prices and the delivery period.
A quotation: A quotation is a document prepared by the seller and sent to the customer offering to sell goods at a certain price.
5 A statement of account: A statement of account is sent usually monthly and shows what the buyer has paid over a given period time.
6 A credit note: A credit note is issued by the seller if any products are returned by the buyer. Reasons
7 A delivery note: A delivery note is a document prepared by the supplier and given to the buyer for proof of goods delivery which explains the contents of an order.
8 A remittance advice: A remittance advice is a document prepared by the buyer to a supplier to inform them that the invoice has been paid.
A bulk discount: A bulk discount is a reduction of the actual price that is offered by the supplier for buying more than a certain number or amount of something.
10 A Settlement discount: A settlement discount is a lower price that is offered by the seller if the payment is paid within the period of time given.
11 A trade discount: A trade discount is when a manufacturer reduces the retail price of a product when it sells to a retailer.
12 Net amount: The net amount is the value at which a product is sold after all taxes and other costs have been added.
13 Goods received note: A goods received note is a document used to confirm that all goods have been received.
14 A sales invoice: A sales invoice is prepared by the seller and is a request of payment for goods sold to the buyer. It lists the description of the product, quantity and price.
15 Value Added Tax (VAT): VAT is an amount of money that goes to the government that a customer pays on the ‘value added’ to the product during its production process.
P2: Purchases Day Book
A purchase day book is a book of entry used to record credit purchases.
Date Invoice No. Supplier Name Product Details Net £ VAT
03/01 03576 P J Phillips Materials 694.20 115.70 578.50
04/01 43654 W J Jones Stationery 498.48 83.08 415.40
09/01 03598 P J Phillips Materials 666.72 111.12 555.60
11/01 28423 Packing Supplies Packaging 334.20 55.70 278.50
13/01 84335 0 ; P Ltd Materials 989.40 164.90 824.50
24/01 28444 Packing Supplies Packaging 353.40 58.90 294.50
TOTAL 3536.40 589.40 2947.00
Purchase Returns Day Book
A purchase return book is a book that records goods that are returned to the supplier.
Date Credit Note Supplier Product Details Net
13/01 04216 PJ Phillips Materials 226.32 37.72 188.60
18/01 0643 W J Jones Stationery 76.40 19.10 95.50
30/01 1102 0 ; P Ltd Materials 91.60 22.90 114.50
TOTAL 318.88 79.72 398.60
Sales day book
A sales day book is a book that records key detailed information for each credit sale to a customer. It includes: Customer name, invoice number, invoice date and invoice amount.
Date Invoice No. Customer Name Net
Hoopers Ltd 654.00 109.00 545.00
Body Perfect 1104.00 184.00 920.00
10/01 6239 Esporta Leisure 775.20 129.20 646.00
14/01 6241 Body Perfect 898.80 149.80 749.00
24/01 6242 Superior Products 513.60 85.60 428.00
TOTAL 3945.60 657.40 3288
Sales returns day book:
Sales returns day book is a document used to record sales returns.
Date Credit Note Supplier Net
14/01 1476 Hoppers Ltd 158.96 39.74 198.70
17/01 1477 Esporta Leisure 79.36 19.84 99.20
28/01 1478 Superior Products 71.00 17.75 88.75
29/01 1479 Body Perfect 112.00 28.00 140.00
TOTAL 421.32 105.33 526.65
Explain the benefits of computerised accounting system.
In this assignment I will be explaining the benefits of using a computerised accounting system used to record business transactions. Computerised accounting involves making use of computers and accounting software’s to record, store and analyse data.
One benefit of computerised accounting systems is that it’s not time-consuming. This is because invoices are processed automatically by the systems and are kept in one place. This saves a lot of time in comparison to manual accounting because the employer just has to enter the data and the system will automatically do the rest, making the process much quicker.
Computerised accounting systems are also very accurate as there are minimal mistakes made. For example, all data and calculations that has been entered into Microsoft Excel will automatically be done by the system, making outcomes accurate. This also makes these accounting systems reliable because the results are correct.
Another benefit of computerised accounting system is that the data is kept safe. Security of modern accounting systems such as Microsoft Excel are usually always protected by different programmes. In addition to this, if data is lost, it can be restored on other computers and can also be backed up by different software’s. In comparison to manual accounting, data can be lost and if lost, often it is unlikely that data can be restored.
Computerised accounting system also allow businesses to choose how they would like to present and view their data; whether its in the form of tables, charts etc. This gives businesses to maintain their professionalism in their own ways. As well as this, it allows businesses to easily read their data by choosing how to present it.
Computerised accounting systems also motivates staff. This is because often with accounting systems, staff undergo training to learn how to use these systems. This could motivate staff because it will get them to learn new skills in their job making them feel more motivated in their work.
Computerised accounting systems can store as much data as the business chooses to. This makes these system very efficient and accessible because you can enter what you want, when you want. In comparison to manual accounting, most of the data is logged into books of account in the form of journals, which
Computerised accounting systems can save a firm a lot of money. Due to the efficiency of the systems, as you would be making use of the resources. This can save a company money because they would not need to have as many employees which reduces labour expenses. The company can use the money saved to invest into new technology, which could help the business grow.
A final benefit of accounting systems is the availability of the data. Data can be viewed and passed onto other parties easily, regardless of time and location. This is mainly because computers are portable and available in most places.