ACC5FAS – Individual Assignment

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Running head: ACC5FAS – INDIVIDUAL ASSIGNMENT
ACC5FAS – Individual Assignment
Name of the Student:
Name of the University:
Author’s Note

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ACC5FAS – INDIVIDUAL ASSIGNMENT
Table of Contents
1. Trial Balance:...............................................................................................................................2
2. Journal Report 30th September:....................................................................................................3
3. Profit and Loss report 1st September 2019 to 30th September 2019:............................................8
4. Balance Sheet Report 30th September:.........................................................................................9
5. Financial performance factors:..................................................................................................11
References:....................................................................................................................................14

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ACC5FAS – INDIVIDUAL ASSIGNMENT
1. Trial Balance:
Trial Balance
20165252 Gurleen kaur
As at 29 September 2019
Account Debit Credit YTD Debit YTD Credit
Revenue
Other Revenue (260) $14,800.00 $14,800.00
Sales revenue (200) $66,814.51 $1,50,024.51
Expenses
Bank Fees (404) $9.68 $9.68
Cost of Goods Sold (310) $33,720.35 $33,720.35
Fire Insurance expense (433) $0.00 $4,000.00
Freight & Courier (425) $168.18 $168.18
Interest expense – 8% annually (437) $0.00 $3,677.50
Miscellaneous office supplies (406) $680.00 $680.00
Salaries expense (477) $0.00 $50,160.00
Telecommunication expense (489) $0.00 $1,100.00
Warehouse rent expense (469) $0.00 $4,200.00
Warranty claims (405) $1,408.00 $1,408.00
Assets
Accounts Receivable (610) $32,130.63 $1,23,661.63
Advance online advertisements (615) $8,850.00 $8,850.00
Allowance for Doubtful Debts – 10% (612) $0.00 $8,321.00
Cash at bank (600) $6,481.57 $76,557.92
Computer (740) $2,830.00 $2,830.00
Delivery Van (720) $0.00 $69,300.00
Less Accumulated Depreciation on Delivery Van
(721) $0.00 $35,805.00
Inventory (630) $27,871.18 $82,549.92
Investment account @ 2.5% (614) $50,000.00 $50,000.00
Plastic welding machinery (730) $38,000.00 $38,000.00
Prepaid Fire insurance (611) $0.00 $20,000.00
Product liability insurance policy (613) $5,000.00 $5,000.00
Store Building (710) $0.00 $5,40,000.00
Less Accumulated Depreciation on Store Building
(711) $0.00 $2,72,250.00
Liabilities
Accounts Payable (800) $2,573.83 $59,555.13
GST (820) $3,135.75 $61,175.36
Loan payable – Building Head Office (900) $0.00 $2,75,812.40
Northern Bank on a short-term loan (806) $40,000.00 $40,000.00
Provision for warranty – 5% (805) $0.00 $4,160.50
Texaco Petrol businesses debit card (807) $880.00 $880.00
Unearned delivery revenue (802) $0.00 $18,700.00

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ACC5FAS – INDIVIDUAL ASSIGNMENT
Unearned service revenue (803) $12,000.00 $12,000.00
Equity
Capital (970) $0.00 $2,86,500.00
Total $1,73,676.8
4
$1,73,676.8
4
$11,77,928.5
4
$11,77,928.5
4
2. Journal Report 30th September:
Journal Report
20165252 Gurleen kaur
From 30 Sep 2019 to 30 Sep 2019
ID 171 Insurance expense, Fire insurance (Manual Journal: Posted by Gurleen kaur on 6 Oct
2019)
30 Sep
2019
Account Debit Credit
Fire Insurance expense (433) $2,000.00
Prepaid Fire insurance (611) $2,000.00
$2,000.00 $2,000.00
ID 170 Reversed: Insurance expense, Fire insurance (Manual Journal: Posted by Gurleen kaur
on 6 Oct 2019) Reversal of #169
30 Sep
2019
Account Debit Credit
Fire Insurance expense (433) $2,200.00
Prepaid Fire insurance (611) $2,200.00
$2,200.00 $2,200.00
ID 169 Insurance expense, Fire insurance (Manual Journal: Posted by Gurleen kaur on 6 Oct
2019)
30 Sep
2019
Account Debit Credit
Fire Insurance expense (433) $2,200.00
Prepaid Fire insurance (611) $2,200.00
$2,200.00 $2,200.00
ID 168 Reversed: Insurance expense, Fire insurance (Manual Journal: Posted by Gurleen kaur
on 6 Oct 2019) Reversal of #167
30 Sep
2019
Account Debit Credit
Prepaid Fire insurance (611) $2,200.00
Fire Insurance expense (433) $2,200.00
$2,200.00 $2,200.00

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ACC5FAS – INDIVIDUAL ASSIGNMENT
ID 167 Insurance expense, Fire insurance (Manual Journal: Posted by Gurleen kaur on 6 Oct
2019)
30 Sep
2019
Account Debit Credit
Prepaid Fire insurance (611) $2,200.00
Fire Insurance expense (433) $2,200.00
$2,200.00 $2,200.00
ID 166 Telecommunication accrued for September (Manual Journal: Posted by Gurleen kaur
on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Telecommunication expense (489) $550.00
Telecommunication payable (812) $550.00
$550.00 $550.00
ID 165 40% of deliveries are performed during September (Manual Journal: Posted by Gurleen
kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned delivery revenue (802) $7,480.00
Sales revenue (200) $7,480.00
$7,480.00 $7,480.00
ID 164 Interest expense accrued on the loan for Building of the Head Office (Manual Journal:
Posted by Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest expense – 8% annually (437) $1,838.75
Interest payable (809) $1,838.75
$1,838.75 $1,838.75
ID 163 Depreciation expense Store Building (Manual Journal: Posted by Gurleen kaur on 6 Oct
2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $2,250.00
Less Accumulated Depreciation on Store Building (711) $2,250.00
$2,250.00 $2,250.00
ID 162 Depreciation expense Delivery Van (Manual Journal: Posted by Gurleen kaur on 6 Oct
2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $577.50
Less Accumulated Depreciation on Delivery Van (721) $577.50

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ACC5FAS – INDIVIDUAL ASSIGNMENT
$577.50 $577.50
ID 161 Warehouse rent expense accrued for September (Manual Journal: Posted by Gurleen
kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Warehouse rent expense (469) $2,100.00
Warehouse rent payable (808) $2,100.00
$2,100.00 $2,100.00
ID 160 Salaries expense accrued for September (Manual Journal: Posted by Gurleen kaur on 6
Oct 2019)
30 Sep
2019
Account Debit Credit
Salaries expense (477) $25,080.00
Wages Payable - Payroll (804) $25,080.0
0
$25,080.00 $25,080.0
0
ID 159 Estimate of doubtful debts is 10% of Accounts Receivable (Manual Journal: Posted by
Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Sales revenue (200) $12,366.16
Allowance for Doubtful Debts – 10% (612) $12,366.1
6
$12,366.16 $12,366.1
6
ID 158 Provision for warranties is equal to 5% of sales (Manual Journal: Posted by Gurleen
kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Sales revenue (200) $3,340.73
Provision for warranty – 5% (805) $3,340.73
$3,340.73 $3,340.73
ID 157 Advertising expense amount for the month of September (Manual Journal: Posted by
Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Advertising (400) $1,475.00
Advance online advertisements (615) $1,475.00
$1,475.00 $1,475.00
ID 156 Bill not yet paid yet (Manual Journal: Posted by Gurleen kaur on 6 Oct 2019) 30 Sep

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ACC5FAS – INDIVIDUAL ASSIGNMENT
2019
Account Debit Credit
Motor Vehicle Expenses (449) $350.00
Texaco Petrol businesses debit card (807) $350.00
$350.00 $350.00
ID 155 Interest earned at month end (Manual Journal: Posted by Gurleen kaur on 6 Oct 2019) 30 Sep
2019
Account Debit Credit
Interest receivable (617) $104.17
Interest Income (270) $104.17
$104.17 $104.17
ID 154 Depreciation expense – computer (Manual Journal: Posted by Gurleen kaur on 6 Oct
2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $114.96
Less Accumulated Depreciation on Computer (741) $114.96
$114.96 $114.96
ID 153 Depreciation expense – plastic welding machinery (Manual Journal: Posted by Gurleen
kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $223.03
Less Accumulated plastic welding machinery (731) $223.03
$223.03 $223.03
ID 152 Reversed: Depreciation expense – plastic welding machinery (Manual Journal: Posted
by Gurleen kaur on 6 Oct 2019) Reversal of #151
30 Sep
2019
Account Debit Credit
Depreciation (416) $111.52
Less Accumulated plastic welding machinery (731) $111.52
$111.52 $111.52
ID 151 Depreciation expense – plastic welding machinery (Manual Journal: Posted by Gurleen
kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $111.52
Less Accumulated plastic welding machinery (731) $111.52
$111.52 $111.52

7
ACC5FAS – INDIVIDUAL ASSIGNMENT
ID 150 Office supplies on hand (Manual Journal: Posted by Gurleen kaur on 6 Oct 2019) 30 Sep
2019
Account Debit Credit
Office supplies (616) $310.00
Miscellaneous office supplies (406) $310.00
$310.00 $310.00
ID 149 You completed 30% of Toy repairs for ThinkFun Toys during September (Manual
Journal: Posted by Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned service revenue (803) $3,600.00
Other Revenue (260) $3,600.00
$3,600.00 $3,600.00
ID 148 First month of subscription revenue earned from the company featured magazine,
“Humpty Dumpty”. (Manual Journal: Posted by Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned service revenue (803) $2,466.66
Other Revenue (260) $2,466.66
$2,466.66 $2,466.66
ID 147 Reversed: First month of subscription revenue earned from the company featured
magazine, “Humpty Dumpty”. (Manual Journal: Posted by Gurleen kaur on 6 Oct 2019)
Reversal of #146
30 Sep
2019
Account Debit Credit
Other Revenue (260) $2,466.66
Unearned service revenue (803) $2,466.66
$2,466.66 $2,466.66
ID 146 First month of subscription revenue earned from the company featured magazine,
“Humpty Dumpty”. (Manual Journal: Posted by Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Other Revenue (260) $2,466.66
Unearned service revenue (803) $2,466.66
$2,466.66 $2,466.66
ID 145 Insurance expense – product liability insurance policy (Manual Journal: Posted by
Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Product liability insurance (407) $1,666.66
Product liability insurance policy (613) $1,666.66

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ACC5FAS – INDIVIDUAL ASSIGNMENT
$1,666.66 $1,666.66
ID 144 Reversed: Insurance expense – product liability insurance policy (Manual Journal:
Posted by Gurleen kaur on 6 Oct 2019) Reversal of #143
30 Sep
2019
Account Debit Credit
Product liability insurance (407) $1,833.33
Product liability insurance policy (613) $1,833.33
$1,833.33 $1,833.33
ID 143 Insurance expense – product liability insurance policy (Manual Journal: Posted by
Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Product liability insurance (407) $1,833.33
Product liability insurance policy (613) $1,833.33
$1,833.33 $1,833.33
ID 142 Reversed: Insurance expense – product liability insurance policy (Manual Journal:
Posted by Gurleen kaur on 6 Oct 2019) Reversal of #141
30 Sep
2019
Account Debit Credit
Product liability insurance policy (613) $1,833.33
Product liability insurance (407) $1,833.33
$1,833.33 $1,833.33
ID 141 Insurance expense – product liability insurance policy (Manual Journal: Posted by
Gurleen kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Product liability insurance policy (613) $1,833.33
Product liability insurance (407) $1,833.33
$1,833.33 $1,833.33
ID 140 Interest expense – short-term loan (Northern Bank) (Manual Journal: Posted by Gurleen
kaur on 6 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest expense – 8% annually (437) $266.67
Northern Bank on a short-term loan (806) $266.67
$266.67 $266.67

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ACC5FAS – INDIVIDUAL ASSIGNMENT
3. Profit and Loss report 1st September 2019 to 30th September 2019:
Profit and Loss
20165252 Gurleen kaur
1 September 2019 to 30 September 2019
30 Sep 19
Income
Interest Income $104.17
Other Revenue $20,866.66
Sales revenue $58,587.62
Total Income $79,558.45
Less Cost of Sales
Cost of Goods Sold $33,720.35
Total Cost of Sales $33,720.35
Gross Profit $45,838.10
Less Operating Expenses
Advertising $1,475.00
Bank Fees $9.68
Depreciation $3,165.49
Fire Insurance expense $2,000.00
Freight & Courier $168.18
Interest expense – 8% annually $2,105.42
Miscellaneous office supplies $370.00
Motor Vehicle Expenses $350.00
Product liability insurance $1,666.66
Salaries expense $25,080.00
Telecommunication expense $550.00
Warehouse rent expense $2,100.00
Warranty claims $1,408.00
Total Operating Expenses $40,448.43
Net Profit $5,389.67
4. Balance Sheet Report 30th September:
Balance Sheet
20165252 Gurleen kaur
As at 30 September 2019
30 Sep
2019
Assets

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ACC5FAS – INDIVIDUAL ASSIGNMENT
Current Assets
Accounts Receivable $1,23,661.6
3
Advance online advertisements $7,375.00
Allowance for Doubtful Debts – 10% -$20,687.16
Cash at bank $76,557.92
Interest receivable $104.17
Inventory $82,549.92
Investment account @ 2.5% $50,000.00
Office supplies $310.00
Prepaid Fire insurance $18,000.00
Product liability insurance policy $3,333.34
Total Current Assets $3,41,204.8
2
Fixed Assets
Computer $2,830.00
Less Accumulated Depreciation on Computer -$114.96
Delivery Van $69,300.00
Less Accumulated Depreciation on Delivery
Van -$36,382.50
Less Accumulated plastic welding machinery -$223.03
Plastic welding machinery $38,000.00
Store Building $5,40,000.0
0
Less Accumulated Depreciation on Store
Building
-
$2,74,500.0
0
Total Fixed Assets $3,38,909.5
1
Total Assets $6,80,114.3
3
Liabilities
Current Liabilities
Accounts Payable $59,555.13
GST -$61,175.36
Interest payable $1,838.75
Northern Bank on a short-term loan $40,266.67
Provision for warranty – 5% $7,501.23
Telecommunication payable $550.00
Texaco Petrol businesses debit card -$530.00
Unearned delivery revenue $11,220.00
Unearned service revenue $5,933.34
Wages Payable - Payroll $25,080.00
Warehouse rent payable $2,100.00
Total Current Liabilities $92,339.76
Non-Current Liabilities
Loan payable – Building Head Office $2,75,812.4
0

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ACC5FAS – INDIVIDUAL ASSIGNMENT
Total Non-Current Liabilities $2,75,812.4
0
Total Liabilities $3,68,152.1
6
Net Assets $3,11,962.1
7
Equity
Capital $2,86,500.0
0
Current Year Earnings $25,462.17
Total Equity $3,11,962.1
7
5. Financial performance factors:
Ratios Value
Cost of sales/turnover 50%-63%
Average cost of sales 42.38%
Total expenses/turnover 77%-88%
Average total expenses 93.23%
Motor vehicle expenses/turnover 10%-14%
Motor vehicle expenses/turnover 0.44%
Rent/turnover 2%-4%
Rent/turnover 2.64%
The information in the above table directly helps in identifying the overall financial
performance of the Toy Company with the Average industry standards. Financial performance of
organizations can be adequately analyzed with the help of financial ratios, as it helps in
evaluating the data presented in annual report. From the relevant analysis, it could be detected
that the average cost of sales of the organization is relatively lower than the industry benchmark,
which is adequately beneficial for the organization, as it is encouraging low level of expenses in
conducting relevant sales (Ato.gov.au 2019). Moreover, the information is directly indicating
that high level of expenditures that is entered by the company in administrative expenses has
relatively increased from the industry standards or benchmarks. This indicates that the company

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ACC5FAS – INDIVIDUAL ASSIGNMENT
is relatively incurring high level of expenses, which is negatively affecting their net profit
conditions. Furthermore, the motor vehicle expense is lower than benchmark while the rent of
the company is adequately in lieu with the benchmark data. Thus, it could be understood that the
company's overall performance is highly correlated with the benchmark industry.
Particulars Toy Company JB HI-Fi
Current ratio 3.70 1.38
Debt ratio 0.41 0.59
Net profit margin 6.77% 3.52%
Gross profit
margin 57.62% 21.52%
Net profit margin Gross profit margin
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Profitability ratios
The information in the above table and graph directly helps in identifying the profitability
ratio of the Toy Company in comparison with JB Hi Fi, which is one of the major leaders of
retail in Australia. From the relevant analysis, it has been detected that profitability ratio of the
Toy Company is relatively higher in comparison to JB Hi Fi. The analysis directly indicates that
both net profit margin and gross profit margins of the Toy Company is approximately double the
values of JB Hi Fi (Investors.jbhifi.com.au 2019). Therefore, the performance of the Toy

13
ACC5FAS – INDIVIDUAL ASSIGNMENT
Company is relatively high in the retail market and is adequately conducting is operations to
generate returns to support its operations in the long run.
Current ratio Debt ratio
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Financial ratios
The financial ratio data presented in the above graph relatively provides information,
which can help in identifying the strength and current position of the Toy Company. The above
information indicates that the Toy Company has higher values in current ratio and lower values
in debt ratio in comparison with the JB Hi Fi. This mainly indicates the performance of the Toy
Company is relatively higher, as they are able to reduce the debt levels while improving their
current assets to secure their short term obligations.
Recommendation:
The overall analysis of the organization has directly indicated that certain improvements
in its inventory control system and operating expenses needs to be conducted for adequately
improving its financial strength. The inventory control system needs to be improved for reducing
the level of stocks held, as it is increasing the cost, which can be adequately minimized by
increasing the efficiency of its working capital. Moreover, the reduction in administrative

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ACC5FAS – INDIVIDUAL ASSIGNMENT
expenses or operating expenses would eventually help in reducing the net profit margin of the
organization even higher, which in turn strengths its financial condition.
References:
Ato.gov.au. 2019. Toy and game retailing. [online] Available at:
https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/Benchmarks-A-Z/R-Z/
Toy-and-game-retailing/ [Accessed 6 Oct. 2019].
Investors.jbhifi.com.au. 2019. [online] Available at:
https://investors.jbhifi.com.au/wp-content/uploads/2019/08/4E_FY19.pdf [Accessed 6 Oct.
2019].