BSBFIA401 Practical Assessment Part A

This assessment is in two parts and is to be completed using manual techniques in Part A and MYOB AccountRight in Part B. Part A must be marked Satisfactory to commence Part B. Preview the following General Ledger already prepared up to 29/06/19. In this assessment, you will maintain an asset register, process general journal entries on 30/06/19, post to the General Ledger, prepare an adjusted Trial Balance, Profit and Loss Statement and Balance Sheet.

1

BSBFIA401
Part A
Practical Assessment
Manual Double Entry
V:\Business\Business Studies Team\02 Units\BSBFIA401\00 Assessments\Word Docs\BSBFIA401 Practical Assessment Part A.docx

Student Name: .......................................................................................
Time Allowed: This assessment should take 2
to 3 hours to complete
Requirements:
• This Assessment
• Calculator
• Email access to supervisor to resolve any errors
• Access to Excel software
• Excel file “KookaburraDepreciation - 2019.xls” provided
on Moodle.
• Access to an electronic copy of Australian Accounting and
Auditing Standards AASB1018 - see the Resources section
in Moodle.
• Access to examples of financial data [found in “Preparing
Financial Reports [manual and MYOB AccountRight”]
• Access to the BAS Agent Code of Professional Conduct -
see the Resources section in Moodle.
Assessment Conditions:
Access to “Prepare Financial Reports [manual and MYOB AccountRight]” or any other
appropriate text, and participant’s notes are allowed.
Errors will be indicated.
All work must be accurate. It is recommended that on completion of this unit, participants
should be able to produce work with not more than two re-submissions.
Remember neatness and correction of error techniques are important.
Method of Assessment:
This assessment is in two parts and is to be completed using manual techniques in Part A and
MYOB AccountRight in Part B.
Part A must be marked Satisfactory to commence Part B.
Occupational Health and Safety:
Before beginning this assessment, check that your posture, lighting and working space meets
occupational health and safety recommendations.
3

 Assessment Details
Jason Wilson set up his furniture business in Eskdale. Jason leases premises and
has taken out a Bank Loan to buy a motor vehicle.
Jason has registered “Kookaburra Furniture” as his business
name. He has obtained an ABN and registered for GST, reporting GST monthly
on an ACCRUAL BASIS. The business expenses any Capital Acquisitions less
than $100 excluding GST. Capital Acquisitions less than $1,000 excluding GST
are allocated to the Low-Value Pool.
An extract from the Policies and Procedures of Kookaburra Furniture is printed on the
following page. Printed below is the Chart of Accounts used by Kookaburra Furniture.
CHART OF ACCOUNTS – Kookaburra Furniture
110 Bank
120 Accounts Receivable [Debtors]
125 Provision for Doubtful Debts
130 Prepaid Expenses
135 Accrued Income
140 Stock on Hand [Furniture]
150 Office Equipment
155 Accumulated Depreciation – Office Equipment
160 Motor Vehicles
165 Accumulated Depreciation - Motor Vehicles
180 Low-Value Pool
210 Accounts Payable [Creditors]
220 GST Collected
230 GST Paid
240 Prepaid Income
250 Accrued Expenses
270 Bank Loan
310 Capital
320 Drawings
410 Sales [furniture]
430 Interest Received
510 Opening Stock
520 Purchases [furniture]
530 Closing Stock
610 Advertising
620 Accounting Fees
630 Bad and Doubtful Debts
640 Bank Charges
650 Depreciation
660 Lease of Premises
670 Motor Vehicle Expenses
V:\Business\Business Studies Team\02 Units\BSBFIA401\00 Assessments\Word Docs\BSBFIA401 Practical Assessment Part A.docx

680 Superannuation
690 Wages
810 Gain on Sale of Asset
910 Loss on Sale of Asset
5

Kookaburra Furniture
[Extract from] Accounting Policies and Procedures
Accounting System
The business keeps an Accrual set of books, accounting for debtors and creditors. Credit purchases are
paid for by cheque or electronic transfer. Cash purchases are paid for by credit card or petty cash. Both
cash and credit sales are recorded. All discrepancies should be identified and resolved or referred to
Jason Wilson [your supervisor] for clarification.
General Ledger
A Chart of Accounts has been drawn up in consultation with the Accountant.
Accounts are not to be added unless there is no other account which can be used.
If accounts are added, care must be taken so that the new accounts are on the correct level so that
financial reports are accurate in MYOB AccountRight
3 General Journal Entries
General Journal Entries are to be avoided. Journals should only be used for the following transactions:
prepayments and accruals, end of year adjustments and stock adjustments if needed.
General Journal Procedures [manual set of books]:
1 A General Journal sheet is used to record journals.
2 Appropriate supporting documentation should be supplied with each journal entry to justify the
transaction. The supporting documents should clearly explain the reason for the journal entry and the
basis of the journal entries arising.
3 The journal entry should contain:
The correct account from the Chart of Accounts line
Amounts in dollars and cents
Amounts allocated to the correct debit or credit column clear
Distinction between numeric and alpha characters
The reason for the journal
Total debits and total credits
Errors must be neatly crossed out and initialled by the bookkeeper and the correct amount entered
above
A batch number is written on the top of the journal. This batch number will be used as the
posting reference in the General Ledger. The ledger account number is used as the posting
reference in the journal.
General Journal Procedures [using MYOB AccountRight]:
1 Appropriate supporting documentation should be supplied with each journal entry to justify the
transactions. The supporting documents should clearly explain the reason for the journal entry and the
basis of the journal entries arising.
2 The journal entry should contain:
The correct Chart of Accounts code
The reason for the journal
Amounts allocated to the correct debit or credit column
3 The Journal ID should be written on the source document.
4 At the end of each month, a hard copy of journal entries for the month is printed.
V:\Business\Business Studies Team\02 Units\BSBFIA401\00 Assessments\Word Docs\BSBFIA401 Practical Assessment Part A.docx

4 Provision for Doubtful Debts
At the end of the financial year, at the discretion of the Director of Kookaburra Furniture, any 90 day
accounts may be considered doubtful and a provision of 5% may be created.
Call your trainer assessor to discuss how you are going to calculate this provision.
5 Asset Register Procedures:
1 Kookaburra Furniture is not taking advantage of the Small Business Income Tax concessions.
2 All depreciating asset transactions [more than $100 ex GST] must be entered in the Asset
Register and the General Ledger.
There are 2 classes of assets:
1 Assets costing less than $1,000 ex GST: These assets will be pooled in the Low-Value Pool and
depreciated at 18.75% in the first year and 37.5% thereafter using the Diminishing Value method of
calculating depreciation.
2 Assets costing more than $1,000 ex GST: These assets will not be pooled and will be
depreciated according to the recommended Effective Life of the asset.
Assets will be grouped as follows, as set out in the Chart of Accounts of the business.
(a) Office Equipment including printers [Effective Life 5 years, Diminishing Value Rate = 40%]
(b) Motor Vehicles [Effective Life 8 years, using straight-line method of depreciation.]
Reconciliation of Assets:
At the end of the financial year, the value of assets in the Asset Register must reconcile with the value
of assets in the Balance Sheet of the business. Any discrepancies should be identified and adjustment
made.
Disposal of Assets:
When an asset is traded-in, sold or written off, quotes must be obtained from at least 2 dealers and
final decision approved by Jason. The entry must be recorded in both the Fixed Asset Register and the
General Ledger as soon as possible after the date of disposal.
Financial Reports:
After all transactions have been posted to the General Ledger for the financial year and all bank,
accounts receivable, accounts payable and asset register accounts have been reconciled the following
procedure is followed.
Financial reports [manual set of books]:
1 An Adjusted Trial Balance is drawn up.
2 Closing entries are prepared and Income and Expense Accounts are closed.
3 Trading and Profit and Loss Accounts are prepared.
4 Drawings are transferred to Capital.
5 An unclassified Profit and Loss Statement is prepared for interested parties.
6 A classified Balance Sheet is prepared for interested parties.
Financial reports [MYOB Accounting]:
An Adjusted Trial Balance is printed.
Drawings are transferred to Capital.
7

Retained Earnings are transferred to Capital
4 A Profit and Loss Statement is printed for interested parties. 5 A Balance Sheet is printed
for interested parties.
9 Workplace Health and Safety
Kookaburra Furniture recognises its moral and legal responsibility, in particular to the Workplace
Health and Safety Act 2013 [Qld], to provide a safe and healthy work environment for employees and
customers.
 Task 1: Preview existing data
Preview the following General Ledger already prepared up to 29/06/19.
In this assessment, you will maintain an asset register, process general journal entries on
30/06/19, post to the General Ledger, prepare an adjusted Trial Balance, Profit and Loss
Statement and Balance Sheet.
GENERAL JOURNAL - KOOKABURRA FURNITURE.
Date 2019 Particulars Ref Debit Credit
June 30 Bank
Account Receivable
Stock on Hand of furniture
Office Equipment
Motor Vehicles
Low Value Pool
GST Paid
Drawings
Purchases of furniture
Advertising
Accounting Fees
Bank Charges
Motor Vehicle Expenses
Superannuation
Wages
Profit and loss account
Bad Debts written-down
Sundry Assets
Provision For Doubtful debts
Accumulated Depreciation - motor Vehicles
10000
42000
85000
18000
40000
900
4400
6800
101000
12000
6000
800
5500
7200
80000
294928.77
4400
17361.23
2000
3328.77
V:\Business\Business Studies Team\02 Units\BSBFIA401\00 Assessments\Word Docs\BSBFIA401 Practical Assessment Part A.docx

Accounts Payable
GST Collected
Bank Loan
Capital
Sale of Furniture
Profit and loss account
28000
5200
4400
95061.23
252000
350700
June 30 Bank Account
Interest Expenses
200
200
June 30 Office Equipment
Accumulated Depreciation Account
11973.7
11979.7
June 30 Motor Vehicles
Disposal of Motor Vehicle
36793.89
36793.89
June 30 Accumulated Depreciation
Depreciation
7105.11
7105.11
June 30 Disposal of Motor Vehicle
Accumulated Depreciation
9198.47
9198.47
June 30 Disposal of Motor Vehicle
Loss on Disposal of Motor Vehicle
9293.89
9293.89
June 30 Low Value Pool
Accumulated Depreciation
168.75
168.75
June 30 Bad Debts
Accounts Receivable
4400
4400
June 30 Provision for Doubtful debts
Profit and Loss Account
1870
1870
June 30 Accounts Receivable
Provision for Doubtful debts
1650
1650
June 30 Advertising
Prepaid Expenses
13200
13200
June 30 Accrued Income
Interest on Bank account
200
200
June 30 Purchases 55000
9

Stock on Hand 5000
June 30 Accrued Expenses
Wages Expenses
5100
5100
June 30 Sales
Furniture
11000
11000
June 30 Stock on Hand
Profit and loss account
85000
85000
TOTAL 736290 736290
V:\Business\Business Studies Team\02 Units\BSBFIA401\00 Assessments\Word Docs\BSBFIA401 Practical Assessment Part A.docx

GENERAL LEDGER of KOOKABURRA FURNITURE
30 June 2019
110 BANK
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 10,000.00 10,000.00 DR
30/06/19 Interest Expenses 200 9800 DR.
120 ACCOUNTS RECEIVABLE [DEBTORS]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Schedule 42,000.00 42,000.00 DR
30/06/19 Provision for Doubtful Debts 1650 40350 DR
30/06/19 Profit and Loss account 33000 7350 CR
30/06/19 Bad Debts 4400 2950 CR
125 Provision for Doubtful Debts
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance [provided for 30/6/18] 2,000.00 2,000.00 CR
30/06/19 Profit and Loss account 1870 3870 CR
30/06/19 Accounts Receivables 1650 2220 CR
30/06/19 Profit and Loss 2220 0
630 BAD AND DOUBTFUL DEBTS
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Debtors 4400 4400 CR
30/06/19 Profit and loss 4400 0

130 PREPAID EXPENSES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Advertising 13200 13200 DR
30/06/19 Profit and loss account 13200 0 CR
135 ACCRUED INCOME
Date Particulars Ref Debit Credit Balance Dr/Cr

30/06/19 Interest on Bank A/c 200 200 CR
30/06/19 Profit and loss account 200 0 DR
140 STOCK ON HAND [Furniture]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance [1/7/18] 85,000.00 85,000.00 DR
30/06/19 Purchases 5000 90000 DR
30/06/19 Profit and loss account 90000 0
13

150 OFFICE EQUIPMENT
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance [as per Register] 18,000.00 18,000.00 DR
30/06/19 Accumulated Depreciation 11973.7 6026.3 DR
155 ACCUMULATED DEPRECIATION – OFFICE EQUIPMENT
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Office Equipment 11973.7 11973.7 DR
160 MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Asset Register 40,000.00 40,000.00 DR
30/06/19 Disposal of Motor Vehicle GJ 36793.89 3206 DR
165 ACCUMULATED DEPRECIATION – MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 3,328.77 3,328.77 CR
30/06/19 Depreciation 7105.11 1544.98 CR
30/06/19 Disposal of motor vehicle GJ 9198.47 1235.41 CR
650 DEPRECIATION – MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Accumulated Depreciation GJ 7105.11 7105.11 DR
14

DISPOSAL OF MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Motor Vehicles 36793.89 36793.89 DR
30/06/19 Accumulated Depreciation GJ 7105.11 29688.78 DR
30/06/19 Loss On disposal of motor
vehicle
GJ 9293.89 38982.67 DR
910 Loss on Disposal of Motor Vehicle
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Disposal of motor vehicle GJ 9293.89 9293.89 DR
180 LOW-VALUE POOL
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Asset Register 900.00 900.00 DR
30/06/19 Accumulated Depreciation 168.75 731.25 DR
ACCUMULATED DEPRECIATION – Low VALUE POOL
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Low Value Pool 168.75 168.75 DR
210 ACCOUNTS PAYABLE [CREDITORS]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Schedule 28,000.00 28,000.00 CR
220 GST COLLECTED
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 5,200.00 5,200.00 CR
15

30/06/19 Profit and loss account 5200 0 DR
230 GST PAID
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 4,400.00 4,400.00 DR
30/06/19 Profit and loss account 4400 0 CR
250 ACCRUED EXPENSES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Wages Expenses GJ 1000 1000 CR
250 BANK LOAN
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 45,010.00 45,010.00 CR
310 CAPITAL
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 95,061.23 95,061.23 CR
30/06/19 Drawings 6800 88261.23 CR
320 DRAWINGS
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 6,800.00 6,800.00 DR
30/06/19 Capital GJ 6800 0
16

410 SALES [Furniture]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 252,000.00 252,000.00 CR
30/06/19 Furniture 11000 263000 CR
520 PURCHASES [Furniture]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance PJ 101,000.00 101,000.00 DR
30/06/19 Stock on hand 5000 106000 DR
30/06/19 Profit and loss 106000 0
610 ADVERTISING
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 12,000.00 12,000.00 DR
30/06/19 Prepaid Expenses 13200 1200 CR
30/06/19 Profit and loss account 1200 0
620 ACCOUNTING FEES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 6,000.00 6,000.00 DR
30/06/19 Profit and loss account 6000 0
640 BANK CHARGES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 800.00 800.00 DR
30/06/19 Profit and loss account 800 0
17

660 LEASE OF PREMISES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 11,000.00 11,000.00 DR
30/06/19 Profit and loss 11000 0
670 MOTOR VEHICLE EXPENSES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 5,500.00 5,500.00 DR
30/06/19 Profit and loss 5500 0
680 SUPERANNUATION
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 7,200.00 7,200.00 DR
30/06/19 Profit and loss 7200 0
690 WAGES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 80,000.00 80,000.00 DR
30/06/19 Accrued Expenses GJ 5100 85100 DR
30/06/19 Profit and loss 85100 0
Kookaburra Furniture - TRIAL BALANCE
as at 30 June 2019
18

Account
Number
Account Name Debit Credit
110 Bank 9800
120 Accounts Receivable [Debtors] 2950
125 Provision for Doubtful Debts 2220
130 Prepaid Expenses 13200
135 Accrued Income 200
140 Stock on Hand [Furniture] 90000
150 Office Equipment 6026.3
155 Accum Depreciation – Office
Equipment
11973.7
160 Motor Vehicles 3206
165 Accum Depreciation – Motor
Vehicles
1235.41
180 Low-Value Pool 731.25
Accumulated Depreciation 168.75
210 Accounts Payable [Creditors] 28000
220 GST Collected 5200
230 GST Paid 4400
250 Accrued Expenses 1000
270 Bank Loan 45010
310 Capital 88261.23
320 Drawings 6800
410 Sales [Furniture] 263000
430 Interest Received
510 Opening Stock 39305.93
520 Purchases [Furniture] 106000
530 Closing Stock
610 Advertising 12000
620 Accounting Fees 6000
630 Bad and Doubtful Debts
640 Bank Charges 800
650 Depreciation of motor Vehicles 7105.11
660 Lease of Premises 11000
670 Motor Vehicle Expenses 5500
680 Superannuation 7200
690 Wages 85100
Disposal of Asset 38982.67
910 Loss on Sale of Asset 9293.89
TOTALS $ 418229.19 $ 453335.12
19

 Task 2: Policies & Procedures
Read the extract from the Accounting Policies & Procedures.
Notes from the procedures and policies:
1. Purchases which are on credit will be paid through electronic transfer or cheque.
2. Cash purchase payments are made by petty cash or credit card.
3. No additional accounts will be added unless it is obligatory to use other account.
4. Only accrued income and prepaid expe3nses journal entries will be made.
5. For Kookaburra Furniture, a provision of doubtful debts will be created at 5% on 90
days.
6. The assets which costs less than $ 1000 excluding GST, on this the depreciation will
be calculated at 18.75 % in first year and 37.5 % in second year.
7. Assets which cost more than $ 1000 excluding GST will be depreciated according to
the estimated life of the asset.
8. Any reconciliation needed must be adjusted at the end of the fiscal year.
9. The entry of disposal of asset must be recorded in Fixed asset and ledger register.
10. At the end of the year, Trial balance, balance sheet and profit and loss account should
be made appropriately.
11. The kookaburra Furniture follows the Health and safety act to provide a safe ad
healthy environment to its employees.
 Task 3: Clarify reporting requirements
Email your supervisor (teacher) to clarify any reporting requirements
No clarification is required.
 Task 4: Chart of Accounts
Peruse the Chart of Accounts to familiarise yourself.
The chart of Accounts has been examined appropritately.
 Task 5: Maintaining an Asset Register
On 31 October 2017, a Toyota Ute was purchased. Tax Invoice set out below.
20

Burton Toyota Tax Invoice
ABN Quoted
TO: Kookaburra Furniture
Timber Avenue, ESKDALE
1
515
Date: 31/10/17
Total Vehicle Price ex GST: [Reg 401LRT] $38,990.00
GST $3,899
.00
Stamp Duty [no GST] $1,010
.00
Total Amount owing $43,899
.00
You are required to:
(a) Enter the above details on the Asset Register card below.
(b) Record depreciation on 30/6/18 following organisational policies and procedures.
(c) Record depreciation on 30/6/19 following organisational policies and procedures.
ASSET: TOYOTA UTE
Asset No.: MV001
Class/Category: Motor Vehicles
Deprec. Cost:
Location: Kookaburra Furniture Timber Avenue,
ESKDALE
Serial Number: 1515
Purchase date: 31/10/17
Purchased from: Burton Toyota
New/second-hand: New
Effective life: 8 years
Depreciation method: Straight-line Method
Date Details
Cost Accrued
Income
Interest on
Bank account
Depreciation Accumulated
Depreciation
Written-down
Value
Total GST
30/06/18 Toyota Ute 38990 3899 2231.36 2231.36 36768.64
21

30/06/19 Toyota Ute 38990 3899 4873.75 7105.11 31894.89
Date of disposal: 31/10/25
Authorised by:
Disposal price: 36793.89
Loss on disposal: 9293.89
Details of Repairs and Maintenance
Date Repairer Cost Remarks
 Task 6 Maintaining a Depreciation Schedule
In Excel, open “KookaburraDepreciation - 2019.xls”.
Using the information in this template and organisational policies and procedures,
complete the schedule.
You are required to:
(a) Record depreciation on 30/6/18
(b) Record depreciation on 30/6/19
Note: There are three other assets already listed, apart from the one purchased in
Task 5.
Print a copy of the Schedule on 30 June 2019.
This printout must be approved by your supervisor (teacher) as accurate and form the
depreciation information for the end of year provision for depreciation. Email your
supervisor (trainer/assessor) the completed Depreciation Schedule to check and approve.
This Task is done in Excel Sheet, considering the policies and procedures of Kookaburra
Furniture.
22

 Task 7 Recording Depreciation in the General Journal
In the General Journal on page 16, enter the journals to account for depreciation on 30 June 2019
as per above Schedule and Asset Register on the previous page.
The General Journal Batch Number for June 2019 will be 06131.
GENERAL JOURNAL – Kookaburra Furniture BATCH NUMBER : 06131
Date 2019 Particulars Ref Debit Credit
June 30 Depreciation Account
Office Equipment
11973.7
11979.7
June 30 Depreciation Account
Motor Vehicles
4873.75
4873.75
June 30 Depreciation Account
Low Value Pool
168.75
168.75
 Task 8 Accounting for Bad and Doubtful Debts
Schedule of Accounts Receivables [Debtors] 29/6/19
Invoice Date Name Balance
31/5/2018 Eskdale Trading 4,400.00
1/2/2019 Ace Stop and Go 33,000.00
20/6/2019 MBS Training Services 4,600.00
Reconciles with balance of Accounts Receivable A/c $42,000.00
a) On 30 June, write off the amount owing by Eskdale Trading as a bad debt.
23

b) You are required to follow the company policies and procedures and calculate and enter
appropriate journals to provide for doubtful debts.
Date 2019 Particulars Ref Debit Credit
June 30 Bad Debts
Accounts Receivable
4400
4400
June 30 Provision for Doubtful debts
Profit and Loss Account
1870
1870
Task 9 Accounting for Prepaid Expenses
The following entry was processed on the Bank Statement for June.
BANK STATEMENT - June
Date Particulars
Withdrawals
DR
Deposits
CR Balance
June 15 Yellow Pages 13,200.00
The payment was made to pay the following Tax Invoice.
Yellow Pages Tax Invoice
ABN 14573853200
Ink Street, BRISBANE QLD 4000
Phone [phone] Fax [phone]
TO: Kookaburra Furniture
Timber Avenue,
ESKDALE QLD 4350
101
Date: 25/6/19 Purchase Order Number: Terms: net 30 days
Details Amount Tax
Code
Advertising for 12 months [June 2019 to May 2020] 12,000.00 GST
24

Add 10% GST 1,200.00
Total including GST $13,200.00
You are required to process a journal to account for the reporting of just the
June advertising expense in the General Ledger.
Date 2019 Particulars Ref Debit Credit
June 30 Advertisement Expenses
Prepaid Expenses
13200
13200
 Task 10 Accounting for Accrued Income
Interest on Bank Account is owing but not yet processed on Bank Statement.
Calculated amount is $200.00.
You are required to process a journal to account for the interest owing.
Date 2019 Particulars Ref Debit Credit
June 30 Accrued Income
Interest on Bank account
200
200
 Task 11 Accounting for Accrued Expenses
Wages for 28th, 29th and 30th June are estimated to be $5,100 gross.
You are required to enter a journal to account for this balance day adjustment.
The business only accounts for gross wages. No entry is made for superannuation.
Date 2019 Particulars Ref Debit Credit
June 30 Wages Expenses
Accrued Expenses
GJ 5100
5100
 Task 12 Accounting for Prepaid Income (Income received in advance)
The following sale [already recorded in Sales] included furniture which has not been received and
not billed.
25

Jason has decided that this amount should not be included in income because the matching
expense “purchases” has not been recorded.
KOOKABURRA FURNITURE Tax Invoice
ABN 99189123447
Timber Avenue, ESKDALE QLD 4350
TO: Synergy Accountants
101
Date: 28/6/19 Terms: EOM after EOM
Quanti
ty
Item
Number
Description Unit
Price
Ex GST
Total Tax
Code
5 T62145 Office Desks 2,000.00 10,000.00 GST
Add 10% GST 1,000.00
Total including GST $11,000.00
Amount Paid $11,000.00
Balance Owing $0.00
You are required to account for the above prepaid sale. (GST is not an issue)
The reverse entry will be performed here of sales.
Date 2019 Particulars Ref Debit Credit
June 30 Sales
Furniture
11000
11000
 Task 13 Accounting for Inventory Adjustments
A stocktake of furniture on hand was made on 30 June 2019. The value of stock
on hand was $90,000.00
(a) Prepare a journal entry to transfer the stock on hand 1/7/18 to cost of sales.
Date 2018 Particulars Ref Debit Credit
July 1 Purchase
Cash
5000
5000
July 1 Stock on Hand
Purchases
5000
5000
July 1 Cost of Sales
Stock on Hand
90000
90000
26

(b) Prepare a journal entry to record the above stock on hand 30/6/19.
Date 2019 Particulars Ref Debit Credit
June 30 Stock on Hand
Profit and loss account
85000
85000Task 14 Disposal of Asset
On 30 June 2019, the Toyota Ute was sold for $27,500.00 inc GST.
A cheque for the amount was banked. This sale was approved by Jason. You are required to:
(a) Calculate and record the disposal of the Asset Register in Task 5.
Disposal Value of an asset can be calculated by subtracting the original cost of the assets
minus its depreciation cost.
Disposal of Asset = Purchase price of motor Vehicle – Depreciation at 30/06/18 – Depreciation
at 30/06/19
= 43899 – 2231.36 – 4873.75 = $ 36793.89
Loss on Disposal of Asset = 36793.89 – 27500 = $ 9293.89
(b) Record a journal entry to account for the disposal and any gain or loss on sale of the
asset.
GENERAL JOURNAL – Kookaburra Furniture BATCH NUMBER: 06131
Date 2019 Particulars Ref Debit Credit
June 30 Cash
Accumulated Depreciation
Loss on asset on disposal
Toyota Ute
27500
8122.92
9293.89
44916.81
 Task 15 Checking Accuracy [manual books]
Check the accuracy of your journal entries and total your journal to check the accuracy of the
double-entry process.
27

 Task 16 Update General Ledger [manual set of books]
You are now required to post the journal entries to the General Ledger. Use the referencing system
outlined in the policies and procedures.
GENERAL LEDGER of KOOKABURRA FURNITURE 30 June 2019
110 BANK
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 10,000.00 10,000.00 DR
30/06/19 Interest Expenses 200 9800 DR.
120 ACCOUNTS RECEIVABLE [DEBTORS]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Schedule 42,000.00 42,000.00 DR
30/06/19 Provision for Doubtful Debts 1650 40350 DR
30/06/19 Profit and Loss account 33000 7350 CR
30/06/19 Bad Debts 4400 2950 CR
125 Provision for Doubtful Debts
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance [provided for 30/6/18] 2,000.00 2,000.00 CR
30/06/19 Profit and Loss account 1870 3870 CR
30/06/19 Accounts Receivables 1650 2220 CR
30/06/19 Profit and Loss 2220 0
630 BAD AND DOUBTFUL DEBTS
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Debtors 4400 4400 CR
28

30/06/19 Profit and loss 4400 0
130 PREPAID EXPENSES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Advertising 13200 13200 DR
30/06/19 Profit and loss account 13200 0 CR
135 ACCRUED INCOME
Date Particulars Ref Debit Credit Balance Dr/Cr
29

30/06/19 Interest on Bank A/c 200 200 CR
30/06/19 Profit and loss account 200 0 DR
140 STOCK ON HAND [Furniture]
Date Particulars Ref Debit Credit Balance Dr/Cr

29/6/19 Balance [1/7/18] 85,000.00 85,000.00 DR
30/06/19 Purchases 5000 90000 DR
30/06/19 Profit and loss account 90000 0
150 OFFICE EQUIPMENT
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance [as per Register] 18,000.00 18,000.00 DR
30/06/19 Accumulated Depreciation 11973.7 6026.3 DR
155 ACCUMULATED DEPRECIATION – OFFICE EQUIPMENT
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Office Equipment 11973.7 11973.7 DR
160 MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Asset Register 40,000.00 40,000.00 DR
30/06/19 Disposal of Motor Vehicle GJ 36793.89 3206 DR
165 ACCUMULATED DEPRECIATION – MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 3,328.77 3,328.77 CR
30/06/19 Depreciation 7105.11 1544.98 CR
30/06/19 Disposal of motor vehicle GJ 9198.47 1235.41 CR
650 DEPRECIATION – MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr

30/06/19 Accumulated Depreciation GJ 7105.11 7105.11 DR
DISPOSAL OF MOTOR VEHICLES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Motor Vehicles 36793.89 36793.89 DR

30/06/19 Accumulated Depreciation GJ 7105.11 29688.78 DR
30/06/19 Loss On disposal of motor
vehicle
GJ 9293.89 38982.67 DR
910 Loss on Disposal of Motor Vehicle
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Disposal of motor vehicle GJ 9293.89 9293.89 DR
180 LOW-VALUE POOL
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Asset Register 900.00 900.00 DR
30/06/19 Accumulated Depreciation 168.75 731.25 DR
ACCUMULATED DEPRECIATION – LOW VALUE POOL
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Low Value Pool 168.75 168.75 DR
210 ACCOUNTS PAYABLE [CREDITORS]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance as per Schedule 28,000.00 28,000.00 CR
220 GST COLLECTED
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 5,200.00 5,200.00 CR
30/06/19 Profit and loss account 5200 0 DR
33

230 GST PAID
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 4,400.00 4,400.00 DR
30/06/19 Profit and loss account 4400 0 CR
250 ACCRUED EXPENSES
Date Particulars Ref Debit Credit Balance Dr/Cr
30/06/19 Wages Expenses GJ 1000 1000 CR
250 BANK LOAN
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 45,010.00 45,010.00 CR
310 CAPITAL
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 95,061.23 95,061.23 CR
30/06/19 Drawings 6800 88261.23 CR
320 DRAWINGS
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 6,800.00 6,800.00 DR
30/06/19 Capital GJ 6800 0
34

410 SALES [Furniture]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 252,000.00 252,000.00 CR
30/06/19 Furniture 11000 263000 CR
520 PURCHASES [Furniture]
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance PJ 101,000.00 101,000.00 DR
30/06/19 Stock on hand 5000 106000 DR
30/06/19 Profit and loss 106000 0
610 ADVERTISING
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 12,000.00 12,000.00 DR
30/06/19 Prepaid Expenses 13200 1200 CR
30/06/19 Profit and loss account 1200 0
620 ACCOUNTING FEES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 6,000.00 6,000.00 DR
30/06/19 Profit and loss account 6000 0
640 BANK CHARGES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 800.00 800.00 DR
30/06/19 Profit and loss account 800 0
35

660 LEASE OF PREMISES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 11,000.00 11,000.00 DR
30/06/19 Profit and loss 11000 0
670 MOTOR VEHICLE EXPENSES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 5,500.00 5,500.00 DR
30/06/19 Profit and loss 5500 0
680 SUPERANNUATION
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 7,200.00 7,200.00 DR
30/06/19 Profit and loss 7200 0
690 WAGES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 80,000.00 80,000.00 DR
30/06/19 Accrued Expenses GJ 5100 85100 DR
30/06/19 Profit and loss 85100 0
 Task 17 Preparing Adjusted Trial Balance [manual set of books]
You are required to prepare the adjusted Trial Balance on the following page. This Trial Balance
will include the journals on the previous pages.
36

Kookaburra Furniture - TRIAL BALANCE
as at 30 June 2019
Account
Number
Account Name Debit Credit
110 Bank 9800
120 Accounts Receivable [Debtors] 2950
125 Provision for Doubtful Debts 2220
130 Prepaid Expenses 13200
135 Accrued Income 200
140 Stock on Hand [Furniture] 90000
150 Office Equipment 6026.3
155 Accum Depreciation – Office
Equipment
11973.7
160 Motor Vehicles 3206
165 Accum Depreciation – Motor
Vehicles
1235.41
180 Low-Value Pool 731.25
Accumulated Depreciation 168.75
210 Accounts Payable [Creditors] 28000
220 GST Collected 5200
230 GST Paid 4400
250 Accrued Expenses 1000
270 Bank Loan 45010
310 Capital 88261.23
320 Drawings 6800
410 Sales [Furniture] 263000
430 Interest Received
510 Opening Stock 39305.93
520 Purchases [Furniture] 106000
530 Closing Stock
610 Advertising 12000
620 Accounting Fees 6000
630 Bad and Doubtful Debts
640 Bank Charges 800
650 Depreciation of motor Vehicles 7105.11
660 Lease of Premises 11000
670 Motor Vehicle Expenses 5500
680 Superannuation 7200
690 Wages 85100
Disposal of Asset 38982.67
910 Loss on Sale of Asset 9293.89
37

 Task 18 Prepare final General Ledger accounts
At the end of the financial year, after all adjustments have updated the General Ledger and an
Adjusted Trial Balance has been prepared, what steps are taken to prepare final general ledger
accounts to reflect gross and net profits for the reporting period in the manual set of books.
Steps taken to prepare the General Ledger:
1. The journal entries were performed based on the given opening balances and
adjustments.
2. Then, the ledgers accounts were completed bases on the journal entries.
3. Then, trading and profit and loss account was made to calculate the gross profit and
net profit.
 Task 19 Prepare final General Ledger accounts
Printed on the following page is an Expense Account, an Income Account, Trading A/c and Profit
and Loss A/c.
You are required to:
(a) Prepare the general journal to close the Expense Account
GENERAL JOURNAL – Kookaburra Furniture BATCH NUMBER 06131
Date
2019
Particulars Ref Debit Credit
June 30 Advertising
Prepaid Expenses
13200
13200
June 30 Prepaid Expenses
Profit And loss
13200
13200
(b) Post this journal to the appropriate general ledger accounts.
690 WAGES
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 80,000.00 80,000.00 DR
30/06/19 Accrued Expenses GJ 5100 85100 DR
38

30/06/19 Profit and loss 85100 0
610 ADVERTISING
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 12,000.00 12,000.00 DR
30/06/19 Prepaid Expenses 13200 1200 CR
30/06/19 Profit and loss account 1200 0
(c) Prepare the general journal to close the Income Account.
GENERAL JOURNAL – Kookaburra Furniture BATCH NUMBER 06131
Date
2019
Particulars Ref Debit Credit
June 30 Accrued Income
Interest on Bank Account
200
200
June 30 Profit And loss
Accrued Income
200
200
(d) Post this journal to the appropriate general ledger accounts.
135 ACCRUED INCOME
Date Particulars Ref Debit Credit Balance Dr/Cr
39

30/06/19 Interest on Bank A/c 200 200 CR
30/06/19 Profit and loss account 200 0 DR
 Task 19 (d) and (e)
990 PROFIT AND LOSS ACCOUNT
Date Particulars Ref Debit Credit Balance Dr/Cr
30/6/19 Gross Profit 980 16000 16000 DR
30/6/19 Wages 85100 69100 CR
30/06/19 Accrued Expenses 1000 68100 CR
30/06/19 Prepaid Expenses 1320 69420 CR
30/06/19 Accrued Income 200 69220 CR
30/06/19 Depreciation 7105.11 62114.89 CR
30/06/19 Loss on Disposal of Motor Vehicle 9293.89 52821 CR
30/06/19 GST Collected 5200 58021 CR
30/06/19 GST Paid 4400 53621 CR
30/06/19 Motor Vehicle Expenses 5500 59121 CR
30/06/19 Net Profit 59121 CR
 Task 19 (e)
(e) Using the Adjusted Trial Balance prepared complete the Trading Account and Profit and
Loss Account on the previous pages. [No journals are required] You will have to decide which
income and expense accounts are transferred to the Trading A/c and Profit and Loss A/c.
980 TRADING ACCOUNT
Date Particulars Ref Debit Credit Balance Dr/Cr
30/6/19 Stock on Hand 85000 85000 CR
30/06/19 Sales 263000 178000 DR
30/06/19 Purchases 5000 183000 DR
30/06/19 Income 172000

30/06/19 Closing Stock 5000 16000
30/06/19 Gross Profit 16000 0

 Task 19 (f)
(f) Now complete the Equity Accounts for the financial year – journals and ledger
accounts required.
GENERAL JOURNAL – Kookaburra Furniture BATCH NUMBER 06131
Date 2019 Particulars Ref Debit Credit
June 30 Drawings
Cash
Capital
6800
88261.23 95061.23
310 CAPITAL
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 95,061.23 95,061.23 CR
30/06/19 Drawings 6800 88261.23 CR
320 DRAWINGS
Date Particulars Ref Debit Credit Balance Dr/Cr
29/6/19 Balance 6,800.00 6,800.00 DR
30/06/19 Capital GJ 6800 0 Task 20: Prepare Profit and Loss Statement for 2015 financial year
Using the information in the Adjusted Trial Balance manually prepare the Profit and Loss
Statement of Kookaburra Furniture for the 2015 financial year.
Refer to your workbook for examples of financial reports. Remember to identify any errors.
KOOKABURRA FURNITURE PROFIT AND LOSS

STATEMENT For the year ending 30 June 2019
Date Particulars Ref Debit Credit BALANCE
30/6/19 Gross Profit 980 16000 16000
30/6/19 Wages 85100 69100
30/06/19 Accrued Expenses 1000 68100
30/06/19 Prepaid Expenses 1320 69420
30/06/19 Accrued Income 200 69220
30/06/19 Depreciation 7105.11 62114.89
30/06/19 Loss on Disposal of Motor Vehicle 9293.89 52821
30/06/19 GST Collected 5200 58021
30/06/19 GST Paid 4400 53621
30/06/19 Motor Vehicle Expenses 5500 59121
30/06/19 Net Profit 59121 0

 Task 21: Prepare Balance Sheet as at 30 June 2019
Using the information in the Adjusted Trial Balance manually prepare the BALANCE
SHEET of Kookaburra Furniture at the end of the 2019 financial year. Refer to your
workbook for examples of financial reports. Remember to identify any errors.
Kookaburra Furniture
BALANCE SHEET as at 30 June 2019
Particulars
ASSETS
Non- current assets 15910.95
Motor Vehicles 3206
Office Equipment 11973.7
Low Value Pool 731.25
Current Assets 102750
Inventory 90000
Debtors / Accounts Receivables 2950
Bank and Cash 9800
Prepaid Expenses
TOTAL ASSETS 118660.95
EQUITY & LIABILITIES
Owner’s Equity 88261.23
Capital 88261.23
Current Liabilities 30399.72
Account Payables 29399.72
Accrued Expenses 1000
TOTAL EQUITY & LIABILITIES 118660.95