Financial Transactions & Interim Reports Assessment No. 1

This assessment is to assess the student in the learning elements and performance criteria of the unit FNSACC301 Process financial transactions and extract interim reports and BSBFIA401 Prepare financial reports. The assessment includes a portfolio of activities and a workbook of activities. The assessment is to be completed in class or at home. The due date is week no. 8.

T-1.8.1
Details of Assessment
Term and Year 2, 2018 Time allowed Week 1, 2, 3, 4, 6, 7
Assessment No 1 Assessment Weighting 35%
Assessment Type Portfolio of Activities
Due Date Week No. 8 Room 609
Details of Subject
Qualification FNS40615 Certificate IV in Accounting
Subject Name Financial Accounting
Details of Unit(s) of competency
Unit Code (s) and
Names
FNSACC301 Process financial transactions and extract interim reports
BSBFIA401 Prepare financial reports
Details of Student
Student Name
College Student ID
Student Declaration: I declare that the work
submitted is my own, and has not been copied or
plagiarised from any person or source.
Signature: ___________________________
Date: _______/________/_______________
Details of Assessor
Assessor’s Name Kaneez Selim
Assessment Outcome
Results Competent Not yet competent Marks / 35
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________
Student Declaration: I declare that I have been assessed
in this unit, and I have been advised of my result. I also
am aware of my appeal rights and reassessment
procedure.
Signature: ____________________________
Date: ____/_____/_____
Assessor Declaration: I declare that I have conducted a
fair, valid, reliable and flexible assessment with this
student, and I have provided appropriate feedback
Student did not attend the feedback session.
Feedback provided on assessment.
Signature: ____________________________
Date: ____/___ / 2018
Purpose of the Assessment FNSACC301
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T-1.8.1
The purpose of this assessment is to assess the student in the following learning
elements and performance criteria of the unit:
Assessment task 1:
portfolio of
activities (Task
numbers)
Competent
(C)
Not yet
competent
(NYC)
Element 1: Check and verify supporting documentation
1.1 Identify, check and record information from documents Q1
1.2 Examine supporting documentation to establish accuracy and
completeness and to ensure authorisation by appropriate personnel
Q1
Element 2: Prepare and process banking and petty cash documents
2.3 Reconcile banking documentation with organisation’s financial records Q11
2.4 Check, process and record petty cash claims and vouchers, and balance
petty cash book according to organisational procedures
Q8
Element 3: Prepare and process invoices for payment to creditors and for debtors
3.1 Prepare invoices in accordance with organisational procedures Q2, 3
3.2 Check invoices against source documents for accuracy and correct any
errors
Q2, 3
Element 4: Prepare and post journals and batch monetary items
4.1 Prepare journals accurately and completely, and batch items within
organisational timelines
Q5
Element 5: Post journals to ledger
5.1 Post journals accurately to ledger in accordance with organisational input
standards, with transactions correctly allocated to system and accounts
Q5, 6
Element 6: Enter data into system
6.1 Enter data accurately into system in accordance with organisational input
standards and correctly allocate transactions to system and accounts
Q4
6.2 Update related systems to maintain integrity of relationships between
financial systems
Q1 (e)
Element 7: Prepare deposit facility and lodge flows
7.2 Balance batch with deposit facility without error
7.3 Take security and safety precautions appropriate to method of banking, in
accordance with organisational policy and industry and legislative requirements
Q1 (e)
7.4 Obtain and file proof of lodgement so that it is easily accessible and
traceable
Q1 (d)
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T-1.8.1
Element 8: Extract a trial balance and interim reports
8.1 Process accurately any special transactions Q9, 10
8.2 Complete cash and credit journals and post to general ledger Q5
8.3 Extract and check trial balance and prepare other required reports Q5
8.4 Find and correct any errors Q7
Purpose of the Assessment BSBFIA401
The purpose of this assessment is to assess the student in the following
learning elements and performance criteria of the unit :
Assessment task
1: Workbook of
Activities (Task
numbers)
Competent
(C)
Not Yet
Competent
(NYC)
Element 1: [Maintain asset register]
1.1 Prepare a register of property, plant and equipment from fixed asset
transactions in accordance with organisational policy and procedures
12 & 13
1.2 Determine method of calculating depreciation in accordance with
organisational requirements
13
1.3 Maintain asset register and associated depreciation schedule in
accordance with organisational policy, procedures and accounting
requirements
13
Element 2: [Record general journal entries for balance day adjustments]
2.1 Record depreciation of non-current assets and disposal of fixed
assets in accordance with organisational policy, procedures and accounting
requirements
13
2.3. Record bad and doubtful debts in accordance with organizational
policy, procedures and accounting requirements
15
Element 3: [Prepare final general ledger accounts]
3.1 Make general journal entries for balance day adjustments in general
ledger system in accordance with organisational policy, procedures and
accounting requirements
17
3.2 Post revenue and expense account balances to final general ledger
accounts system
14, 15, 16
Element 4: [Prepare end of period financial reports]
4.1 Prepare revenue statement in accordance with organisational
requirements to reflect operating profit for reporting period
16
4.2 Prepare balance sheet to reflect financial position of business at end of
reporting period
17
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T-1.8.1
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Satisfactory (NS). A student can only achieve
competence when all assessment components listed under Purpose of the assessment section are Satisfactory. Your
trainer will give you feedback after the completion of each assessment. A student who is assessed as NS (Not
Satisfactory) is eligible for re-assessment.
Resources required for this Assessment
 Upon completion, submit the assessment copy to your trainer along with assessment coversheet.
 Refer to the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer, if needed
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved. You will
be provided with feedback on your work within two weeks of the assessment due date. All other feedback will be
provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in
knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed
competent for this unit of competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment for more information (Student handbook).
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T-1.8.1
Part A: Financial Transaction (50 Marks)
Week 1:
Question 1 (2 marks)
Answer the following questions in the given space:
a. Explain what source document is. Give some examples.
Source document is the basic document evidencing the transaction or the document on
the basis of which the transaction can be recorded in the books.
The examples of source document includes Invoices, bank statement, cheque, debit
notes, credit notes, etc.
b. List different procedures employees can follow when they go to the bank to deposit
money for their business to ensure security and safety while banking.
To ensure security and safety they should properly deposit the money to the bankers only
and not to anybody else.
They should take deposit receipt properly stamped and signed by the bankers and keep
them in safe custody.
They should cross check the details filled on deposit slip to ensure that the amount is going
to credit in the correct account.
c. When you are filing documents, what factors should be considered when deciding the
filing order?
While filling the documents, it should be ensured that the documents are complete,
properly authorised and in the correct sequences.
The complete set should be filed along with necessary documents. These documents
includes, journal voucher, invoice, supporting to the invoices, etc.
All these documents should be properly signed and stamped.
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T-1.8.1
d. How do you ensure that the clerical officer deposited the
money to the bank? What would be the possible proof of lodgements?
On deposit of the money to the bank, the clerical officer will stamp and sign the deposit slip
and return one portion of deposit slip to the depositor.
The possible proof of lodgements is the deposit slip.
e. Name the popular accounting software that are in use in Australia. How do you ensure
that the data is entered into the accounting software accurately? How do you ensure the
currency of the accounting software? Describe the key purposes of Accounting reporting.
The popular accounting software used in Australia is MYOB.
To ensure that the data entered in software is accurate the parking and posting system is
used.
Under this system, the transactions are parked by the one person and those transactions
are cross checked by the other person. It is done to ensure that the mistakes done by one
person is corrected by the other.
The currency is ensured by checking the currency factor in the system.
The key purpose of accounting reporting is to record the transactions,
To maintain accounting records and to prepare the financials at time.
To provide the management information system, and provide the requisite details to the
management on time.
f. Money transfer via internet is a popular practice these days. To ensure that there is no
fraudulent activity in place, authorising the transfer is a common practice. This authorisation
process also ensures sound internal control system of a business.
Explain an authorisation process that a business can follow to ensure that the internal
control system is working properly.
The money transfer through internet generally involves two stage process.
Firstly, the transfer details and the beneficiary details are added through the net banking
Then these details are reviewed and authorised by other person or authorised signatory.
This two stage process reduces the chances of error and hence increases the security and
safety of online transactions.
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T-1.8.1
Week 2
Question 2 (2 marks)
Source Documents:
Tax invoice is one of the source documents of Accounting. A tax invoice must comply with
rules and regulations implied by ATO. Class sports Co. prepared the following tax invoice for
its client Zen’s shirts.
Instructions for the students:
From the following tax invoice find out what are the things are missing making the tax
invoice a non-compliant tax invoice. Made necessary corrections on the following tax
invoice.
Class Sports Co.
ABN: 19 123 785
15-21 Loren Road ERINA NSW 2231
Telephone: [phone] Facsimile: [phone]
GST registration No.
TAX INVOICE
Name: Zen’s shirts
Add: 15 Normal St
City: MILES NSW 2046
Invoice No: 1365
Date of Invoice:
Purchase Order No:
Qty Description Unit price Total
180 Shoe laces 1.20 216.00
120 Iron on logo small 0.80 96.00
200 Iron on logo large 1.80 360.00
100 Sports socks small 2.75 275.00
Shipping & handling -
Total
Add: GST @ 10%
947.00
94.70
Total (including GST) $1,041.70
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T-1.8.1
Question 3: (2 marks)
Matt Robin, the owner (sole trader) and manager of his lawn mowing business Robin’s
Landscaping Services ABN 12 345 678 910 and is registered for GST. His business address is
277 Kent Street, Sydney 2000.
Matt maintains a computerised accounting system for his lawn mowing business. The
accounting software package used categorises the garden services. Service codes are used
to indicate which service is being performed. See service codes below.
All prices are quoted inclusive of GST:
Ride on mowing service @ $77 per hour
Weeding service @ $66 per hour
Whipper-snipper service @ $22 per hour
Rubbish removal service @ $110 per load of rubbish
All invoices must comply with GST regulations.
Robin’s landscaping services
ABN 12 345 678 910
Customer contact list (extract)
Customer Bill to
Smiley Rinaan Mascot Pty Ltd
19 Rodrigo Road
Mascot NSW 2017
ABN 16 987 653 21
Instruction for the students:
Prepare a compliant tax invoice in accordance with organisation procedures by using the
following information:
19th November 2016 – Invoiced Smiley Rinaan for lawn mowing services, weeding and
rubbish removal services. A ride on mower grass cut took 6 hours to complete. 2 hours were
spent weeding. Whipper snipping took 5 hours to complete. In addition 5 loads of rubbish
was removed.
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T-1.8.1
Prepare your tax invoice here:
Robin’s Landscaping Services
ABN 12 345 678 910
Address: 277 Kent Street, Sydney 2000
TAX INVOICE
Smiley Rinaan Invoice No:
Mascot Pty Ltd Date of Invoice: 19th Nov, 2016
19 Rodrigo Road, Mascot NSW 2017 Purchase Order No:
ABN 16 987 653 21
Qty Description Price per hour Total
6 hours Lawn mowing services 70 $ 420
2 hours Weeding service 60 $ 120
5 hours Whipper-snipper service 20 $ 100
5 loads Rubbish removal services 100 $ 500
Total $ 1,140
Add: GST @ 10% $ 114
Total (including GST) $1,254.00
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T-1.8.1
Question 4 (04 marks)
From the following account balances prepare a classified balance sheet for Michael Clarke as at
30th June 2016 classifying the accounts as an Asset, Liability or Owner’s Equity and calculate the
Capital amount.
Bank $50,150
Motor vehicles $63,000
Accounts receivable $15,400
Bank loan (due in 3 years) $55,000
Mortgage $90,000
Accounts payable $7,900
Capital ?
Premises $130,000
Inventory $25,000
Answer:
as on 30th June 2016
Current asset Current liability
Bank $ 50,150 Accounts payable $ 7,900
Accounts receivable $ 15,400
Inventory $ 25,000 Total $ 7,900
Non current liabilities
Total $ 90,550 Mortgage $ 90,000
Non current assets Bank loan (due in 3 years) $ 55,000
Motor Vehicles $ 63,000 Total $ 145,000
Premises $ 130,000 Owners equity
Capital $ 130,650
Total $ 193,000
Total Assets $ 283,550 Total liabilities & equities $ 283,550
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T-1.8.1
Week 3: Question 5:
General Journal Entries (08 mark)
Marc Lee has the following source documents relating to transactions for April 2017.
 Marc started business on 1 April with $30,000 in cash.
 On 2 April, the business purchased office equipment on credit from Quick Office
Equipment for $1,100 including GST.
 On 3 April, the business purchased, for cash, inventory with a value of $6,600, plus
GST.
 On 7 April, the business received $6,050 cash for the sale of goods, including GST.
The cost of these goods was $3,500.
 On 8 April, the business sold on credit inventory costing $1,800 to Accurate Ltd.
These goods were sold for $2,600, plus GST.
 On 9 April, rent of $1,650 was paid, including GST.
 On 14 April, the business made a cash sale for $1,980 including GST. The original cost
of these goods was $1,200.
 On 15 April, the business purchased additional inventory on credit from Prompt
Supplies for $2,000 plus GST.
 On 17 April, the business borrowed $33,000 from the bank to be used by the
business in its operations.
 On 21 April, Marc withdrew $2,900 in cash from the business to pay for his personal
expenses.
 April 29, Paid amount owing to Prompt Supplies $2,200
 April 30, received cheque for $2,860 from Accurate Ltd.
Required:
Prepare the General Journals for these source documents. Record the journal entries, ledger
entries and Trial balance in date order.
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T-1.8.1
Journal Entries:
Date Particulars Folio Debit Credit
01/04/201
7 Cash $ 30,000
To Capital $ 30,000
(Being business started with cash)
02/04/201
7 Equipment $ 1,000
GST Paid $ 100
To Accounts Payable $ 1,100
(Being equipment purchased on
credit)
03/04/201
7 Inventory $ 6,600
GST Paid $ 660
To Cash $ 7,260
(Being Inventory purchased)
07/04/201
7 Cash $ 6,050
To GST Collected $ 550
To Sales $ 5,500
(Being sales of goods recorded)
07/04/201
7 Cost of goods sold $ 3,500
To Inventory $ 3,500
(Being goods sold recorded)
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T-1.8.1
08/04/201
7 Accounts receivable $ 2,860
To GST Collected $ 260
To Sales $ 2,600
(Being sales of goods recorded)
08/04/201
7 Cost of goods sold $ 1,800
To Inventory $ 1,800
(Being goods sold recorded)
09/04/201
7 Rent expense $ 1,500
GST Paid $ 150
To Cash $ 1,650
(Being rent paid)
14/04/201
8 Cash $ 1,980
To GST Collected $ 180
To Sales $ 1,800
(Being sales of goods recorded)
14/04/201
8 Cost of goods sold $ 1,200
To Inventory $ 1,200
(Being goods sold recorded)
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T-1.8.1
15/04/201
7 Inventory $ 2,000
GST Paid $ 200
To Accounts Payable $ 2,200
(Being Inventory purchased)
17/04/201
7 Cash $ 33,000
To Loan $ 33,000
(Being funds borrowed for business)
21/04/201
7 Drawings $ 2,900
To Cash $ 2,900
(Being cash withdrawal for personal
expenses)
29/04/201
7 Accounts payable $ 2,200
To Cash $ 2,200
(Being cash paid to suppliers)
30/04/201
7 Cash $ 2,860
To Accounts receivable $ 2,860
Week 4: Question 6
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T-1.8.1
Ledger Entries:
(6 Mark)
Cash
Date Particulars Fol $ Date Particulars Fol $
01-Apr-17 Capital $ 30,000 03-Apr-17 Inventory $ 6,600
07-Apr-17 GST
Collected $ 550 03-Apr-17 GST Paid $ 660
07-Apr-17 Sales $ 5,500 09-Apr-17 Rent expense $ 1,500
14-Apr-18 GST
Collected $ 180 09-Apr-17 GST Paid $ 150
14-Apr-18 Sales $ 1,800 21-Apr-17 Drawings $ 2,900
17-Apr-17 Loan $ 33,000 29-Apr-17 Accounts payable $ 2,200
30-Apr-17 Accounts
receivable $ 2,860 30-Apr-18 Balance c/d $ 59,880
$ 73,890 $ 73,890
Capital
Date Particulars Fol $ Date Particulars Fol $
30-Apr-18 Balance
c/d $ 30,000 01-Apr-17 Cash $ 30,000
$ 30,000 $ 30,000
Equipment
Date Particulars Fol $ Date Particulars Fol $
02-Apr-17 Accounts
Payable $ 1,000 30-Apr-18 Balance c/d $ 1,000
$ 1,000 $ 1,000
GST Paid
Date Particulars Fol $ Date Particulars Fol $
02-Apr-17 Accounts
Payable $ 100 30-Apr-18 Balance c/d $ 1,110
03-Apr-17 Cash $ 660
09-Apr-17 Cash $ 150
15-Apr-17 Accounts
Payable $ 200
$ 1,110 $ 1,110
Accounts Payable
Date Particulars Fol $ Date Particulars Fol $
29-Apr-17 Cash $ 2,200 02-Apr-17 Equipment $ 1,000
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T-1.8.1
30-Apr-18 Balance
c/d $ 1,100 02-Apr-17 GST Paid $ 100
15-Apr-17 Inventory $ 2,000
15-Apr-17 GST Paid $ 200
$ 3,300 $ 3,300
Inventory
Date Particulars Fol $ Date Particulars Fol $
03-Apr-17 Cash $ 6,600 07-Apr-17 Cost of goods sold $ 3,500
15-Apr-17 Accounts
payable $ 2,000 08-Apr-17 Cost of goods sold $ 1,800
14-Apr-17 Cost of goods sold $ 1,200
30-Apr-18 Balance c/d $ 2,100
$ 8,600 $ 8,600
GST Collected
Date Particulars Fol $ Date Particulars Fol $
30-Apr-18 Balance
c/d $ 990 07-Apr-17 Cash $ 550
08-Apr-17 Accounts
receivable $ 260
14-Apr-17 Cash $ 180
$ 990 $ 990
Sales
Date Particulars Fol $ Date Particulars Fol $
30-Apr-18 Balance
c/d $ 9,900 07-Apr-17 Cash $ 5,500
08-Apr-17 Accounts
receivable $ 2,600
14-Apr-17 Cash $ 1,800
$ 9,900 $ 9,900
Cost of goods sold
Date Particulars Fol $ Date Particulars Fol $
07-Apr-17 Inventory $ 3,500 30-Apr-18 Balance c/d $ 6,500
08-Apr-17 Inventory $ 1,800
14-Apr-17 Inventory $ 1,200
$ 6,500 $ 6,500
Accounts receivable
Date Particulars Fol $ Date Particulars Fol $
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T-1.8.1
08-Apr-17 GST
Collected $ 260 30-Apr-17 Cash $ 2,860
08-Apr-17 Sales $ 2,600
$ 2,860 $ 2,860
Rent expense
Date Particulars Fol $ Date Particulars Fol $
09-Apr-17 Cash $ 1,500 30-Apr-18 Balance c/d $ 1,500
$ 1,500 $ 1,500
Loan
Date Particulars Fol $ Date Particulars Fol $
30-Apr-18 Balance
c/d $ 33,000 17-Apr-17 Cash $ 33,000
$ 33,000 $ 33,000
Drawings
Date Particulars Fol $ Date Particulars Fol $
21-Apr-17 Cash $ 2,900 30-Apr-18 Balance c/d $ 2,900
$ 2,900 $ 2,900
Trial Balance of Marc
as at 30 April 2017
Account Name Debit ($) Credit ($)
Cash $ 59,880
Capital $30,000
Equipment $ 1,000
GST Paid $ 1,110
Accounts Payable $ 1,100
Inventory $ 2,100
GST Collected $ 990
Sales $ 9,900
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T-1.8.1
Cost of goods sold $ 6,500
Accounts receivable $ -
Rent expense $ 1,500
Loan $33,000
Drawings $ 2,900
$ 74,990 $74,990
Week 4: Question 7 (02 mark)
From the following account balances prepare a Trial Balance and determine the missing Capital
amount (additional amount could be added with the Capital amount).
Trial Balance
Particulars Debit Credit
Cash at bank 22,029
Inventory 14,160
Motor vehicle 5,000
Computers 8,000
Office equipment 11,500
Accounts Receivable Control 38,530
Accounts Payable Control 12,650
GST Paid/Receivable 1,936
GST Collected/Payable 925
Capital 48,000
Sales 9,250
Cost of Goods Sold 3,700
Rent paid 12,000
Wages 4,500
Drawings 12,000
Bank Loan 11,000
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T-1.8.1
Interest 820
Insurance 1,200
Computer Equipment 5,200
Advertising 4,800
Bad debts 500
Bank fees 150
81,825 146,025
Answer:
Trial Balance
Particulars Debit Credit
Cash at bank $ 22,029 $ -
Inventory $ 14,160 $ -
Motor vehicle $ 5,000 $ -
Computers $ 8,000 $ -
Office equipment $ 11,500 $ -
Accounts Receivable Control $ - $ 38,530
Accounts Payable Control $ - $ 12,650
GST Paid/Receivable $ 1,936 $ -
GST Collected/Payable $ - $ 925
Capital $ 16,200
Sales $ - $ 9,250
Cost of Goods Sold $ 3,700 $ -
Rent paid $ - $ 12,000
Wages $ 4,500 $ -
Drawings $ - $ 12,000
Bank Loan $ 11,000 $ -
Interest $ - $ 820
Insurance $ - $ 1,200
Computer Equipment $ - $ 5,200
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T-1.8.1
Advertising $ - $ 4,800
Bad debts $ - $ 500
Bank fees $ - $ 150
$ 98,025 $ 98,025
Week 6: Question 8
Petty Cash (2 mark)
The following information has been extracted from Petty Cash vouchers for the month of August:
Required:
Prepare the Petty Cash Book for the month of August:
1. Record the establishment of the Petty Cash Float in the Petty Cash Book
2. Record the Petty Cash Payment Vouchers in the Petty Cash Book
3. Balance the Petty Cash Book for the month of August
4. Record the reimbursement of the Petty Cash Book
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T-1.8.1
Petty Cash Book
Date
Receive
d Details Ref
Paymen
t
Statione
ry Staff Travel
Cleanin
g GST
Ameniti
es Paid
01-Aug
$
500.00 Cash received 101 $ -
03-Aug Purchased stationery 001 $
33.00
$
30.00 $ 3.00
05-Aug Milk purchased 002 $
2.00
$
2.00
07-Aug Reimbursed bus fare 003 $
9.90 $ 9.00 $ 0.90
09-Aug Reimbursed taxi fare 004 $
82.50 $ 75.00 $ 7.50
15-Aug Purchased cleaning products 005 $
14.30
$
13.00 $ 1.30
20-Aug Reimbursed staff for stationery 006 $
49.50
$
45.00 $ 4.50
25-Aug Reimbursed taxi fare 007 $
89.10 $ 81.00 $ 8.10
$
280.30
$
75.00
$
2.00 $165.00
$
13.00 $25.30
Balance c/d $
219.70
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T-1.8.1
$
500.00 Total $
500.00
31-Aug $
219.70 Balance b/d
31-Aug $
280.30 Petty cash reimbursed 136
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T-1.8.1
Specialised Journal Entries: Question 9 (4 Mark)
a) Identify the journals that would be used to record the following transactions
b) Enter the transactions from part (a) above into the appropriate journals and total each
journal
Date Transaction details Source
Documents
Amount Includin
g GST
Journal
Name
Mar 01 R. Stirling commenced a building supply
business by depositing cash in the bank
Memo 30,000
Cash
receipts
journal
02 Purchased fixtures & fittings for cash Chq 0001 6,600 √ Cash
payment
journal
02 Paid rent on shop premises Chq 0002 1,100 √ Cash
payment
journal
05 Purchased stock on Credit – B Jones Invoice 47 2,200 √ Purchase
Distribution
Journal
06 Sold goods for cash Cash 770 √ Cash
receipts
journal
06 Credit sales to E. Johnson Invoice 11 1,100 √ Sales
Distribution
Journal
09 Paid wages Chq 0003 650 Cash
payment
journal
09 Sold goods to F Black Invoice 12 704 √ Sales
Distribution
Journal
10 Cash sales Cash 2,750 √ Cash
receipts
journal
13 Paid television advertising Chq 0004 2,420 √ Cash
payment
journal
Financial Accounting, Assessment 1, v2.0 Page 23

T-1.8.1
14 Cash sales Cash 1,320 √ Cash
receipts
journal
14 Sales to E. Thomson Invoice 13 550 √ Sales
Distribution
Journal
16 Sales to D Brown Invoice 14 825 √ Sales
Distribution
Journal
16 Purchases from P. Plummer Invoice 687 792 √ Purchase
Distribution
Journal
17 Cash purchases Chq 0005 1,650 √ Cash
payment
journal
17 Paid wages Chq 0006 450 Cash
payment
journal
21 Cash purchases Chq 0007 1,265 √ Cash
payment
journal
21 Cash sales Cash 2,200 √ Cash
receipts
journal
25 Credit sales to E. Green Invoice 15 880 √ Sales
Distribution
Journal
27 Received cash from F Black for payment
of account in full
Receipt 01 704 Cash
receipts
journal
28 Paid bank interest Chq 0008 250 Cash
payment
journal
Financial Accounting, Assessment 1, v2.0 Page 24

T-1.8.1
Answer:
Cash Receipts Journal
Date Particular
s
Rec No Accounts
Receivable
s
Sales GST
Collecte
d
Other Bank
$ Accoun
t
Mar-01
Cash
deposited
by owner 30,000 Capital 30,000
Mar-06 Sold goods
for cash 700 70 770
Mar-10 Cash sales 2,500 250 2,750
Mar-14 Cash sales 1,200 120 1,320
Mar-21 Cash sales 2,000 200 2,200
Mar-27
Received
cash from F
Black for
payment of
account in
full
01 704 704
Total 704 6,400 640 30,000 37,744
Cash Payments Journal
Date Particular
s
Chq
No
Disc Rec Account
s
Payable
Cash
Purchase
s
GST
Paid
Other Bank
$ Account
02-
Mar
Purchased
fixtures &
fittings for
cash
Chq
0001 600 6,000
Furniture
& fixtures 6,600
02-
Mar
Paid rent
on shop
premises
Chq
0002 100 1,000 Rent 1,100
Financial Accounting, Assessment 1, v2.0 Page 25

T-1.8.1
09-
Mar Paid wages Chq
0003 650 Wages 650
13-
Mar
Paid
television
advertising
Chq
0004 220 2,200 Advertisin
g 2,420
17-
Mar
Cash
purchases
Chq
0005 1,500 150 1,650
17-
Mar Paid wages Chq
0006 450 Wages 450
21-
Mar
Cash
purchases
Chq
0007 1,150 115 1,265
28-
Mar
Paid bank
interest
Chq
0008 250
Bank
interest 250
Total - - 2,650 1,185 10,55
0
14,38
5
Sales Distribution Journal
Date Name of
Debtors
Inv No Total
Accounts
Receivables
Sales GST
Collected
06-Mar E. Johnson Invoice 11 1,100 1,000 100
09-Mar F Black Invoice 12 704 640 64
14-Mar E. Thomson Invoice 13 550 500 50
16-Mar D Brown Invoice 14 825 750 75
25-Mar E. Green Invoice 15 880 800 80
Total 4,059 3,690 369
Purchase Distribution Journal
Date Name of
Creditors
Inv No Total
Accounts Payables
Purchases GST
Paid
05-Mar B Jones Invoice 47 2,200 2,000 200
16-Mar P. Plummer Invoice
687 792 720 72
Financial Accounting, Assessment 1, v2.0 Page 26

T-1.8.1
Total 2,992 2,720 272
Week 7: Question 10:
Question (Special transactions) (02 marks)
You have been asked to record the following transactions in the accounting records of Bright
Limited:
 The amount owing by Shade Supplies, an accounts receivable, of $1,650 will not be collected
and is to be written-off as a bad debt. GST collected was accounted for at the time of this sale.
 An item of Motor Vehicle has been sold for $11,000 cash, including GST.
 The owner of the business has taken a lap top home for personal use. The book value of this
lap top was 1,000, plus GST.
 The cheque received from Sunny Pty Ltd for $660 was dishonoured by the bank.
 The business purchased a motor vehicle on credit from Sydney Cars Ltd for $25,000, plus GST.
 The owner contributed $50,000 in additional cash to the business.
Required:
Prepare the general journal entries to reflect these transactions (dates and folios not required)
Date Particulars Folio Debit Credit
Bad debt expense $ 1,650
To Allowance for bad debts $ 1,650
(Being amount not recoverable recorded as bad debt)
Cash $ 11,000
To GST collected $ 1,000
To Motor vehicle $ 10,000
(Being motor vehicle sold recorded)
Drawings $ 1,100
To GST collected $ 100
To Laptop $ 1,000
(Being laptop taken by owner for personal use)
Accounts receivable $ 660
Financial Accounting, Assessment 1, v2.0 Page 27

T-1.8.1
To Bank $ 660
(Being cheque dishonoured recorded in debtors account)
Motor vehicles $ 25,000
GST Paid $ 2,500
To Accounts Payable $ 27,500
(Being motor vehicle purchased on credit recorded)
Cash $ 50,000
To Capital $ 50,000
(Being capital contributed by owner recorded)
Financial Accounting, Assessment 1, v2.0 Page 28

T-1.8.1
Bank Reconciliation: Question 11 (6 mark)
The following information has been extracted from the records of Wrong Ltd:
RIGHT Bank Statement of Account
Account Name: Wrong Ltd As at: 31/12/16
Date Transaction Debits Credits Balance
Balance brought forward 22,651.00 Cr
Dec 2 Deposit 1,370.00 24,021.00 Cr
Cheque 732 130.00 23,891.00 Cr
3 Cheque 736 178.50 23,712.50 Cr
5 Deposit 1,643.00 25,355.50 Cr
6 Cheque 733 266.00 25,089.50 Cr
10 Deposit 1,066.00 26,155.50 Cr
Cheque 735 444.00 25,711.50 Cr
Direct debit—Optus 384.00 25,327.50 Cr
12 Deposit 1,735.00 27,062.50 Cr
17 Deposit 988.50 28,051.00 Cr
18 Cheque 740 373.00 27,678.00 Cr
Dividend – ABC Ltd 300.00 27,978.00 Cr
19 Cheque 738 198.00 27,780.00 Cr
Deposit 1,274.00 29,054.00 Cr
20 Cheque 739 710.00 28,344.00 Cr
23 Dishonour 176.00 28,168.00 Cr
Dishonour fee 20.00 28,148.00 Cr
Deposit 1,711.10 29,859.10 Cr
Cheque 742 529.00 29,330.10 Cr
24 Direct debit – Quality Realty 3,300.00 26,030.10 Cr
Cheque 744 774.00 25,256.10 Cr
Cheque 741 192.00 25,064.10 Cr
31 Interest 23.70 25,087.80 Cr
Bank charges 50.00 25,037.80 Cr
Closing balance 25,037.80 Cr
Financial Accounting, Assessment 1, v2.0 Page 29

T-1.8.1
Bank Reconciliation as at 30 November 2016
$
Credit balance as per bank statement 22,651.00
Add: Outstanding deposits 1,370.00
24,021.00
Less: Unpresented cheques
732 130.00
733 266.00
734 520.00
916.00
Debit balance as per cash book 23,105.00
Books of Wrong Ltd
(Extract) Cash Receipts Journal (Extract) Cash Payments Journal
Date $ Date Cheque $
4/12 Receipts 1,643.00 2/12 735 444.00
9/12 Receipts 1,066.00 736 178.50
11/12 Receipts 1,735.00 4/12 737 500.00
16/12 Receipts 988.50 10/12 738 198.00
18/12 Receipts 1,274.00 12/12 739 710.00
20/12 Receipts 1,711.10 16/12 740 373.00
30/12 Receipts 1,300.00 741 192.00
18/12 742 529.00
743 240.00
20/12 744 774.00
27/12 745 1,361.00
9,717.60 5,499.50
Required:
Prepare bank reconciliation as at 31 December 2016.
Financial Accounting, Assessment 1, v2.0 Page 30

T-1.8.1
Answer:
Books of Wrong Ltd
(Extract) Cash Receipts Journal (Extract) Cash Payments Journal
Date $ Date $
Sub-total 9,717.60 Sub-total 5,499.50
18-Dec Dividend ABC Ltd. 300 10-Dec Direct debit—
Optus 384
31-Dec Interest 23.7 23-Dec Dishonour 176
23-Dec Dishonour fee 20
24-Dec Direct debit –
Quality Realty 3300
31-Dec Bank charges 50
Total 10,041.30 Total 9,429.50
Bank account calculation:
Opening balance 23,105.0
0
Add: Cash receipts 10,041.3
0
Total Cash available 33,146.3
0
Less: Cash payments 9,429.50
Closing balance 23,716.8
0
Bank Reconciliation as at 31 December 2016
$
Credit balance as per bank statement 25,037.8
Add: Outstanding deposits 1,300
26,337.8
Financial Accounting, Assessment 1, v2.0 Page 31

T-1.8.1
Less: Unpresented cheques
Chq. No. 734 520
Chq. No. 737 500
Chq. No. 743 240
Chq. No. 745 1361 2,621
Debit balance as per cash book 23,716.8
Financial Accounting, Assessment 1, v2.0 Page 32

T-1.8.1
Part B: Financial Accounting (50 marks)
Activity 1: 10 Marks
Q1. According to AASB, describe the general purpose of Financial Reporting.
According to AASB, the general purpose of financial reporting is to provide relevant information to
the users that helps in making and evaluating decisions. The financial reporting is a very important
aspect of accounting as it helps the users of the financial information in getting the relevant data
in time. With the help of this data, the investors or other stake holders can easily evaluate the
financial information and can take the relevant decisions.
Q2. Explain the objective of Financial Statements, according to AASB.
The objectives of financial statements is to provide the accurate and correct information to the
stakeholders.
Q3. Briefly explain the qualitative characteristics of Financial Statements according to AASB.
According to AASBs the qualitative characteristics of financial statements are
(a) Reliability – that the prepared financials should be reliable
(b) Comparability – the financials should be comparable
(c) Transparent – the financials should be free from error and mis-representations.
Financial Accounting, Assessment 1, v2.0 Page 33

T-1.8.1
Q4. According to AASB, explain a) Financial Position, b) Financial Performance and c) Cash Flows –
with example.
(a) Financial Position is the balance sheet of the company which shows the balances of assets
and liabilities at a given point of time
(b) Financial performance is the financial health of the company and represents that whether
the company has liquidity, the company is financial strong and is capable of generating
sufficient profit in the future.
(c) Cash flows shows the inflow and outflow of cash from investing, operating and financing
activities.
Activity 2:10 Marks
Star Trek Computers purchased a BMW sedan registration SYD0155 from Sydney BMW on 1 January
2010. Details of the purchase are as follows:
• Purchase price $56,000.00 (including GST)
• Customs Duty $4,800.00
• Dealer delivery fee $1870.00 (including GST)
• Stamp duty $8500.00
• Registration $1700.00
• Insurance $6600.00 (including GST)
A Blue Ray player was supplied and installed in the car on 1 January 2010. Cost and installation were
as follows:
• Blue Ray Player $15000.00 (including GST)
• Installation of Blue ray player $880.00 (including GST)
Calculation of the capital cost of the vehicle is:
Capital cost of the vehicle $ 88,045
Financial Accounting, Assessment 1, v2.0 Page 34

T-1.8.1
Purchase price $ 50,909
Customs duty $ 4,800
Dealer delivery fee $ 1,700
Stamp duty $ 8,500
Registration charges $ 1,700
Insurance $ 6,000
Cost of blue ray player $ 13,636
Installation of Blue ray player $ 800
Capital cost of the vehicle $ 88,045
Financial Accounting, Assessment 1, v2.0 Page 35

T-1.8.1
The estimated useful life and the residual value of this BMW would be 10 years and $2800
respectively. Please calculate the depreciation of the car under Straight Line method (Pro-Rata) as at
30 June 2010
Also prepare the journal and post the journals to the respective ledgers.
Calculation of Depreciation (both Straight Line and Reducing Balance Methods):
Capital cost of the vehicle $ 88,045
Residual Value 2,800
Useful life 10
Depreciation rate 10%
Depreciation rate for WDV 19%
Calculation of depreciation as on 30 June, 2010
Depreciation as per SLM (88,045*10%/2) 4,262
Depreciation as per WDV (88,045*19%/2) 8,525
Record Journal Entry (based on Straight Line method)
Date Account Name Debit $ Credit $
30-06-10 Depreciation expense 4262
To Accumulated depreciation 4262
Post the Journals to general ledger:
Depreciation
Date Particulars Debit $ Credit $ Balance $
30-06-10 Accumulated Depreciation 4262 4262
Accumulated Depreciation
Date Particulars Debit $ Credit $ Balance $
30-06-10 Depreciation 4262 4262
Financial Accounting, Assessment 1, v2.0 Page 36

T-1.8.1
Activity 3:10 Marks
Please record the below transactions with the adjustments if needed.
Jun 1 Purchased fire insurance for $3600 for 3 years
Jun 6 Paid rent of $1800 for period from June 15 to July 15 2013
Jun 9 Paid Advertisement for $1200 the period from 20 June to 20 July 2013
Jun 10 Purchased equipment of $10,000. $9,500 paid in cash and rest in credit
Jun 13 Purchased stationeries on credit for $7500, at 30 of June 2013, $1500 worth of stationeries
remain on hand
Jun1 6 Received $45000 as an un-earned revenue, at 30 June 2013 20% work has completed
Jun 19 Paid wages of $11,000 for last period
Jun 23 Record depreciation expense for $1500 and 30% belong to June 2013
Jun 24 Purchased inventory on credit for $55500, 90% remained on hand on 30 June 2013
Jun 30 Received a telephone bill from Telstra for $550 for June 2013
Journal Entries
Date Account Name Debit $ Credit $
Jun-01 Prepaid Insurance $ 3,500
Insurance expense $ 100
To Cash $ 3,600
(Being insurance expense paid for 3 years)
Jun-06 Prepaid rent $ 900
Rent expense $ 900
To Cash $ 1,800
(Being rent paid from 15 June to 15 July)
Jun-09 Prepaid advertisement $ 800
Advertisement Expense $ 400
To Cash $ 1,200
(Being advertisement expense paid from 20 June to 20 July)
Jun-10 Equipment $ 10,000
To Cash $ 9,500
To Accounts Payable $ 500
Financial Accounting, Assessment 1, v2.0 Page 37

T-1.8.1
(Being equipment purchased)
Jun-13 Stationeries $ 7,500
To Accounts payable $ 7,500
(Being stationery purchased)
Jun-16 Cash $ 45,000
To Unearned revenue $ 45,000
(Being cash received for services to be performed)
Jun-19 Accrued wages $ 11,000
To Cash $ 11,000
(Being wages of last period recorded)
Jun-23 Depreciation expense $ 1,500
To Accumulated Depreciation $ 1,500
(Being depreciation expense recorded)
Jun-24 Inventory $ 55,500
To Accounts Payable $ 55,500
(Being inventory purchased on credit)
Jun-30 Telephone expense $ 550
To Telephone expense payable $ 550
(Being telephone bill recd but not paid recorded)
Jun-30 Stationeries expense $ 6,000
To Stationeries $ 6,000
(Being stationery consumed recorded)
Jun-30 Unearned revenue $ 9,000
To Revenue $ 9,000
(Being revenue earned recorded)
Jun-30 Cost of goods sold $ 5,550
To Inventory $ 5,550
(Being inventory sold recorded)
Activity 4:10 Marks
Aussie Food Pty Ltd provided you with below information:
- A business commences operation on July 1, 2013.
- Accounts Receivable balance on June 30, 2014 was $70,000.
- Allowance established on June 30, 2014 for Doubtful Debts at 5% of Accounts Receivable.
- On June 30, 2015, Accounts Receivable accounts totalling $935 ($850 + $85 GST) are to be
written off as bad (irrecoverable).
Financial Accounting, Assessment 1, v2.0 Page 38

T-1.8.1
- Balance at July 30, 2015:
 Accounts Receivable $110,935 (before written off of Bad Debts).
 Allowance for Doubtful Debts to be maintained at 5% of Accounts Receivable.
Required:
1. At June 30, 2014
- General Journal entry establish Allowance for Doubtful Debts
- Ledger Accounts
- Extracts of Income Statement and Balance Sheet
General Journal of Aussie Food
Date Account Name Debit Credit
30-Jun-14 Doubtful Debts (70,000*5%) $ 3,500
To Allowance for doubtful debts $ 3,500
Aussie Food Ledger Accounts
Doubtful Debts
Date Particulars Debit $ Credit $ Balance $
30-Jun-14 Allowance for doubtful debts $3,500 $ 3,500
Allowance for Doubtful Debts
Date Particulars Debit $ Credit $ Balance $
30-Jun-14 Doubtful debts $ 3,500 $ 3,500
Aussie Food Extract of Income Statement
For the year ended June 30, 2014
Expenses
Doubtful debts $ 3,500
Aussie Food Extract of Balance Sheet as at
June 30, 2014
Financial Accounting, Assessment 1, v2.0 Page 39

T-1.8.1
Assets
Current assets
Accounts receivable $ 70,000
Less: Allowance for doubtful debts $ (3,500) $ 66,500
2. At June 30, 2015:
- General Journal entry to adjust Allowance for Doubtful debts and write off the bad debt.
- Ledger accounts
- Extracts of Income Statement and Balance Sheet
General Journal of Aussie Food
Date Account Name Debit Credit
30-Jun-15 Allowance for doubtful debts $ 935
To Accounts receivable $ 935
30-Jun-15 Doubtful Debts ((110935-935)*5%) $ 5,500
To Allowance for doubtful debts $ 5,500
Aussie Food Ledger Accounts
Doubtful Debts
Date Particulars Debit $ Credit $ Balance $
30-Jun-15 Allowance for doubtful debts 5,500 5,500
Allowance for Doubtful Debts
Date Particulars Debit $ Credit $ Balance $
01-Jul-14 Balance b/d 3,500
30-Jun-15 Accounts receivable 935 2,565
30-Jun-15 Doubtful debts 5500 8,065
Accounts receivable
Date Particulars Debit $ Credit $ Balance $
30-Jun-15 110,935
30-Jun-15 Allowance for doubtful debts 935 110,000
Financial Accounting, Assessment 1, v2.0 Page 40

T-1.8.1
Aussie Food Extract of Income Statement
For the year ended June 30, 2015
Expense
s
Doubtful debts 5,500
Aussie Food Extract of Balance Sheet as at June 30, 2015
Assets
Current assets
Accounts receivable 110,000
Less: Allowance for doubtful debts (5,500) 104,500
Financial Accounting, Assessment 1, v2.0 Page 41

T-1.8.1
Activity 5:10 Marks
Followings are the financial information of Harry & Sally Pty Ltd as at 30 June 2017
1. Total sales $200 000;
2. Beginning stock $62 000;
3. Total stock purchase in 2017 for $120 000;
4. Stock on hand at 30 June 2017 $60 000;
5. Freight expense $4 000;
6. Commission given $10 000;
7. Salary expense $18 000;
8. Office expenses $4 000;
9. Rates paid $1 000;
10. Insurance expense $3 000;
11. Depreciation expense $1 000;
12. Discounts allowed $5 000; and
13. Bad debts expense $2 000
Prepare the income statement for Harry & Sally Pty Ltd for year ended at 30 June 2017.
Company Name:
Income Statement
For Month of June 2017
Accounts Name Amount $
Sales 200,000
Less: Cost of Goods
sold
Purchases 120,000
Add: Opening stock 62,000
Less: Closing stock (60,000) 122,000
Gross Profit 78,000
Less: Other expenses
Freight expenses 4,000
Commission given 10,000
Salary expense 18,000
Office expenses 4,000
Rates paid 1,000
Insurance expense 3,000
Depreciation expense 1,000
Discount allowed 5,000
Bad debt expense 2,000 48,000
Net Income 30,000
Financial Accounting, Assessment 1, v2.0 Page 42

T-1.8.1
Activity 6:10 Marks
Norm Spence
Trial balance
as at 30 June 2017
Account Debit Credit
Sales 75,000
Sales returns 2,000
Stock 1 July 2016 5,000
Purchases 45,000
Purchases returns 1,000
Freight inwards 700
Discount received 100
Advertising 2,000
Salaries 22,000
Office expenses 1,700
Bad debts 800
Rent received 4,000
Capital 53,100
Mortgage loan 28,000
Bank overdraft 2,500
Land and buildings 45,000
Creditors 4,500
Motor vehicles 35,000
Office furniture 3,800
Debtors 5,200
168,200 168,200
Additional information: Stock on hand 30 June 2017, $7,000 Salaries owing, $550 Advertising paid in advance, $200 Provide for doubtful debts at 1 per cent of debtors Depreciate motor vehicles at 20 per cent per annum straight-line Depreciate office furniture at 15 per cent per annum straight-line.
Prepare journal entries and a 10-columnworksheet to record the balance-day adjustments.
Financial Accounting, Assessment 1, v2.0 Page 43

T-1.8.1
Norm Spence
Work sheet For the year ended 30 June 2017
Trial Balance Adjustments Adjusted Trial
Balance
Income
Statement Balance Sheet
Debit $ Credit $ Debit $ Credit $ Debit $ Credit
$
Debit
$ Credit $ Debit
$
Credit
$
Sales 75,000 - 75,000 75,000
Sales returns 2,000 2,000 - 2,000
Stock 1 July 2016 5,000 5,000 - 5,000
Purchases 45,000 45,000 - 45,000
Purchases returns 1,000 - 1,000 1,000
Freight inwards 700 700 - 700
Discount received 100 - 100 100
Advertising 2,000 200 1,800 - 1,800
Salaries 22,000 550 22,550 22,550
Office expenses 1,700 1,700 1,700
Bad debts 800 52 852 852
Rent received 4,000 4,000 4,000
Financial Accounting, Assessment 1, v2.0 Page 44

T-1.8.1
Capital 53,100 53,100 53,10
0
Mortgage loan 28,000 28,000 28,00
0
Bank overdraft 2,500 2,500 2,500
Land and buildings 45,000 45,000 45,00
0
Creditors 4,500 4,500 4,500
Motor vehicles 35,000 35,000 35,00
0
Office furniture 3,800 3,800 3,800
Debtors 5,200 5,200 5,200
Salaries payable 550 550 550
Advertising advance 200 200 200
Allowance for Bad debts 52 52 52
Depreciation expense 7,570 7,570 7,570
Accumulated depreciation -
Motor vehicle 7,000 7,000 7,000
Financial Accounting, Assessment 1, v2.0 Page 45

T-1.8.1
Accumulated depreciation -
Furniture 570 570 570
168,200 168,200 8,372 8,372 176,372 176,37
2
87,17
2 80,100 89,20
0
96,27
2
Adjusting Journal Entries
Particulars Debit ($) Credit ($)
Salaries 550
To Salaries payable 550
Advertising advance 200
To Advertising 200
Bad debts 52
To Allowance for Bad debts 52
Depreciation expense 7,570
To Accumulated depreciation - Motor vehicle 7,000
To Accumulated depreciation - Furniture 570
Financial Accounting, Assessment 1, v2.0 Page 46

T-1.8.1
Financial Accounting, Assessment 1, v2.0 Page 47

T-1.8.1
Financial Accounting, Assessment 1, v2.0 Page 48