FNSACC414 & FNSACC412 Assignment - Accounting and Budgeting

This assignment is for FNS40217 Certificate IV in Accounting & Bookkeeping. It includes written response, tasks in MS Excel, presentation and role play. The topics covered are coding, classifying, checking, income statement, balance sheet statement, pie charts, bar graphs, line graph, variance analysis, financial legislation, budgeting, budgeting process, budgeting control, revenue budget, operating budget, cash budget, forecasting technique, budgetary milestones, performance indicators and break-even calculation.

T-1.8.1
Details of Assessment
Term and Year Term 4, 2018 Time allowed 6 Weeks
Assessment No 2 Assessment Weighting 40%
Assessment Type Assignment
Due Date Week No. 8 Room 710
Details of Subject
Qualification FNS40217 Certificate IV in Accounting & Bookkeeping
Subject Name Accounting and Budgeting
Details of Unit(s) of competency
Unit Code (s) and
Names
FNSACC414 Prepare financial statements for non-reporting entities
FNSACC412 Prepare operational budgets
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 Tashfiq Chowdhury
Assessment Outcome
Results Competent Notyet competent Marks / 40
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: ____/_____/_____
Assessment/evidence gathering conditions
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Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student can only
achieve competence when all assessment components listed under “Purpose of the assessment” section are recorded
as competent. Your trainer will give you feedback after the completion of each assessment. A student who is assessed
as NYC (Not Yet Competent) is eligible for re-assessment.
Resources required for this Assessment
 Computer with relevant software applications and access to internet
 Weekly eLearning notes relevant to the tasks/questions
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 aspects 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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Part A: Written Response (5 Marks)
Instruction for student:
This is an individual task. You need to prepare answers using MS Excel. Please print
documents accordingly. You must communicate your trainer after finishing this task.
01. Data must by systematically coded, classified and checked for accuracy and
reliability in accordance with organisational policies and procedures.
(5 marks)
a) Briefly explain ‘coding’? (2 Marks)
Coding is basically an analytical process in which the data is categorized in both
quantitative and qualitative form in order to facilitate analysis. The aim of coding is to
transform the data into a manner which is suitable for the computer aided analysis. In
other words, it is referred to the task of assigning a code or classifying the data. It
establishes an intercommunication channel between humans and machines.
b) Briefly explain ‘classifying’? (2 Marks)
Classification of data is a procedure of sorting and categorizing the information into various types,
forms and different classes. The process enables the segregation of the data according to the set
requirements and as per the various business objectives and goals.
c) Briefly explain ‘checking’? (1 Mark)
Data checking is referred to the procedure of ensuring that the information has been
properly coded and classified so as to maintain the quality of data. The process enables the
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T-1.8.1
measurement of accuracy and reliability of the data by making it undergone through an
authentic procedure of checking. It ensures that correct information has been entered and is
as per the policies and procedures of the organization.
Part B: Tasks in MS Excel (10 Marks)
Instruction for student:
This is an individual task. You need to prepare answers using MS Excel. Please print
documents accordingly. You must communicate your trainer after finishing this task.
01. You are a new Accounts Clerk of Johns Plumbing Services. Today you have
generated the trial balance according to organisational policy and procedures.
You have checked all input documents (All tax invoices, asset purchase
documents). After checking all documents, you have found a furniture invoice of
$2000 dated 20 June wasn't entered in the system. It is not in Trial Balance and
received an invoice from ABC Furniture, Invoice no ABC20103. You have
discussed this with your manager and he has approved this invoice.
Required: From the following trial balance, prepare an income statement and
balance sheet statement in MS Excel (5 marks)
Johns Plumbing Services 30/6/2018
Capital 9,550
Mortgage 2,500
Freehold premises 15,000
Plant and equipment 3,500
Motor vehicle 25,000
Acc Depreciation -Plant and
equip 3,350
- Motor vehicle 4,950
5% Commonwealth bonds 4,000
Goodwill 5,500
Accounts Receivable 1,980
Accounts Payable 6,182
Cash at bank 15,000
Petty cash 150
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Income 71,688
Advertising 580
Bad debts 110
Commission paid 2,290
Insurance 4,200
Interest on Govt bonds 690
Motor vehicle expenses 4,300
Printing and stationary 1,300
Salaries 16,000
98,910 98,910
2. You are a new Accounts Clerk of Johns Plumbing Services. Your manager has
requested you to check external information for Yummy Foods Pty Ltd. After
checking their website, you have found their "Statement of Financial position".
Present your findings to your manager (Your Trainer) using MS Excel to record
the following data and create the following charts and graph: (5 marks)
a. Two pie charts to explain the actual results of the non-current assets, one
represented by dollars ($) and the other represented by percentages (%).
b. A vertical bar graph to explain the actual results of current liabilities.
c. A horizontal bar graph to explain the actual results of current assets.
d. A line graph plotting the actual results and the budgeted results.
e. Prepare a variance analysis
Statement of financial position of Yummy Foods Pty Ltd. as at 30 June 2013
ACTUAL
BUDGETE
D
ACCOUNT TYPE
RESULT
S
( $)
FIGURES
($)
Current Assets
Cash and Cash Equivalents 35,000 35,600
Trade & Other Receivables 32,500 45,000
Inventories 172,000 182,000
Total current assets 239,500 262,600
Non-current Assets
Trade & Other Receivables 20,000 20,000
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Available for Sale Investments 50,000 65,000
Property, Plant & Equipment 510,000 520,400
Goodwill 28,000 28,000
Other Intangible Assets 0 50,000
Total non-current assets 608,000 683,400
TOTAL ASSETS 847,500 946,000
Current Liabilities
Trade & Other Payables 38,200 41,500
Short-term Borrowings 81,200 100,000
Current Portion of L/T term
Borrowings 15,000 30,000
Current tax liabilities 21,500 35,000
Short-term Provisions 21,000 30,000
Total current liabilities 176,900 236,500
Non-current Liabilities
Long-term Borrowings 109,000 120,000
Deferred Tax Liabilities 2,650 2,650
Long-term Provisions 10,000 11,000
Total non-current liabilities 121,650 133,650
TOTAL LIABILITIES 298,550 370,150
NET ASSETS 548,950 575,850
Equity
Share Capital 300,000 300,000
Reserves 80,000 80,000
Retained earnings 168,950 195,850
TOTAL EQUITY 548,950 575,850
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Part C: Presentation (10 marks)
Instruction for student:
This is a group base task. Your trainer will form each group. Each member of the
group must complete the assigned responsibilities to achieve maximum output.
You have 10 minutes to present this financial information. Every presenter will
have 3 minutes to present.
Using the data in the task in Part B, 2
Discuss the following:
 Two pie charts to explain the actual results of the non-current assets, one
represented by dollars ($) and the other represented by percentages (%).
 A vertical bar graph to explain the actual results of current liabilities.
 A horizontal bar graph to explain the actual results of current assets.
 A line graph plotting the actual results and the budgeted results.
 Prepare a variance analysis
 The key differences between the standards in terms of preparation and
presentation of financial statements between profit entities and not for profit
entities
 Describe the key features of financial legislation covering for non reporting
entities:
a) taxable transactions
b) reporting requirements
Presentation guidelines:
 Prepare a presentation using MS PowerPoint
 Discuss all issues
 No slide limits
 You may add any relevant topics
 Maximum 3 in each group
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Part D: Role Play (15 marks)
Instruction for student:
This is a group base task. Your trainer will form each group. Each member of the
group must complete the assigned responsibilities to achieve maximum output.
You are required to prepare and present a 15 minutes role play using the below
scenario.
Scenario
You are a new Accounts Clerk of Robin’s landscaping services. Matt Robin is the
manager of this lawn mowing business Robin’s Landscaping Services operating at
277 Kent Street, Sydney 2000. Matt has no budgeting knowledge. He wants to
start a new shop in Minto.
Sandra is willing to invest in this project and who will assist in budgeting for the
new investment at Minto. Sandra has prepared all financial reports and she was
seeking another partner in the business and she has presented a report to Matt
without consulting with you. She didn’t plan and think about the risks involved at
the new project. She had wrong revenue and costs calculations. She had
calculated the total cost to be $400000 per year where she didn’t consider rental
advance of $ 40000 and council charge of $600 per month. She also calculated
the weeding services at $50 per hour. Her break-even calculation was wrong. You
have done your calculation on all budget’s financial statements. Sandra has
completed Certificate IV in Accounting and forgot few concepts of budgeting.
Usual charge at Sydney customers (inclusive of GST) to make 30% net profit:
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
You, Sandra and Matt have started a discussion session for 15 minutes in
Budgeting, Budgeting Basic, Budgeting Process, Budgeting Control, Revenue
Budget, Operating Budget, Cash Budget, Forecasting Technique, budgetary
milestones and performance indicators and Break-even calculation.
Solution
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Role play
Matt Robin: Good morning people. We are gathered here to discuss about our new
investment project in Minto. It is known that our company is looking forward for
establishing a new shop in Minto and Sandra is ready to invest in our project along
with some budgeting advice.
Sandra: Hello Matt. I have prepared all the financial reports and budgets related to
the new investment project. Moreover, the estimation of total cost has also been
made.
Me: Hello sir. After looking at the reports and budgets prepared by Sandra, I would
like to inform you that she has missed many things and some of her calculations are
wrong.
Matt: Can you please tell the issues in the budgets prepared as I cannot find
anything wrong.
Me: Sure sir. First of all, the cost calculated by Sandra is wrong as she has forgot to
include the rental advance and council charge worth $40,000 and $600 respectively.
This made her calculation wrong. Furthermore, she calculated weeding service
charge at $50 per hour whereas our usual charge is $66 per hour.
Sandra: Thank you for identifying my mistakes. Is there anything else which has
gone wrong in the reports as I have forgotten some budgeting concepts?
Me: Yes. The break even calculation done by you are also wrong because of the
incorrect estimates. We need to understand this that preparation of budgets is a very
important task to be performed. It involves setting of the targets, estimation of
expenses and incomes and preparation of different budgets.
Matt: what type of budgets we need to prepare and what are the performance
indicators that are to be kept in mind.
You: Various budgets such as cash budget, sales budget, operating budget and
other are required to be prepared so that proper and accurate estimations can be
done for our new investment.
You: Budgets are used as the tools to measure the actual results and identify the
variances. Therefore, it is very much important to set our standards correct.
Sandra: What about break even calculation?
You: Breakeven is the point where the business is in no profit and no loss situation. It
is important to know exactly the point after which our company will start making
profit. It will help us in maintaining the inventory levels also.
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Matt: From this discussion, it seems like there are many
things needed to be change in the reports prepared by Sandra. I want you and
Sandra to prepare all the financial reports again with the correct estimations and
calculations.
Sandra and You: Ok sir.
Matt: Thank you. We will take the review of reports in next meeting.
PRESENTATIONAND ROLE PLAY CHECK LIST (for trainer use only)
S/N Communication Requirements Satisfactory Not
Satisfactory
1 Discussed Financial Position
2 Presented Budgeted Variance
3 Presented key features of financial legislation
covering for non-reporting entities
4 Presentation slides met requirements
5 Discussed Budgeting Basics
6 Discussed Break even points
MARKINGRUBRIC FOR ALL TASKS (for trainer use only)
The assessor needs to use judgment in providing marks for the tasks based on learner performance.
(Accounting and Budgeting Assessment 02)
TASK NO. MARK
ALLOCATED
MARK
RECEIVED
Part A: Written Response 5 / 5
Part B: Tasks in Excel 1 5 / 5
Part B: Tasks in Excel 2 5 / 5
Part C: Presentation 10 / 10
Part D: Role Play 15 / 15
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TOTAL 40 / 40
End of Assessment
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