Accounting Assessment 2: Prepare Financial Reports - FNS40610

This document presents a comprehensive solution for an accounting assessment, specifically designed for the FNS40610 Certificate IV in Accounting. The assessment covers a range of essential accounting concepts, including asset management, depreciation calculations using the reducing balance method, and the preparation of general journal entries to record asset purchases, installation costs, and depreciation charges. Furthermore, the solution includes end-of-period adjustments, closing general journal entries (including profit/loss and drawings transfers), and the creation of trading and profit and loss accounts. The assessment also requires the preparation of a classified income statement and balance sheet, alongside a 10-column worksheet. Detailed calculations and explanations are provided for each task, ensuring a thorough understanding of the required financial reporting principles, including the application of Australian Accounting and Auditing Standards and double-entry principles. The solution includes adjustments for stock on hand, prepaid insurance, interest on loans, and bad debts, along with the calculation of provisions for doubtful debts and depreciation for equipment and motor vehicles.

ASSESSMENT 2
Student name: Student number:
Trainer/Assessor: Term/Year:
BSBFIA401A Prepare financial reports FNS40610 Certificate IV in Accounting
Due date: Date submitted:
Assessment 2: Written Assessment Elements: All
Performance Criteria: All
Instructions to the Students
Students must keep a copy of this assessment.
Plagiarism/Cheating is a serious offence. If a student is found plagiarising/cheating, it may
result in a penalty of suspension/cancellation of student’s enrolment.
I declare that this assessment is my own work. The material in this has not been submitted in
any other formal course of study.
Student signature: Date:
Students to retain this section as proof of Assessment
Student name: Student number:
BSBFIA401A Prepare financial reports Assessment 2: Written Assessment
Student signature: Trainer/Assessor signature:
Date:
Unit Outline - Version 1.3 Page
1 of 5
Last Updated: Feb 2013
FNS40610
Certificate IV
in Accounting

Macquarie Institute
FNS40610 Certificate IV in Accounting
BSBFIA401A Prepare financial reports
Introduction
This written assessment has been designed to assess the criteria associated with the
competency BSBFIA401A Prepare financial reports. To achieve competency in this unit, a
person must be able to demonstrate:
 preparing financial reports
 applying the Australian Accounting and Auditing Standards
 applying double-entry principles.
This competency is part of the award FNS40610 Certificate IV in Accounting.
Instructions:
This written assessment is to be completed according to the instructions given by your
assessor. Listen carefully to these instructions.
Time
You will be given a set amount of time to complete the written assessment.
Marking guide
The written assessment is divided into sections that relate to the unit of competency, the
different elements of competency and required knowledge. You must answer each question
correctly.
Each question has been allocated a mark and this is shown in the written assessment. Your
final mark will be recorded in the results.
Results and feedback
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-submission and re-sit policy for more information.
Assessment rules
 This is a closed book written assessment. The written assessment is to be
completed according to the instructions given by your assessor. Listen
carefully.
 You will be given 3 hours to complete the written assessment.
 Written assessment must be written in blue or black pen.
 No copying from other students.
 Failure to adhere to these rules will result in penalties.
Penalty for late submission
10% off mark per day that it is late. After three (3) days overdue it’s a zero mark, unless there
are special extenuating circumstances.
Assessment 2 - Version 1.3 Page 2 of 5
Last Updated: February 2013

Macquarie Institute
FNS40610 Certificate IV in Accounting
BSBFIA401A Prepare financial reports
Overview of Assessment 2 (75%)
This assessment is made up of 4 parts:
Part Weighting Due Date
Task 1 10%
Task 2 30%
Task 3 20%
Task 4 15%
On the following pages you will find various types of information. The symbols below will be
used throughout this project to represent the different types of information.
 A description of the task to be competed A document or piece of additional information that will assist you
complete the task
 Questions that require an answer.
 Task 1 (10 marks)
Assessment 2 - Version 1.3 Page 3 of 5
Last Updated: February 2013

Macquarie Institute
FNS40610 Certificate IV in Accounting
BSBFIA401A Prepare financial reports
Asset Management
A machine was purchased costing $12,890 including GST on credit on 1 July 2009.
Installation costs –labour- were $500.
It was estimated that the machine would have a productive life of five years.
It was decided to depreciate this item using the reducing balance method at 25% per year.
Required:
- A depreciation worksheet (asset register).
- General journal entries to record the purchase and installation of the asset.
- General journal entries to record the depreciation charges for the financial years
ended
30 June 2010
30 June 2011
30 June 2012
- General journal entry for the disposal of the machine, which was sold on credit on 30 June
2012 for $7,000 + GST
- The accumulated depreciation on machine ledger account as at 30 June 2012.
From the information below (appendix 1) you are required to prepare:
 Task 2
 General journal entries for the end of period adjustments. (15 marks)
 Closing general journal entries including the transfer of net profit (loss) and drawings to
capital account. (10 marks)
 Trading and Profit and loss account as they would appear in the general ledger. (5 marks)
 Task 3
 A classified income statement for the year ended 30 June 2012. (10 marks)
 A classified balance sheet as at 30 June 2012. (10 marks)
 Task 4
 Prepare a 10-column worksheet. (15 marks)
Appendix 1
The following information
refers to Anglesola Ltd
business for the year ended 30
June 2012:
Assessment 2 - Version 1.3 Page 4 of 5
Last Updated: February 2013
Sales 247,600
Interest revenue 2,075
Cost of goods sold 101,450
Wages 28,560
Insurance 1,440
Sales commission 2,500
Cash at bank 33,850
Discount expense 1,400
Accounts payable 15,340
GST Clearing (credit) 6,750
Accounts receivable 23,410
Inventories 18,850
Electricity 2,890
Rent revenue 4,250
Equipment 124,700
Accumulated depreciation on Equipment 5,600
Motor Vehicles 15,900
Drawings 3,000
Interest expense 120
Loan 15,000
Provision for doubtful debts 600
Capital ?

Macquarie Institute
FNS40610 Certificate IV in Accounting
BSBFIA401A Prepare financial reports
Additional information
- Stock on hand as per stocktake 30.06.2012 18,750
- Rent revenue received not due 1,800
- Prepaid insurance 550
- Interest on loan due not paid 780
- Bad debt inclusive of GST to be written off to the provision
for doubtful debts 1,250
- Provision for doubtful debts to be 3% of accounts
receivable after bad debt write-off.
- Depreciation to be provided for:
Equipment 8% on cost
Motor Vehicle 15% on cost (It was purchased on 01.04.12)
Assessment 2 - Version 1.3 Page 5 of 5
Last Updated: February 2013