FNSACC601 - Taxation Assignment: Legal Entities Documentation

This assignment solution for FNSACC601, focusing on preparing and administering tax documentation for legal entities, includes a comprehensive analysis of various financial aspects. It begins with a written activity involving checklists, cash flow summaries, depreciation schedules, and profit and loss statements, culminating in a balance sheet. The solution provides detailed calculations for tax payable, fringe benefits, and GST reporting options. Furthermore, the assignment incorporates a research activity that delves into the responsibilities of tax agents, government tax policy documents, and the interpretation of relevant legislation, statutes, and ATO rulings. The solution also addresses key sources of information and taxable transactions data required to calculate taxable income. Overall, the assignment provides a practical application of taxation principles and financial statement analysis within the context of Australian tax law.

FNSACC601
FNSACC601 PREPARE AND ADMINISTER TAX
DOCUMENTATION FOR LEGAL ENTITIES
Student : Ranjit
Enrolment No: 61812
Unit Code: FNSACC601

1TAXATION
Table of Contents
Written Activity:..............................................................................................................................3
Task 1:.........................................................................................................................................3
Written Activity:..............................................................................................................................3
Task 1:.........................................................................................................................................3
Task 2:.........................................................................................................................................3
Task 3:.........................................................................................................................................4
Task 4:.........................................................................................................................................4
Task 5:.........................................................................................................................................5
Task 6...........................................................................................................................................6
Task 7:.........................................................................................................................................7
Task 8:.........................................................................................................................................9
Task 9.........................................................................................................................................10
Research Activity:.........................................................................................................................12
Answer to question 1.................................................................................................................12
Answer to question 2:................................................................................................................15
Answer to question 3.................................................................................................................16
Answer to question 4:................................................................................................................18
Answer to question 5.................................................................................................................19
Short Answer Questions................................................................................................................21
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

2TAXATION
Answer to question 1:................................................................................................................21
Answer to question 2:....................................................................................................................22
Answer to question 3:................................................................................................................22
Answer to question 4:................................................................................................................24
Answer to question 5:................................................................................................................25
Answer to question 6:................................................................................................................25
Answer to question 7:................................................................................................................26
Answer to question 8:................................................................................................................26
Answer to question 9:................................................................................................................26
References:....................................................................................................................................28
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

3TAXATION
Written Activity:
Task 1:
Written Activity:
Task 1:
Checklist
Check List Please Tick
TFN
ABN
Sales for the year: $294,423
Expenditure: $262,452
Personal drawings: $32,000
Income From Rental Property $22,000
Mortgage Repairs
Insurance on Rental Property
Bank Interest
Outstanding Debtors
Outstanding Creditors
Task 2:
Cash Flow Summary:
Items $ $
Cash Inflow
Sales $ 2,94,423.00
Income from rental property $ 22,000.00
Bank Interest $ 231.00
Gift from client $ 2,000.00 $ 3,18,654.00
Cash Outflow
Expenditure $ 2,62,452.00
Personal Drawings $ 32,000.00
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

4TAXATION
Mortgage Payment $ 13,312.00
Repairs $ 2,435.00
Insurance for Rental Property $ 374.00
Purchase of Laptop $ 2,500.00
Purchase of Telephone $ 1,250.00 $ 3,14,323.00
Net cash inflow $ 4,331.00
Task 3:
Depreciation schedule:
Asset Type Base Value Days Held Days in Year Percentage Effective life Total Depreciation Closing Balance
Laptop Computer 2,500.00$ 365 365 100% 2 years 1,250.00$ 1,250.00$
Telephone 1,250.00$ 365 365 100% 2 years 625.00$ 625.00$
Depriciation Schedule for Stephen
Task 4:
Profit and Loss Statement
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

5TAXATION
Task 5:
Balance Sheet:
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

6TAXATION
Task 6
Answer to Question No.:- A
As the Net Income for the period of Stephen is $ 38,206.00 so the applicable tax rate for
the Stephen is $3,572 plus 32.5c for each $1 over $37,000.
Answer to Question No.:- B
The medical levy for the Stephen is 2% of the taxable income that is $ 764.12.
Answer to Question No.:- C
Stephen should not receive any Superannuation because this is the fund, which is
contributed by the employer but here, Stephen is not an employee.
Answer to Question No.:- D
The assessable income of Stephen was $ 38,206.00.
Answer to Question No.:- E
The tax payable of Stephen was $ 3963.95.
Answer to Question No.:- F
No, Stephen do not have any fringe benefits because Stephen does not paid any certain
benefits to their employee or the employee’s family.
Answer to Question No.:- G
The calculation of fringe benefits for reporting purpose consider fringe benefits amount
by multiplying the taxable reportable value of the fringe benefits by the lower gross-up rate.
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

7TAXATION
Answer to Question No.:- H
No, there are no payroll taxes due for the year.
Task 7:
OPTION 1: Calculate GST & report quarterly SUMMARY
1A GST on Sales $ 26,765.73
G1 Total Sales $2,94,423 1C WET $-
Does G1 include GST Yes 1E LCT $-
G2 Export Sales $- 4 PAYG Withheld $
G3 Other GST-Free Sales $-24,000 5A PAYG income tax instalment $
G10 Capital Purchases $-2,64,452 6A FBT instalment $-
G11 Non-capital Purchases $-13,312 7C FTC over claim $-
8A $-
PAYG tax withheld
1B GST on purchases $-24,041
W1 Total Salary & Wages $ 1D WET refundable $-
W2 Amount Withheld $- 1F LCT refundable $-
W4 No ABN $- 5B PAYG instalment credit $-
W3 Other amount $ 6B FBT credit $-
W5 total amounts withheld $- 7D FTC credit $-
8B $-
OPTION 1: Pay a PAYG instalment amount quarterly
PAYMENT OR REFUND
T7 $
Is 8A more than 8B? YES
FBT INSTALMENT
Your payment amount $2,724.73
F1 $-
F2 Est FBT for year $
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

8TAXATION
F3 Varied amount payable $-
F4 Variation Code
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

9TAXATION
Task 8:
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

10TAXATION
Task 9
The cash flow statement of the Stephen shows that Sales and income from property is the
main source of income for Stephen. The main outflow for Stephen is business expenditure and
personal expenses apart from that mortgage payment for the rental property and the purchase of
laptop and telephone is the main expenses made by the Stephen in this period. Overall, the cash
flow statement of Stephen is healthy and shows a net cash inflow of $ 4,331.00.
The profit and loss statement of Stephen show that Stephen is doing well and earned the
total profit of $ 38,206.00 this year. The total income earn by the Stephen this year is $
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019

11TAXATION
3,18,654.00 while total expenses made by him is $ 2,80,448.00. Stephen is liable to pay the tax
of $ 3,963.95 as per the net profit earned by him.
The balance sheet of Stephen show that, Stephen have total asset of $ 40,506.00 while
only have $ 2,300.00 as total liability. This shows the strong financial position of Stephen.
Name :Joseph Ranjit Reddy Thathireddy
Unit Code : FNSACC601
Date :24/03/2019