Student Answer Booklet:
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Assessment Information
The assessment tasks for BSBFIA401 Prepare financial reports are included in this Student Assessment Tasks booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, you must complete all of the assessment tasks satisfactorily.
Assessment Plan
| Assessment Task | Overview |
| 1. Written questions | You must answer all questions correctly. |
| 2. Asset register project | You must prepare journal entries and an asset register. |
| 3. Depreciation project | You must prepare depreciation worksheets and enter depreciation amounts into a number of financial statements. |
| 4. Balance Day project | You must correct a Trial Balance to reflect General Journal entries and participate in a roleplay meeting. |
Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for clarification if you have any questions at all.
When you have read and understood this unit’s assessment tasks, print out the Student Assessment Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.
Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.
Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per your RTO’s assessment appeals process.
You have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.
Naming electronic documents
It is important that you name the documents that you create for this Assessment Task in a logical manner.
Each should include:
- Course identification code
- Assessment Task number
- Document title (if appropriate)
- Student name
- Date it was created
For example, BSBFIA401 AT2 Asset Register Project Joan Smith 20/10/18
Additional Resources
You will be provided with the following resources you begin each Assessment Task.
Assessment Task 2
- Asset Register Worksheet
- Financial Policy and Procedures
Assessment Task 3
- Depreciation Worksheet
- Financial Policy and Procedures
Assessment Task 4
- Financial Policy and Procedures
Assessment Task 1: Written Questions
Task summary
This is an open book test, to be completed in the classroom.
A time limit of 1.5 hours to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.
Required
- Access to textbooks/other learning materials
- Computer and Microsoft Office
- Access to the internet
Timing
Your assessor will advise you of the due date of this assessment.
Submit
- Answers to all questions
Assessment criteria
All questions must be answered correctly in order for you to be assessed as having completed the task satisfactorily.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly, or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected.
Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.
Compare – when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or features, and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should put forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.
Assessment Task 1
Provide answers to all the questions below:
- Explain the basic principles of double entry bookkeeping
Answer: – The basic principle of double entry bookkeeping system is with every debit account there must be equal or opposite credit account in the bookkeeping. That means double entry require both debit and credit amount in the journal book.
- Explain the three golden rules of accounting and how they apply to double entry accounting?
Answer: – The three golden rules of accounting is debiting the receiver and credit the giver. Debit what comes in credit what goes out. Debit all the expenses and loses and credit all income and gains. These rules are applied in double entry system while entering the transaction into the journal book of account by using the double entry system. It helps in deciding what goes in debit and what comes in credit (Otlowski, 2015).
- Explain the purpose of a general journal in accounting and give at least two examples of transactions that may be recorded in this journal.
Answer: – The purpose of general journal is to maintain the recording of regular transaction; it helps in forming other financial reports and provide information about number of expenses that has been incurred by the firm and income generated by business. The data in the journal entry used by auditor to inspect the financial statement of the company.
The two examples of transaction recorded in journal entry are as follows-
- Commencement of business with cash $1000000
- Purchase of goods of $150000 with cash
| S no. | Transaction | Debit $ | Credit $ |
| 1. | Cash a/c dr.
To Capital a/c |
100,000 | 100,000 |
| 2. | Purchase a/c dr.
To cash a/c |
15,000 | 15,000 |
- Explain the purpose of a general ledger in accounting and give at least two examples of transactions that may be recorded in this journal.
Answer: – The purpose of general ledger in accounting is the means for keeping record of company’s financial transaction and accounts. The accounts that are record in general ledger is drawing, capital, cash, assets and liabilities etc. The two examples of transaction recorded in general ledger is-
Commencement of business with $100,000
Sales of good for cash $10,000
Cash accounts
| S.no. | Particular | Amount $ | Date | Particular | Amount $ |
| 1. | To capital | 100,000 | 2. | By sales | 10,0000 |
| By balance c/d | 90,000 | ||||
| To balance b/d | 100,000 | 100,000 |
- Describe what is meant by “Fair Value” under AASB 116.
Answer: – According to AASB 116 (13) fair value is the price that has been used for selling the assets and paid to transfer all liabilities in order to market participant at the measured date. The fair value is the net worth of assets and does not relates to market value (Laing & Perrin, 2014).
- When working as an accountant you will spend many hours seated at your desk and at the computer, possibly doing lots of data entry. List three OHS issues you might need to consider, ensuring you are working safely and are not at risk of accident, injury or illness.
Answer: – The three OHS issues that might be considered is-
- Sitting for long period
- Strain on eyes
- Work-stress and pressure
- Research the Internet and find out how the Privacy Act 1988 will be changed in regard to storage of client data on cloud servers. What would an accounting firm need to do if it stores client data on an online/cloud accounting system?
Answer: – An accounting firm should restore the data with the use of cloud computing and data storage will tend to involve strong infrastructure, provide authorisation to user that access the client information, protect their privacy through kept changing password and authentication. An accounting firm should use firewall and cyber security compliance as include on privacy act 1988 by Australian government (Rodrigues, et al.,2020).
- Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain what a Member of Business should do if they are not satisfied that the financial statements of an employing organisation are presented in line with Australian Accounting Standards.
Answer: If organisation is not working in accordance with the Australian accounting standard then member of business should enact as the safeguard to eliminate the non-compliances in the financial statement. The threat in the financial compliance can be resolve in accordance with APES110 code of ethics for professional accountants.
- Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain how threats to compliance with the fundamental principles occur.
Answer: – The threat in accordance to compliance with the fundamental principles occurs would be self-interest threat that would be occurred due to inappropriate judgement of the member the influence through financial and other interest. Self-review threat is the threat that occurs inappropriate evaluation of services of other member and depict on the current service evaluation. Familiarity threat that occurs because of close relationship with client and employer. The advocacy threat is a threat that occurs due to promoting the clients and employers that leads to compromising member’s objectivity. The intimidation threat is a threat that occurs because of certain pressure that deterred objectivity of member (Sangster, 2016).
- Explain the Australian Securities & Investments Commission’s (ASIC’s) role in approving codes of practice for the financial services sector. List their criteria for approval.
Answer: – The criteria for approval by ASIC are as follows-
- Statutory criteria for approval of codes and conduct
- Threshold criteria for what we consider to be a code
- Other relevant criteria for approval
- Explain whether financial services industry associations have to seek approval from ASIC regarding their codes of practice. Give examples of at least two financial services industry codes of practice.
Answer: Yes, financial services industry association have to seek approval from ASIC regarding codes of practices that is protecting the interest of the bank user and mending code of practices and misconduct in the banking sector. ASIC engage in approving industrial code of practice for financial services sector. ASIC regulate bank and finance service industry to set and enforce banking standard. The two example of financial services industry code of practices
Code of banking practices
Customer owned banking code of practices
- List four types of laws that ASIC administers.
Answer: – Four types of laws that ASIC administers are as follows-
- Corporation laws
- Insurance contract act
- National consumer credit protection
- Financial security and regulation act
- Explain two posting methods used in computerised accounting systems.
Answer: – The two-posting method used in computerised accounting system is real time and batch posting method. Real posting method is the method in which the core transaction has been processed to banking system. Batch posting method is the method that has been used for transferring item from journal to ledger, and ledger to financial statement in linear order (B Romney, 2018).
- You need to prepare end of month financial reports. How would you make sure you have all the data you need?
Answer: – The financial report can be prepared through using journal transaction and closing entry transaction information can help in ensuring that all the data has been gathered what we needed.
- Assume that you have been provided with the data for the end of financial month report. However, you have found some errors. What should you do in this situation and whom would you speak to?
Answer: – If there is an error in the financial statement and financial transaction within the report, the manager can use the GAAP method of rectification of error. In this situation senior accountant and CA needs to update about it, so that verification would be validate.
- Explain the difference between balance day adjustments required for accruals and balance day adjustments required for prepayments. Give an example of each.
Answer: – The balance day adjustment required for accrual is when an income and expenses has been paid and received at different times. The example is- written off bad debts, correction of error.
The balance day adjustment for prepayment is when an income and expenses has been paid in advance before the day is actual required to paid would be entered into the end of the financial period in adjustment accounts. Example are- prepaid salary and wages, prepaid rent
- Outline the reasons why an adjustment for depreciation expense is required at the end of each reporting period.
Answer: – The reason behind adjustment for depreciation expenses is required at the end of each reporting period because it reduce the value of fixed assets after deducting depreciation from the fixed assets. It led to decline the revenue margin of the firm too (Aasb.gov.au., 2021).
- Distinguish between an allocation approach and a valuation approach to depreciation according to AASB1021 and AAS4.
Answer: Difference between allocation approach and a valuation approach to depreciation according to AASB 1021 and AAS4 is-
| Allocation approach to depreciation | Valuation approach to depreciation |
| According to AASB 1021 allocation approach is based on various factors that is choosing of useful life of the recognised physical assets, method adopted for allocation and estimation of recoverable assets amount. Through using these factor allocation process will be completed (AASB, 2015). | The valuation approach to depreciation is the process in which revaluation of assets has been commence, as depreciation is not the process of valuation. So, the amount that can be valued to assets the depreciation will be allocated on it. |
- Explain why it is important for estimates of the useful lives and expected residual values of depreciable non-current assets to be reviewed annually.
Answer: – It is important to reviewed estimated useful lives and expected residual values annually as if any changes in the value of physical assets and non- current assets can be estimate accordingly. So, with the review as residual value cannot be changed over the financial period unless assets are revalued. On other hand useful lives need to estimate on the decided lives for the valued assets or if any change in the assets value (AASB, 2015).
Assessment Task 2 Instructions
Carefully read the following:
Andrew, the owner of Andrew’s Slabs, purchased a bench planer (Asset No. 346) from Mullum Machinery on 1st July 2016 that cost $18,000. It is expected to produce 5,000 items during its life in the workshop. At the end of its working life, its scrap value will be $1,000.
The machine has been operating for two years. Its production in each of those years has been 800 and 1000 units respectively. It is being depreciated on the units of production method. Balance day is 30 June each year.
On the 1st of July 2016, Andrew also purchased a standing drill (Asset No. 348) from Danny’s Drills. It cost $5,000 and will be used daily in the Workshop for a variety of purposes. The equipment has a useful life of 4 years and a residual value of $800. The straight-line deprecation method is used for this asset.
Asset Register Worksheet
Prepare journal entries according to standard practice to record the purchase of assets, depreciation expense and accumulated depreciation for the years ended 30 June 2016 and 2017. Show your workings for the depreciation calculation.
Journal entries for the year ended 30 June 2017
| Date | Accounts | Dr $ | Cr $ |
| 1 July 2016 | Bench planner machine a/c | 18000 | |
| Standing drill, a/c | 5000 | ||
| Cash a/c | 18000 | ||
| (To record purchase of bench planner on 1 July 2016 for $18000) | |||
| 30 June 2017 | Depreciation expenses a/c | 106250 | |
| To accumulated depreciation a/c | 106250 | ||
| [To record depreciation estimated on purchase assets for the year 2016-2017] | |||
| 30 June 2018 | Depreciation expenses a/c | 85000 | |
| Accumulated depreciation a/c | 85000 | ||
| [To record depreciation expenses for the period 2017-2018 for machine] | |||
| 30 June 2018 | Accumulated depreciation a/c | 191250 | |
| Bench planner | 191250 | ||
| [To record accumulated depreciation for two year for machine] | |||
| ANS:
Workings for the depreciation calculation Bench planer (Asset No. 346): unit of production method Depreciable amount = original cost – residual value = $18000-$1000=$17000 Year 1 (2016 – 2017) depreciation expense = $17000/800*5000=$106250 Year 2 (2017 – 2018) depreciation expense = $17000/1000*5000=$85000 standing drill (Asset No. 348): straight-line method Depreciable amount = original cost – residual value = $5000-$800= $4200 Year 1 (2016-2017) depreciation expense = $4,200 / 4 = $1,050 Year 2 (2017-2018) depreciation expense = $4,200 / 4 = $1,050 |
|||
Journal entries for the year ended 30 June 2018
| Date | Accounts | Dr $ | Cr $ |
| 30 June 2018 | Depreciation expenses a/c [for two year] | 2100 | |
| Accumulated depreciation a/c | 2100 | ||
| [To record depreciation for two year for Standing drill machine] | |||
| 30 June 2018 | Accumulated depreciation a/c | 2100 | |
| Standing drill | 2100 | ||
| [To record the depreciation for standing drill (Asset No. 348)] | |||
| Workings for the depreciation calculation
Bench planer (Asset No. 346): unit of production method Depreciable amount = original cost – residual value = $18000-$1000=$17000 Year 1 (2016 – 2017) depreciation expense = $17000/800*5000=$106250 Year 2 (2017 – 2018) depreciation expense = $17000/1000*5000=$85000 Standing drill (Asset No. 348): straight-line method Depreciable amount = original cost – residual value = $5000-$800= $4200 Year 1 (2016-2017) depreciation expense = $4,200 / 4 = $1,050 Year 2 (2017-2018) depreciation expense = $4,200 / 4 = $1,050 |
|||
Prepare asset registers for the two items below.
| Andrew’s Slabs – Register of Machinery | |||||||
| Asset Name: Bench planner
Asset No: 346 Date Purchased: Location: Total Usage: Two year Estimated Residual Value: 1000 Depreciated Method: unit of production Date Sold: Depreciation Rate: $21.25 Disposal Value Purchased from: Mullum Machinery |
|||||||
| Date | Details | Asset | Accumulated Depreciation | ||||
| Dr $ | Cr $ | Bal $ | Dr $ | Cr $ | Bal $ | ||
| 1 July 2016 | Purchase | 18000 | 18000 | ||||
| 30 June 2017 | Depreciation expenses | 106250 | 106250 | ||||
| 30 June 2018 | Depreciation expenses | 85000 | 85000 | ||||
| 18000 | 191250 | ||||||
| Andrew’s Slabs – Register of Machinery | |||||||
| Asset Name: standing drill
Asset No: 348 Date Purchased: 1 July 2016 Location: Estimated Life: 4 Estimated Residual Value: 800 Depreciated Method: Straight line method Date Sold: Purchased from: Disposal Value |
|||||||
| Date | Details | Asset | Accumulated Depreciation | ||||
| Dr $ | Cr $ | Bal $ | Dr $ | Cr $ | Bal $ | ||
| 1 July 2016 | Purchase | 5000 | 5000 | ||||
| 30 June 2017 | Depreciation expenses | 1050 | 1050 | ||||
| 30 June 2018 | Depreciation expenses | 1050 | 1050 | ||||
| 5000 | 2100 | ||||||
- Prepare the correcting journal entries for the following:
- Sold goods on credit to Lennox Furniture for $3,300 (including GST of $300) and incorrectly posted the item from the Credit Sales Journal by debiting Kingscliff Kitchens.
- Timber worth $880 (including GST) purchased on credit from Shady Timber Mill was incorrectly debited to Purchases.
- A cheque for $1,210 received for a kitchen bench slab was incorrectly posted from the cash receipts journal as a credit to the Sales account.
- The bank column of the cash receipts journal was over added by $30, but the individual receipts were correctly entered and posted.
Answer: Error of additional affects only one account, Cash at bank. Rule out the incorrect total in the cash receipts Journal and write in the correct total.
Delete the debit entry in the cash at bank account in the ledger if posting have been made.
| No. | Particulars | Dr $ | Cr $ |
| 1 | Accounts Receivable – Lennox Furniture | 3,300 | |
| Sales | 3,300 | ||
| 2 | Timber expenses | 880 | |
| Account payable- shady timber mill | 880 | ||
| 3 | Bank | 1210 | |
| Kitchen Bench slab | 1210 | ||
| 4. | Cash at bank | 30 | |
| Bank | 30 |
- Calculate the following, taking into consideration the relevant procedures set out in the company’s Financial Policy and Procedures:
At the end of March, there is an overdue debt of $550 (including GST) that has been outstanding for 92 days. The amount is owed by Domestic Bliss for furniture renovation.
The debt was transferred to a debt collection agency, but the debt was not paid.
Record these transactions below:
| Dr $ | Cr $ | |
| Account receivables | 550 | |
| Fee received | 500 | |
| GST collected | 50 | |
| [To record the consulting services provided to Company LTR 92 days ago] | ||
| Bad debts expenses | 500 | |
| GST collected | 50 | |
| Provision for doubtful debts | 550 | |
| [To record as doubtful debts when more than 60 days overdue] | ||
| Provision for doubtful | 550 | |
| Account receivables | 550 | |
| [To write off the debts after 90 days if the debt cannot be collected by a debt collection agency] | ||
Show the general ledger entries you would make to record this bad debt.
| Debit | Credit | |
| Bad Debt | 550 | |
| Consulting Fees | 500 | |
| GST Income | 50 |
At the end of June, there is a debt of $990 that has been owed for 65 days. The amount is owed by Tables and Chairs.
How would you show this on the end of year reports?
Answer: $990 would be shown in the balance sheet as doubtful debt under current assets.
Assessment Task 3: Depreciation project
Task summary
For this assessment task you are required to prepare a number of journal and ledger entries in response to the purchase, depreciation, and eventual sale of a fixed asset.
This assessment is to be completed in the simulated work environment in the RTO.
Required
- Access to textbooks/other learning materials
- Computer with Microsoft Office and internet access
- Australian Accounting and Auditing Standards (either online or hard copy)
- Depreciation Worksheet
- Financial Policy and Procedures
Timing
Your assessor will advise you of the due date of these submissions.
Submit
- Email with Depreciation Worksheet attached.
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
Assessment Task 3 Instructions
Carefully read the following:
Andrew’s Slabs bought a delivery truck on 1/7/2016. It cost $33,000 (including GST), and it was decided to depreciate it at 30%.
At the end of the financial year, on 30/06/2017, the balance of the accumulated depreciation of the truck was $15,300.
On 31/03/2018 Andrew traded it in on a new delivery truck. He received $8,800 for the trade in, and he paid the balance, $44,000, in cash. All figures included GST.
Andrew’s Slabs uses the diminishing balance method.
Complete the following activities:
- Create a depreciation Worksheet for 2017 and 2018. Show your calculations.
Andrew’s Slabs Delivery Truck
Asset Cost: 33000
Less Residual value:
Depreciation Amount:15300
Depreciation method: diminishing method
Depreciation Rate: 30%
| Year ending | Carrying amount at beginning | Depreciation | Accumulated Depreciation | Carrying amount at end |
| 30/06/2017 | 33000 | 30% | 15300 | 23100 |
| 30/06/2018 | 23100 | 30% | 22230 | 16170 |
- Workings for the depreciation calculation:
- Delivery Truck: diminishing balance method
- Year 1 (2016 – 2017) depreciation expense = $33000*30%=$9900
- Year 2 (2017 – 2018) depreciation expense = $23100*30%=$6930
- Write a General Journal entry on 30 June 2016 for depreciation.
| Date | Accounts | Dr $ | Cr $ |
| 30 June 2016 | Depreciation expenses | 15300 | |
| Accumulated depreciation | 15300 |
- Write Ledger accounts for Motor Vehicle, Accumulated Depreciation of Motor Vehicle and Depreciation Expense from 1/7/2016 to 30/6/2018.
| Motor Vehicle | ||||
| Date | Details | Dr $ | Cr $ | Balance $ |
| 1/7/2016 | To cash | (xxxxx) | (xxxxx) | |
| Motor Vehicle Accumulated Depreciation | ||||
| Date | Details | Dr $ | Cr $ | Balance $ |
| 30 June 2016 | To motor vehicle | (xxx) | (xxxxx) | |
| 30 June 2016 | By depreciation | (xxx) | (xxx) | |
| Depreciation Expenses | ||||
| Date | Details | Dr $ | Cr $ | Balance $ |
| 30 June 2016 | To motor vehicle accumulated account | (xxx) | (xxx) | |
- Create an Income Statement and Balance Sheet extracts for the year ended 30 June 2018, showing the Depreciation Expense and the Motor Vehicle.
Andrew’s Slabs
Balance Sheet
For the year ended 30/6/2018
ASSETS
CURRENT ASSETS
NON-CURRENT ASSETS
Motor Vehicle
- TOTAL ASSETS
- Andrew’s Slabs
Profit & Loss Statement
For the year ended 30/6/2018
REVENUE
EXPENSES
Accumulated depreciation
- Write the journal entries to record the disposal of the old delivery truck on 31 March 2018, including calculation of gain or loss. Show your calculations.
- Calculate depreciation expenses:
| Date | Accounts | Dr $ | Cr $ |
| 30 June 2018 | Depreciation | 6930 | |
| Accumulated depreciation | 6930 |
Write off the accumulated depreciation:
| Date | Accounts | Dr $ | Cr $ |
| 30 June 2018 | Accumulated depreciation | 22230 | |
| Old Truck delivery | 22230 |
Gain or loss of the trade-in:
Book value of the Truck A as at 31 March 2018 = $23100
Trade-in value = $8800
Loss on trade-in/disposal of Truck A = $7370
| Date | Accounts | Dr $ | Cr $ |
| 31 March 2018 | Accumulated value of truck | 23100 | |
| 31 march 2018 | Trade in value | 8800 | |
| 31 March 2018 | Loss on trade-in/disposal of Truck A | 14300 | |
| Truck disposal value | 46200 |
- Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment.
Attach your Depreciation Worksheet to the email.
To – xyz@gmail.com
Subject- depreciation worksheet information
Attachment- depreciation worksheet
Greeting for the day
This mail has been prepared to informed about the completion of the deprecation worksheet based on the followed information. The depreciation worksheet has been estimated by using diminishing balance method. The depreciation rate that has been illustrated as 30% for the truck delivery. All the calculation has been clearly mentioned in the worksheet area in working space. So please kindly review depreciation worksheet and recommend any suggestion if required.
Thank you
Assessment Task 4: Balance day project
Task summary
For this assessment task you are required to prepare several General Journal entries for balance day adjustments and participate in a meeting to discuss these. You will then be asked to generate an adjusted Trial Balance, a Profit & Loss Statement, and a Balance Sheet.
This assessment is to be completed in the simulated work environment in the RTO.
Required
- Access to textbooks/other learning materials
- Computer with Microsoft Office and internet access
- Meeting space
- Roleplay participant (assessor)
- Australian Accounting and Auditing Standards (either online or hard copy)
- Financial Policy and Procedures
Timing
Your assessor will advise you of the due date of these submissions.
Submit
- Email with Balance Day General Journal attached
- Email with Balance Day Workbook attached
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
Assessment Task 4 Instructions
Carefully read the following:
The trial balance for Andrew’s Slabs as at 30 June 2017 was:
| Trial Balance | ||
| Details | Debit $ | Credit $ |
| Cash at Bank | 10,700 | |
| Accounts receivable | 52,000 | |
| Inventory | 20,000 | |
| Equipment | 45,000 | |
| Accumulated depreciation on equipment | 10,000 | |
| Vehicles | 50,000 | |
| Accumulated depreciation motor vehicles | 6,250 | |
| Land | 27,500 | |
| Accounts payable | 25,000 | |
| Loan | 85,000 | |
| Capital | 181,430 | |
| Sales revenue | 120,000 | |
| Interest revenue | 2,000 | |
| Cost of goods sold | 86,250 | |
| Salaries expense | 30,000 | |
| Rates expense | 1,500 | |
| Stationery expense | 800 | |
| Advertising expense | 1,900 | |
| Interest expense | 300 | |
| Motor Vehicle expense | 780 | |
| Repairs Expense | 2,500 | |
| Insurance Expense | 450 | |
| Total | 329,680 | 329,680 |
Complete the following activities:
- Record the following balance day adjustments in the general journal below.
Show your workings.
- Depreciation of equipment 10% using the straight-line method
- Depreciation of vehicles 12.5% using the diminishing balance method
- Rates paid in advance $600
- Salaries owing $3,500
- Interest revenue earned but not received $1,300
- Create an allowance for doubtful debts equal to 5% of accounts receivable.
- Physical stocktake determined inventory at end 30 June 2017 was $18,800
General journal entries for balance day adjustments as at 30 June 2017
| Adjustment | Accounts | Dr $ | Cr $ | |
| A | Depreciation expenses a/c | 4500 | ||
| Equipment a/c | 5500 | |||
| [To record depreciation expenses for the equipment (45000*10%)] | ||||
| B | Depreciation expenses a/c | 6250 | ||
| Vehicles a/c | 6250 | |||
| [To record depreciation expenses for the vehicle (50000*12.5%)] | ||||
| C | Prepaid rent a/c | 600 | ||
| Cash a/c | 600 | |||
| D | Salary a/c | 3500 | ||
| Outstanding salary a/c | 3500 | |||
| E | Interest receivable a/c | 1300 | ||
| Interest income a/c | 1300 | |||
| F | Bad debt | 2600 | ||
| Allowance for doubtful debts | 2600 | |||
| (To record allowance for doubtful debts [$52000*2%]) | ||||
| G | Closing stock | 18800 | ||
| Trading account | 18800 | |||
| [The closing stock has been transferred to trading account and final accounts] | ||||
Create a new Word document and insert your completed table into it.
Save it as Balance Day General Journal
- Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment and ask for a meeting to discuss these.
Your assessor will answer the email with a date and time for a meeting to discuss the entries.
Attach your general journal to the email.
To – xyz@gmail.com
Subject- balance day adjustment information
Attachment- balance day adjustment entry
Greeting for the day
This mail has been prepared to informed about the completion of the balance day adjustment based on the followed information. The balance day adjustment includes all followed transaction that has been entered in the adjustment accounts. The depreciation expenses have been imputed with two method straight line method and diminishing balance method. There is another adjustment entry has been mentioned that is outstanding, prepaid entry and interest revenue etc. So, please kindly review balance day adjustment and recommend any suggestion if required.
Thank you
- Meet with Andrew (your assessor).
The objective of the meeting is to discuss, and update where necessary, the journal entries.
At the meeting you should carefully go through the journal entries, explaining each entry clearly and using appropriate industry terminology.
During the meeting, demonstrate effective communication skills including:
- Speaking clearly and concisely
- Using non-verbal communication to assist with understanding
- Asking questions to identify required information
- Responding to questions as required
- Using active listening techniques to confirm understanding
Meeting with Andrew
Good morning Andrew, this meeting has been conducted to discuss about adjustment entries that has been implemented in balance day adjustment sheet.
Depreciation expenses is the expenses that has been include at the end of every year with the use of different depreciation accumulation method as in the following we have straight line method and diminishing method.
Outstanding account has been prepared for the amount that is due and not received yet, as in the adjustment entry salary outstanding has been entered.
Prepaid expenses have been recorded as the rates has been paid in advance before the date of payment.
Interest revenue entry has been made as the interest is earned but not yet received. So, the adjustment entry has been passed for income that has not received.
Closing stock entry and allowance for doubtful debt has been prepared for following year. The closing stock has been transferred to trading account.
Hence, these are the entry has been passed in the Andrew adjustment entry by following recorded transaction.
These are the information I hope you are satisfied with the general explanation.
Thank you
- Create an Excel Workbook.
After the meeting, prepare each of the following as a separate Worksheet:
- Adjusted trial balance at 30 June 2017.
- Profit and loss statement for the year ending 30 June 2017
- Balance sheet as at 30 June 2017.
Save the Workbook as Balance Day
Adjusted trial balance
| Sl. no | Details | Debit $ | Credit $ |
| Cash at Bank | 10,700 | ||
| Accounts receivable | 52000 | ||
| Doubtful debts | 2600 | ||
| Inventory | 20000 | ||
| Equipment | 45000 | ||
| Accumulated depreciation on equipment | 10000 | ||
| Vehicles | 50000 | ||
| Accumulated depreciation motor vehicles | 6250 | ||
| Land | 27500 | ||
| Accounts payable | 25,000 | ||
| Loan | 85,000 | ||
| Capital | 181,430 | ||
| Sales revenue | 120,000 | ||
| Interest revenue | 3300 | ||
| Cost of goods sold | 86250 | ||
| Bad debts | 2600 | ||
| Depreciation expenses | 10750 | ||
| Salaries expense | 30,000 | ||
| Rates expense | 1,500 | ||
| Stationery expense | 800 | ||
| Advertising expense | 1,900 | ||
| Interest expense | 300 | ||
| Motor Vehicle expense | 780 | ||
| Repairs Expense | 2,500 | ||
| Insurance Expense | 450 | ||
| Total | 433580 | 433580 |
Balance sheet
| S. no. | Particulars | Amount |
| Current Assets | ||
| Cash at Bank | 10,700 | |
| Accounts receivable | 52000 | |
| Doubtful debts | 2600 | |
| Inventory | 20000 | |
| Total current assets | 85300 | |
| Fixed Assets | ||
| Equipment | 45000 | |
| Accumulated depreciation on equipment | (10000) | |
| Vehicles | 50000 | |
| Accumulated depreciation on vehicle | (6250) | |
| Land | 27500 | |
| Total non-current assets | 106250 | |
| Total Assets | 191550 | |
| Current Liabilities | ||
| Accounts payable | 25000 | |
| Total current liabilities | 25000 | |
| Non-Current Liabilities | ||
| Loan | 85000 | |
| Total noncurrent liabilities | 85000 | |
| Total Liabilities | 110,000 | |
| Net Assets | 301550 | |
| Equity | ||
| Capital | 181430 | |
| Current Earnings | (14530) | |
| Equity | 166900 |
- Profit and loss statement for the year ending 30 June 2017
| Sl. no | Particulars | Amount |
| Sales revenue | 120000 | |
| Interest revenue | 3300 | |
| Total Revenue | 123300 | |
| Cost of goods sold | 86250 | |
| Trading Profit | 37050 | |
| Fixed operating expenses | ||
| Bad debts | 2600 | |
| Depreciation expenses | 10750 | |
| Salaries expense | 30,000 | |
| Rates expense | 1,500 | |
| Stationery expense | 800 | |
| Advertising expense | 1,900 | |
| Interest expense | 300 | |
| Motor Vehicle expense | 780 | |
| Repairs Expense | 2,500 | |
| Insurance Expense | 450 | |
| 51580 | ||
| Net Profit/ loss | (14530) | |
- Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style
It should introduce and summarise the contents of the attachment.
Attach your Balance Day Workbook to the email.
To – xyz@gmail.com
Subject- balance day workbook information
Attachment- balance day workbook
Greeting for the day
This mail has been prepared to informed about the completion of the balance day workbook based on the followed information. The balance day workbook includes all the financial statement that is profit and loss, balance sheet and trial account. So, please kindly review balance day workbook and recommend any suggestion if required.
Thank you
References
AASB, C. A. S. (2015). Intangible Assets.
AASB, C. A. S. (2015). Property, Plant and Equipment.
Aasb.gov.au., (2021). Depreciation. [online] Available at: <https://www.aasb.gov.au/admin/file/content102/c3/AASB1021_8-97.pdf> [Accessed 7 February 2021].
Accounting Professional and Ethical Standards Board (APESB). (2013). APES 110 Code of Ethics for Professional Accountants.
ASIC. (2021) ASIC role in approval [online]. Retrieved 7 February 2021, from https://download.asic.gov.au/media/1241015/rg183-published-1-march-2013.pdf
B Romney, M. (2018). Accounting information systems. Pearson Education Limited.
Laing, G. K., & Perrin, R. W. (2014). Deconstructing an accounting paradigm shift: AASB 116 non-current asset measurement models. International Journal of Critical Accounting, 6(5-6), 509-519.
Otlowski, M. F. A. (2015). Disclosing genetic information to at-risk relatives: new Australian privacy principles, but uniformity still elusive. The Medical journal of Australia, 202(6), 335-337.
Rodrigues, M. A., Sá, A., Masi, D., Oliveira, A., Boustras, G., Leka, S., & Guldenmund, F. (2020). Occupational Health & Safety (OHS) management practices in micro-and small-sized enterprises: The case of the Portuguese waste management sector. Safety Science, 129, 104794.
Sangster, A. (2016). The genesis of double entry bookkeeping. The Accounting Review, 91(1), 299-315.