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 correctly answer all questions.
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. You must also 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.

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 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 you feel you have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment instructions

Each assessment task in this booklet consists of the following:

Assessment Task Cover Sheet

This must be filled out, signed and submitted with your assessment responses.

If you are submitting hardcopy, the Assessment Task Cover Sheet should be the first page of each task’s submission.

If you are submitting electronically, print out the Assessment Task Cover Sheet, fill it out, sign it and then scan and submit the file.

The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback on the Assessment Task Cover Sheet giving reasons why. Your assessor will also discuss this verbally with you and provide advice on reassessment opportunities as per your RTO’s reassessment policy.

Depending on the task, this may include

• resubmitting incorrect answers to questions (such as written questions and case studies)
• resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
• redoing a role play after being provided with appropriate feedback about your performance
• being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.

Assessment task information

This gives you:

• a summary of the assessment task
• information on the resources to be used
• submission requirements
• resubmission opportunities if required.

Assessment task instructions

This includes questions you will need to answer or tasks that you need to complete.

Your answers must be typed using software as indicated in the assessment task Instructions.

Copy and paste each task’s instructions into a new document and use this as the basis for your assessment task submission. Include this document’s header and footer.

If you are submitting electronically, give the document a file name that includes the information as indicated in the section called ‘Naming electronic documents’ (see below).

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 AT3 Trial Balance Joan Smith 20/10/20.

Icons

Icons are used in task instructions to indicate three of the common stages within the task.

	This icon indicates that you will need to meet with your assessor (and possibly other students) to complete a meeting or role play.
	This icon indicates that you will need to communicate via email or send documents to via email.
	This icon indicates that you will need to submit an item of evidence.
	This icon indicates all other stages during the task, which may include research, developing documents, brainstorming ideas and so on.

Additional resources

You will be provided with the following resources before 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

Checklist

This will be used by your assessor to mark your assessment. Read through this checklist as part of your preparation before beginning the assessment task. It will give you a good idea of what your assessor will be looking for when marking your responses or observing your performance.

Student assessment agreement

Make sure you read through the assessments in this booklet before you fill out and sign the agreement below.

If there is anything that you are unsure of, consult your assessor prior to signing this agreement.

Have you read the assessment requirements for this unit?	¨  Yes	¨  No
Do you understand the requirements of the assessments for this unit?	¨  Yes	¨  No
Do you agree to the way in which you are being assessed	¨  Yes	¨  No
Do you have any specific needs that should be considered	¨  Yes	¨  No
If so, explain these in the space below.

Do you understand your rights to reassessment?			¨  Yes	¨  No
Do you understand your right to appeal the decisions made in an assessment?			¨  Yes	¨  No
	Student name
	Student ID number
	Student signature
	Date
	Assessor name
	Assessor signature
	Date

Assessment Task 1 Cover Sheet

Student declaration

To be filled out and submitted with assessment responses

• I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).
• I understand that if I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.
• I have correctly referenced all resources and reference texts throughout these assessment tasks.

Student name
Student ID number
Student signature
Date

Assessor declaration

• I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor name
Assessor signature
Date
Assessment outcome	S	NS	DNS	Resubmission	Y	N

Feedback

Student result response

• My performance in this assessment task has been discussed and explained to me.
• I would like to appeal this assessment decision.

Student signature
Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 1: Written questions

Task summary

This is an open-book test, to be completed in the classroom.

A time limit of 2 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 and other learning materials.
• Computer with Microsoft Office and internet access.

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.

Resubmission opportunities

You will be provided feedback on your 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 with written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Reassessment 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 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. 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. 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. 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 Instructions as provided to students

Provide answers to all of the questions below:

1. Explain the basic principles of double entry bookkeeping

Answer. Double entry bookkeeping system’s basic principle is that it is for debit. The credit is parallel. The balanced amount of money is parallel debit as per the amount that is balanced for the credit amount. Balancing of accounts is needed to be done.

2. Explain the three golden rules of accounting and how they apply to double entry accounting.

Answer. Some principles are as follows:

Debit what comes in, credit was goes out: Whatever amount enters the organization, is debited and whatever goes out of the organization, is credited in the accounts of the company.

Credit gains and incomes. Debit losses and expenses: All the gains and incomes are credited

 Credit the giver, debit the receiver: It is related to personal accounts, the inflow and outflow of the company (Prodanova, et al., 2019)

3. 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 accounting system is that is very essential and consists of different and special transactions for cash and purchase journals. Examples are as follows:

– Buying non-current assets

– Opening entries of income, liabilities and equity.

4. 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 general ledger is utilized for storing the transactions related to balance sheet and income statement. Examples are as follows:

Accounts receivable

Accounts payable.

5. Describe what is meant by “Fair Value” under AASB 116.

Answer. Fair value can be designed as a price that is earned at the time of asset selling and when the liability is transferred on the date of measurement and market share.

6. 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. OHS problems can be seen as follows:

Ergonomic problems like adjustable chairs, display raisers and adjustable keyboards.

Taking breaks for tiredness, eye pressure, back pain, and treatment of the headaches.

7. 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. Cloud can be used for protection of the data and of the banking accounting system. Online Banking can be controlled by everyone. So cloud accounting helps in doing the same as per the needs of the consumers. These tools are very beneficial for the consumers (Lessambo, 2018).

8. 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. In the APES 110 Code of Ethics for Professional Accountants, it states there certain principles that are objectivity, integrity, confidentiality, professional behaviour and behavior professional competency. If the accounting standards are legally challenged, the publicly traded company must have transparent data for the accountancy.

9. Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain how threats to compliance with the fundamental principles occur.

Answer. Threats to the compliance are as follows:

– Self-interest threats: These result because of the financial and professional interest and a close family member.

Advocacy threats: These appear when the accountant promotes the opinion and position of the objectivity that might not be compromised.

10. 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 of approval can be seen as follows:

Financial systems disclosures that are compatible and comparable.

Financial sales license systems, advices and dealings of financial commodity.

Settlement, clearance, financial and single authorization process.

11. 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. ASIC can be explained as a corporate sector that is integrated and Australia’s regulated act for the consumer. The two examples are as follows:

Increasing, securing and motivating the financial system as well as its effectiveness.

Consumers and investors involvement in a proper manner in a particular finance sector.

12. List four types of laws that ASIC administers.

Answer. The laws are as follows:

Corporations act 2001

Australian Securities and Investments Commission Act 2001

Business Names Registration Act 2011

(Transitional and Consequential Provisions

13. Explain two posting methods used in computerised accounting systems.

Answer. Two methods are as follows:

Double entry system: In this system, every transaction is recorded and is registered credit and debits as per different accounts.

Single-entry system: It consists of registration of different transactions for a small company.

14. You need to prepare end of month financial reports. How would you make sure you have all the data you need?

Answer. For making sure that we have all the data, there are certain statements that are needed to be gathered that are as follows:

Cash flow statement

Accounts receivables

P & L statements

Balance sheet

Accounts payable

The financial status of the company should know and specific activities must be taken into consideration.

15. 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. The steps are as follows:

Locating and searching for the errors and searching for the solutions.

Checking different journal entries and preparation of the financial statements.

Management of surveys, questionnaires and research for the monthly report.

Management with accountant for checking data for proceeding.

Appealing to the person that is authorized person and making changes for the same.

16. Explain the difference between balance day adjustments required for accruals and balance day adjustments required for prepayments. Give an example of each.

Answer. In the fiscal year ending, there are some adjustments that are made for showing the needs. For example- Error correction.

The accrual accounting consists of the revenues, investments that are provided. Because of the matching theory, Interest earned at the end of the year are registered at the last of accounting year.

17. Outline the reasons why an adjustment for depreciation expense is required at the end of each reporting period.

Answer. Certain reasons are as follows:

Mentioning the loans in the balance sheet for obtaining the closures as per accounting cycle.

Listing of the liabilities at the year end.

Identification of the deficits and costs in accounting period.

Revenue recording at the time of accounting period.

18. Distinguish between an allocation approach and a valuation approach to depreciation according to AASB1021 and AAS4.

Answer. Depreciation can be explained as when the asset loses some of its values at a particular amount of time. The allocation approach consists of the non-current asset value that can be known as an expense. The valuation approach can be explained as an appreciation for the asset value utilized for revenue generation of revenues (Palepu, et al., 2020).

19. 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 quite imperative to estimate the expected value of an asset as well as useful lives in relation of the depreciation related to the non-current assets that are needed to be reviewed for allowing changes in the financial statements.

Assessment Task 1 Checklist

Student’s name:
Did the student provide a sufficient and clear answer that addresses the suggested answer for the following?	Completed successfully?		Comments
	Yes	No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 18
Question 19
Task outcome:	¨  Satisfactory			¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 2: Asset register project

Task summary

For this assessment task you are required to prepare journal entries according to standard practice to record the purchase of assets, depreciation expense, and accumulated depreciation.

This assessment is to be completed in the simulated work environment in the RTO.

Required

• Access to textbooks and other learning materials
• Computer with Microsoft Office and internet access
• Australian Accounting and Auditing Standards (either online or hard copy)
• Financial Policy and Procedures
• Asset Register Worksheet

Timing

Your assessor will advise you of the due date of these submissions.

Submit

• Email with Asset Register 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.

Resubmission opportunities

You will be provided feedback on your 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 with written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Reassessment 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 2 Instructions as provided to students

Complete the following activities:

Carefully read the following scenario.

For this assessment task, you are to assume you are responsible for Accounts at Andrew’s Bespoke Hospitality Supplies. The company makes bespoke furniture for restaurants and cafes and is part of a larger hospitality supplies group. Assume that your assessor is Andrew, the Manager of Andrew’s Bespoke Hospitality Supplies, and any approvals you need to be granted as instructed in the Financial Policy and Procedure need to be approved in writing to your assessor’s email address. A bench planer (Asset No. 346) was purchased from Mullum Machinery on 1st July 2018 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 2018, 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. Complete all of the activities below in the Asset Register Worksheet, making sure that you follow the procedures as outlined in the Financial Policy and Procedures provided to you in your Resources folder.

1. Journal entries.

Prepare journal entries according to standard practice to record the purchase of assets, depreciation expense and accumulated depreciation for the years ended 30 June 2019 and 2020. Show your workings for the depreciation calculation.

Answer. Journal entries for 30^th June 2019

Date	Particulars	Debit	Credit
1-07-2019	Plant and equipment A/c dr.	18000
	To accounts payable		18000
	(Bench planner purchased)
30/06/2019	Depreciation A/c dr.	1050
	To Plant & Equipment: Accumulated depreciation		1050
	(Depreciation charged on the standing drill)

Depreciation calculation working:

Depreciation on the bench planner = Original cost – residual value

= 18000 – 1000

= $17,000

For the year 2019- 20

= (800 / 5000) * 17000

= $2,720

= For the year 2020- 21

= 4200 / 4

= $1,050

Journal entry for the year 2020

Date	Particulars	Debit	Credit
30-06-2020	Depreciation A/c dr.	3400
	To Plant & Equipment: Accumulated depreciation		3400
	(Depreciation charged on the bench planner)
30/06/2019	Depreciation A/c dr.	1050
	To Plant & Equipment: Accumulated depreciation		1050
	(Depreciation charged on the standing drill)

Depreciation calculation working:

Depreciation on the bench planner = Original cost – residual value

= 18000 – 1000

= $17,000

For the year 2019- 20

= (800 / 5000) * 17000

= $2,720

= For the year 2020- 21

= (1000/5000) *17000

= $3,400

Depreciation on the standing drill

= 5000-800=

$4200

For the year 2019- 20

= $4,200 / 4

= $1,050

= For the year 2020- 21

= $4,200 / 4

= $1,050

2. Asset registers.

Prepare asset registers for the two items.

Answer.

Andrew’s Slabs – Register of Machinery
Asset Name: Bench planer Asset No: 346 Date Purchased: 01/07/2019 Location: Workshop Total Usage: 18000 Estimated Residual Value: 800 Depreciated Method: straight line depreciation method  Date Sold: 01/07/2020 Depreciation Rate: 3.4 per unit                                        Disposal Value 1000 Purchased from: William machinery
Date	Details	Asset			Accumulated Depreciation
		Dr $	Cr $	Bal $	Dr $	Cr $	Bal $
01/01/2020	Cost price	18,000	18,000
30/06/2019	Depreciation on each unit				2,720	2,720
30/06/2020	Depreciation on 1000 units				3,400	3,400

Andrew’s Slabs – Register of Machinery
Asset Name: Bench planer Asset No: 346 Date Purchased: Location: Estimated Life: 4 years Estimated Residual Value: 800 Depreciated Method: Straight line depreciation method Date Sold: Purchased from: William machinery                                Disposal Value: 800
Date	Details	Asset			Accumulated Depreciation
		Dr $	Cr $	Bal $	Dr $	Cr $	Bal $
01/07/2016	Cost price	5,000	5,000
	Depreciation on 5000 units				1,050	1,050

3. Correcting journal entries.

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.

No.	Particulars	Dr $	Cr $
1	Accounts Receivable – Lennox Furniture a/c dr.	3,300
	To Accounts Receivable – Kings cliff Kitchens		3,300
2	Timber expenses a/c dr.	880
	To Purchase		880
3	Sales a/c dr.	1210
	To Kitchen Bench slab		1210

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 in the table provided in the Worksheet. Show the general ledger entries you would make to record this bad debt. 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.

	Dr $	Cr $
Account receivables	550
Fee received	550
GST collected
[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]

General ledger entries

	Debit	Credit
Bad Debt		550
Consulting Fees		500
GST Income		50

In the balance sheet, 990 dollars of amount will be shown as under the heading current assets.

5. Send an email.

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, seeking approval for the entries you have entered into the various journals to be approved as part of the General Ledger. Attach your Asset Register Worksheet to the email.

Answer. Email to your assessor

To: The assessor From: Finance manager Subject: For seeking for asset register worksheet Attachment: Asset Register Worksheet Respected sir, This mail is to inform you that I certainly request approval on the different journals and general ledger so I request you to please check it and let me know if any changes needed in the plan. Thanks and regards

Assessment Task 2 Checklist

Student’s name:
Did the student:		Completed successfully?			Comments
		Yes	No
Accurately prepare journal entries to record assets and depreciation for a specified period?
Prepare accurate and detailed asset registers for the assets listed?
Use numeracy skills to complete calculations relevant to asset management?
Determine method of depreciation as set out in Financial Policy and Procedures?
Correctly record depreciation and projected disposal of assets as set out in Financial Policy and Procedures?
Accurately prepare correcting journal entries as required?
Correctly record bad and doubtful debts in the provided table as set out in Financial Policy and Procedures?
Seek approval for the journal entries made to form part of the General Ledger via email to Andrew (the assessor)?
Task outcome:	¨  Satisfactory			¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

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 and 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.

Resubmission opportunities

You will be provided feedback on your 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. Reassessment 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 as provided to students

Complete the following activities:

Carefully read the following scenario.

Andrew’s Bespoke Hospitality Supplies bought a delivery truck on 1/7/2018. It cost $33,000 (including GST), and it was decided to depreciate it at 30%. At the end of the financial year, on 30/06/2019, the balance of the accumulated depreciation of the truck was $15,300. On 31/03/2020 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 Bespoke Hospitality Supplies uses the diminishing balance method. Complete the following activities, making sure that you follow the procedures as outlined in the Financial Policy and Procedures provided to you in your Resources folder.

1. Create a depreciation table for 2019 and 2020. Show your calculations.

Answer.

Andrew’s Slabs Delivery Truck

Asset Cost: 33000

Less Residual value: 0

Depreciation Amount: 30000

Depreciation method: Diminishing method

Depreciation Rate: 30%

Year ending	Carrying amount at beginning	Depreciation	Accumulated Depreciation	Carrying amount at end
30/06/2019	30000	9000	9000	21000
30/06/2020	21000	6300	15000	147000

Depreciation calculation

Delivery truck: Diminishing balance method

1^st year dep.

= 30000 * 30%

= $9,000

2^nd year dep.

= (30000 – 9000) *30%

= $6,300

2. General Journal entry on 30 June 2018 for depreciation.

Answer.

Date	Accounts	Dr $	Cr $
30/06/2021	Depreciation expenses A/c dr.	6300
	To Accumulated depreciation		6300

3. Ledger accounts for Motor Vehicle, Accumulated Depreciation of Motor Vehicle and Depreciation Expense from 1/7/2018 to 30/6/2020.

Answer.

Motor Vehicle
Date	Details	Dr $	Cr $	Balance $
01/07/2019	Cash at bank		30000	30000 dr.

Motor Vehicle Accumulated Depreciation
Date	Details	Dr $	Cr $	Balance $
30-06/2019	Depreciation expenses	9000	–	90000Cr.
30-06/2020	Depreciation expenses	9000	–	15300Cr.

Depreciation Expenses
Date	Details	Dr $	Cr $	Balance $
30/06/2019	Accumulated depreciation	–	9000	9000Dr.
30/06/2019	P&L	–	9000	–
30/06/2020	Accumulated depreciation	–	6300	6300Dr.
30/06/2020	P&L	6300	0	–

4. Incoe Statement and Balance Sheet extracts for the year ended 30 June 2020, showing the Depreciation Expense and the Motor Vehicle.

Answer.

Andrew’s Slabs Balance Sheet For the year ended 30/6/2020 ASSETS CURRENT ASSETS NON-CURRENT ASSETS Motor Vehicle                                                                                                          30000 Less: accumulated depreciation                                                                               154300 TOTAL ASSETS                                                                                                                        14700

Andrew’s Slabs Profit & Loss Statement For the year ended 30/6/2020 REVENUE EXPENSES Depreciation expenses                                                                                                                         6300

5. Write the journal entries to record the disposal of the old delivery truck on 31 March 2020, including calculation of gain or loss. Show your calculations

Answer.

Calculate depreciation expenses:

= 14700 *30 *9/12

= 3707.5

Date	Accounts	Dr $	Cr $
31/03/2020	Depreciation expenses	3707.5
	Accumulated depreciation on motor vehicle		3707.5

Write off the accumulated depreciation:

Date	Accounts	Dr $	Cr $
31/03/2021	Accumulated depreciation	18607.5
	Motor vehicle		18607.5

Gain or loss of the trade-in:

Truck A book value as on 31^st march 2020

= 30000 – 18607.5 = 11392.5

Trade-in value = 8000

Loss on truck A at the time of disposal

= 11392.5 – 8000

= $3392.5

Date	Accounts	Dr $	Cr $
31/03/2021	Account receivable (trade in)	8800
	Loss on trade in	3392.5
	Proceeds on trade in	8000
	To Proceeds on trade in		8000
	To GST collected		800
	To Motor vehicle		11392.5
	(Loss on sale of motor vehicle)
31/03/2021	New vehicle/motor vehicle	40000
	GST paid	4000
	To Account receivable		8800
	To Cash at bank		35200
	(Purchasing new vehicle in cash)

Assessment Task 3 Checklist

Student’s name:
Did the student:		Completed successfully?			Comments
		Yes	No
Accurately determine the method for calculating depreciation and complete a depreciation worksheet for the specified period?
Create an accurate journal entry for depreciation of the delivery truck?
Develop an appropriate ledger account for the specified item and period?
Extract relevant income statement and balance sheet showing depreciation expense and the motor vehicle?
Display the calculation of gain or loss and prepare journal entries to record disposal appropriately?
Accurately prepare revenue statement, reflecting operating profit for the stated reporting period?
Seek approval for the journal entries made to form part of the General Ledger via email to Andrew (the assessor)?
Task outcome:	¨  Satisfactory			¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

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 and 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.

Resubmission opportunities

You will be provided feedback on your 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. Reassessment 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 as provided to students

Complete the following activities:

Carefully read the following.

The trial balance for Andrew’s Bespoke Hospitality Supplies as at 30 June 2020 is as shown below. Review the trial balance and then complete all of the activities making sure that you follow the procedures as outlined in the Financial Policy and Procedures provided to you in your Resources folder. 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

1. Record the following balance day adjustments in the general journal below and 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 2020 was $18,800 General journal entries for balance day adjustments as at 30 June 2020 Answer. Adjustment Accounts Dr $ Cr $ a Depreciation expense a/c Dr. 4500 To accumulated depreciation a/c 4500 b Depreciation expenses a/c Dr. 5468.75 To vehicle accumulated depreciation a/c 5468.75 c Pre-payment rate a/c Dr. 600 To cash at bank a/c 600 d Salary a/c Dr. 3500 To account payable a/c 3500 e Interest receivable a/c Dr. 1300 To the interest received a/c 1300 f Bad debt expenses a/c Dr. 2600 To allowance for the doubtful debt 2600 g The Closing inventory a/c Dr. 1200 To inventory a/c 1200 Create a new Word document and insert your completed table into it. Save it as Balance Day General Journal.

2. Send an email.

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, along with a request for approval. 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.

Answer.

To: The assessor From: Finance manager Subject: For asking to schedule a meeting This mail this to inform you that there is certain information in the document are as follows: Depreciation journal entries Depreciation on vehicle Balance sheet Please provide with your reviews on the same.

3. Participate in a meeting 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, you will need to 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.

Answer.

Meeting with the assessor

Finance manager- Good morning sir, how are you?

Assessor- I am good, how are you?

Finance manager- Sir this meeting is to let you know about the journal entries and let me know if there are any changes.

Assessor- Alright. .

4. Create an Excel Workbook

Create an Excel Workbook. After the meeting, prepare each of the following as a separate Worksheet: Adjusted trial balance at 30 June 2020. Profit and loss statement for the year ending 30 June 2020. Balance sheet as at 30 June 2020. Save the Workbook as Balance Day. Submit the Workbook to your assessor.

Answer.

1. Trial balance at 30 June 2020

Particulars	Debit	Credit
Cash at Bank	10100
Accounts receivable	53300
Doubtful debts	2600
Inventory	18800
Equipment	45000
Accumulated depreciation on the equipment	14500
Vehicles	50000
Accumulated depreciation motor vehicles	11718.75
Land	27500
Accounts payable	28500
Loan	85000
Capital		81430
Sales revenue		120000
Interest revenue		3300
Cost of goods sold		87450
Bad debts		2600
Depreciation		9968.75
Salaries expense		33500
Rates expense		2100
Stationery expense		1900
Advertising expense		300
Interest expense		800
Motor Vehicle expense		180
Repairs Expense		2500
Insurance Expense		450
Total	347048.8	347048.8

1. Balance sheet

Particulars	Amount
Equity share capital	62381
Non-Current Liabilities
Loan	85000
Current Liabilities
Accounts payable	28500
Total liabilities	113500
Assets
Non-current assets
Equipment	45000
Accumulated depreciation on equipment	-14500
Accumulated depreciation on vehicle	-11718.75
Land	27500
Accumulated depreciation on equipment	-14500
Current assets
Cash at Bank	10100
Accounts receivable	53300
Doubtful debts	-2600
Inventory	18800
Total assets	175881.25

1. Profit and loss statement

Debit	Amount	Credit	Amount
Bad debts	–2600	Sales revenue	120000
Depreciation expenses	-9969	Interest revenue	3300
Salaries expense	-33500	Total Revenue	123300
Rates expense	2100	Cost of goods sold	-87450
Stationery expense	-800	Trading Profit	35850
Advertising expense	-1900
Interest expense	-300
Motor Vehicle expense	-780
Repairs Expense	-2500
Insurance Expense	-450
Net loss	19049

Assessment Task 4 Checklist

Student’s name:
Did the student:		Completed successfully?			Comments
		Yes	No
Accurately enter general journal entries for balance day adjustments?
Demonstrate ability to adjust expense and revenue accounts for prepayments and accruals?
Create an allowance for doubtful debts accurately?
Accurately adjust ledger accounts for inventories and transfer to final account?
Prepare trial balance accurately?
Prepare a profit and loss statement that reflects gross and net profits for reporting period?
Accurately prepare revenue statement reflecting operating profit for reporting period?
Prepare an accurate balance sheet reflecting financial position of business at the end of the reporting period?
Seek approval for the journal entries made to form part of the General Ledger via email to Andrew (the assessor)?
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
Task outcome:	¨  Satisfactory			¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

Final results record

Student name:
Assessor name:
Date

Final assessment results

Task	Type	Result
		Satisfactory	Unsatisfactory	Did not submit
Assessment Task 1	Written questions	S	U	DNS
Assessment Task 2	Asset register project	S	U	DNS
Assessment Task 3	Depreciation project	S	U	DNS
Assessment Task 4	Balance Day project	S	U	DNS
Overall unit results		C	NYC

Feedback

• My performance in this unit has been discussed and explained to me.
• I would like to appeal this assessment decision.

Student signature: _____________________________________   Date: _______________

• I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor signature:   ___________________________________   Date:  ______________

References

c N. A., Savina, N. V., Dikikh, V. A., Enina, Y. I., Voronkova, O. Y., & Nosov, V. V. (2020). Features of the coherent presentation of information in order to prepare integrated corporate reporting. Entrepreneurship and Sustainability Issues, 7(3), 2227.

Cîrstea, A. (2014). The need for public sector consolidated financial statements. Procedia Economics and Finance, 15, 1289-1296.

Faccia, A., & Mosco, D. (2019). Understanding the Nature of Accounts Using Comprehensive Tools to Understand Financial Statements.

Hasanaj, P., & Kuqi, B. (2019). Analysis of financial statements. Humanities and Social Science Research, 2(2), p17-p17.

Lessambo, F. I. (2018). Financial Statements. Analysis and Reporting.

Palepu, K. G., Healy, P. M., Wright, S., Bradbury, M., & Coulton, J. (2020). Business analysis and valuation: Using financial statements. Cengage AU.

Pelekh, U., Khocha, N., & Holovchak, H. (2020). Financial statements as a management tool. Management Science Letters, 10(1), 197-208.

Prodanova, N. A., Trofimova, L. B., Adamenko, A. A., Erzinkyan, E. A., Savina, N. V., & Korshunova, L. N. (2019). Methodology for assessing control in the formation of financial statements of a consolidated business. International Journal of Recent Technology and Engineering, 8(1), 2696-2702.

Santis, S., Grossi, G., & Bisogno, M. (2018). Public sector consolidated financial statements: a structured literature review. Journal of Public Budgeting, Accounting & Financial Management.