Assessment 1
Task 1
Journal entry
Particulars | Debit | Credit |
Bank a/c | $ 250 | |
To Ms. Anderson
(deposit received from Ms. Anderson) |
$ 250 |
Task 2
Invoiceto :
MS Anderson |
From:
Amiconi CakeShop |
|
1 MelbourneDr 1BelleAv.
2000Sydney 3000Melbourne ABN 11222333444 ABN 10100 100100
Date 25/06/2017 |
||
Amount Description Price | ||
1 wedding cake $1250 | ||
TOTAL $1250 | ||
$250 | $250 | |
$1000 | $1000 | |
NOTE:Theremainderneedstobepaidonthe Pick-up/delivery of the goods |
Task 3
Steps | Self-Questions | Answers |
1 | What did the Company receive? | Cash. |
2 | IftheCompanyreceivedcash,howwouldthisaffectthecashbalance? | Receiving cash increases the cash balance of the company. |
3 | Which Side Of Cash Account Represents The Increase In Cash? | Debitside(Leftside). |
4 | Whatistheaccountnametorecordthesalesofproducts? | Accounts Receivable |
5 | Which side of accounts receivable account represents the increase in sales? | Creditside(Rightside). |
6 | Doesthesumofdebitsideamountsequaltothesumofcreditside amounts?
Inotherwords,doesthisjournalentrybalance? |
Yes.
e.g$120=$120 |
CASH JOURNAL
Date | Description | Debit | Credit |
25th June | Cash a/c
To unearned revenue a/c (to record cash received as a deposit) |
$250 |
$250
|
ACCOUNTS RECEIVABLE
Date | Description | Debit | Credit |
25th June | Accounts receivable a/c
To unearned revenue a/c (to record the amount which is billed) |
$1000 |
$1000
|
Task 4
Answer 4
Date= 13-3-2019
Notes
10*$ 100= $1000
3*$ 50= 150
Coins
25* $20= 500
5* $10= $ 50
3* $ 5= $ 15
Subtotal cash= $ 1715
Task 5
Liliana’s CakeShop | Liliana’s CakeShop | ||||||
1 BelleSt | 1 BelleSt | ||||||
Melbourne3000 | Melbourne3000 | ||||||
39428555000 | 39428555000 | ||||||
MID 24458705 | MID 24458705 | ||||||
TSP 100362999945 | TSP 100362999945 | ||||||
TIME 21JUN2017 | TIME 21JUN2017 | ||||||
TRAN 000050CREDIT | TRAN 000050CREDIT | ||||||
MasterCard | MasterCard | ||||||
MasterCard I | MasterCard I | ||||||
CARD………………………….. 4444 | CARD………………………….. 4444 | ||||||
RID A000000000A | RID A000000000A | ||||||
PIX 1010 | PIX 1010 | ||||||
TVR 00000000000 | TVR 00000000000 | ||||||
TSI E800 | TSI E800 | ||||||
TC 125C79E5E33E69D8 | TC 125C79E5E33E69D8 | ||||||
PURCHASE 130.00 | PURCHASE 130.00 | ||||||
TOTAL 130.00 | TOTAL 130.00 | ||||||
APPROVED Customer Copy |
APPROVED Merchant Copy |
||||||
Task 6
Description | Amount$ |
Deposit | 500 |
Deposit | 750 |
Balance Paid | 1200 |
Balance Paid | 1500 |
Cake | 250 |
Cake | 375 |
Cake | 450 |
Total Summary Of Merchant Transactions | 5025.00 |
DATE |
EFTPOS STATEMENT JOURNAL |
|
DEBIT | CREDIT | |
27th February 2022 | $ 5025.00 | |
Task 7
CASH JOURNAL | BANK STATEMENT | |||||||||||||||
Month June | Year2016 | Month June | Year2016 | |||||||||||||
Day | CREDIT | DEBIT | DESCRIPTION | Day | CREDIT | DEBIT | DESCRIPTION | |||||||||
1 | 1 | |||||||||||||||
2 | $65.00 | Sales | 2 | |||||||||||||
3 | $33.00 | Sales | 3 | |||||||||||||
4 | $33.00 | Sales | 4 | $131.00 | Cash deposite | |||||||||||
5 | 5 | |||||||||||||||
6 | $85.00 | Sales | 6 | |||||||||||||
7 |
$199.00 |
$362.00 |
Expenses for
Cakes/ sales |
7 |
$362.00 |
Expenses For Cakes |
||||||||||
8 |
$365.00 |
$111.00 |
Expenses For
cakes/ sales |
8 |
$111.00 |
Expenses For Cakes |
||||||||||
9 |
$30.00 |
$300.00 |
Expenses forsakes/ sales | 9 |
$300.00 |
Expenses For Cakes |
||||||||||
10 |
$95.00 |
$80.00 |
Expenses for
cakes/ sales |
10 |
$80.00 |
Expenses For Cakes |
||||||||||
11 | $420.00 | Sales | 11 | $1,194.00 | Cash Deposit | |||||||||||
12 | 12 | |||||||||||||||
13 | $33.00 | $450.00 | Gas bill | 13 | $450.00 | Gas bill | ||||||||||
14 | $222.00 | 14 | ||||||||||||||
15 | $45.00 | 15 | ||||||||||||||
16 | $35.00 | 16 | ||||||||||||||
17 | $66.00 | 17 | $401.00 | Cash Deposit | ||||||||||||
18 | $ 5 | Bankfees | 18 | $5.00 | Bankfees | |||||||||||
19 | 19 | |||||||||||||||
20 | $22.00 | 20 | ||||||||||||||
21 | $66.00 | 21 | $88.00 | Cheque Deposit | ||||||||||||
22 | $368.00 | Deposit Cheque | 22 | $368.00 | Deposit Cheque | |||||||||||
23 | Unrepresented
cheque |
23 |
$368.00 |
Unpresented
cheque |
||||||||||||
24 | $123.00 | 24 | ||||||||||||||
25 | $211.00 | 25 | $334.00 | Cash Deposit | ||||||||||||
26 | $48.00 | 26 | $48.00 | Cash deposit | ||||||||||||
27 | $126.00 | 27 | ||||||||||||||
28 |
$250.00 |
Deposit forsake | 28 |
$250.00 |
Deposit For Cake |
|||||||||||
29 | $ 250 | Returned deposited | 29 | $250.00 | Returned Deposit | |||||||||||
30 | $212.00 | 30 | $338.00 | Cash Deposit | ||||||||||||
TOTAL | $3,152 | $ 1,926 | TOTAL | $1226.00 |
|
|||||||||||
Task 8
All debit transactions of June Month = $1308
Summary of all transactions of cash deposits = $2446
Task 9
Chart Of Account ID
100 |
TOTAL REVENUE |
$ 1000000 |
|
200 | COST OF GOODS | $ 426200 | |
GROSSPROFIT | $ | 573,800 | |
EXPENSES: | |||
401 | Accounting fees | $ 11700 | |
404 | Electricity | $ 2700 | |
405 | Insurance | $ 15200 | |
407 | Postage | $ 1500 | |
408 | Printing And Stationery | $ 8700 | |
501 | Rent For Premises | $ 74300 | |
502 | Vehicle Operating Costs | $ 21100 | |
506 | All Other Expenses | $ 14100 | |
300 | LABOUR | $ 225000 | |
399 | Liliana’s Salary | $ 102600 | |
Less | TOTAL EXPENSES | $ | 476,900 |
Equals | NET PROFIT | $ | 96,900 |
Task 10
8A is greater than 8B
8A = $12,500
8B – $10,000
8A is greater than 8B and the difference amount will be paid to the Australian Taxation Office, and the amount is $2500.
Task 11
Trial Balance
30/06/2017 |
||||
General Ledger Account Balance
AccountName Debit |
Credit |
|||
Petty cash | ||||
Reserve For Bad Debts | $100,000.00 | |||
Inventory | $2,500.00 | |||
Furniture And Fixtures | $150,000.00 | |||
Accumulateddepreciation-furnitureandfixtures | $150,000.00 | |||
Equipment | $2,500.00 | |||
Accumulated depreciation- equipment | $2,500.00 | |||
Goodwill | $101,000.00 | |||
Sales Tax Payable | $900,000.00 | |||
Owner’s equity | $100,000.00 | |||
Owner’s Drawing Account | $845,000.00 | |||
Sales | $450,000.00 | |||
Revenues | $350,000.00 | |||
Sales Returns And Allowances | $150,000.00 | |||
Purchases | $450,000.00 | |||
Bank charges | $0.00 | |||
Credit Card Fees Expense | $0.00 | |||
Insurance | $19,000.00 | |||
Miscellaneous | $70,000.00 | |||
Payroll taxes | $6,500.00 | |||
Telephone | $10,000.00 | |||
Travel | $15,000.00 | |||
Utilities | $35,000.00 | |||
Vehicle expenses | $58,000.00 | |||
Wages | $135,500 | |||
Totals | $1917,000 | $20,52,500 | ||
Difference | $135,500 | |||
Task 12
Whatistheopeningbalanceofthe Credit Card Account?
Opening balance is $2059.97
Whatisthetotalamountofthe monthlytransactions?
$700.00
How Much Interest Has Been Charged On Transactions?
$27.28
Locatethepaymentsummaryandlisttheminimummonthlypayment.
The location of payment summary is account summary and monthly payment is $8560.17
What Is The available credit limit?
Available credit limit is $27,000
Task 13
BALANCE SHEET | |||
ASSETS | $ | LIABILITIES | $ |
Cash | $25,000 | Creditors | $12,000 |
Building | $250,000 | Owner’s equity | $263,000 |
TOTAL |
$275,000 |
TOTAL |
$275,000 |
Owners ‘equity: $263,000
Assessment 2
Question 1
The dates in which the taxes will be paid are from 1st July to 30 June of the food and beverage industry, and it will be paid quarterly.
Question 2
2 different accounting software are such as Intuit’s Quickbooks Online and Xero. It could be used to manage the finances within the company (Maruschak, et al., 2021).
Question 3
There are different benefits that will be generated by using the software packages such as –
- It will definitely sync the financial data.
- Detailed insights will be provided.
- Simplifies the payroll of the organization.
- It will also save time.
- It promotes the data accuracy as well (Maruschak, et al., 2021).
Question 4
Average cheque or average customer spending simply means the value of customers, and it calculate the number of customer spending by estimating the total number of sakes that will be divided by the given period customers.
Question 5
The purpose of Profit and Loss Statement define the expenses and losses that are generated in the financial year for the specific period of the organization. All the expenses are written on the debit side as well as income will be written on the credit side.
Question 6
The term cash flow defines the cash inflow as well as cash outflow from different activities including operating activities, investing activities and financing activities.
Question 7
Asset is the property owned by the company and it has the regarded value, and they are available to meet debts, commitments as well as legacies.
Question 8
Liability is something that is owned by the company, and it is known as the sum of the company that is mainly paid by the company for clearing their dues and debts to the creditors (Ponomareva, et al., 2018).
Question 9
Owner’s equity simply means that the amount of equity that is invested by the owner of the company, and that will be taken by the business owner only from the business (Ponomareva, et al., 2018).
Question 10
Formula of Balance Sheet defines that Assets = Liabilities + Equity and this formula of balance sheet is used widely in every business.
Question 11
The Bank Reconciliation Statement is mainly used by the small businesses to ensure that the recorded balance of the business will be matched by the recorded balance of the bank statement, and it helps to manage as well as monitor the cash flow (Piaw, et al., 2018).
Question 12
Three examples of the fixed costs of the business includes rent and lease payments, insurance of the business, salaries paid to employees, and utility bills.
Question 13
Net reflects the amount of the money which is left after when all the allowable business expenses are paid. Whereas the gross profit is the amount that is left after deducting the good cost which is sold from the revenue. once correct values are known then net profit and gross profit can generate the income statement (Nariswari, &Nugraha, 2020)
Question 14
Some of the actions which can be taken are-
- Cost can be reduced
- Increasing turnover
- Productivity must be increased
- Efficiency must be increased (Nariswari, Nuraghe, 2020)
Question 15
Weekly: payrolls |
Daily: transaction |
Monthly: rent |
Question 16
Three reasons for waste collection are-
- Protects the environment
- Provide health to the population
- Can prevent air and water pollution
Due to the food wastage, there can be various impacts like-
- Financial loss
- Environmental loss
- Social damage can also occur due to the wastage (Nadeem, et al., 2019).
Question 17
For the hospitality business, it is important to measure the labor costs because it is the amount for all the labor which is paid to representatives. It also shows the expenses of the worker’s benefits which are paid by the organization (Ahmed, et al., 2019).
Question 18
In the business, the effect of order and too much purchase will result in a greater or higher cost which includes the warehouse and storage. There can be also losses due to shrinkage, obsolescence, and product deterioration (Alemayehu, &Tveteraas, 2020).
Question 19
With the help of information, the average cheque can be calculated. It is the average of the transaction amount which is calculated by a total number of sales divided by the guest’s total number and it can be calculated on a daily, weekly, monthly, or yearly basis.
Question 20
In the hotel, the term rate of occupancy means the ratio which is for the used rooms or rented rooms to the total number of rooms available. This data is important to know because it indicates the health of the business, it also helps to know the revenue which is earned per available room, and with the help of occupancy rates the overall profitability can also be generated (Alemayehu, &Tveteraas, 2020).
Question 21
Some of the reasons to use these 2 reports and the value which will be added to the business are-
1) These reports will be helpful to know the clients how much is spent and for a certain time how much cash is made.
2) It will help to know how much space is needed for earning back original invents which were made and increasing the gain for the organization.
Question 22
In terms of sales, some sort of the items which can be included in the sales are-
When the transaction is taken between one or two parties typically between the seller and the buyer. For the money or in terms of other assets goods and services are exchanged. In some cases, other assets are paid to the seller (Ozili, & Outa, 2019).
Question 23
Commission earnings are the pay paid to an employee for sales of the services or products of their employer. Commission earning can be sales set percentage or on the sales volume, it is the flat dollar amount. Some of the common commission structures are-
Base salary+ commission
To find the commission earning rate of commission is multiplied by the total sales (Ozili, & Outa, 2019).
Question 24
Accounts receivable – it shows the cash expected and which is going to be received in the future in the company.
Accounts payable – it is made for the purchase of the goods and the amount of the service from the other companies depends on the repayment method in the organization (Landrigan, et al., 2017).
Question 25
The variance of the budget includes the creator’s details and the information also, the changing policy and the business conditions in the organization and the all-over changes in the economy on the global level make affect the budget.
Question 26
Financialreport | Definition | Purpose |
Budget |
The budget will help the organization to make important decisions regarding the organization. | The main purpose of the budget is to show the work performance of the company. |
Covers |
The main points and the section is needed to be covered in this. | They have to cover the serious issue in the organization as a priority. |
Expenditure |
Expenses of the organization will come into this list as the basis of the detail. | The expenditures explain the company expense report and the value of the amount in the expenses list. |
Labour |
Working in the organization labor is known as the asset of the company (Martin-Sardesai et al., 2020). | The labor will help the company to make their work progress. |
Occupancyrate |
This is the rate that defines the company’s occupancy and the company values. | The occupancy rate will help the company to set the labor wages. |
Purchases |
The goods and the materials will be purchased. | Purchasing is very important for the organization to do the production of the company. |
Sales |
This describes the company’s sales rate. | More sales provide profit to the company. |
Stock |
Th3e stock availability is important in the company for production. | The company needs stock on an emergency basis. |
Transaction |
Cash and other transactions. | This describes the cash inflow and outflow. |
Transaction exempted |
The wrong transaction will appear | Mismatched in the transaction. |
Unit sold |
The product sold by the company will be noticed in this | The unit sold describes the company’s sales. |
Wages |
Wages of the employees of a company. | This is known as the salaries of the employees. |
Question 27
Ledger |
It includes the company transaction details. |
Subsidiary ledger |
It is the draft report of the ledger to recheck the ledger records. |
Journal |
The daily transaction in the organization will be recorded in this. |
Question 28
Transactions |
The transaction describes the company’s daily work reports and the routine in the market. |
Receipts |
This is known as the proof of the company details and the transaction to maintain according to the record demand of the company. |
Disbursement |
It is known as the payment of the money and fund (Landrigan, et al., 2017). |
Question 29
Debtors |
Debtors are those in the company that owes the money. |
Invoices |
An invoice is known as a commercial document that is shown the transaction between the buyers and sellers. |
Creditors |
Creditors are a person to which money is owing. |
Account payable |
it is made for the purchase of the goods and the amount of the service from the other companies depends on the repayment method in the organization (Martin-Sardesai et al., 2020). |
Cashflow |
This shows the company’s cash flow on the daily basis in the organization. |
Question 30
The charts of accounts describe the various types of accounts in the company and their transaction details.
Question 31
Bank reconciliation – it helps the organization to get fund.
Vendors reconciliation- This helps the company to do business.
Question 32
This is important because it helps the organization get funds and loans from the banking sector to the organization.
Question 33
Fixed cost is known as the cost which is fixed in the company and wit cannot be changed over time.
Depreciation
Interest rate.
Question 34
These are the cost that can be changed and fluctuated according to the market condition and company demand.
Shipping expenses
Packaging rate
Question 35
Double entry in accounting is also called the entry of the bookkeeping is the accounting system that requires every business transaction and event to be recorded by at least two accounts.
Question 36
Debits in the double-entry accounting system that is mentioned on the left-hand side and that is increased the liability and the accounting liability or the equity account.
Question 37
Double-entry refers to the use of an accounting asset which is also known as the summation of liabilities and equity. in this process, the T stands for the transaction details of the organization and the transaction details.
Question 38
accrual-based method- this method includes and contains all the details reported on the income statement when they are earned and this also, includes the income statement of the company and the revenue which is earned by the organization but the cash which is not received yet (Benson, et al., 2015).
The types of business that is suited to this are:
Finance
Investing
cash-based accounting method- this method is known as the method of accounting and the transaction of cash is included in the method as the process of the accounting system. There are all the expenses recorded in this transaction or the method.
International business
Journal business
Question 39
The key information in the profit and the loss stamen of the balance sheet describes the current proof of the organization and then the GST and the tax amount that is going to be deducted from the profit of the company because these are the expenses of the organization. if the company receives the minus amount after deducting the tax and the GST amount from the net profit then this will indicate the loss of the company rather than profit (Benson, et al., 2015).
Question 40
According to the details, the current term of the GST and the current rate of the GST in Australia is 10% on all the goods and services and the other items that are sold or consumed in Australia.
Question 41
According to the scenario the financial management information will be managed in this section as they choose the 3 meal course option and based on the course should be maintained of medium level (Adhana, 2015).
As the manager, I must explain to the staff to prepare only a 3-course meal and handle the materials rescues in food.
Question 42
The sales performance will help the organization to take the ideas and based on the report the company make and take the important decision regarding the new product sales in the market (Adhana, 2015).
References
Adhana, D. (2015). Goods and services tax (GST): A panacea for Indian economy. International Journal of Engineering and Management Research, 5(4). https://www.researchgate.net/profile/Deepak-Adhana/publication/336050010_Goods_and_Service_Tax_GST_A_Game_Changer_for_Indian_Economy/links/60a8b48092851ca9dcd6eb3a/Goods-and-Service-Tax-GST-A-Game-Changer-for-Indian-Economy.pdf
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