Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 1 of 2 Assessment Cover Sheet Course Certificate IV in Accounting FNS40615 Term/Block Unit Code BSBFIA401 Unit Name Prepare financial reports Assessment Type Assessment Task 2 –Assignment Time allowed Date Room Instructions for completing this form • Complete Sections A and B • Attach this two-page cover sheet to your assessment submission • Submit your assessment to your trainer/assessor • Retain Section B as proof of submission • Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information. Section A – Student Details (student to complete) Student Name Student ID Student Declaration • I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. • I have read the Assessment and Student Handbook and I understand all the rules and guidelines for undertaking assessments. • I give permission for my assessment material to be used for continuous improvement purposes. Signature: ____________________________ Date submitted: ____/_____/_____ Section B – Receipt (student to keep a signed copy of this section as proof of submission) (Student to complete) (Assessment receiver to complete) Student name: Date received: ____/_____/_____ Student no: Received by: Task No.: Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 2 of 2 Section C – Assessment Result (Assessor to complete) Assessment Completion Status (Please Circle) Satisfactory Not Satisfactory Assessor name: Assessor signature: Date assessed: ____/_____/_____ Comments (Assessor to complete) Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 3 of 2 Task 2 Assessment Instructions This is an individual assessment. Using the scenario information provided for a simulated workplace, the candidate will manually record General Journal entries for depreciation, disposal and balance day adjustments. The candidate will then record these entries into MYOB. If you need help understanding any questions, ask your assessor to explain. Part A: Manual procedure 1. Read the scenario provided. 2. Read the Hair Style Design Policies and Procedures Manual for Fixed Assets. Familiarise yourself with the organisation’s chart of accounts, depreciation policy, disposal policy. 3. Record the balance day adjustments in the General Journal template provided: a. Record this year’s depreciation of the barber chairs. i. Account for part year’s depreciation b. Record disposal information for the motor vehicle. i. Account for GST on sale ii. Account for profit and loss c. Record adjustments for revenues and expenses: i. Prepaid expenses on insurance ii. Accrued expenses on wages and salaries iii. Prepaid revenue on rental income iv. Accrued revenue on interest. d. Record bad and doubtful debts: i. Bad debt on the Kirsty McBride wedding party ii. Doubtful debt allowance of %10 of Trade Debtors. e. Record adjustment for inventory 4. Using the chart of accounts and General Ledgers provided, post inventory adjustment to General Ledger Inventory Adjustment and Trading accounts. 5. Submit the General Journal and General Ledger to your assessor. Ensure you keep a copy of all work submitted for your records. Your assessor will review your work before authorising you to perform Part B. Part B: MYOB procedure 1. Open the MYOB file (Hair Style Designs Pty Ltd_Task 2.myo) provided with this assessment. a. Record the General Journal entries in the MYOB file. b. Print the General Journal for 01 July 2013 to 30 June 2014 Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 4 of 2 2. Submit your updated MYOB file to your assessor. Ensure you keep a copy of all work submitted for your records. To be deemed competent you will need to successfully demonstrate the following: You must provide: ● manual General Journal ● manual General Ledger ● printed copy of MYOB General Journal for 01 July 2013 to 30 June 2014 ● copy of your up-to-date MYOB file for Hair Style Design Pty Ltd. ● adherence to accounting requirements, particularly with respect to preparing balanced General Journal entries ● adherence to taxation legislation with respect to GST ● adherence to business policies and procedures ○ Use of accounts ○ Policies for entering adjustments into MYOB. Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 5 of 2 Appendix 1 – Hair Style Designs Scenario You are the Assistant Accountant for Hair Style Design Pty Ltd. Today is 30 June 2014 at the end of the first year of trading and it is balance day. The following transactions have been entered into the General Journal. General Journal entries information: Date Account $DR $CR Purchase of vehicle 1/7/2013 Cheque Account 66,000 Motor Vehicles at Cost 60,000 GST Paid 6,000 Purchase of 5 barber chairs @$1507 each 1/7/2013 Cheque Account 7,535 Shop Equip at Cost 6,850 GST Paid 685 Salon rent revenue 31/3/2014 Cheque Account 22,000 Rental Income 20,000 GST collected 2,000 Insurance for 12 months 15/4/2014 Cheque Account 4,400 Insurance Expense 4,000 GST Paid 400 Wedding Party Kirsty McBride 8/5/2014 Hairstyling 2,272.73 Trade Debtors 2,500 GST Collected 227.27 Total 102,435 102,435 You will need to enter the following adjustments into the General Journal. Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 6 of 2 End-of-Period adjustments information: ● Accumulated depreciation on the barber chairs is $456. ● The company car was sold on 1 January 2014 for $55,000. Accumulated depreciation to the sale date was $8,250. ● On 15 April 2014 insurance for the year was paid by Hair Style Designs for the 12 month period starting from 1 April. The total insurance bill for the period including GST was $4,400. ● Hair Style Design has just recently employed a stylist. Total wage expenses for the employee are $1000 for 2 weeks. One week of wages expenses will have accrued on balance day. ● Hair Style Design Pty Ltd rents out a smaller salon that is owned by the business. The lease agreement is that rent is paid every 6 months on 31 March and 30 September. On 31 March 2014 $22,000 is received for rent for the next 6 months. ● Hair Style Design has deposited 60,000 at 10% interest per annum and has accrued 6 months worth of interest on balance day. Interest will be paid in the next accounting period. ● On 08 May 2014 Hair Style Design Pty Ltd provided hair styling services to a wedding party (Kirsty McBride) of 12 people at a total cost of $2,500 including GST. The McBride wedding party left without paying their account on the day and since then the client has been unreachable. Write this debt off as a bad debt. ● Doubtful debt provision is required. Hair Style Designs’ doubtful debt policy mandates 10% of Trade Debtors ($32500). ● A stocktake on 30 June 2014 finds $500 worth ($550 original purchase GST included) of inventory is unsalable. After you have made the adjustment in the General Journal, you need to transfer the balance from the correct account to the Trading Account final General ledger Account. Appendix 2 – Hair Style Designs Pty Ltd Policy and Procedure for Fixed Assets Please refer to Assessment task 1. Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 7 of 2 Hair Style Designs Pty Ltd chart of accounts 1-0000 Assets 2-1420 PAYG Withholding Payable 1-1000 Current Assets 2-1600 Customer Deposits 1-1100 Cash On Hand 2-1700 Prepaid Revenue 1-1110 Cheque Account 2-1900 Other Current Liabilities 1-1120 Payroll Cheque Account 2-2000 Long Term Liabilities 1-1130 Cash Drawer 2-2100 Bank Loans 1-1140 Petty Cash 2-2200 Other Long Term Liabilities 1-1180 Undeposited Funds 1-1190 Electronic Clearing Account 3-0000 Equity 1-1200 Trade Debtors 3-1000 Owner's/Shareholder's Equity 1-1210 Less Prov'n for Doubtful Debts 3-1100 Owner/Sharehlder Capital 1-1300 Inventory 3-1200 Owner/Sharehlder Drawings 1-1400 Other Assets 3-8000 Retained Earnings 1-1410 Prepayments 3-9000 Current Year Earnings 1-1415 Prepaid Rent 3-9999 Historical Balancing 1-1416 Prepaid Insurance 1-1420 Deposits Paid 4-0000 Income 1-1450 Interest Receivable 4-1000 Sales 1-1950 Withholding Credits 4-1100 Hair Cuts 1-1960 Voluntary Withholding Credits 4-1150 Shampoos 1-1970 ABN Withholding Credits 4-1200 Hairstyling 1-1980 Accrued Income 4-1250 Perms 1-2000 Fixed Assets 4-1300 Novelty Items 1-2100 Shop Equipment 4-1400 Hair Products 1-2110 Shop Equip at Cost 4-5000 Freight Collected 1-2120 Shop Equip Accum Dep'n 4-6000 Late Fees Collected 1-2200 Motor Vehicles 4-8000 Miscellaneous Income 1-2210 Motor Vehicles at Cost 4-9000 Fuel Tax Credits 1-2220 Motor Vehicles Accum Dep'n 2-0000 Liabilities 5-0000 Cost of Sales 2-1000 Current Liabilities 5-1000 Supplies - Purchase 2-1100 Credit Cards 5-2000 Inventory Adjustment 2-1110 Bankcard 5-3000 Discounts Given 2-1120 Diners Club 2-1130 MasterCard 2-1140 Visa 2-1200 Trade Creditors 2-1210 A/P Accrual - Inventory 2-1300 GST Liabilities 2-1310 GST Collected 2-1330 GST Paid 2-1350 Fuel Tax Credits Accrued 2-1355 WET Payable 2-1360 Import Duty Payable 2-1370 Voluntary Withholdings Payable 2-1380 ABN Withholdings Payable 2-1390 Luxury Car Tax Payable 2-1400 Payroll Liabilities 2-1410 Payroll Accruals Payable Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 8 of 2 6-0000 Expenses 8-0000 Other Income 6-1000 General & Administrative Exp 8-1000 Interest Income 6-1050 Accounting Fees 8-1500 Rental Income 6-1075 Bad Debt 8-2000 Sale (Disposal) Motor Vehicle 6-1077 Doubtful Debt 6-1100 Legal Fees 9-0000 Other Expenses 6-1200 Bank Charges 9-1000 Interest Expense 6-1250 Insurance 9-2000 Income Tax Expense 6-1300 Depreciation 9-3000 Profit on Sale Motor Vehicle 6-1400 Subscriptions 6-1500 Office Supplies 6-1600 Discounts Taken 6-1700 Freight Paid 6-1800 Late Fees Paid 6-3000 Advertising & Promotion Exp 6-3100 Advertising 6-3110 In-store Promotions 6-4000 Operating Expenses 6-4100 Cleaning 6-4200 Postage 6-4300 Printing 6-4400 Rent 6-4500 Telephone 6-4600 Water 6-4700 Shop Supplies 6-4750 Shrinkage/Spoilage 6-5100 Employment Expenses 6-5105 Fringe Benefits Tax 6-5110 Staff Amenities 6-5120 Superannuation 6-5130 Wages & Salaries 6-5140 Workers' Compensation 6-5150 Other Employer Expenses Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 9 of 2 Appendix 3 – Hair Style Designs General Journal Date Account $DR $CR Depreciation adjustment 30/6/2014 Total Disposal adjustment 30/6/2014 Total Prepaid Expense adjustment 30/6/2014 Total Accrued Expense adjustment 30/6/2014 Total Prepaid Revenue adjustment 30/6/2014 Total Accrued Revenue adjustment 30/6/2014 Total Bad Debt adjustment 30/6/2014 Total Doubtful Debt adjustment 30/6/2014 Total Inventory adjustment 30/6/2014 Total Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- BSBFIA401 –V2.0 Page 10 of 2 Appendix 4 – Hair Style Designs General Ledgers Account: ........................................................................................ DR CR Trading Account: DR CR