Reference no: EM132283826

TASK 1. KNOWLEDGE QUESTIONS

This task is subdivided into 4 Activities covering elements and performance criteria 1 to 4. Complete all questions I the spaces provided below

Activity 1A (1.1

Answer the following questions in relation to your own organisation's policy, procedures and legislation:

1. What is a register of property, plant and equipment and how is one prepared? (1.1)

The register of property ,plant and equipment means the record of various types of fixed assets in a separate book of account which is prescribed by the law. It is prepared by adding gross PP&E which is listed in balance statement and deducting the accumulated depreciation of that PP&E we get net PP&E.

2. What information should be included in a fixed asset register? (1.1)

The PP&E or the assets which is tangible in nature and use more than one accounting period , such types of assets is only register in fixed assets register. In this register the information should be included about the way or method of charging depreciation on it is included .

3. Explain the legislative and organisational requirements for preparing a register of property, plant and equipment. (1.1)
The legislative and organisational requirements for preparing a register of property, plant and equipment.

4. List six examples of property, plant and equipment.(1.1)
The six example of property , plant and equipment are:
*Land
*Building
*Machinery
*Vehicles
*Computer
*Furniture

5. List the key provisions of the ATO regulations for tax agents
The key provisions of the ATO regulations for tax agents are:
*Know your obligations
*Proper advice
*record and documentation
*Sound decision

6. List at least 6 key elements of the GST regulations that must be observed by an Australian business.
The 6 key elements of the GST regulations that must be observed by an Australian business are:

7. Briefly list the four (4) fundamental principles for the Australian Professional and Ethical Standards Board (APES) 110 - Code of Ethics for Accounting Professionals.

Activity 1B (2.1)
Answer the following questions in relation to your own organisation's policy, procedures and accounting requirements:

1. What is depreciation defined as?
An accounting method of allocating the cost of tangiable

2. What methods can be used for calculating depreciation? (1.2)

3. Explain the reason for calculating depreciation.(1.2)

4. What is the legislation and or accounting standard that guide the preparation of depreciation of asset. What is the purpose of the standard? (1.3)

Activity 1C
Answer the following questions in relation to your own organisation's policy, procedures and accounting requirements:

1. What is the purpose of an asset register? (1.1)

2. Explain how you would maintain an asset register and depreciation schedule.(1.1)

3. In what circumstances should asset registers be updated?

4. What are the key requirements of the Australian Auditing Standards for financial report preparation?

Activity 2A
Answer the following questions in relation to your own organisation's policy, procedures and accounting requirements:

1. Explain how you would record the depreciation of non-current assets. (2.1)

2. Explain how you would record the disposal of fixed assets and why is this important. (2.1)

3. Explain the financial reporting legislation in Australia.

Activity 2B
1. Explain how you would adjust expense accounts and revenue accounts (Provide an example) (2.2)

2. What are the different types of adjusting entries? (2.2)

Activity 2C
Answer the following questions in relation to your own organisation's policy, procedures and accounting requirements:

1. Explain what bad debts are. (2.3)

2. What are the two methods of recording and accounting for bad debts? Explain each one. (2.3)

3. Provide an example of recording bad & doubtful debt. (2.3)

Activity 2D
1. Explain how you would adjust ledger accounts for inventories and transfer to final accounts (Provide an example). (2.4)

2. Explain how you would close beginning and ending inventory.(2.4)

Activity 3A
Answer the following questions in relation to your own organisation's policy, procedures and accounting requirements:

1. What will a company need to do when making a financial transaction?

2. Using an example explain how you would make general journal entries for balance day adjustments.(3.1)

3. What does double-entry bookkeeping mean and what is it used for?

Activity 3B
1. What is a general ledger and what does it consist of? (3.1)

2. What are the sub-accounts of a general ledger and what are they used for? (3.1)

3. With an explain how you would prepare final general ledger accounts to reflect gross and net profits for the reporting period. (3.3)

Activity 4A
Answer the following questions in relation to your own organisation's requirements:

1. What is a revenue statement and what is it used for? (4.1)

2. Explain how you would prepare a revenue statement. (4.1)

3. How would you calculate profits for the reporting period? (3.3)

4. How would you go about correcting the error; what sort of document would guide and who would you refer the error to in the organisation? (4.3)

5. Name the type of legislation and accounting standards that will guide you in preparing financial reports

Activity 4B (4.2)
1. What is a balance sheet?

2. What are the two formats of a balance sheet?

3. List the items/ information a balance sheet should contain (Provide an example).

4. Why is it necessary to prepare balance sheet?

Activity 4C (4.3)
Answer the following questions in relation to your own organisation's policy and procedures:

1. Why is it important to identify and correct errors in financial reports, and what type of errors could be identified?

2. What documents should you consider when correcting errors?

3. Explain how you would restate financial statements.

4. In what circumstances should you refer errors for resolution and how would you do this?

Task 2

Activity 1 (mapping:1.1-1.3)
This section contains a practical task designed to help assess your ability to prepare and maintain a detailed asset register and depreciation schedule based on the information provided below.
Prepare the asset register and depreciation schedules for the entries listed in the table below, using the following guidelines and then determine the value of the depreciated items as at 30th June 2019.
Your report must reflect the following.
• Company policy writes down any asset less than $1000 in 12months
• Depreciation is set at 12.5% unless the ATO offers any incentives.
• The ATO allows computer systems to be fully depreciated in 3 years with 50% year 1: 30% year 2 and 20% year 3.
• Motor vehicles are straight line depreciation 4 years.
• All other items sum of digits over 6 years.

You will need to present your report and clearly identify each of the following: -
1. Current value as at 30th June 2019
2. Low value pooling
3. Computer systems
4. Straight line methods
5. Sum of the year digits

You must show your calculations and provide a rationale for any assumptions

Your assessor will also need to sight evidence that you have used digital technologies to access, record, store, organise and compile data as required

Candidates are required to complete this task independently and the work submitted must be their own.

Required performance
Candidates must
• complete the task
• meet all the requirements listed
• ensure all responses are relevant, accurate and specific
• identify each of the methods used
• submit the completed assessment within the set timeframe
• be your own work and in your own words

Presenting the assignments: - (these instructions provided to the candidate
For each typed assignment, it must be or have:
• Completed worksheets that differentiate the following: -
o Low value pooling
o Computer systems
o Straight line method
o Sum of the year's digits
• printed on white A4 paper and stapled in the left top corner and presented in a clear plastic sleeve
• typed in size 10 font.
• double line spacing
• separate title and contents page
• an appendix if applicable
• referenced information and resources
• code and title of the unit
• the task identifier (i.e. BSBFIA401 Gap assessment)

Task 3
Activity 1
(Mapping- 2.1)
On 31 November 2014 the Motor Vehicle account of Accounting Without Tears Ltd had a total balance of $120,000 with total accumulated depreciation of $42000. On 31 November a Motor Vehicle that cost $25000 was sold for $12500 cash. This included GST. The Motor vehicle was depreciated using the cost method and useful life of 4 years with residual value of $5000. The MV accumulated depreciation was $14500. The MV was last depreciated on 31 August 2016. (Note: You may use the template for the spreadsheet worksheet)
i. Show how to calculate the last three months depreciation till the asset was disposed on 31 November.

ii. Prepare general journal entries for
a. Depreciation expense 31 November 2016
b. Disposal of machine
c. Transfer of depreciation expense to profit and loss on 31 November 2016

iii. Journalise the transfer of gain/loss to profit and loss account

iv. Show general ledger account for the disposal of the asset

Task 4

Activity 1.
Blue Diamond Ltd is owned by Best Man and has provided the following unadjusted trial balance from the ledger accounts as below: (Use Blue Diamond Template).

Using the following transactions, provide a record of the journal entries and then produce the end of month financial report. (PE 2, 5 & 6). (Note this is a new company)
You are to:
a) Set up general ledger account for the above accounts
b) Prepare journal entries to record the following transactions and prepare any adjust adjusting entries at s at 30 June 2016
• Expired/used up insurance $1400
• Accrued wages$ 3200
• Depreciation on office equipment $6000
• On 1 June Blue Diamond Ltd received $450 in advance (prepayment) for the ironing service to be rendered during the next financial year
• The accountant for the business has advised the owner, Best Man, to establish allowance for doubtful debt at 5% of accounts receivable. Bad debt to be written off initially is $880 incl., GST.
c) Post the transaction to the general ledger account and balance the accounts to show gross and net profit, using the perpetual inventory approach.
d) Prepare statement of financial performance (PROFIT AND LOSS) and financial position

Activity 2 (mapping: 4.3)

Just 3 weeks after compiling the end of month/period report in task 4, Activit1 you found you had overpaid one employee by $150, and you had also incorrectly recorded a sale as $495 but it should have been $594.

Show how you will adjust these two errors. Explain the organisational policy and procedure that applies in these cases.

Attachment:- Assessment.rar