Student Name Student Number Unit Code/s & Name/s FNSACC414 Prepare financial statements for non-reporting entities
Student Name Student Number Unit Code/s & Name/s FNSACC414 Prepare financial statements for non-reporting entities
Assessment Name Assessment 2 Assessment Task No. 2 of 2
Assessment Due Date As per due dates in Connect Date submitted Assessor Name Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
Student Signature Date Instructions to Student This task requires you to answer the questions within this task, and submit additional documents (as specified within the tasks). Use the space provided in this assessment paper for your answers using a font no smaller than 11 points.
Students are to complete this task in their own time, no time restrictions, and are allowed full access to notes and learning resources.
Materials to be supplied:
Assessment Task
Microsoft Excel template FNSACC414_AT2_TMP_TQM_v1
Learning resources
Work, Health and Safety:
follow TAFE Queensland Student Rules
access TAFE Queensland Student Services for any additional support
conduct risk assessments prior to any assessment task to ensure the safety of all participants and the environment
ensure an ergonomically safe work environment to complete all assessment tasks
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard:
Prepare financial statements and associated workings
Explain and demonstrate understanding of different types of non-reporting entities and the organisational policies and procedures required for these entities
Number of Attempts:
You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules.
Submission details(if relevant) Insert your details on page 1 and sign the Student Declaration. Include this form with your submission, along with your marking criteria sheet (with personal details completed).
Due Dates: Refer to Unit Study Guide
TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/loginUsername; 9 digit student number
For Password: Reset password go to https://passwordreset.tafeqld.edu.au/default.aspx>
Instructions to Assessor This assignment is written based on prescribed text and additional online research.
Students to complete all requirements listed in this assessment.
This is an unsupervised written assessment.
Assessment documents to be uploaded to Connect for marking.
This is an untimed assessment.
Students are allowed access to any notes, workbooks and the internet to complete the assessment.
Students must complete their assessments as individuals
Usual office WHS requirements should be met by students
Physical conditions are at the students discretion
Interactions with team members or supervisors should be limited to general instructions and clarification or explanation of the assessment requirements.
Contingencies if conditions cannot be met are at the discretion of the Assessor.
Please refer to marking guide to ensure consistency, validity and fairness of student outcomes.
Note to Student An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide.
Part A
Bennett and Barney decide to form a partnership on 01/07/2020. You are contracted to complete the financial accounts and statements at the close of the first financial year.
Accounting Policies and Procedures
Bennett and Barney operate on an accrual basis with the financial year from 1 July to the 30 June the following year.
Partnership proceeds are divided as Bennett (1/3) and Barney (2/3).
In the Microsoft excel file FNSACC414_AT2_TMP_TQM_v1 you have been provided with a trial balance (and additional pertinent information of the partnership) as at 30 June 2021. Complete tasks 1 - 4 within the Microsoft excel file on the Part A tab. Use Excel formulae to link cells and calculate totals and subtotals, where appropriate.
Ignore GST for this question.
You are required to:
Prepare the partnership Income Statement as at 30 June 2021.
Prepare the Profit and Loss Appropriation Account
Prepare the Partners current accounts.
Prepare the Partnership Balance Sheet as at 30 June 2021.
The Partnership Deed (or Agreement) should articulate how the partnership will operate. These agreed areas of operation should also be documented in the organisational policies and procedures of a Partnership. Identify 3 critical financial aspects that must be included in the Partnership agreement and organisational policies and procedures. Please record your answer below.
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Part B
Random Crew Social Club are a four-wheel driving social club, managed by the following committee:
President Rick Stanley
Vice President Barbara BonhothamSecretary Thomas Ford
Treasurer Belinda Smith
Each year, you (the contract bookkeeper) assemble their records and prepare annual reports and statements.
Accounting Policies and Procedures
Random Crew Social Club operates on an accrual basis with the financial year from 1 July to the 30 June the following year.
The club is not registered for GST.
All payments must be signed / authorised by 2 sitting members of the Committee. The Annual Statements must be signed / verified by 2 sitting members of the Committee.
As the club is a not-for-profit organisation they prepare a Statement of Receipts and Payments in lieu of a full Cash Flow statement.
Refer to Ch.2 underpinning knowledge required to complete this task.
In the Microsoft excel file FNSACC414_AT2_TMP_TQM_v1 you have been provided with the Receipts, Payments and pertinent financial information for the year ended 30 June 2021. Complete tasks 1 - 5 within the Microsoft excel file on the Part B tab. Use Excel formulae to link cells and calculate totals and subtotals, where appropriate.
You are required to:
Prepare a statement of Receipts and Payments
Complete the Members Subscriptions account
Prepare a Merchandise Trading Statement as at 30 June 2021
Prepare an Income and Expense Statement.
Prepare a Statement of Assets and Liabilities.
Review the statements and accounts for accuracy. Identify and advise who is responsible for signing and verifying the completed financial statements. Please record your response below.
The organisational policies and procedures of a Not-for-Profit organisation will vary from those of a Reporting Entity in a number of areas, including the preparation of accounts and financial statements. Identify and explain 3 distinguishing features of the preparation of financial accounts and statements of a Not-for-profit organisation. Contrast these to a Reporting Entities statements. Please record your response below.
Student Name Student Number Unit Code/s & Name/s FNSACC414 Prepare financial statements for non-reporting entities
Assessment Name Assessment 1 Assessment Task No. 1 of 2
Assessment Due Date As per due dates in Connect Date submitted Assessor Name Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
Student Signature Date Instructions to Student This task requires you to answer the questions within this task, and submit additional answers within Microsoft Excel. Use the space provided in this assessment paper for your written answers using a font no smaller than 11 points.
Students are to complete this task in their own time, no time restrictions, and are allowed full access to notes and learning resources.
Materials to be supplied:
Assessment Task
Microsoft Excel template FNSACC414_AT1_TMP_TQM_v1
Learning resources
Information / Materials to be provided by the student:
Computer and word processing software
Internet access and ability to access and navigate Connect
Work, Health and Safety:
follow TAFE Queensland Student Rules
access TAFE Queensland Student Services for any additional support
conduct risk assessments prior to any assessment task to ensure the safety of all participants and the environment
ensure an ergonomically safe work environment to complete all assessment tasks
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard:
Explain and demonstrate understanding of key accounting conventions and legislation, particularly relating to non-reporting entities
Calculate and analyse financial ratios, including liquidity, profitability and activity ratios
Develop cash flow statement in accordance with AASB107
Number of Attempts:
You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules.
Submission details(if relevant) Insert your details on page 1 and sign the Student Declaration. Include this form with your submission, along with your marking criteria sheet (with personal details completed).
Due Dates: Refer to Unit Study Guide
TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/loginUsername; 9 digit student number
For Password: Reset password go to https://passwordreset.tafeqld.edu.au/default.aspx>
Instructions to Assessor This assignment is written based on prescribed text and additional online research.
Students to complete all requirements listed in this assessment.
This is an unsupervised written assessment.
Assessment documents to be uploaded to Connect for marking.
This is an untimed assessment.
Students are allowed access to any notes, workbooks and the internet to complete the assessment.
Students must complete their assessments as individuals
Usual office WHS requirements should be met by students
Physical conditions are at the students discretion
Interactions with team members or supervisors should be limited to general instructions and clarification or explanation of the assessment requirements.
Contingencies if conditions cannot be met are at the discretion of the Assessor.
Please refer to marking guide to ensure consistency, validity and fairness of student outcomes.
Note to Student An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide.
Part A
Classify the following as Asset, liability, revenue, expenses or owners equity.
Motor Vehicle Accounts Payable Capital Sales Interest Received Depreciation Wages Cash at Bank Bank Loan Rent Received Drawings Office Equipment Accounts Receivable Rent Paid Land Credit Card Bank Fees Interest Paid
List 3 Financial statements that business entities use on a regular basis. For each statement, explain at least 2 advantages and at least 2 disadvantages of using the statement.
What purpose do financial statements have for the following users:Managers / Business Owners
Suppliers
Investors
Government Regulators/AgenciesName the Governing body that issues Accounting Standards
With reference to Statement of Accounting Concepts (SAC) 1 and the Corporations Act 2001
Define a Reporting Entity and contrast it to a Non-Reporting Entity
Explain the reporting requirements of each type of entity.
Identify 2 key pieces of legislation affecting taxable transactions and summarise the key features of both pieces of legislation. For each piece of legislation, please provide at least 4 features.
Part B
You are the bookkeeper for Delizios Delicatessen. Your employer has asked you to prepare a range of financial ratios to help the management team understand the financial progress of the business.
In the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 you have been provided with comparative Profit and Loss and Balance Sheet figures for the 2018, 2019 and 2020 financial years.
You are required to:
Complete the Ratio Calculation Sheet on the Part B tab. In the Calculation Used column, write the formula to be used for each ratio.
Calculate the ratios listed on the sheet for the 2019 and 2020 financial years and record them on the sheet. Include all your workings for each ratio; and record all answers to 2 decimal places.
Comment on what the ratios indicate about the operation of the business, the current position of the business of the future prospects. Identify any areas of concern.
Go to the Australian Tax Offices Small Business benchmark website https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/Benchmarks-by-industry/
Find the benchmark figures for a Delicatessen for 2019-20 financial year and note down the following figures for a business with a turnover equivalent to Delizios:
Average Cost of Sales
Average total expenses
Gross Profit ratio
i) Calculate the benchmark Gross Profit ratio using the calculation:
100% Average Cost of Sales
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ii) Compare the benchmark Gross Profit ratio calculated in i) to Delizios Gross Profit ratio previously calculated on your spreadsheet. Comment on Delizios performance compared to the industry standard (benchmark Gross Profit ratio).
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b) Net Profit ratio
i) Calculate the Benchmark Net Profit ratio using the calculation:
100% Average total expense
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ii) Compare the benchmark Net Profit ratio calculated in i) to Delizios Net Profit ratio previously calculated on your spreadsheet. Comment on Delizios performance compared to the industry standard (benchmark Net Profit ratio).
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Explain the advantages and disadvantages (minimum of three) of using ratios and comparison techniques to analyse financial data. Please record your answer below.
Part C
In the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 you have been provided with a summary of transactions for Henry & Henry for the year ended 30 June 2021. Henry & Henry are a partnership providing legal services in South-East Queensland.
It is organisational policy of Henry & Henry that they produce annual cash flow statements in accordance with AASB 107 Statement of Cash Flows. This enables Henry & Henry to demonstrate (to their external stakeholders) their ability to meet their cash flow requirements.
(Complete Ch.2 of the text before attempting this question).
IGNORE GST FOR THIS QUESTION.
You are required to:
Reconstruct the Account Receivable General Ledger Account and the Accounts Payable General Ledger Account. The Bank figures calculated in these reconstructions will be needed for Step 2.
Prepare a Cash Flow Statement for the year ended 30 June 2021 in a form consistent with AASB 107.
Prepare a Reconciliation of Net Profit with Net Cash Flows from Operating Activities.
Complete both of these tasks within the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 on the Part C tab. Use Excel formulae to link cells and calculate totals and subtotals, where appropriate.
