FNSACC404A – Prepare financial statements for Non-reporting entities

Student Assessment Task

Student Name:
Student Number:
Student Signature: / Date:
Facilitator Name:

You are required to complete the following assessment tasks and ensure that any printouts of evidence is signed by yourself in the bottom right hand corner. The completed Assessment Tasks and any evidence must be provided to your facilitator in order to be assessed on the subject, and ultimately marked Competent.

What do I need to do?

Ø  Read the Unit of Competency (Page 2) of this document. You may use the Unit of Competency as a self checklist. The Unit of Competency details the elements and the performance criteria for this unit.

Ø  Part A (Page 3) of this document lists the Written (Questions and Answers) that must be completed as part of your assessment.

Ø  Part B (Page 5) of this document lists the Practical Exercise/Evidence that must be completed as part of your assessment.

Ø  Part C (Page 20) of this document refers to observation by the assessor on the learner’s competence in that element and/or unit. If applicable, the checklist should be used by the assessor in the workplace, else the observation needs to be conducted in a simulated environment and supported by an employer or supervisor. See Part D, 3rd Party Observation

Ø  If applicable, Part D (Page 221 of this document refers to 3rd Party observation. Ensure all contact details are correct and instructions are followed.

Ø  Part E (Page 22) of this document refers to Outcome. Please ensure you have provided your name, signature and date that you are submitting this Assessment Tool, and that any attachments also include your signature on the bottom right hand corner.

Application of the unit

This unit requires the application of skills and knowledge required to prepare financial statements. The unit encompasses compiling data and preparing reports. The unit can be applied across all sectors of the financial services sector.

FNSACC404AB – Prepare financial statements for Non-reporting entities

This Unit of Competency has two elements. Each element has multiple performance criteria. The elements and performance criteria are listed below.

1.  Compile data

1.1.  Data is systematically coded, classified and checked for accuracy and reliability in accordance with organizational policies and procedures

1.2.  Internal and external financial data is checked to ensure consistency and accuracy

2.  Prepare reports

2.1.  Charts, diagrams and supporting data are presented in an appropriate manner

2.2.  Reports are prepared following a clear and appropriate structure and format and conform to organization requirements

2.3.  Statements and data are error free and comprehensive with the full report cross-checked against original data and accounting standards.

2.4.  Any necessary corrections are made and verified and authorized by relevant persons.

Part A: Written (Questions and Answer)

  1. The major function of any accounting system is to provide the necessary financial information for management and other decision makers. Define what a Balance Sheet and Income Statement are and detail what information each of these reports contributes to the information system. Give a (conventional) alternative name for each of these reports.
  1. Define the types of accounts that would appear in a Balance Sheet?
  1. Define the types of accounts that would appear in an Income Statement?
  1. Explain in your own words why it is necessary to code some transactions in QuickBooks and not others.

Part B: Practical Exercise/Evidence

Case Study

These exercises provide practice in the skills necessary to prepare financial statements.

Exercise 1:

The exercise includes capital contributions of cash and assets, drawings of cash, cash and credit purchase of non current assets, cash revenue and expenses. It is possible to complete the exercise after the accounting equation and cash revenue and expenses have been learnt. GST has not been included.

BILL’S GARDENING SERVICE

Process the following transactions for Bill’s Gardening Service using the QuickBooks data file Bill’s Gardening Service.qbw.

Note: QuickBooks prepares the reports (Profit and Loss Statement and Balance Sheet) as the transactions are entered. This can be seen as removing the need for students to make decisions in relation to reporting. However, the decision still has to be made as to what type of account is to be opened, and therefore on what report the item will appear.

Tasks Required:

  1. Enter the transactions into the computer based recording system.
  2. Prepare a Profit and Loss Statement for the two weeks ended 14 February 20xx.
  3. Prepare a Balance Sheet as at 14th February, 20xx.
  4. Prepare a Trial Balance as at 14th February, 20xx.

Date / Transaction / Document
20xx
Feb 1 / Bill Smith contributed $5000 to a separate bank account to start his own gardening maintenance business.
Bill contributed his private vehicle to the business, valued at $15000
Feb 2 / Paid cash for the printing of leaflets for letter box drop advertising $400 to Quick Print / Chq 1001
Feb 3 / Purchase of mower for cash from Mitre 15 Hardware $800 / Chq 1002
Purchase of whipper-snipper for cash from Mitre 15 Hardware $300 / Chq 1003
Purchase of petrol for the mower and whipper-snipper from Caltex $30 / Chq 1004
Feb 4 / The business purchased a trailer on credit from Tow-all, for carrying the equipment and carting refuse to the tip. $1200. This account is to be paid at the end of February / Inv T 223
Feb 5 / Mowed lawns at 3 houses $45 each, cash / Rec 1 – 3
Drew $200 cash for own use / Chq 1005
Feb 7 / 4 hours garden maintenance for Mr McDonald $30 per hour / Rec 4
Took garden rubbish to tip – fee $35 / Chq 1006
Feb 9 / Paid mobile phone account to Orange $155 / Chq 1007
Mowing at 4 gardens $45 each, cash / Rec 5 – 8
Feb 10 / Paid for advertisement in local paper – Leader Press $300 / Chq 1008
Drew cash for own use $200 / Chq 1009
Feb 12 / Gardening maintenance 12 hours for Mrs Buchanan $30 per hour / Rec 9
Feb 13 / Purchased petrol for equipment $40 from Caltex / Chq 1010

Exercise 2:

Ben is the proprietor of the trading business called 'Ben’s Bats”. Ben’s Bat’s is located, at the Warragul Sports Club, located at 123 Bourke Road, Warragul, 3820. ABN: 92 555 666 777

Ben purchases the bats in bulk, (costing $10.00 each and selling for $35.00 each), amongst other pieces of sporting equipment, and resells to the public.

Task 1: Establish a new QuickBooks data file for Ben’s Bats

The Statement of Position (balance sheet) as at August 1, 2008 included:

ASSETS / $ / EQUITIES / $
Current Assets / Current Liabilities
Cash at Bank / 1,200 / Creditors / 300
Petty Cash / 200 / Moe Finance Co – Loan / 200
Debtors / 500
Stock / 300
Non Current Assets / Non Current Liabilities
Delivery Van / 4,500 / Loan – Warragul Credit Union / 2,000
Office Furniture & Equipment / 2,000
Refrigerator / 250
Shelving / 1,000
Owner’s Equity
Capital – Ben / 7,450
TOTAL ASSETS / 9,950 / TOTAL EQUITIES / 9,950
The item details as at August 1, 20xx
Number on hand / 30
Bat Purchase Price / $10.00 plus GST
Bat Selling Price / $35.00 plus GST
Debtors as at August 1, 20xx
Nick’s Sports Shop / ABN: 39 101 254 441 / $125.00
Angela’s Supermarket / ABN: 54 888 777 666 / $150.00
Warragul Cricket Club / ABN: 65 006 555 444 / $75.00
Natasha’s Playarama / ABN: 84 555 666 777 / $150.00
Creditors as at August 1, 20xx
Adam’s Special Bats / ABN: 95 117 266 144 / $150.00
Nathan’s Deluxe Bats / ABN: 10 195 355 426 / $150.00
Task 2: Process the following source documents for the August transactions:
Bill:
Adams Special Bats
ABN 95 117 266 144
4567 BOURKE RD WARRAGUL
DATE: AUGUST 1, 20xx TAX INVOICE NUMBER: 3454
SUPPLIED TO: BEN’S BATS
BOURKE ROAD
WARRAGUL 3820
ITEM NO / DETAILS / ITEM COST / COST
BATS / Bats 150 units
Satisfaction Guaranteed / $10.00
GST / $1500
$150 / 00
00
DRAWINGS OF STOCK:

On August 2nd, 20xx Ben withdrew one bat for his own use.

SALES RECEIPT: 50 bats
Mr/Mrs/Ms: various customers
Company: DATE: 5/8/20xx
Address:
City & State: Post Code: 3820
Phone: (Res) / Phone (Bus)
Racquets
Bats 1750.00
Wickets
Balls
GST 175.00
TOTAL / BEN’S
BATS
THANKYOU
ABN 92 555 666 777
RECEIVED FROM CLIENT / $1925.00 / Cash Fees Receipt
NO: 1
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:
CUSTOMER PAYMENTS:
Mr/Mrs/Ms:
Company: Nick’s Sports Shop DATE: 2/8/20xx
Address: 545 Warragul Rd
City & State: Warragul Post Code: 3820
Phone: (Res) / Phone (Bus)
INVOICED AMOUNT: $ 100.00
LESS DISCOUNT: $ 0.00 / BEN’S
BATS
ABN 92 555 666 777
THANKYOU
RECEIVED FROM CUSTOMER / $100.00 / Receipt NO: 1
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:
Mr/Mrs/Ms:
Company: Natasha’s Playarama DATE: 4/8/20xx
Address: 12 Warragul Rd
City & State: Warragul Post Code: 3820
Phone: (Res) / Phone (Bus)
INVOICED AMOUNT: $ 100.00
LESS DISCOUNT: $ 0.00 / BEN’S
BATS
ABN 92 555 666 777
THANKYOU
RECEIVED FROM CUSTOMER / $100.00 / Receipt NO: 2
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:
PAY BILLS:
Cheque No: 12000 / DATE: 6/8/20xx
Balance b/d
Amount: $150.00
Balance c/f / To: Adam’s Special Bats
For: July’s deliveries
WRITING CHEQUES:
Cheque No: 12001 / DATE: 7/8/20xx
Balance b/d
Amount: $50.00
includes GST
Balance c/f / To: Susie’s Advertising
For: August promotions
SALES RECEIPT: 60 Bats
Mr/Mrs/Ms: various customers
Company: DATE: 8/8/20xx
Address:
City & State: Post Code: 3820
Phone: (Res) / Phone (Bus)
Racquets
Bats 2100.00
Wickets
Balls
GST 210.00
TOTAL / BEN’S
BATS
THANKYOU
ABN 92 555 666 777
RECEIVED FROM CLIENT / $2310.00 / Cash Fees Receipt
NO: 2
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:
PETTY CASH CHEQUE:
PETTY CASH VOUCHER
DEBIT: Office Expenses No: 1
Particulars: light globes
includes GST
Amount: $3.00
Date: 10/8/xx Signed:
INVOICE:
BEN’S BATS
Sporting equipment to suit all purposes
BOURKE ROAD WARRAGUL 3820 TELEPHONE 943867676
ABN 92 555 666 777
SUPPLIED TO: Angela’s Supermarket
34 Bourke Rd
Moe North 3820
DATE: 9/8/20xx / TAX INVOICE NO:
STH1
ITEM / DETAILS / UNITS / TOTAL
Bats / Cricket Bats
TERMS: 10/7 NET 30 / 35
GST / $1225.00
$122.50
WRITING CHEQUES:
Cheque No: 12002 / DATE: 11/8/20xx
Balance b/d
Amount: $20.00
+GST
Balance c/f / To: Shop window Cleaning
For: August cleaning
Cheque No: 12003 / DATE: 12/8/20xx
Balance b/d
Amount: $45.00
+GST
Balance c/f / To: Optus Telephone
For: July’s phone calls
PAY BILL:
Cheque No: 12004 / DATE: 13/8/20xx
Balance b/d
Amount: $150.00
Balance c/f / To: Nathan’s Deluxe Bats
For: July’s deliveries
CUSTOMER PAYMENTS:
Mr/Mrs/Ms:
Company: Angela’s Supermarket DATE: 15/8/20xx
Address: 34 Bourke Rd
City & State: Warragul Post Code: 3820
Phone: (Res) / Phone (Bus)
INVOICED AMOUNT: $ 50.00
LESS DISCOUNT: $ 0.00 / BEN’S
BATS
ABN 92 555 666 777
THANKYOU
RECEIVED FROM CUSTOMER / $50.00 / Receipt NO: 3
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:
Mr/Mrs/Ms:
Company: Warragul Cricket Club DATE: 16/8/20xx
Address: P.O. Box 147
City & State: Warragul Post Code: 3820
Phone: (Res) / Phone (Bus)
INVOICED AMOUNT: $ 75.00
LESS DISCOUNT: $ 0.00 / BEN’S
BATS
ABN 92 555 666 777
THANKYOU
RECEIVED FROM CUSTOMER / $75.00 / Receipt NO: 4
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:
PETTY CASH CHEQUE:
PETTY CASH VOUCHER
DEBIT: Office Expenses No: 2
Particulars: tea, sugar, biscuits
includes GST
Amount: $10.00
Date: 14/8/20xx Signed:
ADDITIONAL CAPITAL CONTRIBUTIONS:

On August 17th, 20xx, Ben contributed a further $300 to the business.

BILL:

NATHAN’S DELUXE BATS

SMITH’S ROAD, WARRAGUL 3820

TELEPHONE: 94245459

ABN 20 205 355 426 TAX INVOICE NUMBER: 55

DATE: 18/8/20xx / ORDER NO: / ABN NO:
ITEM No: / DESCRIPTION OF GOODS / QTY / RATE / TAXABLE
27P / CRICKET BATS / 450 / GST 10% / $4500 / 00

TERMS: NET 30 DAYS

WRITING CHEQUES:

Cheque No: 12005 / DATE: 20/8/20xx
Balance b/d
Amount: $60.00
+GST
Balance c/f / To: BP Warragul
For: Petrol

SALES RECEIPT: 25 Bats

Mr/Mrs/Ms: various customers
Company: DATE: 19/8/20xx
Address:
City & State: Post Code: 3820
Phone: (Res) / Phone (Bus)
Racquets
Bats 875.00
Wickets
Balls
GST 87.50
TOTAL / BEN’S
BATS
THANKYOU
ABN 92 555 666 777
RECEIVED FROM CLIENT / $962.50 / Cash Fees Receipt
NO: 3
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:

SALES RECEIPT: 50 bats

Mr/Mrs/Ms: various customers
Company: DATE: 21/8/20xx
Address:
City & State: Post Code: 3820
Phone: (Res) / Phone (Bus)
Racquets
Bats 1750.00
Wickets
Balls
GST 175.00
TOTAL / BEN’S
BATS
THANKYOU
ABN 92 555 666 777
RECEIVED FROM CLIENT / $1925.00 / Cash Fees Receipt
NO: 4
CASH / 
CHEQUE
VISA/MC/AM EX / þ
 / Deposited By:

WRITING CHEQUES:

Cheque No: 12006 / DATE: 22/8/20xx
Balance b/d
Amount: $100.00
+GST
Balance c/f / To: Warragul Printing
For: office stationery

BUYING FIXED ASSETS

OFFICE SUPPLIES

ANZAC ROAD, MOE NORTH 3820

TELEPHONE: 94221119

TAX INVOICE NUMBER: 6755

DATE: 23/8/20xx / ORDER NO: / ABN NO: 12 111 411 444
DEPT / SOLD BY: GH / DELIVERY: SUPPLIED
ITEM No: / DESCRIPTION OF GOODS / QTY / RATE / TAXABLE
34X / Cash Register / 1 / GST 10% / $1450 / 00

TERMS: NET 7 DAYS

WRITING CHEQUES:

Cheque No: 12007 / DATE: 24/8/20xx
Balance b/d
Amount: $55.00
+GST
Balance c/f / To: Eastern Energy
For: July’s electricity

INVOICE:

BEN’S BATS
Sporting equipment to suit all purposes
BOURKE ROAD WARRAGUL 3820 TELEPHONE 943867676
ABN 92 555 666 777
SUPPLIED TO: Nick’s Sports Shop
545 Warragul Road
Warragul 3820
DATE: 25/8/20xx / TAX INVOICE NO:
STH2
ITEM / DETAILS / UNITS / TOTAL
Bats / Cricket Bats
TERMS: 10/7 NET 30 / 50
GST / $1750
$175

WRITING CHEQUES:

Cheque No: 12008 / DATE: 26/8/20xx
Balance b/d
Amount: $80.00
+GST
Balance c/f / To: Warragul News
For: August advertising

CASH DRAWINGS: