Student Assessment
SITXFIN002 Interpret financial information
In order to be assessed as Competent (C) in this unit, you need to provide evidence which demonstrates that you can perform the required competencies to the required standard. Competency depends on consistently demonstrating the skills, attitude and knowledge that enables you to complete workplace tasks confidently in a variety of situations.
This unit describes the skills and knowledge required to interpret financial information and reports used by organisations to monitor business performance and provide information on operational or departmental financial activities.
To attain competence in the unit ‘Interpret financial information’ you must:
Successfully complete the Theory Assessment (via the exam portal)
Successfully complete the Project
Project
SITXFIN002 Interpret financial information
Instructions
Your Task is to complete the following tasks 1-7. Once completed, please upload your final answer in one document via your student portal. You need to complete this assessment by 14 March 2021.
Task 1
You work as a bookkeeper for Happy Feet Walking Tours. You need to prepare an invoice issued to Sweet Life Pty Ltd for walking tours that were organised for them as a part of their team building.
There were 3 different walking tours organised and provided for 3 different groups of their staff and all took place on 1 March 2021. As per the organisational policies and procedures, the invoices must be issued within 48 hours of the event occurring and 14-day credit terms must follow.
Add the correct invoice date and due date
Add the correct business names (the company issuing and the company receiving the invoice)
Calculate total amounts for each category
Calculate the total price excluding GST
Calculate the GST
Calculate the total price including GST
|
Tax Invoice <<BUSINESS NAME>> ABN: 33 555 777 999 886 Point Nepean Rd, Rosebud VIC 3939 Invoice Date: 01/03/2021 DUE Date: 15/03/2021 To: <<BUSINESS NAME>> 6 Lyon St, Rosebud VIC 3939, ABN: 99 111 222 333 |
|||
|
|
Description of supply |
Price/Item |
Total $ |
|
10 Units |
Walking tour organised and delivered to Group 1 (10 people) |
$85.00 |
$850 |
|
12 Units |
Walking tour organised and delivered to Group 2 (12 people) |
$90.00 |
$1,080 |
|
12 Units |
Walking tour organised and delivered to Group (12 people) |
$95.00 |
$1,140 |
|
34 Units |
Refreshments |
$19.00 |
$646 |
|
Total Price Excluding GST |
$3,716 |
||
|
GST |
$371 |
||
|
Total Price Including GST |
$4,087 |
||
Task 2
As a Happy Feet Walking Tours bookkeeper, you are responsible for maintaining their daily financial records and record every transaction in a chronological order.
The following transactions occurred during the months of January and February 2021. Your task is to chronologically record all the transactions into the correct journals and accounts. For the purpose of this assessment, use table below and record the transactions as shown in an example.
As per the organisational policies and procedures, credit terms are usually 14 days. The same applies for the credit purchases unless specified otherwise.
Transactions during the month of January (not listed/not organised in chronological order):
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with capital of $100,000 cash and one car $50,000
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500
4/1/2021 Purchased equipment for cash $10,500
5/1/2021 Purchased stationary for cash $150
6/1/2021 Purchased 3 computers from JB Hi-Fi on credit $4,500
7/1/2021 Sold walking tours for cash $990
7/1/2021 Returned 1 computer to JB Hi-Fi as it was too slow and it was agreed it was not necessary for the business $500
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200
10/1/2021 Cash sales $2,000
12/1/2021 Purchased equipment for cash $450
13/1/2021 Sold walking tours to customer Mr Ford on credit $5,500
13/1/2021 Paid rent in cash $2,000
15/1/2021 Mr Ford complained that the invoice should have been only for $5,300 (mistake in the invoice has occurred)
17/1/2021 Mr Smiley decided to take a bank loan for purchase of 2 new company vehicles $75,000
19/1/2021 Paid the outstanding invoice to JB Hi-Fi by cash
20/1/2021 Paid salaries $10,000 via bank transfer
25/1/2021 Owner of Happy Feet Walking Tours Mr Smiley withdrew cash from the company account for his personal expenses $1,000
27/1/2021 Mr Ford paid the outstanding amount on his invoice by cash
31/1/2021 Owner Mr Smiley sold old furniture for cash to Mr Mitsubishi $1,000
1/2/2021 Sold goods on credit $1,000 to Mrs Renault
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit and cash sales were $3,000
7/2/2021 Owner Mr Smiley withdrew $5000 cash for personal use
11/2/2021 Purchased goods for cash $500 and on credit $2,000 from Sun Pty Ltd
10/2/2021 Sold walking tours for cash $5,000
12/2/2021 Purchased goods for cash $2,000 and on credit $3,000 from Sky Pty Ltd
13/2/2021 Paid rent in cash $2,000
15/2/2021 Mrs Renault paid the invoice by cash
20/2/2021 Paid salaries $12,000 via bank transfer
23/2/2021 Took a bank loan $40,000, where $10,000 was withdrawn for business (cash) and the rest in the bank account
24/2/2021 Paid the invoice to Sun Pty Ltd in cash
27/2/2021 Sold walking tours on credit $2,500 to Mr Volvo
28/2/2021 Sold walking tours on credit $4,500 to Mr Fiat
a) Use the table on the following page to record the above transactions and determine:
Type of a journal you will use:
General Journal (GJ)
Cash Receipts Journal (CRJ)
Cash Payments Journal (CPJ)
Purchase Journal (PJ)
Purchase Returns Journal (PRJ)
Sales Journal (SJ)
Sale Returns Journal (SRJ)
Account names to be used
Sales
Purchases
Sales Returns
Purchases Returns
Cash
Capital
Furniture
Equipment
Accounts Payable
Accounts Receivable
Drawings
Bank Loan
Vehicles
Computers
Rent
Stationery
Salaries
Account types
Assets
Liabilities
Owner’s Equity
Revenue
Expenses
Whether the balance in each account increases or decreases
Whether the account would be debited DR or credited CR
|
Date Transaction in chronological order |
Journal |
Account Names |
Account |
Balance |
DR or CR |
|
Example: |
SJ |
A/c Receivable Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with capital of $100,000 cash |
GJ |
Capital Cash |
Assets Owner’s Equity |
Increase Increase |
DR CR |
|
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with one car $50,000 |
GJ |
Vehicles Capital |
Assets Owner’s Equity |
Increase Increase |
DR CR |
|
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500 |
GJ |
Purchases A/c payables |
Assets Expenses Liabilities |
Increase Increase |
DR CR |
|
4/1/2021 Purchased equipment for cash $10,500 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
5/1/2021 Purchased stationary for cash $150 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
6/1/2021 Purchased 3 computers from JB Hi-Fi on credit $4,500 |
GJ |
Computers A/c payables |
Assets Liabilities |
Increase Increase |
DR CR |
|
7/1/2021 Sold walking tours for cash $990 |
CRJ |
Cash Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
7/1/2021 Returned 1 computer to JB Hi-Fi as it was too slow and it was agreed it was not necessary for the business $500 |
GJ |
Computers A/c payable |
Assets Liabilities |
Decrease Decrease |
CR DR |
|
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200 |
SJ |
A/c Receivables Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
10/1/2021 Cash sales $2,000 |
CRJ |
Cash Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
12/1/2021 Purchased equipment for cash $450 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
13/1/2021 Sold walking tours to customer Mr Ford on credit $5,500 |
SJ |
Sales A/c receivables |
Revenue Assets |
Increase Increase |
CR DR |
|
13/1/2021 Paid rent in cash $2,000 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
15/1/2021 Mr Ford complained that the invoice should have been only for $5,300 (mistake in the invoice has occurred) |
SRJ |
A/c receivables Sales Return |
Assets – Revenue |
Decrease Increase |
CR DR |
|
17/1/2021 Mr Smiley decided to take a bank loan for purchase of 2 new company vehicles $75,000 |
CRJ |
Bank Loan Vehicle |
Liabilities Assets |
Increase Increase |
CR DR |
|
19/1/2021 Paid the outstanding invoice to JB Hi-Fi by cash |
CPJ |
Cash A/c payable |
Assets Liabilities |
Decrease Increase |
CR DR |
|
20/1/2021 Paid salaries $10,000 via bank transfer |
GJ |
Bank |
Assets |
Decrease |
CR |
|
25/1/2021 Owner of Happy Feet Walking Tours Mr Smiley withdrew cash from the company account for his personal expenses $1,000 |
GJ |
Cash |
Assets |
Decrease |
CR |
|
27/1/2021 Mr Ford paid the outstanding amount on his invoice by cash |
CRJ |
Cash A/c Receivable |
Assets Assets |
Decrease Increase |
CR DR |
|
31/1/2021 Owner Mr Smiley sold old furniture for cash to Mr Mitsubishi $1,000 |
CRJ |
Cash Furniture |
Assets Assets |
Increase Decrease |
DR CR |
|
1/2/2021 Sold goods on credit $1,000 to Mrs Renault |
SJ |
Sales A/c receivables |
Revenue Assets |
Increase Increase |
CR DR |
|
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit |
SJ |
A/ Receivable |
Assets |
Increase |
DR |
|
5/2/2021 Sold walking tours to Skoda Pty Ltd $3000 cash |
CRJ |
Cash |
Assets |
Increase |
DR |
|
7/2/2021 Owner Mr Smiley withdrew $5000 cash for personal use |
GJ |
Cash |
Assets |
Decrease |
CR |
|
10/2/2021 Sold walking tours for cash $5,000 |
SJ |
Sales Cash |
Revenue Assets |
Increase Increase |
CR DR |
|
11/2/2021 Purchased goods for cash $500 from Sun Pty Ltd |
CRJ |
Cash |
Assets |
Decrease |
CR |
|
11/2/2021 Purchased goods on credit $2,000 from Sun Pty Ltd |
PJ |
A/ Payable |
Liabilities |
Increase |
CR |
|
12/2/2021 Purchased goods for cash $2,000 from Sky Pty Ltd |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
12/2/2021 Purchased goods on credit $3,000 from Sky Pty Ltd |
PJ |
A/ Payable |
Liabilities |
Increase |
CR |
|
13/2/2021 Paid rent in cash $2,000 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
15/2/2021 Mrs Renault paid the invoice by cash $1,000 |
CRJ |
Cash A/c receivables |
Assets Assets |
Increase Decrease |
DR CR |
|
20/2/2021 Paid salaries $12,000 via bank transfer |
GJ |
Bank |
Assets |
Decrease |
CR |
|
23/2/2021 Took a bank loan $40,000, where $10,000 was withdrawn for business (cash) and the rest in the bank account |
CRJ |
Cash |
Assets |
Increase |
DR |
|
23/2/2021 $10,000 was withdrawn for business (cash) and the rest in the bank account |
CRJ |
Cash |
Assets |
Increase |
DR |
|
24/2/2021 Paid the invoice to Sun Pty Ltd in cash $2,000 |
CPJ |
A/ Payable |
Liabilities |
Decrease |
DR |
|
27/2/2021 Sold walking tours on credit $2,500 to Mr Volvo |
SJ |
Sales A/c receivables |
Revenue Assets |
Increase Increase |
CR DR |
b) Then transfer all January transactions into ‘T-account’ structure and determine the account balance
** Please fix January cash T-account – DR ($100,000, $990, $2000, $5,300, $1,000) and CR ($10,500, $150, $450, $2,000, $4,000, $1,000
DR Cash CR DR Bank CR DR Equipment CR
7/1/21 $990 4/1/21 $10,500 20/1/21 $10,000 4/1/21 $10,500
1/1/21 $100,000 05/1/21 $150 12/1/21 $450
10/1/21 $2,000 12/1/21 $450
13/1/21 $5,300 13/1/21 $2,000
31/1/21 $1,000 19/1/21 $4,000
25/1/21 $1,000
DR Accounts Receivable CR DR Accounts Payable CR DR Bank Loan CR
9/1/21 $3,200 27/1/21 $5,300 7/1/21 $500 3/1/21 $4,500 17/1/21 $75,000
13/1/21 $5,500 13/1/21 200 19/1/21 $4,000 6/1/21 $4,500
DR Sales CR DR Purchases CR DR Capital CR
7/1/21 $990 1/1/21 $10,000 1/1/21 $50,000
9/1/21 $3,200
10/1/21 $2,000
13/1/21 $5,500
DR Sales Returns CR DR Purchases Returns CR DR Drawings CR
15/1/21 $200 7/1/21 $500 25/1/21 $1000
DR Vehicles CR DR Furniture CR DR Rent CR
1/1/21 $50,000 2/1/21 $4,500 13/1/21 $2,000
17/1/21 $75,000 31/1/21 $1,000 (CR)
DR Salaries CR DR Stationery CR DR Computers CR
20/01/21 $10,000 5/1/21 $150 6/1/21 $4,500
c) Then transfer all February transactions into ‘T-account’ structure and determine the account balance
DR Cash CR DR Bank CR DR Equipment CR
5/2 $3,000 7/2 $5,000 23/2 $30,000 20/2 $12,000
10/2 $5,000
23/2 $10,000 11/2 $500
15/2 $1,000 12/2 $2,000
15/2 $2,000
24/2 $2,000
DR Accounts Receivable CR DR Accounts Payable CR DR Bank Loan CR
1/2 $,1000 15/2 $1,000 11/2 $2,000
5/2 $9,000 24/2 $2,000 12/2 $3,000 23/2/21 $40,000
27/2 $2,500
DR Sales CR DR Purchases CR DR Capital CR
1/2 $1,000 11/2 $2,000
5/2 $9,000 12/2 $3,000
5/2 $3,000 12/2 $3,000
10/2 $5,000
27/2 $2,500
DR Sales Returns CR DR Purchases Returns CR DR Drawings CR
7/2 $5,000
DR Vehicles CR DR Furniture CR DR Rent CR
13/2 $2,000
DR Salaries CR DR Stationery CR DR Computers CR
20/2 $12,000
Task 3 – General Journal
Record all transactions occurred in the months of January and February 2021 into a General Journal.
Requirements:
All transactions in the chronological order
Each transaction must be recorded in the following way (example provided):
The entry must have at least 2 accounts with 1 DEBIT amount and 1 CREDIT amount
The DEBITS are listed first and followed by the CREDITS indented
The DEBIT amounts will always equal the CREDIT amounts
Write a description for each transaction below in italics and in brackets
|
Date |
Account Title and Explanations |
Amount in AUD |
|
|
Debit |
Credit |
||
|
Example: 1/1/2021 |
Cash Owner’s Equity (Owner commenced the business with cash) |
100,000 |
100,000 |
|
1/1/2021 |
Vehicle Owner’s Equity (Owner commenced the business with cash & vehicle) |
50,000 |
50,000 |
|
02/1/2021 |
Furniture Accounts Payables (Owner purchases new furniture from Ikea on credit) |
4,500 |
4,500 |
|
4/1/2021 |
Equipment Cash (Owner purchased equipment with cash) |
10,500 |
10,500 |
|
5/1/2021 |
Stationary Cash (Owner purchased equipment with cash) |
150 |
150 |
|
06/1/2021 |
Computers Accounts Payables (Owner purchases new Computers on credit) |
4,500 |
4,500 |
|
7/1/2021 |
Cash Sales (Cash Sales) |
990 |
990 |
|
7/1/2021 |
Accounts Payable Purchases (Return one Computer to JB-HIFI) |
500 |
500 |
|
9/1/2021 |
Accounts Receivables Sales (Credit Sales made by Toyota Pty Ltd) |
3,200 |
3,200 |
|
10/1/2021 |
Cash Sales (Cash Sales) |
2,000 |
2,000 |
|
12/1/2021 |
Equipment Cash (Owner purchased equipment with cash) |
450 |
450 |
|
13/1/2021 |
Accounts Receivables Sales (Credit Sales for MR.Ford) |
5,500 |
5,500 |
|
13/1/2021 |
Rent Cash (Paid rent) |
2,000 |
2,000 |
|
15/1/2021 |
Sales Return Accounts Receivables (Mr.Ford has overpaid $200) |
200 |
200 |
|
17/1/2021 |
Vehicle Bank Loan (Owner took a bank loan to buy vehicle) |
75,000 |
75,000 |
|
19/1/2021 |
Accounts Payable Cash (Paid outstanding invoice to JB-HIFI in cash) |
4,000 |
4,000 |
|
20/1/2021 |
Salaries Bank (Paid salaries to employees with bank transfer) |
10,000 |
10,000 |
|
25/1/2021 |
Drawings Cash (Owner withdrew cash for personal use) |
1,000 |
1,000 |
|
27/1/2021 |
Accounts receivables Cash (Ford Paid outstanding invoice) |
5,300 |
5,300 |
|
31/1/2020 |
Cash Furniture (Owner sold old furniture to Mr. Mitsubishi for cash) |
1,000 |
1,000 |
|
1/2/2021 |
Accounts Receivables Sales (Credit Sales to customer Mrs.Renult) |
1,000 |
1,000 |
|
5/2/2021 |
Accounts Receivables Cash Sales (Credit and cash Sales to customer Skoda P/L) |
9,000 3,000 |
12,000 |
|
7/2/2021 |
Drawings Cash (Owner withdrew cash for personal use) |
5,000 |
5,000 |
|
10/2/2021 |
Cash Sales (Cash Sales) |
5,000 |
5,000 |
|
11/2/2021 |
Purchases Cash Accounts payable (Cash and credit purchases from Sun Pty Ltd) |
2,500 |
500 2,000 |
|
12/2/2021 |
Purchases Cash Accounts payable (Cash and credit purchases from Sky Pty Ltd) |
5,000 |
2,000 3,000 |
|
13/2/2021 |
Rent Cash (Paid rent) |
2,000 |
2,000 |
|
15/2/2021 |
Cash Accounts Receivables (Mrs.Renult paid invoice with cash) |
1,000 |
1,000 |
|
20/2/2021 |
Salaries Bank (Paid salaries to employees with bank transfer) |
12,000 |
12,000 |
|
23/2/2021 |
Cash Bank Bank Loan (Owner took a bank loan) |
10,000 30,000 |
40,000 |
|
24/2/2021 |
Accounts Payables Cash (Paid Sun Pty Ltd in cash) |
2,000 |
2,000 |
|
27/2/2021 |
Accounts Receivables Sales (Credit Sales made by Mr Volve) |
2,500 |
2,500 |
|
28/2/2021 |
Accounts Receivables Sales (Credit Sales made by Mr Fiat) |
4,500 |
4,500 |
|
Total |
$369,990 |
$369,990 |
|
Task 3 – General Ledger
After recording transactions in the relevant journals, transfer them to the general ledger. You must post every transaction from your journal into the ledger as it is the book of final entry.
Transfer the debit and credit amounts from the journal to the ledger account for each month. After posting entries to the general ledger, calculate the balances of each account (closing balance and balance brought down as an opening balance for the next month).
Do not forget the bookkeeping rules:
Balance B/D and Balance C/D are terms used for balancing and closing of ledger accounts from current period to the following period.
Balance B/D – is the balance brought down as opening balance of a ledger pulled from previous accounting period.
Balance C/D – is the balance carried down as the closing balance of a ledger pushed to the next accounting period.
If Debit side > Credit side it is called Debit Balance
If Credit side > Debit side it is called Credit Balance
Account # 1: Cash Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
1/1/2021 |
Cash Capital |
100,000 |
4/1 |
equipment |
10,500 |
|
7/1/2021 |
Cash Sales |
990 |
5/1 |
stationary |
150 |
|
10/1/2021 |
Cash Sales |
2000 |
13/1 |
rent |
2,000 |
|
31/1/2021 |
Owner sold old furniture for cash |
1,000 |
19/1 |
JB Hifi |
4,000 |
|
27/1/2021 |
Payment from Ford |
5,300 |
25/1 |
Withdraw |
1,000 |
|
12/1 |
Equipment |
450 |
|||
|
Balance c/d |
$91,190 |
||||
|
Total |
$109,290 |
Total |
$109,290 |
||
Account # 1: Cash Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
91,190 |
7/2 |
Withdraw |
5,000 |
|
|
5/2 |
Cash sales |
3,000 |
11/2 |
Purchase from Sun |
500 |
|
10/2 |
Cash sales |
5,000 |
12/2 |
Purchase from Sky |
2,000 |
|
15/2 |
Payment from Renult |
1,000 |
13/2 |
Rent |
2,000 |
|
23/2 |
Cash from Bank |
10,000 |
24/2 |
Paid invoice to Sun |
2,000 |
|
Balance c/d |
98,690 |
||||
|
Total |
$110,190 |
Total |
110,640 |
||
Account # 2: Bank Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
23/2 |
Bank loan |
30,000 |
Balance b/d |
10,000 |
|
|
20/2 |
Salary |
12,000 |
|||
|
Balance c/d |
8,000 |
||||
|
Total |
30,000 |
Total |
30,000 |
||
Account # 3: Sales Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
7/1 |
Cash sales |
990 |
|||
|
9/1 |
Sold to Toyota on credit |
3,200 |
|||
|
10/1 |
Cash sale |
2,000 |
|||
|
13/1 |
Sold to Ford |
5,500 |
|||
|
Balance c/d |
11,690 |
||||
|
Total |
11,690 |
Total |
11,690 |
||
Account # 3: Sales Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
11,690 |
||||
|
1/2 |
Sold to Renult |
1,000 |
|||
|
5/2 |
Sold to Skoda |
9,000 |
|||
|
10/2 |
Cash sales |
5,000 |
|||
|
27/2 |
Sold to volve |
2,500 |
|||
|
5/2 |
Cash sales |
3,000 |
|||
|
Balance c/d |
32,190 |
||||
|
Total |
32,190 |
Total |
32,190 |
||
Account # 4: Purchases Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
0 |
|||||
|
Balance c/d |
0 |
||||
|
Total |
0 |
Total |
0 |
||
Account # 4: Purchases Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
0 |
||||
|
11/2 |
Purchase good |
2,500 |
|||
|
12/2 |
Purchase good |
5,000 |
|||
|
Balance c/d |
7,500 |
||||
|
Total |
7,500 |
Total |
7,500 |
||
Account # 5: Sales Returns Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
27/1 |
Overpaid amount return |
200 |
|||
|
Balance c/d |
200 |
||||
|
Total |
200 |
Total |
200 |
||
Account # 5: Sales Returns Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
200 |
||||
|
Balance c/d |
200 |
||||
|
Total |
200 |
Total |
200 |
||
Account # 6: Purchases Returns Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
7/1 |
Return computer |
500 |
|||
|
Balance c/d |
500 |
||||
|
Total |
500 |
Total |
500 |
||
Account # 6: Purchases Returns Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
500 |
||||
|
Balance c/d |
500 |
||||
|
Total |
500 |
Total |
500 |
||
Account # 7: Accounts Receivable (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
9/1 |
Credit sale |
3,200 |
27/1 |
Ford payment |
5,300 |
|
14/1 |
Credit sale |
5,300 |
|||
|
Balance c/d |
3,200 |
||||
|
Total |
8,500 |
Total |
8,500 |
||
Account # 7: Accounts Receivable (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
3,200 |
15/2 |
Renult payment |
1,000 |
|
|
1/2 |
Credit sale to Renult |
1,000 |
|||
|
5/2 |
Credit sale to Skoda |
9,000 |
|||
|
27/2 |
Credit sale to Volvo |
2,500 |
|||
|
Balance c/d |
$14,700 |
||||
|
Total |
$15,700 |
Total |
$15,700 |
||
Account # 8: Accounts Payable (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
10/1 |
Return computer back to JB |
500 |
2/1 |
Furniture from IKEA |
4,500 |
|
19/1 |
Paid outstand invoice to JB |
4,000 |
6/1 |
Computer from JB HF |
4,500 |
|
Balance c/d |
4,500 |
||||
|
Total |
9,000 |
Total |
9,000 |
||
Account # 8: Accounts Payable (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
24/2 |
Paid to Sun |
2,000 |
Balance b/d |
4,500 |
|
|
11/2 |
Payable to Sun |
2,000 |
|||
|
12/2 |
Payable to Sky |
3,000 |
|||
|
Balance c/d |
7,500 |
||||
|
Total |
9,500 |
Total |
9,500 |
||
Account # 9: Capital (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
1/1 |
Commence with cash |
100,000 |
|||
|
1/1 |
Commence with vehicle |
50,000 |
|||
|
Balance c/d |
150,000 |
||||
|
Total |
150,000 |
Total |
150,000 |
||
Account # 9: Capital (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
150,000 |
||||
|
Balance c/d |
150,000 |
||||
|
Total |
150,000 |
Total |
150,000 |
||
Account # 10: Drawings (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
25/1 |
Withdraw for personal |
1,000 |
|||
|
Balance c/d |
1,000 |
||||
|
Total |
1,000 |
Total |
1,000 |
||
Account # 10: Drawings (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
1,000 |
||||
|
7/2 |
Withdraw for personal |
5,000 |
|||
|
Balance c/d |
6,000 |
||||
|
Total |
6,000 |
Total |
6,000 |
||
Account # 11: Bank Loan (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
17/1 |
Took bank loan for purchase |
75,000 |
|||
|
Balance c/d |
75,000 |
||||
|
Total |
75,000 |
Total |
75,000 |
||
Account # 11: Bank Loan (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
75,000 |
||||
|
23/2 |
Took a bank loan |
40,000 |
|||
|
Balance c/d |
115,000 |
||||
|
Total |
115,000 |
Total |
115,000 |
||
Account # 12: Vehicles (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
1/1 |
Vehicle at commence |
50,000 |
|||
|
17/1 |
Purchase 2 new vehicles |
75,000 |
|||
|
Balance c/d |
125,000 |
||||
|
Total |
125,000 |
Total |
125,000 |
||
Account # 12: Vehicles (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
125,000 |
||||
|
Balance c/d |
125,000 |
||||
|
Total |
125,000 |
Total |
125,000 |
||
Account # 13: Furniture (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
2/1 |
Purchase furniture for IKEA |
4,500 |
31/01 |
Sold old furniture |
1,000 |
|
Balance c/d |
3,500 |
||||
|
Total |
4,500 |
Total |
4,500 |
||
Account # 13: Furniture (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
3,500 |
||||
|
Balance c/d |
3,500 |
||||
|
Total |
3,500 |
Total |
3,500 |
||
Account # 14: Equipment (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
4/1 |
Purchase equipment |
10,500 |
|||
|
12/1 |
Purchase equipment |
450 |
|||
|
Balance c/d |
10,950 |
||||
|
Total |
10,950 |
Total |
10,950 |
||
Account # 14: Equipment (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
10,950 |
||||
|
Balance c/d |
|||||
|
Total |
10,950 |
Total |
10,950 |
||
Account # 15: Salaries (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
20/1 |
Salary by bank EFT |
10,000 |
|||
|
Balance c/d |
10,000 |
||||
|
Total |
10,000 |
Total |
10,000 |
||
Account # 15: Salaries (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
10,000 |
||||
|
20/2 |
Salary by Bank EFT |
12,000 |
|||
|
Balance c/d |
22,000 |
||||
|
Total |
22,000 |
Total |
22,000 |
||
Account # 16: Rent (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
13/1 |
Rent |
2,000 |
|||
|
Balance c/d |
2,000 |
||||
|
Total |
2,000 |
Total |
2,000 |
||
Account # 16: Rent (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
2,000 |
||||
|
13/2 |
Rent |
2,000 |
|||
|
Balance c/d |
4,000 |
||||
|
Total |
4,000 |
Total |
4,000 |
||
Account # 17: Stationery (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
5/1 |
Purchase |
150 |
|||
|
Balance c/d |
150 |
||||
|
Total |
150 |
Total |
150 |
||
Account # 17: Stationery (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
150 |
||||
|
Balance c/d |
150 |
||||
|
Total |
150 |
Total |
150 |
||
Account # 18: Computers (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
6/1 |
Bought 3 computers |
4,500 |
7/1 |
Returning one |
500 |
|
Balance c/d |
4,000 |
||||
|
Total |
4,500 |
Total |
4,500 |
||
Account # 18: Computers (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
4,000 |
||||
|
Balance c/d |
4,000 |
||||
|
Total |
4,000 |
Total |
4,000 |
||
Task 4 – Trial Balance
Based on the accounts’ closing balances from Task 4, prepare a trial balance for the months of January and February 2021.
Trial Balance (January 2021) Trial Balance (February 2021)
|
Account Name |
Debit |
Credit |
Debit |
Credit |
|
Cash |
91,190 |
98,690 |
||
|
Bank |
10,000 |
8000 |
||
|
Sales |
11,690 |
32,190 |
||
|
Sales Returns |
200 |
200 |
0 |
|
|
Purchases |
0 |
7,500 |
||
|
Purchases Returns |
0 |
0 |
||
|
Accounts Receivable |
3,200 |
14,700 |
||
|
Furniture |
3,500 |
3,500 |
||
|
Vehicles |
125,000 |
125,000 |
||
|
Accounts Payable |
4,500 |
7,500 |
||
|
Bank Loan |
75,000 |
115,000 |
||
|
Capital |
150,000 |
150,000 |
||
|
Drawings |
1,000 |
6,000 |
||
|
Equipment |
10,950 |
10,950 |
||
|
Salaries |
10,000 |
22,000 |
||
|
Stationery |
150 |
150 |
||
|
Computers |
4,000 |
4000 |
||
|
Rent |
2,000 |
4000 |
||
|
Total |
$251,190 |
$251,190 |
$304,690 |
$304,690 |
Task 5 – Debtors and Creditors
It is 1 March 2021 and as per the organisational policy and procedure, you need to review the outstanding invoices by your debtors and to your creditors for the previous 2 months.
Remember, as per the relevant policy and procedure, credit terms for customer invoices (debtors) are strictly 14 days otherwise no new sales offered on credit till the previous balance is settled. All outstanding invoices must be followed up on within 3 days of being overdue.
Find out if there is any outstanding invoice from your clients and provide details below
-
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit
-
Find out if there is any outstanding invoice that has not yet been paid on your side (what you owe to your creditors)
-
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500
12/2/2021 Purchased goods on credit $3,000 from Sky Pty Ltd
-
Prepare schedules of debtors and creditors as at 1 March 2021 (an example was provided to you)
-
Debtors schedule as at 1 March 2021
9/1/21 from Toyota
$3,200
5/2/21 from Skoda
$9,000
27/2/2021 from Mr Volvo – the invoice will be due on 13/3/2021
$2,500
28/2/2021 from Mr Fiat – the invoice will be due on 14/3/2021
$4,500
Balance as per control account
$19,200
-
Creditors schedule as at 1 March 2021
12/2/21 purchased goods from Sky
$3,000
Balance as per control account
$3,000
Task 6 – Interpret financial information
Your task is to review and interpret the financial information from the following Happy Feet Walking Tours’ Profit and Loss Statements for the year 2019 and 2020. Compare the years and answer the questions below.
|
Profit and Loss Statements |
|||||
|
Year |
2019 |
2020 |
|||
|
|
Total Revenue |
$1,000,000 |
100% |
$1,230,000 |
100% |
|
Less |
Costs of Goods Sold |
$426,200 |
43% |
$378,000 |
31% |
|
|
Gross Profit |
$573,800 |
57% |
$852,000 |
69% |
|
|
|
|
|
|
|
|
Less |
Expenses |
|
|
|
|
|
|
Accounting and legal fees |
$11,700 |
|
$10,000 |
|
|
|
Advertising |
$15,000 |
|
$23,000 |
|
|
|
Depreciation |
$38,000 |
|
$39,000 |
|
|
|
Electricity |
$2,700 |
|
$3,000 |
|
|
|
Insurance |
$15,200 |
|
$15,200 |
|
|
|
Interest and bank charges |
$27,300 |
|
$27,500 |
|
|
|
Postage |
$1,500 |
|
$1,400 |
|
|
|
Printing and stationery |
$8,700 |
|
$9,000 |
|
|
|
Professional memberships |
$1,800 |
|
$1,800 |
|
|
|
Rent for premises |
$74,300 |
|
$83,400 |
|
|
|
Repairs and maintenance |
$21,100 |
|
$20,000 |
|
|
|
Training |
$6,900 |
|
$7,300 |
|
|
|
Vehicle operating costs |
$20,000 |
|
$23,000 |
|
|
|
Wages and salaries |
$223,500 |
|
$240,000 |
|
|
|
Workers compensation |
$6,500 |
|
$7,000 |
|
|
|
All other expenses |
$14,100 |
|
$13,000 |
|
|
|
Total Expenses |
$488,300 |
49% |
$523,600 |
43% |
|
|
|
|
|
|
|
|
Equals |
Net Profit |
$85,500 |
9% |
$328,400 |
27% |
What was the total amount of revenue in 2019?
|
$1,000,000 |
What was the total amount of cost of goods sold in 2020?
|
$378,000 |
What is the percentage of gross profit on sales in 2020?
|
69% |
Has the rent on premises decreased or increased in 2020 in comparison to 2019?
|
Increased in the dollar amount by $9,000 |
What is the total value of expenses in 2019?
|
$488,300 |
Has the Happy Feet Walking Tours company performed better in 2019 or in 2020? Explain your reasons.
-
Total revenue has increased from $1,000,000 to $1,230,000. CGOS decreased from $426,000 to $378,000. Gross profit has increased $279,000. Total expense slightly increased $35,300. net profit increased dramatically from $$85,500 to $328,400. The company has performed much better in 2020 than 2019.
Task 7 – Prepare a Profit and Loss Statement and Balance Sheet
A whole year has passed, and you have a task to prepare a Profit and Loss Statement and Balance Sheet for Happy Feet Walking Tours for 2021 based on the information available to you via your accounting software.
Prepare a Profit and Loss Statement based on the information below:
-
Wages and Salaries
$250,000
Sales
$1,560,000
Insurance
$15,200
Printing and stationery
$10,500
Interest and bank charges
$29,000
Telephone
$1,200
Electricity
$3,400
Vehicle operating costs
$25,000
Rent for premises
$88,000
Training
$8,500
Purchased stock
$350,000
Purchases return
$23,000
Opening stock
$130,000
Closing stock
$55,000
Professional memberships
$1,800
Advertising
$26,000
Accounting and legal fees
$10,000
Depreciation
$42,000
Postage
$1,200
Other expenses
$11,500
Worker compensation
$8,900
Repairs and maintenance
$23,000
Use the table/template on the following page to prepare the Profit and Loss Statement. Detail individual categories and totals (revenue, costs of goods sold, gross profit, expenses, total expenses, net profit). There are 2 columns to fill in with the values. The first one is the amount in $ and the second is the percentage of the category on sales (where sales is 100%). You need to calculate the percentage only for the following categories:
Total revenue
Costs of goods sold
Total expenses
Net profit
Happy Feet Walking Tours Profit and Loss Statement 2021
-
Profit and Loss Statements
Year
2021
$
%
Total Sales
1,560,000
100
Less
COGS
402,000
25.85%
Gross profit
1,158,000
74.2%
Less
Wages and Salaries
$250,000
Insurance
$15,200
Printing and stationery
$10,500
Interest and bank charges
$29,000
Telephone
$1,200
Electricity
$3,400
Vehicle operating costs
$25,000
Rent for premises
$88,000
Training
$8,500
Professional memberships
$1,800
Advertising
$26,000
Accounting and legal fee
$10,000
Depreciation
$42,000
Postage
$1,200
Repair and maintenance
$23,000
Worker compensation
$8,900
Other expense
$11,500
Equals
Net profit
$603,400
38.7%
**Please include accounting and legal fees $10,000, Depreciation $42,000, Postage $1,200, Repairs and maintenance $23,000, Workers compensation $8,900 and all other expenses $11,500 and recalculate.
Prepare a Balance Sheet based on the information below: (remember you need to find out the value of profit when preparing the Profit and Loss Statement above; then use this value in your Balance Sheet):
-
Cash
$350,000
Capital
$286,400
Stock/Inventory
$402,000
Prepaid expenses
$10,500
Bank overdraft
$12,000
Plant and equipment
$75,000
Accrued expenses
$13,000
Accumulated depreciation for plant and equipment
$15,400
Accounts payable
$38,000
Profit
$700,000
Accounts receivable
$25,000
Drawings
$4,500
Vehicles
$150,000
Accumulated depreciation for vehicles
$21,000
Bank loan
$100,000
Happy Feet Walking Tours Balance Sheet 2021
-
Balance Sheet
Year
2021
Assets
Current Assets
Cash
$350,000
Inventory
$402,000
Account receivable
$25,000
Prepaid expense
$10,500
Total Current Assets
$787,500
Non-Current Assets
Plant and equipment
$75,000
Vehicles
$150,000
Accumulated depreciation
$15,400
Accumulated depreciation
$21,000
Total Non-Current Assets
$261,400
TOTAL ASSETS
$1,048,900
Liabilities
Current Liabilities
Account payable
$38,000
Bank overdraft
$12,000
Accrued expenses
$13,000
Total Current Liabilities
$63,000
Non-Current Liabilities
Bank Loan
$100,000
Total Non-Current Liabilities
TOTAL LIABILITIES
$163,000
Owner’s Equity
$885,900
$281,900
TOTAL OWNER’S EQUITY
$1,167,800
-
**Please re-calculate
Task 8 – Bank deposit documentation, credit card transaction statements, bank statements, banking summaries
It is Friday afternoon 12 March 2021, and you need to take received cash and cheques into the bank. Correctly complete the following bank slip (fill in the areas highlighted in grey):
You have $3,000 cash. $2,850 in notes and the rest in coins.
You have received 2 cheques for the amounts of $1,500 and $1,200
The account is held in BANK of VICTORIA, 323 Happy Street, Melbourne, VIC
The account details are:
Account name: Happy Feet Walking Tours
BSB: 032-135
Account number: 39812340
|
BANK of VICTORIA |
I acknowledge that this deposit is subject to BANK of VICTORIA’s interest rates and conditions applying from time to time. Proceeds of cheques may not be available until cleared. |
|||||||
|
|
|
|
||||||
|
Date |
12/03/2021 |
Paid in by: (please print your name) |
Deposit |
|||||
|
Cash |
3000 |
Karen Chen |
Cash |
Notes $ |
2850 |
|||
|
Cheques |
2700 |
Branch name: (where is the account held, if known) |
|
Coins $ |
150 |
|||
|
Total |
5700 |
|
Cheques |
$ |
2700 |
|||
|
|
|
Account holder name: |
|
|
|
|||
|
Deposit for credit of: |
|
Mr Smiley |
Total |
|
5700 |
|||
|
Account number |
39812340 |
|||||||
|
BSB |
032-135 |
|||||||
|
Account name |
Happy Feet Walking Tours |
|||||||
|
|
|
Reference/Serial no Bank/Branch No Account Number 012B 032-135 39812340 |
||||||
|
Teller: |
|
|||||||
Printed below is the Bank Statement for Happy Feet Walking Tours for the first week of March 2021
Bank Statement – Happy Feet Walking Tours (March 2021)
|
Date |
Transaction |
Withdrawal |
Deposit |
Balance |
|
1/3/2021 |
Balance |
$5,500 |
||
|
1/3/2021 |
Deposit Cash and Cheques |
$718.40 |
||
|
1/3/2021 |
EFTPOS |
$225 |
$943.40 |
|
|
2/3/2021 |
Cheque 1002 |
$200 |
||
|
2/3/2021 |
Deposit Cash and Cheques |
$554.70+$310 |
$665.70 |
|
|
3/3/2021 |
Cheque 1003 |
$187 |
||
|
3/3/2021 |
Loan repayment – transfer to loan account |
$250 |
||
|
3/3/2021 |
Deposit Cash and Cheques |
$550.40 |
||
|
3/3/2021 |
EFTPOS |
$350.4 |
$650.8 |
|
|
4/3/2021 |
Merchant fees |
$66 |
||
|
4/3/2021 |
Cheque 1001 |
$330 |
||
|
4/3/2021 |
Deposit Cash and Cheques |
$521.05 |
||
|
4/3/2021 |
EFTPOS |
$220 |
$345.05 |
|
|
5/3/2021 |
Interest |
$2.20 |
||
|
5/3/2021 |
EFSTPOS |
0 |
||
|
5/3/2021 |
Cheque 1005 |
$57 |
($54.8) |
|
|
6/3/2021 |
Transaction fees |
$8.40 |
$8.40 |
Your task is to:
Fill in the following individual transactions into appropriate columns (Withdrawal, Deposit) and calculate the Balance (populate all grey cells). Note: Cash payments and Cheques issued are withdrawals, and cash receipts and EFTPOS transactions are deposits
1/3/2021 Deposit Cash and Cheques $718.40
1/3/2021 EFTPOS $225
2/3/2021 Cheque issued 1002 $200
2/3/2021 Deposit Cash and Cheques $554.70
2/3/2021 EFTPOS $310
3/3/2021 Cheque issued 1003 $187
3/3/2021 Loan repayment – transfer to loan account $250
3/3/2021 Deposit Cash and Cheques $550.40
3/3/2021 EFTPOS $350.40
4/3/2021 Merchant fees $66
4/3/2021 Cheque issued 1001 $330
4/3/2021 Deposit Cash and Cheques $521.05
4/3/2021 EFTPOS $220
5/3/2021 Interest received $2.20
5/3/2021 Cheque issued 1005 $57
6/3/2021 Transaction fees $8.40
Printed below is the Cash Receipts Book for Happy Feet Walking Tours for the first week of March 2021
Cash Receipts Book – Happy Feet Walking Tours (March 2021)
|
Date |
Description/Particulars |
Reference |
Total Sales Amount |
Details |
EFTPOS and Banking |
|
1/3/2021 |
Daily Sales |
Till Tape |
$943.40 |
EFTPOS Bank Deposit |
$225.00 $718.40 |
|
2/3/2021 |
Daily Sales |
Till Tape |
$864.70 |
EFTPOS Bank Deposit |
$310 $554.70 |
|
3/3/2021 |
Daily Sales |
Till Tape |
$900.80 |
EFTPOS Bank Deposit |
$350.40 $550.40 |
|
4/3/2021 |
Daily Sales |
Till Tape |
$741.05 |
EFTPOS Bank Deposit |
$220 $521.05 |
|
Total |
$3,449.95 |
$3,449.95 |
|||
Your task is to:
Complete the missing information (grey cells) as per information from the Bank Statement (Sample has been provided to you in the first row), calculate the total and cross-check your calculations
Enter in the Cash Receipts Book transactions from the Bank Statement, which are not yet recorded in the book (Hint: You need to find one missing transaction)
Printed below is the Cash Payments Book for Happy Feet Walking Tours for the first week of March 2021
Cash Payments Book – Happy Feet Walking Tours (March 2021)
|
Date |
Description/Particulars |
Reference |
Total Payment Amount |
|
1/3/2021 |
Telstra phone |
1001 |
$330 |
|
1/3/2021 |
New office chair |
1002 |
$200 |
|
1/3/2021 |
Electricity |
1003 |
$187 |
|
1/3/2021 |
Rent |
1004 |
$1,100 |
|
1/3/2021 |
Fuel |
1005 |
$57 |
|
1/3/2021 |
New cash register |
1006 |
$880 |
|
3/3/2021 |
Postage/Stamps |
1007 |
$50 |
|
4/3/2021 |
Stationary |
1008 |
$112 |
|
4/3/2021 |
Advertising |
1009 |
$785 |
|
5/3/2021 |
New computer |
1010 |
$1,738 |
|
5/3/2021 |
New office desk |
1011 |
$300 |
|
Total |
$5,739 |
||
Your task is to:
Enter in the Cash Payments Book transactions from the Bank Statement, which are not yet recorded in the book (Hint: You need to find three missing transactions) and calculate the total
Prepare a Bank Reconciliation at the end of the week (Note: There were no outstanding cheques or deposits not credited at the beginning of the month)
Below are the cheques that have not been cleared by the bank, yet:
(Note: The first one has been entered in the bank reconciliation as an example)
1/3/2021 Rent – Cheque 1004 $1,100
1/3/2021 New cash register – Cheque 1006 $880
3/3/2021 Postage/Stamps – Cheque 1007 $50
4/3/2021 Stationary – Cheque 1008 $112
4/3/2021 Advertising – Cheque 1009 $785
5/3/2021 New computer – Cheque 1010 $1,738
5/3/2021 New office desk – Cheque 1011 $300
-
Bank Reconciliation as at 6 March 2021
Balance as per Bank Statement 6 March 2021 (See Task 8b – closing balance)
$5,000
Add Deposits not yet credited
$57
Total
$5,057
Less Unpresented cheques
1004
$1,100
1006
$880
1007
$50
1008
$112
1009
$785
1010
$1,738
1011
$300
Total
$
-
Cash Book Balance as at 6 March 2021
Cash Book Balance 1 March 2021 (See Task 8b – opening balance)
$5,500
Add Cash Receipts for the week (See Task 8c – closing balance)
$3,449.05
Sub-Total
$8949.05
Less Cash Payments for the week (See Task 8d – closing balance)
$5,739
Cash Book Balance 6 March 2021
$3,210.05
Note: Remember to cross-check Totals as they must be equal
Printed below is the Credit Card Statement for Happy Feet Walking Tours for March 2021
Credit Card Statement – Happy Feet Walking Tours (March 2021)
|
Date |
Description/Particulars |
Total Payment Amount |
|
10/3/2021 |
Petrol |
$77 |
|
15/3/2021 |
Nandos |
$24 |
|
16/3/2021 |
Advertising in the Travel and Tourism magazines |
$450 |
|
17/3/2021 |
Petrol |
$68 |
|
21/3/2021 |
Tour guide uniforms |
$450 |
|
22/3/2021 |
Petrol |
$78 |
|
22/3/2021 |
Car registration |
$750 |
|
22/3/2021 |
e-Tourism annual membership |
$98 |
|
22/3/2021 |
Car insurance |
$800 |
|
Total |
$ |
|
You have received the following receipts/tax invoices:
Tax invoice for purchase of tour guide uniforms $450 (21 March 2021) paid by a credit card
Tax invoice for car insurance $800 (22 March 2021) paid by a credit card
Receipt for lunch in Nandos $20 (17 March 2021) paid by a cash
Receipt for lunch in Nandos $24 (15 March 2021) paid by a credit card
Receipt for parking $22 (28 March 2021) paid by cash
Tax invoice for car registration $750 (22 March 2021) paid by a credit card
Receipts for petrol $77 (10 March 2021), $78 (22 March 2021) paid by a credit card
Receipt for parking $22 (29 March 2021) paid by cash
Receipts for petrol $50 (18 March 2021), $40 (27 March 2021) paid by a cash
Your task is to:
Check off the credit card statement against the individual credit card transactions and identify transactions that you do not have receipts or tax invoices for (you need to identify 3 missing receipts/tax invoices)
|
16/3/2021 Advertising in the Travel and Tourism magazines 17/3/2021 Petrol 22/3/2021 Petrol 22/3/2021 e-Tourism annual membership
|
Identify receipts that do not belong to the credit card statement (you need to identify 5 receipts)
-
Receipt for lunch in Nandos $20 (17 March 2021) paid by a cash
Receipt for parking $22 (28 March 2021) paid by cash
Receipt for parking $22 (29 March 2021) paid by cash
Receipts for petrol $50 (18 March 2021), $40 (27 March 2021) paid by a cash
-
Task 9 – Business activity statement
Based on the information below, complete the Business Activity Statement for Happy Feet – Walking Tours and find out if the company is getting a GST refund or needs to make a payment of GST collected to the ATO. Note: Happy Feet – Walking Tours is reporting GST every 3 months.
Transfer the amounts below into the Business Activity Statement, rounding to the nearest whole dollar.
Total Sales $3,452.15 including GST
GST-free sales $627.90
Capital purchases $2,530
Non-capital purchases$3,081.40
GST received $256
GST paid $435
PAYG tax withheld $0
|
Business Activity Statement |
||||||||||||
|
Option 1: Calculate GST and report quarterly |
||||||||||||
|
Total sales |
G1 |
$3,452.00 |
||||||||||
|
Does the amount shown at G1 include GST? (Indicate with X) |
x es |
N o |
||||||||||
|
Export sales |
G2 |
$0 |
||||||||||
|
Other GST-free sales |
G3 |
$628.00 |
||||||||||
|
Capital purchases |
G10 |
$2,530.00 |
||||||||||
|
Non-capital purchases |
G11 |
$3,081.00 |
||||||||||
|
Summary |
||||||||||||
|
Amounts you owe to the ATO |
Amounts the ATO owes you |
|||||||||||
|
GST on sales or GST Instalment |
1A |
$256 |
GST on purchases |
1B |
$435 |
|||||||
|
PAYG tax withheld |
4 |
$0 |
||||||||||
|
1A+4 |
8A |
$256 |
||||||||||
|
Payment or refund? |
||||||||||||
|
Is 8A more than 1B? (Indicate with X) |
Yes |
Then write the result of 8A minus 1B at 9. This amount is payable to the ATO. |
Your payment or refunded amount |
|||||||||
|
x |
No |
Then write the result of 1B minus 8A at 9. This amount is refundable to you (or offset against any other tax debt you have). |
9 |
$179 |
||||||||
|
Do not use symbols such as +, -, /, $ |
||||||||||||
|
Declaration. I declare that the information given on the form is true and correct, and that I am authorised to make this declaration. Signature: Date: |
Please return this completed form to: |
H RS MINS Estimate the time taken to complete this form. Include the time taken to collect any information. |
||||||||||
Based on the BAS above, is Happy Feet – Walking Tours company getting a GST refund or needs to make a payment of GST collected to the ATO.
-
Gst refund
What is the value of GST refund from the ATO or GST payment to ATO?
-
179
Student Assessment
SITXFIN002 Interpret financial information
In order to be assessed as Competent (C) in this unit, you need to provide evidence which demonstrates that you can perform the required competencies to the required standard. Competency depends on consistently demonstrating the skills, attitude and knowledge that enables you to complete workplace tasks confidently in a variety of situations.
This unit describes the skills and knowledge required to interpret financial information and reports used by organisations to monitor business performance and provide information on operational or departmental financial activities.
To attain competence in the unit ‘Interpret financial information’ you must:
Successfully complete the Theory Assessment (via the exam portal)
Successfully complete the Project
Project
SITXFIN002 Interpret financial information
Instructions
Your Task is to complete the following tasks 1-7. Once completed, please upload your final answer in one document via your student portal. You need to complete this assessment by 14 March 2021.
Task 1
You work as a bookkeeper for Happy Feet Walking Tours. You need to prepare an invoice issued to Sweet Life Pty Ltd for walking tours that were organised for them as a part of their team building.
There were 3 different walking tours organised and provided for 3 different groups of their staff and all took place on 1 March 2021. As per the organisational policies and procedures, the invoices must be issued within 48 hours of the event occurring and 14-day credit terms must follow.
Add the correct invoice date and due date
Add the correct business names (the company issuing and the company receiving the invoice)
Calculate total amounts for each category
Calculate the total price excluding GST
Calculate the GST
Calculate the total price including GST
|
Tax Invoice <<BUSINESS NAME>> ABN: 33 555 777 999 886 Point Nepean Rd, Rosebud VIC 3939 Invoice Date: 01/03/2021 DUE Date: 15/03/2021 To: <<BUSINESS NAME>> 6 Lyon St, Rosebud VIC 3939, ABN: 99 111 222 333 |
|||
|
|
Description of supply |
Price/Item |
Total $ |
|
10 Units |
Walking tour organised and delivered to Group 1 (10 people) |
$85.00 |
$850 |
|
12 Units |
Walking tour organised and delivered to Group 2 (12 people) |
$90.00 |
$1,080 |
|
12 Units |
Walking tour organised and delivered to Group (12 people) |
$95.00 |
$1,140 |
|
34 Units |
Refreshments |
$19.00 |
$646 |
|
Total Price Excluding GST |
$3,716 |
||
|
GST |
$371 |
||
|
Total Price Including GST |
$4,087 |
||
Task 2
As a Happy Feet Walking Tours bookkeeper, you are responsible for maintaining their daily financial records and record every transaction in a chronological order.
The following transactions occurred during the months of January and February 2021. Your task is to chronologically record all the transactions into the correct journals and accounts. For the purpose of this assessment, use table below and record the transactions as shown in an example.
As per the organisational policies and procedures, credit terms are usually 14 days. The same applies for the credit purchases unless specified otherwise.
Transactions during the month of January (not listed/not organised in chronological order):
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with capital of $100,000 cash and one car $50,000
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500
4/1/2021 Purchased equipment for cash $10,500
5/1/2021 Purchased stationary for cash $150
6/1/2021 Purchased 3 computers from JB Hi-Fi on credit $4,500
7/1/2021 Sold walking tours for cash $990
7/1/2021 Returned 1 computer to JB Hi-Fi as it was too slow and it was agreed it was not necessary for the business $500
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200
10/1/2021 Cash sales $2,000
12/1/2021 Purchased equipment for cash $450
13/1/2021 Sold walking tours to customer Mr Ford on credit $5,500
13/1/2021 Paid rent in cash $2,000
15/1/2021 Mr Ford complained that the invoice should have been only for $5,300 (mistake in the invoice has occurred)
17/1/2021 Mr Smiley decided to take a bank loan for purchase of 2 new company vehicles $75,000
19/1/2021 Paid the outstanding invoice to JB Hi-Fi by cash
20/1/2021 Paid salaries $10,000 via bank transfer
25/1/2021 Owner of Happy Feet Walking Tours Mr Smiley withdrew cash from the company account for his personal expenses $1,000
27/1/2021 Mr Ford paid the outstanding amount on his invoice by cash
31/1/2021 Owner Mr Smiley sold old furniture for cash to Mr Mitsubishi $1,000
1/2/2021 Sold goods on credit $1,000 to Mrs Renault
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit and cash sales were $3,000
7/2/2021 Owner Mr Smiley withdrew $5000 cash for personal use
11/2/2021 Purchased goods for cash $500 and on credit $2,000 from Sun Pty Ltd
10/2/2021 Sold walking tours for cash $5,000
12/2/2021 Purchased goods for cash $2,000 and on credit $3,000 from Sky Pty Ltd
13/2/2021 Paid rent in cash $2,000
15/2/2021 Mrs Renault paid the invoice by cash
20/2/2021 Paid salaries $12,000 via bank transfer
23/2/2021 Took a bank loan $40,000, where $10,000 was withdrawn for business (cash) and the rest in the bank account
24/2/2021 Paid the invoice to Sun Pty Ltd in cash
27/2/2021 Sold walking tours on credit $2,500 to Mr Volvo
28/2/2021 Sold walking tours on credit $4,500 to Mr Fiat
a) Use the table on the following page to record the above transactions and determine:
Type of a journal you will use:
General Journal (GJ)
Cash Receipts Journal (CRJ)
Cash Payments Journal (CPJ)
Purchase Journal (PJ)
Purchase Returns Journal (PRJ)
Sales Journal (SJ)
Sale Returns Journal (SRJ)
Account names to be used
Sales
Purchases
Sales Returns
Purchases Returns
Cash
Capital
Furniture
Equipment
Accounts Payable
Accounts Receivable
Drawings
Bank Loan
Vehicles
Computers
Rent
Stationery
Salaries
Account types
Assets
Liabilities
Owner’s Equity
Revenue
Expenses
Whether the balance in each account increases or decreases
Whether the account would be debited DR or credited CR
|
Date Transaction in chronological order |
Journal |
Account Names |
Account |
Balance |
DR or CR |
|
Example: |
SJ |
A/c Receivable Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with capital of $100,000 cash |
GJ |
Capital Cash |
Assets Owner’s Equity |
Increase Increase |
DR CR |
|
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with one car $50,000 |
GJ |
Vehicles Capital |
Assets Owner’s Equity |
Increase Increase |
DR CR |
|
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500 |
GJ |
Purchases A/c payables |
Assets Expenses Liabilities |
Increase Increase |
DR CR |
|
4/1/2021 Purchased equipment for cash $10,500 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
5/1/2021 Purchased stationary for cash $150 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
6/1/2021 Purchased 3 computers from JB Hi-Fi on credit $4,500 |
GJ |
Computers A/c payables |
Assets Liabilities |
Increase Increase |
DR CR |
|
7/1/2021 Sold walking tours for cash $990 |
CRJ |
Cash Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
7/1/2021 Returned 1 computer to JB Hi-Fi as it was too slow and it was agreed it was not necessary for the business $500 |
GJ |
Computers A/c payable |
Assets Liabilities |
Decrease Decrease |
CR DR |
|
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200 |
SJ |
A/c Receivables Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
10/1/2021 Cash sales $2,000 |
CRJ |
Cash Sales |
Assets Revenue |
Increase Increase |
DR CR |
|
12/1/2021 Purchased equipment for cash $450 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
13/1/2021 Sold walking tours to customer Mr Ford on credit $5,500 |
SJ |
Sales A/c receivables |
Revenue Assets |
Increase Increase |
CR DR |
|
13/1/2021 Paid rent in cash $2,000 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
15/1/2021 Mr Ford complained that the invoice should have been only for $5,300 (mistake in the invoice has occurred) |
SRJ |
A/c receivables Sales Return |
Assets – Revenue |
Decrease Increase |
CR DR |
|
17/1/2021 Mr Smiley decided to take a bank loan for purchase of 2 new company vehicles $75,000 |
CRJ |
Bank Loan Vehicle |
Liabilities Assets |
Increase Increase |
CR DR |
|
19/1/2021 Paid the outstanding invoice to JB Hi-Fi by cash |
CPJ |
Cash A/c payable |
Assets Liabilities |
Decrease Increase |
CR DR |
|
20/1/2021 Paid salaries $10,000 via bank transfer |
GJ |
Bank |
Assets |
Decrease |
CR |
|
25/1/2021 Owner of Happy Feet Walking Tours Mr Smiley withdrew cash from the company account for his personal expenses $1,000 |
GJ |
Cash |
Assets |
Decrease |
CR |
|
27/1/2021 Mr Ford paid the outstanding amount on his invoice by cash |
CRJ |
Cash A/c Receivable |
Assets Assets |
Decrease Increase |
CR DR |
|
31/1/2021 Owner Mr Smiley sold old furniture for cash to Mr Mitsubishi $1,000 |
CRJ |
Cash Furniture |
Assets Assets |
Increase Decrease |
DR CR |
|
1/2/2021 Sold goods on credit $1,000 to Mrs Renault |
SJ |
Sales A/c receivables |
Revenue Assets |
Increase Increase |
CR DR |
|
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit |
SJ |
A/ Receivable |
Assets |
Increase |
DR |
|
5/2/2021 Sold walking tours to Skoda Pty Ltd $3000 cash |
CRJ |
Cash |
Assets |
Increase |
DR |
|
7/2/2021 Owner Mr Smiley withdrew $5000 cash for personal use |
GJ |
Cash |
Assets |
Decrease |
CR |
|
10/2/2021 Sold walking tours for cash $5,000 |
SJ |
Sales Cash |
Revenue Assets |
Increase Increase |
CR DR |
|
11/2/2021 Purchased goods for cash $500 from Sun Pty Ltd |
CRJ |
Cash |
Assets |
Decrease |
CR |
|
11/2/2021 Purchased goods on credit $2,000 from Sun Pty Ltd |
PJ |
A/ Payable |
Liabilities |
Increase |
CR |
|
12/2/2021 Purchased goods for cash $2,000 from Sky Pty Ltd |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
12/2/2021 Purchased goods on credit $3,000 from Sky Pty Ltd |
PJ |
A/ Payable |
Liabilities |
Increase |
CR |
|
13/2/2021 Paid rent in cash $2,000 |
CPJ |
Cash |
Assets |
Decrease |
CR |
|
15/2/2021 Mrs Renault paid the invoice by cash $1,000 |
CRJ |
Cash A/c receivables |
Assets Assets |
Increase Decrease |
DR CR |
|
20/2/2021 Paid salaries $12,000 via bank transfer |
GJ |
Bank |
Assets |
Decrease |
CR |
|
23/2/2021 Took a bank loan $40,000, where $10,000 was withdrawn for business (cash) and the rest in the bank account |
CRJ |
Cash |
Assets |
Increase |
DR |
|
23/2/2021 $10,000 was withdrawn for business (cash) and the rest in the bank account |
CRJ |
Cash |
Assets |
Increase |
DR |
|
24/2/2021 Paid the invoice to Sun Pty Ltd in cash $2,000 |
CPJ |
A/ Payable |
Liabilities |
Decrease |
DR |
|
27/2/2021 Sold walking tours on credit $2,500 to Mr Volvo |
SJ |
Sales A/c receivables |
Revenue Assets |
Increase Increase |
CR DR |
b) Then transfer all January transactions into ‘T-account’ structure and determine the account balance
** Please fix January cash T-account – DR ($100,000, $990, $2000, $5,300, $1,000) and CR ($10,500, $150, $450, $2,000, $4,000, $1,000
DR Cash CR DR Bank CR DR Equipment CR
7/1/21 $990 4/1/21 $10,500 20/1/21 $10,000 4/1/21 $10,500
1/1/21 $100,000 05/1/21 $150 12/1/21 $450
10/1/21 $2,000 12/1/21 $450
13/1/21 $5,300 13/1/21 $2,000
31/1/21 $1,000 19/1/21 $4,000
25/1/21 $1,000
DR Accounts Receivable CR DR Accounts Payable CR DR Bank Loan CR
9/1/21 $3,200 27/1/21 $5,300 7/1/21 $500 3/1/21 $4,500 17/1/21 $75,000
13/1/21 $5,500 13/1/21 200 19/1/21 $4,000 6/1/21 $4,500
DR Sales CR DR Purchases CR DR Capital CR
7/1/21 $990 1/1/21 $10,000 1/1/21 $50,000
9/1/21 $3,200
10/1/21 $2,000
13/1/21 $5,500
DR Sales Returns CR DR Purchases Returns CR DR Drawings CR
15/1/21 $200 7/1/21 $500 25/1/21 $1000
DR Vehicles CR DR Furniture CR DR Rent CR
1/1/21 $50,000 2/1/21 $4,500 13/1/21 $2,000
17/1/21 $75,000 31/1/21 $1,000 (CR)
DR Salaries CR DR Stationery CR DR Computers CR
20/01/21 $10,000 5/1/21 $150 6/1/21 $4,500
c) Then transfer all February transactions into ‘T-account’ structure and determine the account balance
DR Cash CR DR Bank CR DR Equipment CR
5/2 $3,000 7/2 $5,000 23/2 $30,000 20/2 $12,000
10/2 $5,000
23/2 $10,000 11/2 $500
15/2 $1,000 12/2 $2,000
15/2 $2,000
24/2 $2,000
DR Accounts Receivable CR DR Accounts Payable CR DR Bank Loan CR
1/2 $,1000 15/2 $1,000 11/2 $2,000
5/2 $9,000 24/2 $2,000 12/2 $3,000 23/2/21 $40,000
27/2 $2,500
DR Sales CR DR Purchases CR DR Capital CR
1/2 $1,000 11/2 $2,000
5/2 $9,000 12/2 $3,000
5/2 $3,000 12/2 $3,000
10/2 $5,000
27/2 $2,500
DR Sales Returns CR DR Purchases Returns CR DR Drawings CR
7/2 $5,000
DR Vehicles CR DR Furniture CR DR Rent CR
13/2 $2,000
DR Salaries CR DR Stationery CR DR Computers CR
20/2 $12,000
Task 3 – General Journal
Record all transactions occurred in the months of January and February 2021 into a General Journal.
Requirements:
All transactions in the chronological order
Each transaction must be recorded in the following way (example provided):
The entry must have at least 2 accounts with 1 DEBIT amount and 1 CREDIT amount
The DEBITS are listed first and followed by the CREDITS indented
The DEBIT amounts will always equal the CREDIT amounts
Write a description for each transaction below in italics and in brackets
|
Date |
Account Title and Explanations |
Amount in AUD |
|
|
Debit |
Credit |
||
|
Example: 1/1/2021 |
Cash Owner’s Equity (Owner commenced the business with cash) |
100,000 |
100,000 |
|
1/1/2021 |
Vehicle Owner’s Equity (Owner commenced the business with cash & vehicle) |
50,000 |
50,000 |
|
02/1/2021 |
Furniture Accounts Payables (Owner purchases new furniture from Ikea on credit) |
4,500 |
4,500 |
|
4/1/2021 |
Equipment Cash (Owner purchased equipment with cash) |
10,500 |
10,500 |
|
5/1/2021 |
Stationary Cash (Owner purchased equipment with cash) |
150 |
150 |
|
06/1/2021 |
Computers Accounts Payables (Owner purchases new Computers on credit) |
4,500 |
4,500 |
|
7/1/2021 |
Cash Sales (Cash Sales) |
990 |
990 |
|
7/1/2021 |
Accounts Payable Purchases (Return one Computer to JB-HIFI) |
500 |
500 |
|
9/1/2021 |
Accounts Receivables Sales (Credit Sales made by Toyota Pty Ltd) |
3,200 |
3,200 |
|
10/1/2021 |
Cash Sales (Cash Sales) |
2,000 |
2,000 |
|
12/1/2021 |
Equipment Cash (Owner purchased equipment with cash) |
450 |
450 |
|
13/1/2021 |
Accounts Receivables Sales (Credit Sales for MR.Ford) |
5,500 |
5,500 |
|
13/1/2021 |
Rent Cash (Paid rent) |
2,000 |
2,000 |
|
15/1/2021 |
Sales Return Accounts Receivables (Mr.Ford has overpaid $200) |
200 |
200 |
|
17/1/2021 |
Vehicle Bank Loan (Owner took a bank loan to buy vehicle) |
75,000 |
75,000 |
|
19/1/2021 |
Accounts Payable Cash (Paid outstanding invoice to JB-HIFI in cash) |
4,000 |
4,000 |
|
20/1/2021 |
Salaries Bank (Paid salaries to employees with bank transfer) |
10,000 |
10,000 |
|
25/1/2021 |
Drawings Cash (Owner withdrew cash for personal use) |
1,000 |
1,000 |
|
27/1/2021 |
Accounts receivables Cash (Ford Paid outstanding invoice) |
5,300 |
5,300 |
|
31/1/2020 |
Cash Furniture (Owner sold old furniture to Mr. Mitsubishi for cash) |
1,000 |
1,000 |
|
1/2/2021 |
Accounts Receivables Sales (Credit Sales to customer Mrs.Renult) |
1,000 |
1,000 |
|
5/2/2021 |
Accounts Receivables Cash Sales (Credit and cash Sales to customer Skoda P/L) |
9,000 3,000 |
12,000 |
|
7/2/2021 |
Drawings Cash (Owner withdrew cash for personal use) |
5,000 |
5,000 |
|
10/2/2021 |
Cash Sales (Cash Sales) |
5,000 |
5,000 |
|
11/2/2021 |
Purchases Cash Accounts payable (Cash and credit purchases from Sun Pty Ltd) |
2,500 |
500 2,000 |
|
12/2/2021 |
Purchases Cash Accounts payable (Cash and credit purchases from Sky Pty Ltd) |
5,000 |
2,000 3,000 |
|
13/2/2021 |
Rent Cash (Paid rent) |
2,000 |
2,000 |
|
15/2/2021 |
Cash Accounts Receivables (Mrs.Renult paid invoice with cash) |
1,000 |
1,000 |
|
20/2/2021 |
Salaries Bank (Paid salaries to employees with bank transfer) |
12,000 |
12,000 |
|
23/2/2021 |
Cash Bank Bank Loan (Owner took a bank loan) |
10,000 30,000 |
40,000 |
|
24/2/2021 |
Accounts Payables Cash (Paid Sun Pty Ltd in cash) |
2,000 |
2,000 |
|
27/2/2021 |
Accounts Receivables Sales (Credit Sales made by Mr Volve) |
2,500 |
2,500 |
|
28/2/2021 |
Accounts Receivables Sales (Credit Sales made by Mr Fiat) |
4,500 |
4,500 |
|
Total |
$369,990 |
$369,990 |
|
Task 3 – General Ledger
After recording transactions in the relevant journals, transfer them to the general ledger. You must post every transaction from your journal into the ledger as it is the book of final entry.
Transfer the debit and credit amounts from the journal to the ledger account for each month. After posting entries to the general ledger, calculate the balances of each account (closing balance and balance brought down as an opening balance for the next month).
Do not forget the bookkeeping rules:
Balance B/D and Balance C/D are terms used for balancing and closing of ledger accounts from current period to the following period.
Balance B/D – is the balance brought down as opening balance of a ledger pulled from previous accounting period.
Balance C/D – is the balance carried down as the closing balance of a ledger pushed to the next accounting period.
If Debit side > Credit side it is called Debit Balance
If Credit side > Debit side it is called Credit Balance
Account # 1: Cash Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
1/1/2021 |
Cash Capital |
100,000 |
4/1 |
equipment |
10,500 |
|
7/1/2021 |
Cash Sales |
990 |
5/1 |
stationary |
150 |
|
10/1/2021 |
Cash Sales |
2000 |
13/1 |
rent |
2,000 |
|
31/1/2021 |
Owner sold old furniture for cash |
1,000 |
19/1 |
JB Hifi |
4,000 |
|
27/1/2021 |
Payment from Ford |
5,300 |
25/1 |
Withdraw |
1,000 |
|
12/1 |
Equipment |
450 |
|||
|
Balance c/d |
$91,190 |
||||
|
Total |
$109,290 |
Total |
$109,290 |
||
Account # 1: Cash Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
91,190 |
7/2 |
Withdraw |
5,000 |
|
|
5/2 |
Cash sales |
3,000 |
11/2 |
Purchase from Sun |
500 |
|
10/2 |
Cash sales |
5,000 |
12/2 |
Purchase from Sky |
2,000 |
|
15/2 |
Payment from Renult |
1,000 |
13/2 |
Rent |
2,000 |
|
23/2 |
Cash from Bank |
10,000 |
24/2 |
Paid invoice to Sun |
2,000 |
|
Balance c/d |
98,690 |
||||
|
Total |
$110,190 |
Total |
110,640 |
||
Account # 2: Bank Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
23/2 |
Bank loan |
30,000 |
Balance b/d |
10,000 |
|
|
20/2 |
Salary |
12,000 |
|||
|
Balance c/d |
8,000 |
||||
|
Total |
30,000 |
Total |
30,000 |
||
Account # 3: Sales Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
7/1 |
Cash sales |
990 |
|||
|
9/1 |
Sold to Toyota on credit |
3,200 |
|||
|
10/1 |
Cash sale |
2,000 |
|||
|
13/1 |
Sold to Ford |
5,500 |
|||
|
Balance c/d |
11,690 |
||||
|
Total |
11,690 |
Total |
11,690 |
||
Account # 3: Sales Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
11,690 |
||||
|
1/2 |
Sold to Renult |
1,000 |
|||
|
5/2 |
Sold to Skoda |
9,000 |
|||
|
10/2 |
Cash sales |
5,000 |
|||
|
27/2 |
Sold to volve |
2,500 |
|||
|
5/2 |
Cash sales |
3,000 |
|||
|
Balance c/d |
32,190 |
||||
|
Total |
32,190 |
Total |
32,190 |
||
Account # 4: Purchases Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
0 |
|||||
|
Balance c/d |
0 |
||||
|
Total |
0 |
Total |
0 |
||
Account # 4: Purchases Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
0 |
||||
|
11/2 |
Purchase good |
2,500 |
|||
|
12/2 |
Purchase good |
5,000 |
|||
|
Balance c/d |
7,500 |
||||
|
Total |
7,500 |
Total |
7,500 |
||
Account # 5: Sales Returns Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
27/1 |
Overpaid amount return |
200 |
|||
|
Balance c/d |
200 |
||||
|
Total |
200 |
Total |
200 |
||
Account # 5: Sales Returns Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
200 |
||||
|
Balance c/d |
200 |
||||
|
Total |
200 |
Total |
200 |
||
Account # 6: Purchases Returns Account (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
7/1 |
Return computer |
500 |
|||
|
Balance c/d |
500 |
||||
|
Total |
500 |
Total |
500 |
||
Account # 6: Purchases Returns Account (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
500 |
||||
|
Balance c/d |
500 |
||||
|
Total |
500 |
Total |
500 |
||
Account # 7: Accounts Receivable (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
9/1 |
Credit sale |
3,200 |
27/1 |
Ford payment |
5,300 |
|
14/1 |
Credit sale |
5,300 |
|||
|
Balance c/d |
3,200 |
||||
|
Total |
8,500 |
Total |
8,500 |
||
Account # 7: Accounts Receivable (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
3,200 |
15/2 |
Renult payment |
1,000 |
|
|
1/2 |
Credit sale to Renult |
1,000 |
|||
|
5/2 |
Credit sale to Skoda |
9,000 |
|||
|
27/2 |
Credit sale to Volvo |
2,500 |
|||
|
Balance c/d |
$14,700 |
||||
|
Total |
$15,700 |
Total |
$15,700 |
||
Account # 8: Accounts Payable (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
10/1 |
Return computer back to JB |
500 |
2/1 |
Furniture from IKEA |
4,500 |
|
19/1 |
Paid outstand invoice to JB |
4,000 |
6/1 |
Computer from JB HF |
4,500 |
|
Balance c/d |
4,500 |
||||
|
Total |
9,000 |
Total |
9,000 |
||
Account # 8: Accounts Payable (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
24/2 |
Paid to Sun |
2,000 |
Balance b/d |
4,500 |
|
|
11/2 |
Payable to Sun |
2,000 |
|||
|
12/2 |
Payable to Sky |
3,000 |
|||
|
Balance c/d |
7,500 |
||||
|
Total |
9,500 |
Total |
9,500 |
||
Account # 9: Capital (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
1/1 |
Commence with cash |
100,000 |
|||
|
1/1 |
Commence with vehicle |
50,000 |
|||
|
Balance c/d |
150,000 |
||||
|
Total |
150,000 |
Total |
150,000 |
||
Account # 9: Capital (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
150,000 |
||||
|
Balance c/d |
150,000 |
||||
|
Total |
150,000 |
Total |
150,000 |
||
Account # 10: Drawings (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
25/1 |
Withdraw for personal |
1,000 |
|||
|
Balance c/d |
1,000 |
||||
|
Total |
1,000 |
Total |
1,000 |
||
Account # 10: Drawings (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
1,000 |
||||
|
7/2 |
Withdraw for personal |
5,000 |
|||
|
Balance c/d |
6,000 |
||||
|
Total |
6,000 |
Total |
6,000 |
||
Account # 11: Bank Loan (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
17/1 |
Took bank loan for purchase |
75,000 |
|||
|
Balance c/d |
75,000 |
||||
|
Total |
75,000 |
Total |
75,000 |
||
Account # 11: Bank Loan (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
75,000 |
||||
|
23/2 |
Took a bank loan |
40,000 |
|||
|
Balance c/d |
115,000 |
||||
|
Total |
115,000 |
Total |
115,000 |
||
Account # 12: Vehicles (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
1/1 |
Vehicle at commence |
50,000 |
|||
|
17/1 |
Purchase 2 new vehicles |
75,000 |
|||
|
Balance c/d |
125,000 |
||||
|
Total |
125,000 |
Total |
125,000 |
||
Account # 12: Vehicles (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
125,000 |
||||
|
Balance c/d |
125,000 |
||||
|
Total |
125,000 |
Total |
125,000 |
||
Account # 13: Furniture (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
2/1 |
Purchase furniture for IKEA |
4,500 |
31/01 |
Sold old furniture |
1,000 |
|
Balance c/d |
3,500 |
||||
|
Total |
4,500 |
Total |
4,500 |
||
Account # 13: Furniture (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
3,500 |
||||
|
Balance c/d |
3,500 |
||||
|
Total |
3,500 |
Total |
3,500 |
||
Account # 14: Equipment (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
4/1 |
Purchase equipment |
10,500 |
|||
|
12/1 |
Purchase equipment |
450 |
|||
|
Balance c/d |
10,950 |
||||
|
Total |
10,950 |
Total |
10,950 |
||
Account # 14: Equipment (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
10,950 |
||||
|
Balance c/d |
|||||
|
Total |
10,950 |
Total |
10,950 |
||
Account # 15: Salaries (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
20/1 |
Salary by bank EFT |
10,000 |
|||
|
Balance c/d |
10,000 |
||||
|
Total |
10,000 |
Total |
10,000 |
||
Account # 15: Salaries (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
10,000 |
||||
|
20/2 |
Salary by Bank EFT |
12,000 |
|||
|
Balance c/d |
22,000 |
||||
|
Total |
22,000 |
Total |
22,000 |
||
Account # 16: Rent (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
13/1 |
Rent |
2,000 |
|||
|
Balance c/d |
2,000 |
||||
|
Total |
2,000 |
Total |
2,000 |
||
Account # 16: Rent (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
2,000 |
||||
|
13/2 |
Rent |
2,000 |
|||
|
Balance c/d |
4,000 |
||||
|
Total |
4,000 |
Total |
4,000 |
||
Account # 17: Stationery (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
5/1 |
Purchase |
150 |
|||
|
Balance c/d |
150 |
||||
|
Total |
150 |
Total |
150 |
||
Account # 17: Stationery (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
150 |
||||
|
Balance c/d |
150 |
||||
|
Total |
150 |
Total |
150 |
||
Account # 18: Computers (January 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
6/1 |
Bought 3 computers |
4,500 |
7/1 |
Returning one |
500 |
|
Balance c/d |
4,000 |
||||
|
Total |
4,500 |
Total |
4,500 |
||
Account # 18: Computers (February 2021)
|
Date |
Description |
Amount |
Date |
Description |
Amount |
|
Balance b/d |
4,000 |
||||
|
Balance c/d |
4,000 |
||||
|
Total |
4,000 |
Total |
4,000 |
||
Task 4 – Trial Balance
Based on the accounts’ closing balances from Task 4, prepare a trial balance for the months of January and February 2021.
Trial Balance (January 2021) Trial Balance (February 2021)
|
Account Name |
Debit |
Credit |
Debit |
Credit |
|
Cash |
91,190 |
98,690 |
||
|
Bank |
10,000 |
8000 |
||
|
Sales |
11,690 |
32,190 |
||
|
Sales Returns |
200 |
200 |
0 |
|
|
Purchases |
0 |
7,500 |
||
|
Purchases Returns |
0 |
0 |
||
|
Accounts Receivable |
3,200 |
14,700 |
||
|
Furniture |
3,500 |
3,500 |
||
|
Vehicles |
125,000 |
125,000 |
||
|
Accounts Payable |
4,500 |
7,500 |
||
|
Bank Loan |
75,000 |
115,000 |
||
|
Capital |
150,000 |
150,000 |
||
|
Drawings |
1,000 |
6,000 |
||
|
Equipment |
10,950 |
10,950 |
||
|
Salaries |
10,000 |
22,000 |
||
|
Stationery |
150 |
150 |
||
|
Computers |
4,000 |
4000 |
||
|
Rent |
2,000 |
4000 |
||
|
Total |
$251,190 |
$251,190 |
$304,690 |
$304,690 |
Task 5 – Debtors and Creditors
It is 1 March 2021 and as per the organisational policy and procedure, you need to review the outstanding invoices by your debtors and to your creditors for the previous 2 months.
Remember, as per the relevant policy and procedure, credit terms for customer invoices (debtors) are strictly 14 days otherwise no new sales offered on credit till the previous balance is settled. All outstanding invoices must be followed up on within 3 days of being overdue.
Find out if there is any outstanding invoice from your clients and provide details below
-
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit
-
Find out if there is any outstanding invoice that has not yet been paid on your side (what you owe to your creditors)
-
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500
12/2/2021 Purchased goods on credit $3,000 from Sky Pty Ltd
-
Prepare schedules of debtors and creditors as at 1 March 2021 (an example was provided to you)
-
Debtors schedule as at 1 March 2021
9/1/21 from Toyota
$3,200
5/2/21 from Skoda
$9,000
27/2/2021 from Mr Volvo – the invoice will be due on 13/3/2021
$2,500
28/2/2021 from Mr Fiat – the invoice will be due on 14/3/2021
$4,500
Balance as per control account
$19,200
-
Creditors schedule as at 1 March 2021
12/2/21 purchased goods from Sky
$3,000
Balance as per control account
$3,000
Task 6 – Interpret financial information
Your task is to review and interpret the financial information from the following Happy Feet Walking Tours’ Profit and Loss Statements for the year 2019 and 2020. Compare the years and answer the questions below.
|
Profit and Loss Statements |
|||||
|
Year |
2019 |
2020 |
|||
|
|
Total Revenue |
$1,000,000 |
100% |
$1,230,000 |
100% |
|
Less |
Costs of Goods Sold |
$426,200 |
43% |
$378,000 |
31% |
|
|
Gross Profit |
$573,800 |
57% |
$852,000 |
69% |
|
|
|
|
|
|
|
|
Less |
Expenses |
|
|
|
|
|
|
Accounting and legal fees |
$11,700 |
|
$10,000 |
|
|
|
Advertising |
$15,000 |
|
$23,000 |
|
|
|
Depreciation |
$38,000 |
|
$39,000 |
|
|
|
Electricity |
$2,700 |
|
$3,000 |
|
|
|
Insurance |
$15,200 |
|
$15,200 |
|
|
|
Interest and bank charges |
$27,300 |
|
$27,500 |
|
|
|
Postage |
$1,500 |
|
$1,400 |
|
|
|
Printing and stationery |
$8,700 |
|
$9,000 |
|
|
|
Professional memberships |
$1,800 |
|
$1,800 |
|
|
|
Rent for premises |
$74,300 |
|
$83,400 |
|
|
|
Repairs and maintenance |
$21,100 |
|
$20,000 |
|
|
|
Training |
$6,900 |
|
$7,300 |
|
|
|
Vehicle operating costs |
$20,000 |
|
$23,000 |
|
|
|
Wages and salaries |
$223,500 |
|
$240,000 |
|
|
|
Workers compensation |
$6,500 |
|
$7,000 |
|
|
|
All other expenses |
$14,100 |
|
$13,000 |
|
|
|
Total Expenses |
$488,300 |
49% |
$523,600 |
43% |
|
|
|
|
|
|
|
|
Equals |
Net Profit |
$85,500 |
9% |
$328,400 |
27% |
What was the total amount of revenue in 2019?
|
$1,000,000 |
What was the total amount of cost of goods sold in 2020?
|
$378,000 |
What is the percentage of gross profit on sales in 2020?
|
69% |
Has the rent on premises decreased or increased in 2020 in comparison to 2019?
|
Increased in the dollar amount by $9,000 |
What is the total value of expenses in 2019?
|
$488,300 |
Has the Happy Feet Walking Tours company performed better in 2019 or in 2020? Explain your reasons.
-
Total revenue has increased from $1,000,000 to $1,230,000. CGOS decreased from $426,000 to $378,000. Gross profit has increased $279,000. Total expense slightly increased $35,300. net profit increased dramatically from $$85,500 to $328,400. The company has performed much better in 2020 than 2019.
Task 7 – Prepare a Profit and Loss Statement and Balance Sheet
A whole year has passed, and you have a task to prepare a Profit and Loss Statement and Balance Sheet for Happy Feet Walking Tours for 2021 based on the information available to you via your accounting software.
Prepare a Profit and Loss Statement based on the information below:
-
Wages and Salaries
$250,000
Sales
$1,560,000
Insurance
$15,200
Printing and stationery
$10,500
Interest and bank charges
$29,000
Telephone
$1,200
Electricity
$3,400
Vehicle operating costs
$25,000
Rent for premises
$88,000
Training
$8,500
Purchased stock
$350,000
Purchases return
$23,000
Opening stock
$130,000
Closing stock
$55,000
Professional memberships
$1,800
Advertising
$26,000
Accounting and legal fees
$10,000
Depreciation
$42,000
Postage
$1,200
Other expenses
$11,500
Worker compensation
$8,900
Repairs and maintenance
$23,000
Use the table/template on the following page to prepare the Profit and Loss Statement. Detail individual categories and totals (revenue, costs of goods sold, gross profit, expenses, total expenses, net profit). There are 2 columns to fill in with the values. The first one is the amount in $ and the second is the percentage of the category on sales (where sales is 100%). You need to calculate the percentage only for the following categories:
Total revenue
Costs of goods sold
Total expenses
Net profit
Happy Feet Walking Tours Profit and Loss Statement 2021
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Profit and Loss Statements
Year
2021
$
%
Total Sales
1,560,000
100
Less
COGS
402,000
25.85%
Gross profit
1,158,000
74.2%
Less
Wages and Salaries
$250,000
Insurance
$15,200
Printing and stationery
$10,500
Interest and bank charges
$29,000
Telephone
$1,200
Electricity
$3,400
Vehicle operating costs
$25,000
Rent for premises
$88,000
Training
$8,500
Professional memberships
$1,800
Advertising
$26,000
Accounting and legal fee
$10,000
Depreciation
$42,000
Postage
$1,200
Repair and maintenance
$23,000
Worker compensation
$8,900
Other expense
$11,500
Equals
Net profit
$603,400
38.7%
**Please include accounting and legal fees $10,000, Depreciation $42,000, Postage $1,200, Repairs and maintenance $23,000, Workers compensation $8,900 and all other expenses $11,500 and recalculate.
Prepare a Balance Sheet based on the information below: (remember you need to find out the value of profit when preparing the Profit and Loss Statement above; then use this value in your Balance Sheet):
-
Cash
$350,000
Capital
$286,400
Stock/Inventory
$402,000
Prepaid expenses
$10,500
Bank overdraft
$12,000
Plant and equipment
$75,000
Accrued expenses
$13,000
Accumulated depreciation for plant and equipment
$15,400
Accounts payable
$38,000
Profit
$700,000
Accounts receivable
$25,000
Drawings
$4,500
Vehicles
$150,000
Accumulated depreciation for vehicles
$21,000
Bank loan
$100,000
Happy Feet Walking Tours Balance Sheet 2021
-
Balance Sheet
Year
2021
Assets
Current Assets
Cash
$350,000
Inventory
$402,000
Account receivable
$25,000
Prepaid expense
$10,500
Total Current Assets
$787,500
Non-Current Assets
Plant and equipment
$75,000
Vehicles
$150,000
Accumulated depreciation
$15,400
Accumulated depreciation
$21,000
Total Non-Current Assets
$261,400
TOTAL ASSETS
$1,048,900
Liabilities
Current Liabilities
Account payable
$38,000
Bank overdraft
$12,000
Accrued expenses
$13,000
Total Current Liabilities
$63,000
Non-Current Liabilities
Bank Loan
$100,000
Total Non-Current Liabilities
TOTAL LIABILITIES
$163,000
Owner’s Equity
$885,900
$281,900
TOTAL OWNER’S EQUITY
$1,167,800
-
**Please re-calculate
Task 8 – Bank deposit documentation, credit card transaction statements, bank statements, banking summaries
It is Friday afternoon 12 March 2021, and you need to take received cash and cheques into the bank. Correctly complete the following bank slip (fill in the areas highlighted in grey):
You have $3,000 cash. $2,850 in notes and the rest in coins.
You have received 2 cheques for the amounts of $1,500 and $1,200
The account is held in BANK of VICTORIA, 323 Happy Street, Melbourne, VIC
The account details are:
Account name: Happy Feet Walking Tours
BSB: 032-135
Account number: 39812340
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BANK of VICTORIA |
I acknowledge that this deposit is subject to BANK of VICTORIA’s interest rates and conditions applying from time to time. Proceeds of cheques may not be available until cleared. |
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Date |
12/03/2021 |
Paid in by: (please print your name) |
Deposit |
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Cash |
3000 |
Karen Chen |
Cash |
Notes $ |
2850 |
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Cheques |
2700 |
Branch name: (where is the account held, if known) |
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Coins $ |
150 |
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Total |
5700 |
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Cheques |
$ |
2700 |
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Account holder name: |
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Deposit for credit of: |
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Mr Smiley |
Total |
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5700 |
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Account number |
39812340 |
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BSB |
032-135 |
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Account name |
Happy Feet Walking Tours |
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Reference/Serial no Bank/Branch No Account Number 012B 032-135 39812340 |
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Teller: |
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Printed below is the Bank Statement for Happy Feet Walking Tours for the first week of March 2021
Bank Statement – Happy Feet Walking Tours (March 2021)
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Date |
Transaction |
Withdrawal |
Deposit |
Balance |
|
1/3/2021 |
Balance |
$5,500 |
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1/3/2021 |
Deposit Cash and Cheques |
$718.40 |
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1/3/2021 |
EFTPOS |
$225 |
$943.40 |
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2/3/2021 |
Cheque 1002 |
$200 |
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2/3/2021 |
Deposit Cash and Cheques |
$554.70+$310 |
$665.70 |
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3/3/2021 |
Cheque 1003 |
$187 |
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3/3/2021 |
Loan repayment – transfer to loan account |
$250 |
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3/3/2021 |
Deposit Cash and Cheques |
$550.40 |
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3/3/2021 |
EFTPOS |
$350.4 |
$650.8 |
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4/3/2021 |
Merchant fees |
$66 |
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4/3/2021 |
Cheque 1001 |
$330 |
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4/3/2021 |
Deposit Cash and Cheques |
$521.05 |
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4/3/2021 |
EFTPOS |
$220 |
$345.05 |
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5/3/2021 |
Interest |
$2.20 |
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5/3/2021 |
EFSTPOS |
0 |
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5/3/2021 |
Cheque 1005 |
$57 |
($54.8) |
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6/3/2021 |
Transaction fees |
$8.40 |
$8.40 |
Your task is to:
Fill in the following individual transactions into appropriate columns (Withdrawal, Deposit) and calculate the Balance (populate all grey cells). Note: Cash payments and Cheques issued are withdrawals, and cash receipts and EFTPOS transactions are deposits
1/3/2021 Deposit Cash and Cheques $718.40
1/3/2021 EFTPOS $225
2/3/2021 Cheque issued 1002 $200
2/3/2021 Deposit Cash and Cheques $554.70
2/3/2021 EFTPOS $310
3/3/2021 Cheque issued 1003 $187
3/3/2021 Loan repayment – transfer to loan account $250
3/3/2021 Deposit Cash and Cheques $550.40
3/3/2021 EFTPOS $350.40
4/3/2021 Merchant fees $66
4/3/2021 Cheque issued 1001 $330
4/3/2021 Deposit Cash and Cheques $521.05
4/3/2021 EFTPOS $220
5/3/2021 Interest received $2.20
5/3/2021 Cheque issued 1005 $57
6/3/2021 Transaction fees $8.40
Printed below is the Cash Receipts Book for Happy Feet Walking Tours for the first week of March 2021
Cash Receipts Book – Happy Feet Walking Tours (March 2021)
|
Date |
Description/Particulars |
Reference |
Total Sales Amount |
Details |
EFTPOS and Banking |
|
1/3/2021 |
Daily Sales |
Till Tape |
$943.40 |
EFTPOS Bank Deposit |
$225.00 $718.40 |
|
2/3/2021 |
Daily Sales |
Till Tape |
$864.70 |
EFTPOS Bank Deposit |
$310 $554.70 |
|
3/3/2021 |
Daily Sales |
Till Tape |
$900.80 |
EFTPOS Bank Deposit |
$350.40 $550.40 |
|
4/3/2021 |
Daily Sales |
Till Tape |
$741.05 |
EFTPOS Bank Deposit |
$220 $521.05 |
|
Total |
$3,449.95 |
$3,449.95 |
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Your task is to:
Complete the missing information (grey cells) as per information from the Bank Statement (Sample has been provided to you in the first row), calculate the total and cross-check your calculations
Enter in the Cash Receipts Book transactions from the Bank Statement, which are not yet recorded in the book (Hint: You need to find one missing transaction)
Printed below is the Cash Payments Book for Happy Feet Walking Tours for the first week of March 2021
Cash Payments Book – Happy Feet Walking Tours (March 2021)
|
Date |
Description/Particulars |
Reference |
Total Payment Amount |
|
1/3/2021 |
Telstra phone |
1001 |
$330 |
|
1/3/2021 |
New office chair |
1002 |
$200 |
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1/3/2021 |
Electricity |
1003 |
$187 |
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1/3/2021 |
Rent |
1004 |
$1,100 |
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1/3/2021 |
Fuel |
1005 |
$57 |
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1/3/2021 |
New cash register |
1006 |
$880 |
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3/3/2021 |
Postage/Stamps |
1007 |
$50 |
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4/3/2021 |
Stationary |
1008 |
$112 |
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4/3/2021 |
Advertising |
1009 |
$785 |
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5/3/2021 |
New computer |
1010 |
$1,738 |
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5/3/2021 |
New office desk |
1011 |
$300 |
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Total |
$5,739 |
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Your task is to:
Enter in the Cash Payments Book transactions from the Bank Statement, which are not yet recorded in the book (Hint: You need to find three missing transactions) and calculate the total
Prepare a Bank Reconciliation at the end of the week (Note: There were no outstanding cheques or deposits not credited at the beginning of the month)
Below are the cheques that have not been cleared by the bank, yet:
(Note: The first one has been entered in the bank reconciliation as an example)
1/3/2021 Rent – Cheque 1004 $1,100
1/3/2021 New cash register – Cheque 1006 $880
3/3/2021 Postage/Stamps – Cheque 1007 $50
4/3/2021 Stationary – Cheque 1008 $112
4/3/2021 Advertising – Cheque 1009 $785
5/3/2021 New computer – Cheque 1010 $1,738
5/3/2021 New office desk – Cheque 1011 $300
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Bank Reconciliation as at 6 March 2021
Balance as per Bank Statement 6 March 2021 (See Task 8b – closing balance)
$5,000
Add Deposits not yet credited
$57
Total
$5,057
Less Unpresented cheques
1004
$1,100
1006
$880
1007
$50
1008
$112
1009
$785
1010
$1,738
1011
$300
Total
$
-
Cash Book Balance as at 6 March 2021
Cash Book Balance 1 March 2021 (See Task 8b – opening balance)
$5,500
Add Cash Receipts for the week (See Task 8c – closing balance)
$3,449.05
Sub-Total
$8949.05
Less Cash Payments for the week (See Task 8d – closing balance)
$5,739
Cash Book Balance 6 March 2021
$3,210.05
Note: Remember to cross-check Totals as they must be equal
Printed below is the Credit Card Statement for Happy Feet Walking Tours for March 2021
Credit Card Statement – Happy Feet Walking Tours (March 2021)
|
Date |
Description/Particulars |
Total Payment Amount |
|
10/3/2021 |
Petrol |
$77 |
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15/3/2021 |
Nandos |
$24 |
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16/3/2021 |
Advertising in the Travel and Tourism magazines |
$450 |
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17/3/2021 |
Petrol |
$68 |
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21/3/2021 |
Tour guide uniforms |
$450 |
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22/3/2021 |
Petrol |
$78 |
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22/3/2021 |
Car registration |
$750 |
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22/3/2021 |
e-Tourism annual membership |
$98 |
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22/3/2021 |
Car insurance |
$800 |
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Total |
$ |
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You have received the following receipts/tax invoices:
Tax invoice for purchase of tour guide uniforms $450 (21 March 2021) paid by a credit card
Tax invoice for car insurance $800 (22 March 2021) paid by a credit card
Receipt for lunch in Nandos $20 (17 March 2021) paid by a cash
Receipt for lunch in Nandos $24 (15 March 2021) paid by a credit card
Receipt for parking $22 (28 March 2021) paid by cash
Tax invoice for car registration $750 (22 March 2021) paid by a credit card
Receipts for petrol $77 (10 March 2021), $78 (22 March 2021) paid by a credit card
Receipt for parking $22 (29 March 2021) paid by cash
Receipts for petrol $50 (18 March 2021), $40 (27 March 2021) paid by a cash
Your task is to:
Check off the credit card statement against the individual credit card transactions and identify transactions that you do not have receipts or tax invoices for (you need to identify 3 missing receipts/tax invoices)
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16/3/2021 Advertising in the Travel and Tourism magazines 17/3/2021 Petrol 22/3/2021 Petrol 22/3/2021 e-Tourism annual membership
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Identify receipts that do not belong to the credit card statement (you need to identify 5 receipts)
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Receipt for lunch in Nandos $20 (17 March 2021) paid by a cash
Receipt for parking $22 (28 March 2021) paid by cash
Receipt for parking $22 (29 March 2021) paid by cash
Receipts for petrol $50 (18 March 2021), $40 (27 March 2021) paid by a cash
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Task 9 – Business activity statement
Based on the information below, complete the Business Activity Statement for Happy Feet – Walking Tours and find out if the company is getting a GST refund or needs to make a payment of GST collected to the ATO. Note: Happy Feet – Walking Tours is reporting GST every 3 months.
Transfer the amounts below into the Business Activity Statement, rounding to the nearest whole dollar.
Total Sales $3,452.15 including GST
GST-free sales $627.90
Capital purchases $2,530
Non-capital purchases$3,081.40
GST received $256
GST paid $435
PAYG tax withheld $0
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Business Activity Statement |
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Option 1: Calculate GST and report quarterly |
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Total sales |
G1 |
$3,452.00 |
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Does the amount shown at G1 include GST? (Indicate with X) |
x es |
N o |
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Export sales |
G2 |
$0 |
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Other GST-free sales |
G3 |
$628.00 |
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Capital purchases |
G10 |
$2,530.00 |
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Non-capital purchases |
G11 |
$3,081.00 |
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Summary |
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Amounts you owe to the ATO |
Amounts the ATO owes you |
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GST on sales or GST Instalment |
1A |
$256 |
GST on purchases |
1B |
$435 |
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PAYG tax withheld |
4 |
$0 |
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1A+4 |
8A |
$256 |
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Payment or refund? |
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Is 8A more than 1B? (Indicate with X) |
Yes |
Then write the result of 8A minus 1B at 9. This amount is payable to the ATO. |
Your payment or refunded amount |
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x |
No |
Then write the result of 1B minus 8A at 9. This amount is refundable to you (or offset against any other tax debt you have). |
9 |
$179 |
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Do not use symbols such as +, -, /, $ |
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Declaration. I declare that the information given on the form is true and correct, and that I am authorised to make this declaration. Signature: Date: |
Please return this completed form to: |
H RS MINS Estimate the time taken to complete this form. Include the time taken to collect any information. |
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Based on the BAS above, is Happy Feet – Walking Tours company getting a GST refund or needs to make a payment of GST collected to the ATO.
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Gst refund
What is the value of GST refund from the ATO or GST payment to ATO?
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179