Recent Question/Assignment

Assessment Details
Qualification Code/Title
Assessment Type Assessment -01 ( Short Questions Answer) Time allowed
Due Date Location AHIC Term / Year
Unit of Competency
National Code/Title BSBFIA401 Prepare financial reports
Student Details
Student Name Student ID
Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. Signature: ____________________________
Date: _____/______/__________
Assessor Details
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RESULTS (Please Circle) SATISFACTORY NOT SATISFACTORY
Feedback to student:
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Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my appeal rights.
Signature: _______________________________
Date: ______/_______/___________
Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback.
Signature: ________________________________________
Date: ______/_______/___________

Instructions to the Candidates
? This assessment is to be completed according to the instructions given below in this document.
? Should you not answer the tasks correctly, you will be given feedback on the results and gaps in knowledge. You will be entitled to one (1) resubmit in showing your competence with this unit.
? If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
? Please refer to the College re-submission and re-sit policy for more information.
? If you have questions and other concerns that may affect your performance in the Assessment, please inform the assessor immediately.
? To be deemed competent for this unit you must achieve a satisfactory result with tasks of this assessment along with a satisfactory result for the other assessment.
? This is an Open book assessment which you will do in your own time but complete in the time designated by your assessor. Remember, that it must be your own work and if you use other sources then you must reference these appropriately.
? This is Individual Assessments. Once you have completed the assessment, please provide the Hard copy of the Assessments to your Trainer/ Assessor.
? Plagiarism is copying someone else’s work and submitting it as your own. Any Plagiarism will result in a mark of Zero.

Assessment Format:
Your documentation must:
a. Be of a professional standard (spelling, grammar, punctuation)
b. Size 12, Arial Font
c. 1.5 Spacing
d. All pages must have a Footer with the following details:
• Student name & number
• Page numbering
e. References – use the Harvard system for format and any copying
f. Check the layout by using print preview to ensure that the report is centred and balanced
g. The submission link will be found under Assessment submission links.
h. Ensure to change the file name to your Student No Assessment 1. For example, if your student no is 1234, your file name should be 1234_Assessment 1.
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TASK 1
1. Explain the Accounting Entity Assumption.
2. What is Fixed Asset register and why does a company need to maintain an assets register?
3. Explain the function of a journal in the accounting process.
4. What is the journal entry used if the company sold an asset with a loss?
5. Explain unearned income with an example. When should a company recognize income?
6. Give two more examples of the balance day adjustments a company should record before issuing the final financial report at end of accounting periods?
7. Why would a business determine an amount for “Doubtful Debts” and outline the steps that could be taken to calculate the allowance?
8. Prepare the adjustment entry as of 30/06/2012 under the following:
A. On 27 of June 2012, the company paid last week’s wage. Wages that are due and not paid:
• 28th of June 1200
• 29th of June 1450
• 30th of June weekend, no wages
B. Rent paid on 1/12/11 for one year $12,000 net of GST, the company accountant recorded all payment as expense on 1/12/11.
C. The company is required to issue a bank guarantee for one year, bank withheld $20,000 on 31/12/2011 from the company bank account with interest of 4.5% that will be calculated monthly and will be paid at the maturity date.
D. On 30/04/12, the company signed a monthly maintenance service contract for $500 each month; the company policy is to receive the 1st six months in advance. The company received $3000 on 30th of April 2012. Company accountant recorded the following entry on the 30th of April:
Date Details Dr Cr
30/04/12 Cash at Bank $3000
Income received in advance $3000
E. According to the balance sheet, the inventory was $223,500. At the end of the financial year stock take, you have been advised that the inventory value is only $210,000.
F. On 30/06/2012, the company aged receivables which have a total of $306,400. The company estimated 2% of 90 days receivable and 10% of over 90 days will not be able to be collected.
Aged Receivable Summary
30/6/2013
Total Due 0-30 days 31-60 days 61-90 days 91-120 days
$311,400 $220,000 $60,000 $18,000 $16,400
Q 9. Prepare journal entries for disposal of fixed assets
• Company sold Equipment worth $120,000 for $50,000. Depreciation recorded at the rate of 20% yearly for 3 years.
• Motor vehicle purchased for $80,000 was sold for $20,000 after usage of 2 years at rate of 25% yearly

TASK 2
Deprecation of Assets:
Straight line method:
On 1/12/ 2011, a company purchased a machine costing $1,750. It is expected to have 5 years estimated useful life and value of $250 at the end of the 5th Year
• Prepare the deprecation schedule for the life of the asset.
• Record the depreciation journal entries at the end of financial year for year 1 only.
Double -Declining balance method
A business purchased cleaning equipment in 2008 for $8,500 and is depreciated by the double declining method for an expected life of 12 years. Original salvage value was estimated to be $2,500 at the end of 12 years.
• Prepare the deprecation schedule for the life of the asset.
• What is the book value of the cleaning equipment at the end of 2014?
Sum of the Digits method
A machine costing $5,000 was purchased on 01/07/2011. The expected resale value at the end of its five-year useful life is $1,000.
• Prepare the depreciation schedule for the life of the asset.
• Record the depreciation journal entries at the end of financial year 30/06/2012.

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