Assessment Details
Qualification Code/Title FNS60217 Advanced Diploma of Accounting
Assessment Type Assessment -02 (Project) Time allowed
Due Date Location AHIC Term / Year
Unit of Competency
National Code/Title FNSACC601 Prepare and administer tax documentation for legal entities
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
Assessor’s Name
RESULTS (Please Circle) SATISFACTORY NOT SATISFACTORY
Feedback to student:
............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
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 (Project)
? There are three Parts in this 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.
? Resources required completing the assessment tasks are Learner guide, PowerPoint presentation, Unit Assessment Pack (UAP), Access to other learning materials such as textbooks, Access to a computer, the Internet and word-processing system such as MS Word.
? Submitted document must follow the given criteria. Font must be Times New Roman, Font size need to be 12 and line spacing has to be Single line.
? This is Individual Assessments. Once you have completed the assessment, please upload the softcopy of the Assessment into AHIC Moodle.
? Plagiarism is copying someone else’s work and submitting it as your own. Any Plagiarism will result in a mark of Zero.
ASSESSMENT TASK 2: Project, Short Question and Presentation
Submission details
The Assessment Task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for details.
PART A
Case 1 – Preparation of P&L and Tax payable or refundable calculation
You have been approached by a business friend, Lucy Wong, to prepare a tax return for his company, a manufacturer of boxing gloves trading as Golden Gloves, for the year ended 30 June, 2018.
RECEIPTS: $
Receipts of cash from debtors $ 170,500.00
Cash Sales $ 75,000.00
Insurance recovery on damaged stock $ 10,200.00
Sundry revenue $ 6,400.00
Forfeited deposits (Jobs not continued by customers) $ 3,500.00
Loan (to finance business expansion) $ 30,000.00
Total Receipt: $ 295,600.00
PAYMENTS:
Drawings – Cash $ 15,000.00
Repayments of loan (to finance business expansion) $ 30,000.00
Repayment of loan – Principal $ 1,100.00
Repayment of loan -Interest $ 1,900.00
Employees’ Wages $ 36,842.00
Purchase (cash and Credit) $ 20,000.00
Factory Rental $ 34,500.00
Superannuation contribution for employees $ 3,500.00
Insurance $ 300.00
Subscription to locals Trade Association $ 900.00
Accountancy fees $ 300.00
Electricity $ 1,100.00
Motor Vehicle expenses (excluding decline in value) $ 3,600.00
Donation to Royal Children Hospital $ 150.00
Entertainment of clients at local restaurant $ 450.00
Total Payment: $ 149,642.00
Additional information:
• All figures are net of GST where applicable.
• Lucy withdraw $1,000 of trading stock for her own personal use during the year.
• $4,500 income tax instalment was paid during the year.
Decline in value at taxation rates:
-Plant and equipment $6,800
- Motor Vehicle $900
Balances 1 July 2017 30 June 2018
Debtors 13,900 16,300
Creditors 11,800 $21,200
Trading Stock (Cost) $29,000 27,400
Required:
(a) Prepare tax payable / (refundable). Show calculations in details (step by step). Assume tax rate is 30%.
Case 2: Reconciliation of Net Profit/Loss to taxable income.
Good Day Pty Ltd, a resident manufacturing company, present you will be following information for the year ended 30 June 2018.
INCOME STATEMENT
Gross profit from trading $ 166,030.00
Fully franked dividend received $ 10,800.00
Profit on sale of furniture $ 500.00
Net Dividends received from Vietnam $ 1,750.00
Total Revenue $ 179,080.00
Operating Expenses
Administration expenses -$ 7,000.00
R&D expenditure –wages -$ 40,000.00
Depreciation on fixed assets -$ 15,000.00
Interest expense -$ 800.00
Annual leave expense -$ 4,000.00
Doubtful debts expense -$ 1,500.00
Total Expenses -$ 68,300.00
Net Profit $ 110,780.00
Additional Information:
• The dividends from Vietnam had $250 tax withheld;
• The company’s annual aggregate turnover is less than $20 million;
• An amount of $2,300 was written off as bad debts during the period;
• Annual leave expense $4,000 resulted from an increase in the provision account;
• Annual leave actually paid during the period amounted to $2,000;
• Decline in value expenses for tax purposes for the year was $16,000;
• Profit on sale of furniture for tax purposes was $900;
• Administration expenses included capital expenditure of $1,250;
• PAYG tax instalments paid were $25,000;
• The company wishes to claim a R&D tax offset.
Required:
(i) Calculate taxable income / (loss) and carry forward the losses if applicable
(ii) Calculate tax payable / (refundable)
Case 3: Prepare an Individual Tax Return
Mr. Chris Edward is a Chef working for ABC Television since last 9 years. Chris is seeking your hep to complete his 201X income tax return and provided you the following information:
• Employer ABN: 9877 654 3211
• D.O.B: 13/05/1989
• TFN: 123 456 789
• Address: 13 Marion ST, Coogee, NSW 2215
• Contact number: 042 345 6789
• Bank AC: BSB: 123456 AC: 987654321
• Salary: $13,000
• Allowance: $500
• Tax WH: $1,250
• Reportable fringe benefit: $870
He confirmed that he uses his mobile 100% for work which is $60 P/M. He paid $330 to do his prior year tax return. He also confirmed that he has all the necessary receipt to support his claim.
Required:
Prepare the individual tax return for Chris for 201X FY and obtain his signature for lodgement.
The Tax Form can be downloaded from your module and submit with your assessment or handover the hard copy to your teacher.
NOTE: (At the top of the tax form write your full name and student ID for marking purpose. Answer will not be marked is you fail to provide your details.)
PART B
Presentation
You are required to select any one topic between case 1 and 2 above and present to the class. For this presentation, you are required to prepare:
• Slides / answer sheets;
• Take answers from fellow students and speak with confidence;
• Dress appropriately.
PART C
Short Question 1
You are a Public Accountant operating in Sydney CBD. You have been approached by ABC Pty Ltd (ABC) a local coffee shop. ABC is a newly established business and seeking your advice on meeting their tax obligations. They have given you the following information in relation to their business:
• They started their operation on 01 July 2017;
• Annual turnover for year ended 30 June 2018 is $350,000;
• They are registered for GST but has not lodged any related report. You have made a quick enquiry and found their report obligation is on quarterly basis;
• They have 3 fulltime employees and 2 casual employees. ABC is paying their employees weekly wages but did not withheld any tax;
• They have an external bookkeeper who is managing their accounts in MYOB.
Required:
Prepare a letter to ABC outlining the job needs to be performed in accordance with ITAA and GST legislation.
Short Question 2
Among the Small Medium Entity (SME), the most common types of entities are Sole Traders, Partnerships, Trusts and Companies. All these have unique characters and works differently than each other. Why it is imperative that entrepreneurs choose the right entity structure? Provide your opinion with examples.