Subject Code : BSB51918
Country : Australia
Assignment Task:

Task:

Task 1: Describe the following the accounting principles of accounting. Explain each one with an example. (4 marks)

The Revenue Principle:
 

The Expense Principle:
 

The Matching Principle:
 

The Cost Principle:

The Objectivity Principle:
 

Task 2: Visit the Australian Tax Office website (www.ato.gov.au) and identify the records relevant to current legislations regarding the following: (4 marks)
Sales records:
 

Purchase/expense records:
 

Year-end income tax records:

Records relating to payments made to employees:
 

PAYG withholding records relating to business payments:
 

Goods and Services Tax (GST):

 

Task 3: How often does an organization need to perform an audit trail to make sure all transactions are recording with due diligence? (2 marks)

 


Task 4: Give some examples for the following costs: (2 marks)

Direct cost
 

Indirect cost
 

Fixed cost
 

Variable cost
 

Step cost/Semi variable cost

Task 5: Sales Budget (2 marks)
From the information given, calculate and write down all possible variances (units or dollar amounts as applicable) in the variance columns stating whether they are favourable (F) or unfavourable (U).

Budget Actual Variance (Total)
Qty $

Sales – Product A Units 900 950
Sales – Product B Units 1 200 1 180
Sales – Product C Units 1 500 1 650

Sales – Product A $/Unit 10 9
Sales – Product B $/Unit 12 14
Sales – Product C $/Unit 15 16

Production – Product A Units 1000 1 100
Production – Product B Units 1 200 1 320
Production – Product C Units 1 800 1 780

Raw material X $ 5 700 6 875
Raw material Y $ 10 500 10 230
Raw material Z $ 7 200 7 476


Task 6: Dissemination of budgets and financial plans. (1 mark)
List the ways by which dissemination of budget and action requirements takes place. How can an organisation negotiate any changes required to be made to budget/financial plans with relevant personnel?
 

Task 7: Fees Budget Scenario. (1 Mark)
The Suburat Medical Centre, located in an affluent suburb, provides a 24-hour medical service to the residents. A recently recruited employee has been asked to help the management with the preparation of a fees budget for January 20X1and is provided with the following information:

 Forty-five per cent of patients pay in cash when services are performed, and those insured claim refunds from their medical funds. The fee charged to the patients is $25.
 Fifty-five per cent of the patients are accepted on bulk billing, where the fee charged is $19.
 The number of patients expected for consultation/treatment in January 20X1 is 1700.

Show how the fees budget will be prepared.

Workings:

Suburat Medical Centre
Fees budget – January 20X1

 

Fees receivable in cash
Fees receivable from bulk billing
Total fees

Prepare contingency plans for the organisation above if they don’t reach the required target of patients? (1 Mark)


Task 8: Expense budget scenario. (2 marks)
Prepare a selling expense budget for the month of February 20XX for Dajan & Co. The sales for
February are expected to be $120000. The bases to be used for budget purposes are as follows:
• Annual fixed expenses are allocated equally to each month.
• Sales staff salaries are equal to 4% of sales.
• Depreciation of sales vehicles is an amount of $18000 per annum.
• Sales staff insurance is 2.5% of total sales staff salaries.
• The advertising budget is currently $19200 per annum.
• Sales vehicle maintenance costs the organisation 2% of sales revenue.
• Freight out is calculated at 0.65% of revenue.
Workings:
Item

$

Salaries
Depreciation
Staff Insurance
Advertising
Vehicle Maintenance
Freight
Total

 

Task 9: Preparing Profit & Loss and Balance sheet using Spreadsheet: (2 marks) Complete the following P & L and Balance sheet.

P & L Statement IBC Pty Ltd
July 1, 2013 to June 30, 2014

Gross sales 346,400
Les: sales returns and allowances 1,000
A. Total Business Income
Cost of Goods Sold:
Beginning Inventory, July 2012 160,000
Add:
Direct material 90,000
Direct labour 50,000
Factory overhead 2,000
Less:
Closing inventory, June 2013 100,000
B. Cost of Goods Sold
C. Gross Profit (A-B)
Expenses
Salaries 68,250
Utility bills 5,800
Rent 23,000
Office supplies 2,250
Insurance 3,900
Advertising 8,650
Telephone 2,700
Travel and entertainment 2,550
Dues and subscriptions 1,100
Interest paid 2,140
Commission paid 1,250
Owner’s drawings 11,700
D. Total expenses
Net Profit (C-D)

 

Balance Sheet IBC Pty Ltd
July 1, 2013 to June 30, 2014

Assets
Cash 8,450
Accounts Receivable 65,000
Inventory 19,550
Land 65,000
Buildings 32,500
Plant & equipment 32,500
Less: Accumulated depreciation (16,900)
Goodwill 22,100
A. Total Assets

Liabilities
Accounts payable 44,200
Bank overdraft 1,000
Short term loans 15,000
Mortgage 35,000
B. Total liabilities
C. Net Assets (A-B)

Owner’s equity
Opening equity 66,500
Retained profit 66,500
D. Total owner’s equity

Determine the financial performance and identify, document and recommend any improvements of the above calculation? (1 marks)


Page 13
Week 4
Task 10: GST Calculations. (2 marks)
John is the owner of a fish and chips shop in Parramatta. His total sale for the month of February was $24,000 including GST. His purchase was $18,000 for the same month. Calculate the following.
(i) GST received
(ii) GST paid
(iii) Net GST payable


Page 14
Week 5
Task 11: GST and Cash Flow Statement (4 marks)
A company forecasts the following transactions during the next financial year which will affect its cash flow. (All ATO dues and ATO credits are expected to be settled during the year.)

$

Cash sales, 10% GST not included
Credit sales for year, including 10% GST
Cash receipts in respect of credit sales — budget year
Cash receipts in respect of credit sales — previous year
Cash purchases, 10% GST not included
GST payable to ATO
GST input credit from ATO
Wages
Other payments, including 10% GST

80 000
176 000
140 800
11 000
90 000
12 000
24 000
120 000
33 000

Prepare a budgeted cash flow statement assuming that the opening bank balance was $30,200.
Workings:
Cash Receipts: $ $
Cash sales
GST receipts on cash sales
Credit sales - budget year
Credit sales - previous year
Total Cash receipts
Cash Payments:
Purchases
GST payments on cash purchases
Wages
Net GST payable to ATO
Other payments
Total Cash Payments:
Cash surplus/(deficit)
Opening bank balance
Closing bank balance


Page 15
Task 12:
Part A: Accounts Receivable Collection Schedule and Cash Flow Statement. (4 marks)
Part B: Create an EXCEL file and complete the calculations through using formula. (4 marks)
(Please attach a screenshot of the excel work sheet at the end of assessment at appendix 1)

Scenario: Stock & Co., a manufacturing company need to produce a cash flow budget as part of an overdraft application with their bank. They collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team. The following are some of Stock’s budgeted figures:

Credit sales
$

Purchases
$

Wages
$
November 39 000 26 975 3 185
December 41 600 31 200 3 900
January 23 400 52 650 3 600
February 37 700 53 300 3 470
March 27 300 58 175 3 380

Budgeted cash at bank on 1 January is $5590.
Though credit terms of sale are payment by the end of the month following the month of supply, Stock & Co. can expect half of the sales to be paid on the due date, with the other half being paid during thefollowing month. Creditors are paid during the month following the month of supply. Wages are paid in the month they are owed.
Utilising the following tables for format, prepare a cash budget for the quarter 1 January to 31 March 20XX.

 

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