ABN: 57 169 281 501

E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

STUDENT ASSESSMENT

Prepare Financial Reports - BSBFIA401

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 1 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

Instructions
You are advised to commence work on your assessment from week 1 and all tasks must be
submitted by the due dates provided.

1. All assessments must be completed and delivered individually. Where an assessment

involves group discussions, you should consider the input of your group but submit an
individual assessment to your trainer.
2. Please read all instructions on completing each assessment. Instructions for completion
are provided at the beginning of each assessment.
3. All written answers must be typed in a word document using Arial font, 12 size and single
spacing if similar instructions are not provided in the assessment.
4. Your trainer will not be able to assist you in answering questions. However, your trainer
will address any issues concerning questions requiring further explanation.
5. You may refer to your student learning resources or any other relevant resources when
completing your assessment.
6. Assessments are due for submission as specified in the assessment schedule. Any
variations to this arrangement must be approved by your trainer prior to the due date for
submission.
7. You have access to computers which are equipped with Microsoft suite of products or
any other relevant software and printing facility.
8. Use assessment templates if provided, to complete relevant sections of the assessment.
You can also create your known templates for assessment evidence.
9. You must achieve a satisfactory result for all tasks to achieve competency in this unit.
10. All assessment answers should be submitted to the trainer in required format (soft or
hard copy) as per trainer instructions with completed assessment cover sheet (if
required).

Assessment Schedule
Task Due Date
Task 1 Week 1
Task 2 Week 2

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 2 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

Task 1: Theory Assessment

Student Instructions

1. Type all the answers in a word document if required.

2. You can conduct internet research to answer these questions.
3. Provide explanation of 2-3 lines when answering ‘Describe’ questions.
4. Provide detailed workings for calculations questions.
5. Provide answers in table format wherever possible.

Question 1 – Multiple Choose Questions

Select the letter you consider to be the nearest correct alternative.

1. A depreciation method that uses the capital cost, effective life and residual value is the:

a) units of use method

b) appraisal method
c) diminishing value method
d) straight line method.

2. Capital expenditure is:

a) funds spent from the Capital account

b) assets consumed in one accounting period
c) drawings by the owners of the business
d) non-current assets providing benefits for more than one accounting period.

3. What does the Accumulated depreciation account represent?

a) An operating expense of the business

b) A cash fund accumulated to replace worn-out or obsolete non-current assets
c) The expired capitalised cost of a non-current asset acquired in previous accounting
period
d) A non-current liability.

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 3 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

4. Office equipment purchased for $8000 (net of GST) has an expected life of five years with
a residual value at the end of five years of $1000 (net of GST). The depreciation charge for
year four applying the straight line method would be:

a) $1400
b) $2000
c) $1600
d) $1750

5. Factory plant purchased for $65 000 (net of GST) has an expected residual value of at
the end of eight years of $8000 (net of GST). The depreciation charge for year three
applying the diminishing balance method at a rate of 20% would be:

a) $7296
b) $8320
c) $9344
d) $8125

Question 2 – Ture/False

State weather the following statements are True or False.

1. For a trading firm, revenue is recognised when the goods are delivered.
2. In the income statement, insurance would be classified as a financial expense.
3. Allowance for doubtful debts is a negative liability.
4. Accrued expenses are liabilities yet to be paid.
5. The physical stocktake valuation at the end of the accounting period is deducted from
'Cost of goods available for sale'.

Question 3 – Written Answers

Provide answers to questions below in 1-2 paragraphs.

a) What is the difference between the profit and loss account and the income
statement?
b) What are the two types of balance day adjustments?
c) Why are prepayments classified as assets?
d) List the double entry bookkeeping principals.
e) List three (3) key accounting standards related to preparation of financial reports.
f) Provide details regarding two (2) different accounting software’s being used within
Australia.

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 4 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758
g) List and describe policies and procedures related to preparation of financial
reports within an organisation.

Question 4 – Cost of Goods Sold

Calculate the Cost of Goods Sold from the following data.

Details Amount ($)

Cartage outwards 8500
Insurance 10900
Customs duty 5400
Purchases 58300
Stock (opening) 3950
Cartage inwards 6200
Stock (closing) 5700
Purchases returns 1000
Sales commissions 5300

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 5 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

Task 2: Case Study and Practical Assessment

Student Instructions

1. Type all the answers in a word document if required.

2. You can conduct internet research to answer these questions.
3. Provide explanation of 2-3 lines when answering ‘Describe’ questions.
4. Provide detailed workings for calculations questions.
5. Provide answers in table format wherever possible.

Additional Information

a) Accounting Standards: http://www.aasb.gov.au/Pronouncements/Current-standards.aspx

b) Organisational policies and procedures: http://startupjunkies.com/extras/acct-policies.pdf

Question 1 – City Wide Stores

a) The trail balance of City Wide Stores is given in Appendix and following information
relates to the end of reporting period adjustments for 30 June 20XX.

1. Inventory on hand, $8600.

2. Wages (general) due but unpaid, $600.
3. Insurance paid in advance, $250.
4. It is estimated that 6% of accounts receivable will not be collected.
5. Depreciation, expense to be charged against revenue
a. Building, 5% per annum.
b. Plant and equipment, 10% per annum.
c. Motor vehicles, 33% per annum.
6. Accrued employee entitlements:
a. Sick Leave $ 420
b. Annual Leave, $3700.
c. Long-service, $1890

You are required to prepare:

1. end-of-period adjustments
2. preparing an adjusted trial balance
3. closing entries.

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 6 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758
b) As an accountant, you are required to select 3 most appropriate accounting software
packages for the company. Shortlisting one software package based on the merits,
shortcomings, cost and the usefulness of the package for the organisation.

You must discuss with your manager (Trainer) and do the role play of accountant
in convincing and getting his/her approval. You will be questioned and observed
for your communication and research and analysis capabilities.

Question 2 – Asset Register

Using the following information below, complete a Property, Plant and Equipment Register
AND a Disposal Register.

A 'Dissan' utility was purchased for $38 500 (incl. GST) on 1 July 2015 from HJK Motors.
Depreciation is to be calculated by the straight line method. The utility was expected to have
a three year life, at the end of which it was estimated to have a residual value of $10 000
(excluding GST). When not in use the utility was kept in the warehouse.

The utility was sold to RTY Builders at the end of three years (30 June 2018) for $11 550
(incl. GST).

After completing the Plant register, make the necessary entries in the Disposal
register. See appendix for required template.

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 7 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758
Question 3 – End of year financial management

Information for period ending 30 June 2016 is following:

1. Stock at 30 June 2016 $13 800

2. Allowance for doubtful debts to be adjusted to 7.36% of trade debtors (nearest $1 up)
3. Depreciation of Plant and Equipment @10% per year
4. Wages due but not yet paid $550
5. Annual insurance premium paid 1 January 2016 $1200
6. Interest on Bonds paid every six months on 1 February and 1 August, @ 9.75 % per
year
7. Monthly rent received from tenant June 15, 2016 $500
8. Close GST paid and GST collected to GST clearing

Complete the following tasks.

a) Write down the general journal entries for balance day adjustments based on
information provided. Narrations not required. Template is available in Appendix
b) Complete a multi-column worksheet in order to produce a general ledger Trading
account, Profit and loss account and Balance sheet. You will find the multi-column
worksheet in Appendix
c) Prepare a classified Income statement for the period ending 30 June 2016.
Template is available in Appendix
d) Prepare a classified Balance sheet for the period ending 30 June 2016. Template is
available in Appendix

Question 4 – Trial Balance Errors

a) Give example of following:

1. Errors that effect trial balance and

2. Errors which does not affect trial balance.

b) Show the required journal entry with narration for correcting the errors in recording
the following transactions:

 Purchase goods from Jonathan for $400.00 was recorded correctly in purchase journal
but posted in Yonathan’s account.

Appendix

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 8 of 10
 ABN: 57 169 281 501
E: admissions@sydneymetrocollege.edu.au
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

Trail Balance - City Wide

Plant and Disposal Register General Journal
Stores

Trail Balance - City Plant and Disposal General

Wide Stores.docx Register.docx journal.docx

Multi-column Worksheet Income Statement Balance Sheet

Multi-column Income Balance Sheet.docx

Worksheet.docx Statement.docx

Prepare Financial Reports - BSBFIA401

Issue Date: 12/11/2017 Page 9 of 10
References / recommended resources
 Management Accounting: An Australian Perspective, By Kim Langfield-Smith, Helen
Thorne, Ronald W. Hilton, McGraw Hill Australia ISBN 0-07-471190-3
 Financial Accounting; A practical approach, National Institute of Accountants, Pearson
Education, Australia ISBN 0-7339-7383-3
 Foundations of Accounting, Doug Mills, Warren Call and Alan Drew, 9th edition, UNSW
Press 2003

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Issue Date: 12/11/2017 Page 10 of 10