assignment

FNSBKG404A Carry out business activity and instalment activity statement tasks

Assessment Task 1 - Project

Student Name: Name Here

Student Number: XXXXXX

Assessment Number: 20984E_01

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Instructions

Once you feel confident that you have covered the learning materials for this unit, you

are ready to attempt this assessment. To complete the assessment, please create a new

Microsoft Word document and type your answers to each question or task in this

document, noting the question number from the assessment. Alternatively, you can

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your course in OpenSpace.

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number]_[assessment number].doc. For example 12345678_21850a_01.doc

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Assessment description

By completing this assessment you will gather evidence of your ability, knowledge and

skills necessary to prepare Business Activity and Instalment activity tasks including:

identifying Compliance Requirements

recording the GST where applicable

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reporting on your payroll activities

reporting on other amounts withheld

completing your activity statements

lodging your activity statements.

Assessment tasks

The assessment for FNSBKG404A requires you to complete three tasks as follows:

• Assessment Task 1 – Project • Assessment Task 2 – Knowledge Test • Assessment Task 3 – Verbal Questioning Task 1 - Marks will be awarded as follows:

Part Question Break-up Marks

Part 1 BAS 30

Part 2 Case study – Subsidiary journals 23

Case study – General ledger 37

Case Study - Trial Balance 8

Case Study - BAS 88

Part 3 Report 7

Total 193

Grade will be awarded as follows:

Grade Marks

Pass 97 – 124

Credit 125 – 143

Distinction 145 – 162

High Distinction 164 – 193

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Assessment Task 1 - Project Task 1 - (30 Marks) Instructions: You are required to read and answer the following questions in full. To complete the

assessment, please create a new Microsoft Word document and type your answers to

each question or task in this document, noting the question number from the

assessment. Alternatively, you can download a Microsoft Word copy of this assessment

from the relevant Study Period of your course in OpenSpace. Refer to Assessment

Submissions section of this assessment for full submission details.

Your responses should aim to demonstrate that you have the required knowledge and

skills to respond to the questions. Your responses will be used as part of the overall

evidence requirements of the unit.

Background information: Dazza owns and operates a chicken shop. The transactions given below are a summary

of the transactions for the April to June 20XY quarter.

A transaction summary for the three months ended 30 June 20XY is as follows:

Dazza contributed $50,000 in the bank as a further capital contribution

Drawings by Dazza during the period $24,100

Cash sales inclusive of GST $468,600

Cash sales of GST Free items $32,000. These sales are not included in the Sales

given above.

Interest received $2,500

Credit sales $3,300 inclusive of GST. The account will be settled after the quarters

conclusion.

Sale of a machine used for grilling chickens $4,730 exclusive of GST

Dazza sold his own bottled salad dressings to a chicken shop in Auckland, New

Zealand and received $10,000

Cash paid for raw chickens $250,000

Paid for other supplies $96,000 excluding GST. The GST included is these purchases

are $7,200. There are some GST free purchases in the amount paid for other

supplies.

Bought a new grilling machine for $30,800 inclusive of GST. Paid in cash.

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Advertising expenses paid $21,000. These expenses were paid to a contractor who

has an ABN but is not GST registered.

Paid cash for selling expenses totalling $31,000 excluding GST, where all items were

taxable. Additional selling expenses accrued but not paid by 30 amounted to $22,000

including GST on all items.

Proceeds on a loan from Help Us Bank $60,000

Interest paid on above Loan $2,000.

Wages paid from the bank during the period totalled $18,000 and PAYG withholdings

accrued was $3,000

Paid superannuation to Host Plus of $1,900 in Q4.

The total Merchant fees for the period $715

Bank charges for the three months totalled $45.

Task: Complete the BAS for Dazza’s Delicious Chicken’s on a cash basis for the above period.

Use the Tax office’s instalment rate of 5.2% and the same method that the BAS is being

prepared by to calculate the T1 figure.

Show all workings clearly as an attachment to the BAS.

Your workings must show how you obtained the figure at each label of the BAS.

For example, G1 = $500,000 (Cash Sales) + $2,000 (Interest Received)

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Task 2 - (156 Marks) Background information: Sugar and Spice sell two items, namely ‘candy’ which is subject to GST and ‘spice’

which is not subject to GST.

Sugar and Spice uses the Periodic inventory system.

The following general ledger accounts are used:

Bank

Debtors Control

PAYGI Credits

Creditors Control

GST Collected

GST Paid

BAS Running Balance Account

Vehicles

PAYG Withholding

Sales Candy

Sales Spice

Purchases – Candy

Purchases – Spice

Interest Received

Bank Charges

Merchant Fees

Wages

Policy and procedure related to BAS and PAYG liabilities At the end of the relevant quarter, all BAS and PAYG period end reconciliations are undertaken and

the GST Collected, GST Paid and PAYGW amounts are cleared from the applicable control accounts

to the “BAS running balance account” via General Journal posting. These amounts remain in the

running balance account until the amounts are paid by the 28th of the month following the quarters

end.

Account opening balances as at 1/4/20XY:

Account Debit Credit

Bank $80,000

Debtors Control $123,000

PAYG Instalments $23,232

Creditors Control $95,000

BAS running balance $51,344

Vehicles $32,000

Owners Equity $111,888

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Journal summaries for the quarter ended 30 June 20XY:

Sales journal

Total Taxable sales including GST where applicable:

o Sales of candy: $173,800 including GST

o Sales of spices: $44,000

Receipts journal

Cash Sales: o Candy: $200,000 excluding GST o Spice: $80,000

Receipts from Debtors $196,000

Interest received $3,400

Purchases journal

Purchases of candy $66,000 including GST

Purchases of spices $38,000

Payments journal

Cash purchases of candy $46,200 inclusive of GST

Cash purchases of spices: $11,000

Payments to suppliers $90,000

Gross Wages and salaries for the three month period was $40,000 and PAYG

tax withheld from Wages and salaries was $8,000

Merchant fees inclusive of GST $935.

Bank charges $50 not subject to GST

Vehicle purchases $24,000 excluding GST

Paid all outstanding BAS and PAYG liabilities related to Q3 (quarter ending 31

March) – NOTE: in accordance with the company policy and procedures, all of

the above liabilities were cleared to the BAS running balance account at 31

March.

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Journal headings are as follows:

Sales Journal: Quarter, Total, GST, Candy, Spice.

Receipts Journal: Quarter. Bank, GST, Sales – candy, Sales - spice, Debtors, Interest received.

Purchases Journal: Quarter, Total, GST, Purchases - candy, Purchases - spice.

Payments Journal: Quarter, Bank, Purchases Candy, Purchases Spice, GST, Creditors, Gross Wages, PAYG, Bank Charges/Merchant Fees, Capital Purchases, Other

General Journal

Task:

Prepare the following:

1) Totals for the subsidiary journals

2) All the necessary general ledger posts

3) A Trial Balance

4) A BAS for the three month period. Sugar and Spice are required to use the accrual

method and have opted to use Option 1 (Pay a PAYG Instalment amount quarterly)

for their PAYG Instalments. The amount as stated on the BAS at T7 is $7,744.

Show your workings at each label of the BAS.

5) The General Journal entry to clear the GST and PAYGW control accounts, along with

the PAYGI for the quarter to the BAS running balance account at 30 June, as per the

company policy and procedures.

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Task 3 - (7 Marks)

The Best Car Sales Pty Ltd sells luxury cars and is obligated to pay the Australian

Taxation Office Luxury car tax.

You are required to calculate the Luxury car tax applicable to the sale of a motor vehicle

with an inclusive GST price of $99,000. Show your workings and use the current

applicable threshold.

Hint: You can use the ATO website on Luxury car tax.

assignment

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