BSBFIA401A – PREPARE FINANCIAL REPORTS

ASSESSMENT2 – MARKING GUIDE

Task / Topic / Element of competency / Marks available / Marks required to achieve competency
1 / Balance day adjustments / BSBFIA401A/2 / 20 / 12
2 / Financial statements with balance day adjustments / BSBFIA401A/3
BSBFIA401A/4 / 20 / 12
3 / Correction of errors / BSBFIA401A/4 / 20 / 12
4 / Asset registers and depreciation / BSBFIA401A/1
BSBFIA401A/2 / 40 / 24
Total / 100 / 60

TASK 1 – 20 Marks

Balance day adjustments as at 30 June 2011

a)3 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Interest Receivable / 1,000
Interest Received / 1,000
Interest earned but not yet received ($100,000 X 4% X 3/12)

b)3 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Rent Received / 1,400
Rent Received in Advance / 1,400
Rent received in advance ($2,800 X 15days/30days)

c)(i)3 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Bad Debts / 500
GST Collected / 50
Accounts Receivable / 550
Write off bad debts of $550

(ii)3 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Doubtful Debts Expense / 1,350.00
Allowance for D Debts / 1,350.00
Adjust allowance for doubtful debts at 30.6.2011 to [5% X ($50,550 – 550)] – 1,150

d)3 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Prepaid Expenses / 4,800
Insurance / 4,800
Prepaid insurance ($6,336/1.1)X 10 /12)

e)3 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Inventory Variance (COGS) / 200
Inventory / 200
Adjust stock on hand at 30.6.2011 to $24,800

f)2 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Depreciation / 8,958
Accumulated Depreciation / 8,958
Depreciation ($66,000-$11,000)/1.1 X (21,500km/120,000km)

TASK 2 – 20 Marks

-1 for each error

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2011

Sales / 166,500
Less: Discount Allowed / 211 / 166,289
Cost of Goods Sold
Opening stock / 12,200
Purchases / 95,500
Freight inwards / 672
Goods available for sale / 108,372
Closing stock / 10,600 / 97,772
Gross Profit / 68,517
Other operating income
Interest Received / (434+220) / 654
Bad Debts Recovered / 200 / 854
Total Income / 69,371
Less: Operating Expenses
Marketing
Advertising / 3,492
Freight Outwards / 3,217 / 6,709
Administration
Depreciation –Motor Vehicle / 6,000
Insurance / 714
Motor vehicle expenses / 2,160
Office Expenses / 1,611 / (984+627)
Wages / 15,570 / 26,055
Financial
Interest paid / 4,000 / 36,764
Net Profit / 32,607

BALANCE SHEET AS AT 30 JUNE 2011

CURRENT ASSETS
Bank / 2,085
Petty cash / 100
Accounts receivable / 4,360
Less: Allowance for doubtful debts / (360) / 4,000
Stock on hand / 10,600
Interest receivable / 220
TOTAL CURRENT ASSETS / 17,005
NON-CURRENT ASSETS
Motor Vehicles / 34,400
Accumulated depreciation – motor vehicles / (21,500) / 12,900
Land and buildings / 170,000
Investments / 10,000
TOTAL NON-CURRENT ASSETS / 192,900
TOTAL ASSETS / 209,905
CURRENT LIABILITIES
GST Collected / 600
GST Paid / (500) / 100
Accounts Payable / 2,000
Accrued Expenses / 627
TOTAL CURRENT LIABILITIES / 2,727
NON-CURRENT LIABILITIES
Mortgage on Buildings / 40,000
TOTAL LIABILITIES / 42,727
NET ASSETS / $167,178
EQUITY
Capital / 141,271
Net Profit (Loss) / 32,607
Drawings / (6,700)
$167,178

TASK 3 – 20 Marks

Prepare general journal entries to correct the following errors:

a)5 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Accounts Receivable – E Mansour / 21,560
Accounts Receivable – E
Marston / 21,560
Correct posting of invoice to E Mansour

b)5 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Inventory (or purchases) / 1,800
GST Paid / 180
Accounts Payable / 1,980
Correct posting of invoice received from R Butler supplier

c)5 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Office equipment / 8,000
Office expenses / 8,000
Correction of coding error

d)5 marks

DATE / DETAILS / DEBIT / CREDIT
30.6.2011 / Accounts receivable – P Smith / 990
Accounts receivable – J
Smith / 990
Correction of cash receipt posting

TASK 4 – 40 Marks

a)20 marks (- 1 for each error)

Reducing balance:Machine A

Depreciation rate:30%

Cost:$40,000

Residual:N/A

$40,000 X 0.3 X 10/12 = $10,000

Date / Carrying amount at the beginning / Depreciation / Accumulated Depreciation / Carrying amount at the end
30 June 2009 / 40,000 / 10,000 / 10,000 / 30,000
30 June 2010 / 30,000 / 9,000 / 19,000 / 21,000
30 June 2011 / 21,000 / 6,300 / 25,300 / 14,700

Straight Line:Machine A

Depreciation rate:24%

Cost:$40,000

Residual:$3,000

($40,000-$3,000) X 0.24 X 10/12 = $7,400

Date / Carrying amount at the beginning / Depreciation / Accumulated Depreciation / Carrying amount at the end
30 June 2009 / 40,000 / 7,400 / 7,400 / 32,600
30 June 2010 / 32,600 / 8,880 / 16,280 / 23,720
30 June 2011 / 23,720 / 8,880 / 25,160 / 14,840

b)15 marks (- 1 for each error)

Machinery

Date / Particulars / Fol / $ / Date / Particulars / Fol / $
1/9/08 / Bank / 40,000

Accumulated Depreciation - Machinery

Date / Particulars / Fol / $ / Date / Particulars / Fol / $
30609 / Balance c/d / 10,000 / 30609 / Depreciation / 10,000
10,000 / 10,000
01709 / Balance b/d / 10,000
30610 / Balance c/d / 19,000 / 30610 / Depreciation / 9,000
19,000 / 19,000
01710 / Balance b/d / 19,000
30611 / Balance c/d / 25,300 / 30611 / Depreciation / 6,300
25,300 / 25,300
01711 / Balance b/d / 25,300

Depreciation - Machinery

Date / Particulars / Fol / $ / Date / Particulars / Fol / $
30609 / Depreciation / 10,000 / 30609 / P & L / 10,000
10,000 / 10,000
01709 / 0
30610 / Depreciation / 9,000 / 30610 / P & L / 9,000
9,000 / 19,000
01710 / 0
30611 / Depreciation / 6,300 / 30611 / P & L / 6,300
6,300 / 6,300
01711 / 0

c)5 marks (- 1 for each error)

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2011

Less: Operating Expenses
Administration
Depreciation –Machinery / 6,300

BALANCE SHEET AS AT 30 JUNE 2011

NON-CURRENT ASSETS
Machinery – at cost / 40,000
Accumulated depreciation – machinery / (25,300) / 14,700

24/8/2011Version 1

BSBFIA401A Assessment 2 MG V1 Meadowbank TAFE – NSI Page 1 of 8