BFA507 – The Accounting Framework
Activity – Semester One 2009
Information Accounting Job – Borderline Ltd
The goal of this challenge is so as to grow to be acquainted with the tactic of moving into transaction data proper right into a handbook accounting system and to verify your understanding of accounting concepts and apply. To undertake this challenge, it’s important to enter the transaction data contained on this knowledge sheet inside the acceptable journals and ledgers, put collectively the required opinions and reply the additional questions detailed beneath.
Working in groups
As indicated inside the Unit Outline, you is perhaps required to work in groups of two or three on the challenge. Should you’re a Distance scholar chances are high you may select to undertake this challenge individually. I might assume face to face school college students have already usual groups.
A bunch effectivity sort can be found on the end of this knowledge sheet. This manner must be hooked as much as the challenge when submitting the challenge. Whether or not it’s drawn to my consideration member of a bunch is simply not making an reasonably priced contribution, then that individual particular person will most likely be required to submit an individual challenge and can most likely be matter to the late penalty.
The challenge will most likely be marked out of 50. Half A is value 40 marks, Half B is value 20 marks and Half C is value 20 marks. Half A entails moving into the transaction data into the handbook accounts and Half B entails getting right into a set of conceptual questions.
Penalties will most likely be incurred for:
• Late submission (10% of mark deducted for each working day late);
• Nostril to nostril school college students assure your work accommodates the names of all group members and ID amount;
• Full the group effectivity sort (face to face school college students)
Half A – Information Accounting (40 Marks)
Full the subsequent duties for the month of June 2018 for Borderline Ltd.
• Be taught the attached knowledge fastidiously.
• Enter the transactions into the acceptable journals – you is perhaps anticipated to utilize Frequent and Explicit Journals.
• Submit the transactions to the Frequent Ledger accounts and steadiness the Accounts. (I prefer to advocate you moreover put collectively a trial steadiness at this stage to confirm your work). Enter Subsidiary Ledgers as acceptable.
• Put collectively a monetary establishment reconciliation, along with any primary journal entries required.
• Full any required adjusting and shutting journal entries and put collectively a post-closing trial steadiness.
• Put collectively a Assertion of Financial Effectivity for June and a Assertion of Financial Place as at 30 June 2018.
You might submit the subsequent knowledge:
• All journals and the whole set of T accounts.
• Submit Closing Trial Stability at 30 June
• Assertion of Financial Effectivity for June
• Assertion of Financial Place as at 30 June
• Monetary establishment Reconciliation at 30 June
• Agency knowledge for Borderline Ltd:
• Borderline Ltd run a small to medium sized wholesale enterprise that sells establishing supplies to native builders and completely different retailers in Tasmania. The enterprise was prepare by James and Jess Jordenson who registered the company on 1 July 2016 by issuing 60 000 $1 par shares. James and Jess have been allotted 52% of share capital and the stability to the general public.
• The company has not however declared or paid any dividends. Throughout the first yr of its life the company made a income after tax of $33 730.
• Borderline Ltd makes use of product sales, purchases, cash receipts, cash funds and primary journals along with subsidiary ledgers for debtors and collectors. Almost all of their prospects pay in cash nonetheless they do present credit score rating to a handful of valued purchaser. When Borderline makes credit score rating product sales, the phrases are three/10, n/10.
• Borderline rent an space warehouse and shopfront paying rent of $1500 per thirty days.
• The company’s retailer fittings are being depreciated over 10 years with an estimated residual price of $5 400. The company’s one Motor Vehicle, a provide van, is being depreciated over 5 years with an estimated residual price of $5 000.
• The mortgage is a 5 yr mortgage completely payable in 5 years time with curiosity to be paid at 9% annually in arrears on the primary July yearly. Curiosity for the yr to this point (as a lot as 31 May) has already been recorded inside the accounts.
• Provision for unsure cash owed is on a regular basis adjusted on the end of each month to equal three% of the value of full debtors on the end of that month.
• The company account for GST on an accrual basis and reconcile and pay GST every quarter. All figures are GST inclusive. GST was last paid in April this yr and is subsequent attributable to be paid in July 2018.
• Joenhysen Ltd put collectively their financial opinions on a month-to-month basis at a price of $250.
• All the transaction knowledge equipped accommodates GST till in some other case indicated.
• All figures are to be rounded to the closest buck.
The trial steadiness of the company at 31 May 2018 was as follows:
Submit Closing Trial Stability
at 31 May 2018
1000 Cash at monetary establishment 25 200
1100 Debtors administration 9 000
1200 Provision for unsure cash owed 300
1300 Inventory 85 000
1400 Retailer Fittings and Gear 60 000
1410 Acc depreciation –Retailer fittings and Equip 10 465
1500 Motor Vehicles 35 000
1510 Amassed depreciation –M/Vehicles 11 500
2000 Collectors administration 14 000
3000 Share capital 60 000
3100 Retained earnings 81 735
5000 GST Paid 4 300
5010 GST Collected eight 500
5020 Mortgage 32 000
$218 500 $218 500
Schedule of Debtors Schedule of Collectors
as at 31 May 2018 as at 31 May 2018
Shade Ltd 2 750
Roar Ltd 1 300 Mane Ltd 250
Zane Ltd 1 700 Purple Ltd three 200
Jones Ltd 1 100 Pink Ltd zero
Enormous Ltd 1 900 Yard Ltd 4 550
Mane 250 Zale Ltd 6 000
$9 000 $14 000
The subsequent transactions occurred in June 2018 for Borderline Ltd:
June 1 Acquired a cheque for $1 200 from Roar Ltd in full settlement of its
account and deposited it inside the checking account
three Provided inventory for $905(sooner than any reductions have been utilized) to Jones Ltd on credit score rating (the company was given a commerce low price of $80, then the standard credit score rating phrases) COGS was $420
4 Paid rent for June $1 500, chq no. 561 (Assume the rent is GST free)
5 Purchased inventory on credit score rating from Pink $1 397, phrases 2/10, n/15
6 Paid Yard $4 500 being full settlement of amount owing, chq no. 562
eight Acquired and deposited price in full from Enormous Ltd (no low price
11 Paid Pink in full by cheque, chq no. 563
12 Paid cellphone account by cheque of $320, chq no. 564
13 Acquired a cheque for $700 from Jones Ltd partly price of their account and deposited it inside the checking account (no low price allowed).
14 Banked cash product sales for the first two weeks of the month totalling $20 900 (COGS was $9 800).
14 Withdrew cash from the checking account to pay wages totalling $5 200, gross
wages have been $7 400 (wages sooner than tax)
17 Paid $220 for cash register rolls and completely different stationery, chq no.565
18 Provided inventory on credit score rating to Zane Ltd $2 750 (COGS was $1 200)
21 Provided inventory on credit score rating to Enormous $715 (COGS was $320)
23 Paid Purple Ltd $three 200 (no low price allowed), chq no. 566
27 Paid sundry payments of $435 (GST free objects), chq no. 567
28 Wrote off the whole amount owed by Mane Ltd as a foul debt
29 Deposited Cash Product sales of $27 500 ( COGS was $12 000)
30 Withdrew cash from the monetary establishment to pay wages of $5 600, gross wages have been
30 Zane Ltd returned inventory which we had purchased to them for $154 (COGS was $70). The returned inventory was in good scenario and returned to the cupboards and a credit score rating observe was issued to them.
30 Purchased inventory on credit score rating from Purple Ltd of $4510 after being allowing a commerce low price of $90 and on phrases of 1/10, n/30
(COGS was $2 100)
30 Banked Cash Product sales for the remainder of the month totalling $6 200.
30 Paid the stability of the account for Zale Ltd (no low price was allowed) chq
• Gross Wages owing on the end of the month full $1 320 and electrical vitality owing for the month of June is $1 100.
• Selling owing for the month was $three 500
• Earnings tax for the month of June 2018 is estimated to be $12 430
No entry had been made inside the accounts to allow for any of these items.
The monetary establishment assertion acquired on the end of June reveals the subsequent knowledge:
Monetary establishment Assertion
2018 Debit Credit score rating Stability
June 1 Stability 20 770 CR
deposit 5 400 26 170 CR deposit 1 200 27 370 CR
three chq.no. 498 650 26 720 CR
4 chq.no. 499 320 26 400 CR
5 chq no. 561 1 500 24 900 CR
eight chq. no. 562 4 500 20 400 CR
deposit 1 900 22 300 CR
14 deposit 700 23 000 CR
14 deposit 20 900 43 900 CR
14 cash withdrawal 5 200 38 700 CR
19 chq. no. 564 320 38 380 CR
27 chq. no. 566 three 200 35 180 CR
29 deposit 27 500 62 680 CR
30 cash withdrawal 5 600 57 080 CR
31 Monetary establishment expenses/bills 23 57 zero57 CR
31 Curiosity 83 57 140 CR
At 31 May 2018 there have been two glorious cheques- cheque no. 498 for $650 and cheque no. 499 $320 and one glorious deposit of $5 400.
Half B – Interpretative Questions (20 Marks)
There are 4 questions in Half B. Each question is value 5 marks. As a info no response to each question must exceed 200 phrases. You might write your options in your private phrases. Do you have to do use one other sources in preparing your reply you’ll have to acknowledge these as a reference (see the Unit Outline and the College’s Data for School college students).
(a) What does the data inside the financial opinions inform us about a company? What does the data inside the opinions you’ve got prepared for Borderline Ltd inform us about this agency?
(b) What is the distinction between a pre and publish adjusting/closing trial steadiness? Why would you might want to put collectively every?
(c) Make clear the purpose of every adjusting and shutting entries providing an occasion(s) for Borderline Ltd of every.
(d) What is the operate of constructing prepared a monetary establishment reconciliation? What knowledge did you uncover about this agency by preparing a monetary establishment reconciliation?
Half C – Transient Essay [20 marks]
James and Jess have been avid environmentalists for a number of years. Whereas they lead non-public lives that mirror this concern they shock how this will likely grow to be part of one of the best ways Borderline Ltd is carried out.
Write a fast essay indicating the subsequent to assist James and Jess in advising their Board of Directors what actions the company might take. Whereas collectively they keep 52% of the share capital they need to be seen as every clear and collegial in involving completely different occasions.
1. What environmental concerns might should be addressed
2. How these concerns is maybe addressed
three. What is maybe the financial have an effect on of these decisions
4. Why you contemplate it is rather essential deal with these concerns
BFA507 The Accounting Framework
Activity – Group Effectivity Report
(1) Circle the acceptable response to the subsequent questions:
– we have now been able to meet at a time helpful to each of us YES / NO
– we have now been each given a risk to contribute to the challenge YES / NO
– we each contributed fairly to the challenge YES / NO
If each member of your group is unable to answer “YES” to any of these questions, please give causes.
(2) Make clear briefly how work on the challenge was distributed between the members of your group.
Signed __________________________ __________________________
(THIS FORM SHOULD BE COMPLETED AND SUBMITTED WITH THE ASSIGNMENT. Do you have to need extra room, write on the reverse of this sheet.)