Task 1

Answer the following questions:

1. What are meant by the terms assets and liabilities?

2. What is a bank statement and how does it assist in identifying discrepancies?

3. What is the GST, who pays it and how is it calculated when shown as a GST exclusive price and as a GST inclusive price?

4. Describe the differences between accrual accounting and cash accounting?

5. Explain the following:

a. General ledger

b. Chart of accounts

c. Journals

d. Double entry accounting

Task 2

Using the following ledgers and bank statement answer the following questions.

Cash Receipts Journal

CASH RECEIPTS JOURNAL OF THE RESORT – STUDENTS LODGE – JULY 20XX

Day

Description

Bank

Food

Beverage

Accommodation

1

Days takings – food

$ 764.00

$ 764.00

Days takings – beverage

$1375.00

$1375.00

3

Days takings – beverage

$5000.00

$5000.00

7

Days takings – food

$6400.00

$6400.00

10

Takings – Accommodation

$10125.00

$10125.00

17

Takings – Accommodation

$3775.00

$3775.00

Days takings – beverage

$1045.00

$1045.00

21

Days takings – food

$4675.00

$4675.00

25

Days takings – food

$4880.00

$4880.00

31

Days takings – beverage

$6500.00

$6500.00

31

Balance b/d

$5544.00

TOTAL

$50083.00

$11839.00

$13920.00

$18780.00

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Finance 1 Assessment Task 1, v1.0

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Cash Payment Journal

CASH PAYMENTS JOURNAL FOR THE RESORT – STUDENTS LODGE – JULY 20XX

Date

Chq No

Payee

Details

Bank

Purchase Food

Purchase Beverage

Wages

Advertising

Insurance

Misc

1/7/XX

1101

No Spots

Laundry

$1000.00

$1000.00

1102

One Stop Food

Purchases – Food

$4150.00

$4150.00

3/7/XX

1103

Cash Wages

Wages

$2625.00

$2625.00

7/7/XX

1104

Integra Energy

Electricity

$315.00

$315.00

10/7/XX

1105

Cash Wages

Weekly Wages

$2625.00

$2625.00

14/7/XX

1106

Cowan Comps

Purchase of new computer

$1750.00

$1750.00

17/7/XX

1107

Cash Wages

Weekly Wages

$2625.00

$2625.00

22/7/XX

1108

Finley Gellars

Purchases – liquor

$4750.00

$4750.00

24/7/XX

1109

Cash Wages

Weekly Wages

$2625.00

$2625.00

1110

Cash

Purchases Beverages

$2000.00

$2000.00

26/7/XX

1111

Office Supplies

Stationery

$995.00

$995.00

29/7/XX

1112

News Ltd

July’s advertising

$325.00

$325.00

1113

ITT Insurance

Insurance premium

$4145.00

$4145.00

31/7/XX

1114

Cash Wages

Weekly Wages

$2625.00

$2625.00

1115

ANZ Bank

Interest on mortgage

$1458.00

$1458.00

1116

Cash- Food

Purchase Food

$4875.00

$4875.00

1117

ABC Office

July’s stationery

$107.00

$107.00

Total

$38995.00

$9025.00

$6750.00

$13125.00

$325.00

$4145.00

$5625.00

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Finance 1 Assessment Task 1, v1.0

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Bank Statement

ACADEMIES BANK

THE RESORT – STUDENTS LODGE

STATEMENT FOR THE MONTH OF: JULY 20XX

JUL- XX

Debit

Credit

Balance

1

Balance brought forward

2

Deposit

$2139.00

$2139.00

Cr

3

Cheque

103

$2625.00

$486.00

Dr

6

Deposit

$5000.00

$4514.00

Cr

Cheque

1101

$1000.00

$3514.00

Cr

8

Deposit

$6400.00

9914.00

Cr

10

Deposit

$3775.00

13689.00

Cr

Cheque

1107

$2625.00

11064.00

Cr

11

Cheque

1102

$4150.00

6914.00

Cr

15

Deposit

$1045.00

7959.00

Cr

17

Cheque

1110

$2000.00

5959.00

Cr

18

Cheque

1109

$2625.00

3334.00

Cr

Deposit

$10125.00

13459.00

Cr

19

Cheque

1104

$315.00

13144.00

Cr

Cheque

1108

$4750.00

8394.00

Cr

26

Cheque

1111

$995.00

7399.00

Cr

27

Deposit

$4675.00

12074.00

Cr

29

Cheque

1112

$325.00

11749.00

Cr

Cheque

1113

$4145.00

7604.00

Cr

30

Deposit

$4880.00

12484.00

Cr

Cheque

1105

$2625.00

9859.00

Cr

Cheque

1106

$1750.00

8109.00

Cr

31

Cheque

1114

$2625.00

5484.00

Cr

Cheque

1115

$1458.00

4026.00

Cr

B/Fees

$8.00

4018.00

Cr

1. Complete a bank reconciliation, the balance in the general ledger account as at 30 June 20XX was $0 as this is the first month the profit centre of the Backpackers Lodge has commenced. (Excel file)

2. Complete a Cash Balance Summary (Excel file)

3. Complete a Bank deposit slip for the cheque deposited on the 18th July 20XX (at the bottom off assessment)

4. Complete a Profit and Loss Statement for the month of July 20XX (Excel file)

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Finance 1 Assessment Task 1, v1.0

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5. Business Activity Statement Locate the BAS form by visiting the Australian Tax Office (ATO) website (https://www.ato.gov.au/Forms/BAS-A—quarterly-BAS/). Print, complete and submit the form with this assessment

Task 3

Complete and answer the following table

Complete the following – don’t round off calculations Budget as a model Regular Queen size Total

Rooms

40

20

60

Occupancy

60%

60%

Rooms sold per day

by 30 days

Room nights

Nightly tariff

$ 85

$ 100

Revenue

Manipulating the model (1) Regular Queen size Total

Rooms

40

75%

15

20

60

Occupancy

75%

75%

Rooms sold per day

by 30 days

Room nights

Nightly tariff

$ 85

$ 95

Revenue

Manipulating the model (2) Regular Queen size Total

Rooms

40

20

60

Occupancy

55%

55%

Rooms sold per day

by 30 days

Room nights

Nightly tariff

$ 80

$ 100

Revenue

Manipulating the model (3) Regular Queen size Total

Rooms

40

63%

13

20

60

Occupancy

50%

50%

Rooms sold per day

by 30 days

Room nights

Nightly tariff

$ 75

$ 100

Revenue

The best outcome model for maximum sales is?

T-1.8.1

Finance 1 Assessment Task 1, v1.0

Last updated on 15/05/2017 Page 9

Task 4A

Iain Hew owns The French Travel Agency, at Cape Drayton, Queensland and is thinking of buying new office furniture in three months’ time (December, 20XX) at a cost of $65,000. The old furniture will be sold at that time for $3,000. Assume an opening bank balance of $50,000 at the beginning of October. Other details include:

1. Iain estimates $70,000 sales for each month. Half these sales are received in cash and half are received in the next month as they are credit sales. Octobers credit sales from September, amount to $35,000.

2. Purchases amount to 25% of sales (excluding scrap) and are paid for in cash.

3. Labour costs are $20,000 each month.

4. Superannuation ($3,000), rent (3,000), energy bills ($2,000), miscellaneous ($2,500) are all paid monthly.

5. Transport costs to the dock, town accommodation areas, and general couriering work amount to $1,000 per month.

6. Rates are paid once in October of $5,000. Requirements:

1. Prepare a cash budget for each month for The French Travel Agency, with the view to advising Iain whether he is in a position to pay $65,000 cash for the furniture at the end of the third month (December). Include also an accurate heading for this cash budget.

2. Suppose your balance at end was negative, what (new approaches) actions to rectify the problem would you consider?

3. Who would you consult and inform in relation to resource decisions?

Cash budget for the three months ending 31/12/08 October November December Quarter Cash receipts Cash sales Debtors Scrap Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Miscellaneous Transport and couriers Rates New bread oven Total cash payments Surplus / Deficit Cash balance at start Cash balance at end

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Finance 1 Assessment Task 1, v1.0

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Task 4B

Recalculate The French Travel Agency’s cash budget for the same period if:

1. sales still averaged $70,000 per month,

2. with sales averaging 90% cash and 10%, debtors for September were $ 6,000

3. purchases averaging 30% of sales

4. bank balance to start was $4,000

5. all else remains the same.

6. is there a problem with resource decisions?

Cash budget for the three months ending 31/12/08 October November December Quarter Cash receipts Cash sales Debtors Scrap Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Miscellaneous Transport and couriers Rates New bread oven Total cash payments Surplus / Deficit Cash balance at start Cash balance at end

T-1.8.1

Finance