BSB40820 Certificate IV in Marketing and Communication

BSBFIN401 Report on financial activity

Assessment 2
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Appendix 3 – Asset register

Describe legislative and Andrew's Slabs Financial Policy and Procedures This document outlines the
regulatory requirements guidelines for Andrew's Slabs to comply with laws and regulations related to
trading practices, as well as adhering to standards and codes of conduct,
including those set by the Australian Accounting Standards Board (AASB).

Describe the business’s A strong ethics-based culture that helps people engage in and promote
code of practice and ethical behaviour will foster trust, lead to robust global capital markets, and
their ethical ultimately benefit society. Professions can only exist within an industry when
requirements. those acting with transparency, integrity, candour, and trust reach a critical
mass.
Also discuss the ethical
requirements associated The Code of Professional Conduct (Code) is a legislated code that sets out
with preparing financial the professional and ethical standards required of registered tax agents and
reports for corporate BAS agents. It outlines the duties that agents owe to their clients, the Tax
entities, including: Practitioners Board (Board) and other agents.

 conflict of interest The APESB standards and your practice

CPA Australia members have a responsibility to act in the public interest.
 confidentiality
You must comply with the fundamental principles of integrity, objectivity,
 disclosure. professional competence, due care, confidentiality, and professional
behaviour in all your dealings.

Describe relevant The Australian Accounting Standards Board (AASB) is a government

accounting standard agency responsible for setting accounting standards in Australia. These
requirements standards are referred to as Australian Accounting Standards and are
designed to align with the International Financial Reporting Standards
(IFRSs). Examples of accounting standards include segment reporting,
goodwill accounting, allowable methods for depreciation, business
combination, lease classification, outstanding share measurement, and
revenue recognition.
- The IFRS provides guidelines for international companies to manage and
report their financial statements and define various transactions with
financial implications. This accounting standard is based on principles and
lays the foundation for investors and businesses to analyse financial
information.
 - The International Financial Reporting Standards (IFRS) aims to establish a
globally accepted set of accounting standards to ensure transparency,
efficiency, and accountability in the international markets. IFRS emphasizes
the importance of openness in business practices, which enables investors
to make informed decisions and invest in companies with transparent
financial reporting.
- The IFRS requirements cover various financial statements, including the
statement of financial position, the statement of comprehensive income, the
statement of changes in equity, and the statement of cash flows. These
financial statements are essential for providing investors with a
comprehensive view of a company's financial health and performance.

Discuss organisational • preparing a register of assets

requirements
- Identification or serial number.
Including:
- Acquisition date.
 preparing a register
- Description of asset.
of assets
- Location.
 calculating
depreciation - Class of asset.

 adjusting the general - Cost of acquisition.

ledger - Accumulated depreciation.
 reviewing data for - Net book value.
errors and
compliance
• calculating depreciation
 preparing a revenue
statement - Subtract the asset's salvage value from its cost to determine the amount

 correcting and that can be depreciated.

referring errors for - Divide this amount by the number of years in the asset's useful lifespan.
resolution
- Divide by 12 to tell you the monthly depreciation for the asset.
 audit trials.

• adjusting the general ledger

- Post entries to the general ledger.
- Total the general ledger accounts.
- Prepare a preliminary trial balance.
- Prepare adjusting journal entries.
- Foot the general ledger accounts again.
- Prepare an adjusted trial balance.
- Prepare financial statements.
• reviewing data for errors and compliance
Regularly reviewing important documents will help you in your revision
process because you will know immediately if something needs to be
revised. This is far more efficient than waiting for something to happen that
 forces you to revise your document.
• preparing a revenue statement
- Pick a Reporting Period.
- Generate a Trial Balance Report.
- Calculate Your Revenue.
- Determine Cost of Goods Sold.
- Calculate the Gross Margin.
- Include Operating Expenses.
- Calculate Your Income.
- Include Income Taxes.
• correcting and referring errors for resolution
Under § 1005.33(c)(2)(ii), the sender may generally choose to obtain a
refund of funds that were not properly transmitted or delivered to the
designated recipient or, request redelivery of the amount appropriate to
correct the error at no additional cost unless the error is determined to have
occurred.
• audit trials.
Audit trails are required for all systems that record GxP data. Audit trails
should be generated independently of the operator and include the local
date and time of the actions that alter the record. They cannot overwrite the
old data, and they must be stored if the record itself is stored.

Prepare a register of assets for at least two fixed asset transactions

You may use your own business documents and do not need to complete the work below. If you do not
use the case study you must attach your evidence.
If using the case study provided complete below sections.

Write journal entries for Date Accounts Dr $ Cr $

one year for the two
assets 01/07/20 Plant & Equipment 18,000
19
If using the case study
provided complete within
Accounts payable 18,000
the Project Portfolio using
the Journal entries for the 30/06/20 Depreciation expense 2,720
year ended 30 June 20
2020.
Plant & Equipment: Accumulated 2,720
depreciation
 Workings:
Bench planer (Asset No. 346): unit of production method Depreciable
amount = original cost - residual value = $18,000 - $1,000 = $11,000 Year 1
(2019 - 2020) depreciation expense = (800 / 5,000) x $17,000 = $2,720
Year 2 (2020 - 2021) depreciation expense = (1,000 / 5,000) x $17,000 =
$3,400

Write journal entries for Date Accounts Dr $ Cr $

one year for the two
assets 1/7/2019 Plant & Equipment 5,000

If using the case study

Accounts payable 5,000
provided complete within
the Project Portfolio using 30/6/202 Depreciation 1,050
the Journal entries for the 0
year ended 30 June
2021. Plant & Equipment: Accumulated 1,050
depreciation

Workings:
standing drill (Asset No. 348): straight-line method
Depreciable amount = original cost - residual value = $5,000 - $800 =
$4,200
Year 1 (2019 - 2020) depreciation expense = $4,200 / 4 = $1,050
Year 2 (2020 - 2021) depreciation expense = $4,200 / 4 = $1,050

Prepare asset registers Andrew’s Slabs – Register of Machinery

for item one Asset Name: bench planer
If using your own Asset No: 346
business documents, you Date Purchased: 1/7/2019
do not need to complete
Location: workshop
this section but can
Total Usage: 18000
attach your evidence.
Estimated Residual Value: 1000
Depreciated Method: straight line depreciation method
Date Sold: 1/7/2022
Depreciation Rate: 3.4 per unit
Disposal Value: 1000
Purchased from: Mullum machinery

Accumulated
Date Details Asset
Depreciation

Dr $ Cr $ Bal $ Dr $ Cr $

1/7/201 Cost price 18000 18000

9

30/6/20 Depreciatio 2720 2720

20 n on a/c per
unit

30/6/20 Depreciatio 3400 3400

22 n on 1000
unit

Prepare asset registers Andrew’s Slabs – Register of Machinery

for item two
Asset Name: Standing drill
Asset No:348
Date Purchased: 1/7/2019
Location: workshop
Estimated Life: 4 years
Estimated Residual Value: 800
Depreciated Method: straight-line deprecation method
Date Sold: 1/7/2023
Purchased from: Danny’s Drills
Disposal Value: 800

Accumulated
Date Details Asset
Depreciation

Dr $ Cr $ Bal $ Dr $ Cr $ Bal $

1/7/201 Cost price 5000 5000

9
 30/6/20 Depreciation 1050 1050
20 on 5000 unit

Prepare the correcting No. Particulars Dr $ Cr $

journal entries
1 Lennox furniture a/c 3300
If using your own
business documents you Kings cliff kitchen a/c 3300
do not need to complete
this section but can 2 Timber expenses a/c 800
attach your evidence.
Purchase a/c 800

3 Sales a/c 1100

Kitchen bench slabs a/c 1100

Check journals for All entries were reviewed and no errors were discovered, except for the fact
errors that the bank column in the cash receipts journal was over added by $30.
However, it was determined that the individual receipts were accurately
List any errors found or if
recorded and posted.
no errors found describe
the process.

Appendix 4 – Depreciation schedule

Create a depreciation Andrew’s Slabs Delivery Truck
table
Asset Cost: $30,000
If using your own
Less Residual value: N/A
business documents
you do not need to Depreciation Amount: $30,000
complete this section Depreciation method: Diminishing balance
but can attach your
evidence. Depreciation Rate: 30%

If using the case study Year ending Carrying Depreciation Accumulated Carrying
provided, depreciate the amount at Depreciation amount at
delivery truck for 2019 beginning end
and 2020. Show your
calculations. 30/6/2019 30,000 9,000 9,000 21,000

30/6/2019 21,000 6,300 15,300 14,700

Workings:
Depreciation calculation:
Delivery Truck: diminishing balance method
Year 1 (2019 - 2020) depreciation expense = $30,000 x 30% = $9,000
Year 2 (2020 - 2021) depreciation expense = $21,000 x 30% = $6,300

Create a General Date Accounts Dr $ Cr $

Journal entry for the
first year of 30/6/2018 Depreciation 6,300
depreciation for asset
one
If using the case study
provided add for the 30
June 2019.
Motor vehicle: Accumulated 6,300
depreciation

Create a Ledger Motor Vehicle

account for asset one
Date Details Dr $ Cr $ Balance $
If using the case study
provided create ledger
 1/7/2018 Purchase of Truck 30,000 30,000 DR

Motor Vehicle Accumulated Depreciation

Date Details Dr $ Cr $ Balance $

30/6/2019 Depreciation 9,000 9,000 CR

Depreciation 6,300 6,300 CR

Depreciation Expenses

Date Details Dr $ Cr $ Balance $

30/6/2019 Accumulated 9,000 9,000 CR

depreciation

Profit & loss 9,000 0

30/6/2020 Accumulated 6,300 6,300 CR

depreciation

Profit & loss 6,300 0

Enter assets into Andrew’s Slabs

Income Statement and
Balance Sheet
Balance Sheet
For the year ended 30/6/2020
If using the case study
provided extracts for the ASSETS
year ended 30 June CURRENT ASSETS
2020, showing the
Depreciation Expense NON-CURRENT ASSETS
and the Motor Vehicle Motor Vehicle $30,000
have been provided.
Less: Accumulated depreciation ($15,300)
Motor Vehicle (Net) $14,700

TOTAL ASSETS
 Andrew’s Slabs
Profit & Loss Statement
For the year ended 30/6/2020
REVENUE
EXPENSES

Depreciation expense $6,300

Write the journal Date Accounts Dr $ Cr $

entries to record the
disposal of the asset. 31/3/2021 Depreciation 3,307.50
Show your
calculations
If using the case study
provided record the
disposal of the old
delivery truck on 31
March 2021, including
calculation of gain or Motor vehicle: Accumulated 3,307.50
loss.
depreciation

Write off any Date Accounts Dr $ Cr $

accumulated
depreciation 31/3/2021 Motor vehicle: Accumulated 18,607.50
depreciation

18,607.50

Calculate gain or loss Date Accounts Dr $ Cr $

If using the case study
31/3/2021 Payable (trade-in) 8,800
provided calculate gain
or loss of the trade-in:
Proceeds on 8,000
trade-in/Disposal of non-
current asset

GST collected 800

Carrying amount of non- 11,392.50

current asset (trade-in)

Motor vehicle 11,392.50

Motor vehicle – New truck 40,000

GST paid 4,000

Payable (trade-in) 8,800

Cash at bank 35,200