FNSACC321_322_421 Assignment Student
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Monarch Institute *
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Course
321
Subject
Accounting
Date
May 10, 2024
Type
docx
Pages
85
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Page 1 of 85
Unit/s assessed:
FNSACC321 Process financial transactions and extract interim reports
FNSACC322 Administer subsidiary accounts and ledgers
FNSACC421 Prepare financial reports
Assessment title:
FNSACC321_FNSACC322_FNSACC421 Assignment
Type of assessment
This summative assessment will enable your assessor to make a judgement of competency based on
the submission of your completed assessments against the requirements of the unit/s of competency in
this module.
Benchmark
The assessment benchmark developed for each unit of competency is the evidence criteria used to
judge the quality of performance (i.e., the assessment decision-making rules). Assessors use these
benchmarks to make judgements on whether competency has been achieved and to determine if you
have performed to the standard expected to meet the unit requirements. Reasonable adjustment
Where appropriate monarch institute will allow flexibility in the way in which each unit is assessed based
on the needs of an individual.
Assessment coding
Assessment of this course is established on competency-based principles:
S = Satisfactory
NS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as ‘not
satisfactory. You are required to be assessed as ‘satisfactory’ in all assessments for each unit of
competency.
Re-assessment
Your assessment can be submitted after you have reviewed the learning materials and practiced enough
to feel confident in your resubmission. You have two weeks from your last submission feedback to
resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially
assessed as ns. It is at the assessor’s discretion to re-assess the entire assessment should an overall
understanding not be demonstrated. When you are re-assessed as ‘satisfactory’ after re-submission you
will achieve competency for this assessment.
Declaration of understanding and authenticity I acknowledge the assessment process has been explained and agree that I am ready to undertake
assessment. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the
appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts
of the assessment/s to gain an overall competent result for the unit/s of competency. If I am found to be
ns after a second attempt, it is at the assessor’s discretion whether I may be permitted one final attempt.
I am aware that a ‘not competent’ final outcome means I may incur fees for re-enrolment in the unit/s. I certify that the attached material is my original work. No other person’s work has been used without due
acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to student information handbook).
*I understand that by typing my name or inserting a digital signature into this box that I agree and am
bound by the above student declaration.
Page 2 of 85
Student name*:
Submission
date^:
02/2024
Please make sure you use the same name that is in your enrolment documentation, including your
surname.
^if this is a resubmission, you must use your resubmission date. For any re-submission, please ensure responses are in a different coloured font
Submission instructions:
Complete the declaration of understanding and authenticity (above).
Once you have completed all parts of this assessment, login to the monarch learning management system (LMS) to submit your assessment.
In the LMS, click on the link to ‘submit [assessment name]’ in your course and upload your assessment files. Click save
and then click submit
assignment.
Please be sure to click ‘continue’ after clicking ‘submit assignment
Page 3 of 85
Important assessment information
This is an open book assessment
You may use a handheld calculator and/or software to perform calculations
Please type your answers in the spaces provided
The required resources include:
LMS:
Textbook: Accounting Principles by Anne Collins & Andrew Duncan
Other:
Various links and articles provided throughout the assessment
Another person/s to read/play parts in the role play
Device to record your role play.
Activity 1: Accounting and Bookkeeping
1.1 Some people believe debits are bad and credits are good. Explain why this is an incorrect interpretation and, in your explanation, outline how debits and credits are used in the accounting system.
Debits and credits have no value of judgement, no meaning good or bad. They are used to record increases or decreases in different types of accounts depends on the point of view of the person prepare the statements.
1.2 Describe an organisational accounting system and what it is designed to do.
Chart of Accounts: A list of all the accounts used by an organisation to record financial transactions, including assets, liabilities, equity, revenue, and expenses.
1.3 List and describe the six legislative requirements that must be complied with by accountants and bookkeepers.
i.
The Tax Agents Services Act 2009 This Act established the Tax Practitioners Board (TPB) and the registration of tax agents and BAS Agents.
This legislation makes it a requirement for contract bookkeepers to register as BAS Agents if they charge
fees for provision of ‘BAS services’ to businesses. If a person provides these services without being
registered, penalties can apply under the provisions of the Act.
Page 4 of 85
ii.
Taxation Law
Financial information provided to taxation authorities or used to calculate taxation liabilities must comply with the relevant taxation law. Some key sources of Australian taxation law are:
Income Tax Assessment Acts (1936 and 1997) Fringe Benefits Tax Assessment Act (1986) A New Tax System (Goods and Services Tax) Act 1999
iii.
Australian Accounting and Auditing Standards
The Australian Accounting Standards Board (AASB) is responsible for developing, issuing and maintaining a single set of quality accounting standards (the Australian Accounting Standards) for preparation of general purpose financial statements. General purpose financial statements that comply with accounting standards should accurately and fairly present the financial position, financial performance and cash flows of an organisation. The accounting standards ensure that the statements prepared are more comparable than they would otherwise be, because all reporting entities are following the same guidelines and definitions. Only reporting entities are required to prepare general purpose financial statements, however other entities may choose to adopt the Accounting Standards. For reporting entities, the Standards have the force of law through the Corporations Act 2001.
iv.
PAYG System
The PAYG system places a responsibility on employers to withhold income tax instalments (PAYG Withholding Tax) from the gross earnings of their employees. The employer is required to send the PAYG Withholding Tax to the ATO, accompanied by the relevant Business or Instalment Activity Statement. Other obligations of employers are the issue of payment summaries at the end of the year, issue of pay advices with each pay, and record-keeping obligations. In addition, there are annual reporting obligations in relation to wages and salaries.
v.
Superannuation Guarantee (Admin) Act 1992
This Act requires the employer to pay a compulsory amount of superannuation for all employees meeting certain eligibility conditions. The rate is currently 11% of ordinary time earnings, then increase by 0.5 percentage points each year until it reaches 12%. This money must be paid into the superannuation fund of the employee’s choice.
vi.
Privacy Act 1988
The Privacy Act 1988 aims to protect information of a private or personal nature and prevent it being disclosed without the authority of the party to whom the information relates. Disclosure of information
of a confidential nature should only occur with the permission of the client.
Page 5 of 85
1.4 Australian Accounting Standards outline many accounting principles and assumptions that a business adheres to in recording and reporting transactions within the accounting system. List and describe four of these accounting principles and assumptions.
i.
Historical cost principle : Most transactions are initially recorded at cost. However, after initial recognition, the accounting standards sometimes divert from this principle. For example, where an item of stock cannot be sold at or above cost price, it must be valued at its net realisable (net resale) value.
ii.
Matching principle
The costs of earning income (expenses) should be recorded in the same period as the income they helped to earn. The result is the profit (or loss) for the period.
iii.
The going concern principle
The business entity is assumed to operate in the foreseeable future. This means the entity will be able to realise its assets and discharge its liabilities in the normal course of business. The significance is in the valuation process.
iv.
Principle of consistency
The Consistency Principle recognises that an accounting method, once adopted, should not be changed during an accounting period. Ideally methods should only be changed at the beginning of a new accounting period. Generally a method is not changed unless there is a good reason for doing so.
1.5 For reporting entities, Accounting Standards related to the processing of financial transactions have the force of law through the Corporations Act 2001. Identify the two key features
of ‘General purpose financial statements’ that comply with Accounting Standards.
i.
accurately
ii.
fairly present the financial position
Page 6 of 85
Activity 2: Fundamentals of Accounting and GST
2.1
For the following accounts, show the Account Type (Asset, Liability, Owner’s Equity, Revenue
or Expense) and the Report (Balance Sheet or Income Statement) to which it belongs:
Account Type
Report
Inventory
A
B
Mortgage
L
B
Accounts Receivable
A
B
Wages
E
I
Sales
R
I
Cost of Goods Sold
E
I
Advertising
E
I
Accounts Payable
L
B
Furniture and Fittings
A
B
Fees Received
R
I
Capital
OE
B
Telephone Expense
E
I
Drawings
OE
B
Electricity Expense
E
I
Loan
L
B
Motor Vehicle
A
B
Cleaning Fees paid
E
I
Interest Received
R
I
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