RMIT Classification: Trusted
STUDENT – PRODUCT ASSESSMENT TASK
2 of 2
Portfolio – Financial Statements
National unit/s code
National unit/s title
Prepare Financial Statements for Non-reporting entities
National qualification code
National qualification title
Certificate IV in Accounting and Bookkeeping
RMIT Program code
RMIT Course code
Section A – Assessment Information
Assessment duration and/or due date
Due Week 15
Type of Product (tick which applies)
☐ Case study
Summary and Purpose of Assessment
There are a total of two (2) assessment tasks you need to complete for this unit. This is the second assessment (Assessment Task 2).
This assessment allows you to demonstrate your skills in preparing financial statements for non-reporting entities. You are required to work on preparing the answers to all the questions and submit in a Word format on Canvas by the due date.
You need to complete a series of tasks using the information provided.
The following six questions (Q1, 2, 3, 4, 5A & 5B) are based on common predictable accounting problems using different sources of information and involve a range of scenarios.
To answer the questions, you will need to read the information carefully, analyse any data provided and develop solutions by firstly coding and then classifying the data accordingly. When completing these questions, you will need to pay attention to the reliability of the data and ensure accuracy throughout their workings. You are to perform a check on your final calculations, including reviewing against all internal and external financial data sources you are given.
You must ensure they follow all necessary protocols, policies and procedures and accounting standards.
You will be provided some class time to work on this assessment, however, it is expected that the majority of this assessment will be completed outside of class.
This assessment is to be completed individually.
You will be assessed against the criteria listed in the marking guide in Section B of this task. To achieve a satisfactory result, you need to address all criteria satisfactorily.
You need to achieve Satisfactory (S) results for both Assessment Task 1 and Assessment Task 2 to be deemed Competent (CA) for this unit.
Conditions for assessment
· This is an individual assessment task. You must not copy the work of others.
· This written assessment should follow RMIT guidelines regarding referencing and plagiarism.
· You must submit your file in Canvas by the due date. Your assessor will assess the documentation you provide, and you will receive feedback within 2 weeks of your submission.
· You are required to name their file as < your student number _your name_ FNSACCT414_ Portfolio – Financial Statements >. For example, 23456789JohnSmith_TLIR4003_ Portfolio – Financial Statements.docx
· You will be assessed as Satisfactory or Not Satisfactory.
· If you do not answer all questions satisfactorily, you will be given another attempt to respond to the questions that were incorrect. If you do not answer the questions correctly on the second attempt, your RMIT teacher will contact you to discuss your assessment.
· You need to make arrangements with your assessor at least one week prior to the assessment due date if you require special allowance or allowable adjustment to this task
· If you require extension of time (up to seven days) you must apply in advance and prior to the assessment due date if you feel that you require special allowance or allowable adjustment to this task. How to apply instructions are available on https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work webpage
· For the other circumstances and types of assessments students need to apply for Special Consideration. More information is available on https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/special-consideration
· Other assessment related information for students https://www.rmit.edu.au/students/student-essentials/assessment-and-results
· Assessment appeals information https://www.rmit.edu.au/students/student-essentials/assessment-and-results/special-consideration/assessment-and-outcomes
Instructions on submitting your assessment
You must submit your file in Canvas by the due date. Your assessor will assess the documentation you provide, and you will receive feedback within 2 weeks of your submission.
You are required to name their file as < your student number _your name_ FNSACCT414_ Portfolio – Financial Statements >. For example, 23456789JohnSmith_TLIR4003_ Portfolio – Financial Statements.docx
Equipment/resources students must supply:
Equipment/resources to be provided by RMIT or the workplace:
· Access to a laptop or mobile device
· Internet access if not on campus
· Pens, pencils, erasers, non-programmable calculator
· Access to Canvas and internet sites required for study in this course
· Appropriate software as required
Section B – Student Answer Sheet
You are working as one of the employees of Complete Business Services and you are contacted by the business named Platinum Heights seeking Accounting consultation. They have provided you the following data from their accounting system for the year ended 30 June 2019:
Sales (all credit)
Cost of Goods Sold
Capital - 01/07/2018
Inventory - 01/07/2018
Non Current Assets
Current Liabilities (including Bank Overdraft $12000)
Non Current Liabilities
Complete the following:
You are asked to Calculate for Platinum Heights the following ratios for the year ended 30 June 2019:
(a) Gross Profit Rate
(b) Net Profit Rate
(c) Current Ratio
(d) Quick Ratio
(e) Briefly analyse the significance of liquidity of the business with the help of the ratios calculated above
You are working as one of the employees of Complete Business Services and you are contacted by the partnership business for Alice, Alex and Chris seeking accounting consultation. They have provided you the following trial balance from their accounting system for the year ended 30 June 2019:
Extract of Accounting Policies and Procedures: Partnership Business of Alice, Alex and Chris
· There are 3 partners in the business and operating under partnership structures.
· Alice, Alex and Chris are the partners in the business engaged in trading activity of garments.
· They are sharing profits and losses equally.
· Interest is to be credited on fixed capitals at 5% p.a.
· Interest is to be charged on drawings at 10% p.a.
From the Trial Balance and the Cash at Bank Ledger below, collect and compile the following data together with the additional information and prepare the financial statements in line with accounting standards.
Trial Balance as on 30th June 2019
Allowance for doubtful debts
Fixtures and Fittings
Profit and Loss (Net Profit)
Capital - Alice
Current - Alice
Drawings - Alice
Further matters requiring adjustments are:
· Alice, Alex and Chris are to be credited with salaries of $15,000, $17,500 and $20,000 respectively.
· Interest on capital and interest on drawings need to be charged as well.
· The partners have each agreed to transfer $10,000 from their Current account to their Capital account.
· The opening Bank balance on 1st July 2018 was $30000.
Cash at Bank Ledger
Cash at Bank
sale of equipment
other expenses paid
bank loan repayment
GST paid to ATO
Complete the Following:
(a) Prepare the Profit and Loss Appropriation account
(b) Prepare the partners' current accounts in columnar form
(c) Prepare the partnership Balance Sheet as at 30 June 2019
(d) Prepare a cash flow statement for the period ending 30th June 2019
(e) Write an email to your manager (teacher) to obtain verification and authorisation so that you have clear guidelines and approval to prepare the financial statements in accordance with the organisational requirements.
(f) During an internal audit it was discovered that the cash sales amounting to $151000 shown in the above ledger is an incorrect figure and the correct figure for cash sales is $ XXXXXXXXXXYou are required to prepare an amended ledger and prepare the final bank balance.
The following information is provided for the High Life Golf Club (not-for-profit) for the year ended 30 June 2020:
Extract of Accounting Policies and procedures - High Life Golf Club (not-for-profit):
Statement of Receipts and Payments: The High Life Golf Club will prepare a statement of receipts and payments which will summarise all the cash transactions of the club for the period. It includes all items, whether of capital or operating nature. It will serve the same purpose as the statement of cash flows prepared in a trading business.
Income and Expenditure Account: The income and expenditure account match the income of the period with the expenses incurred in earning that income. The result is the net surplus (or deficit) for the period. The net surplus (or deficit) is transferred to the accumulated funds account.
Cash at bank 01 July 2019 XXXXXXXXXX19,000
Annual subscriptions received XXXXXXXXXXcash 40,000
Barman's wages XXXXXXXXXXpaid 1,200
Bar Purchases XXXXXXXXXXpaid 5,000
Bar Sales XXXXXXXXXXcash 7,800
Club Furniture purchased XXXXXXXXXXcash 1,400
Club manager's salary XXXXXXXXXXcash 12,000
Depreciation - Club Furniture XXXXXXXXXX400
Donations received XXXXXXXXXXcash 160
Insurance XXXXXXXXXXpaid 3,200
Maintenance of club facilities XXXXXXXXXXpaid 1,800
Printing and stationery XXXXXXXXXXpaid 450
Rent paid XXXXXXXXXXpaid 960
Sundry expenses XXXXXXXXXXpaid 400
Wages XXXXXXXXXXpaid 3,400
Subscriptions in advance
Subscriptions in arrears
Rent paid in advance
Complete the following:
Follow all necessary protocols, Policies and Procedures and Accounting standards for High Life Golf Club (not-for-profit) to prepare the following financial statements for this club. Review the final documents ensure that there are no errors.
(a) Members Subscriptions account
(b) Receipts & Payments Statement
(c) Bar Trading Statement
(d) Income & Expenditure account
The following is the trial balance of the Sun Holidays Club (A Not-for-Profit organisation) as at 30 June 2020.
Trial Balance as at 30th June 2020
Cash at Bank
Furniture & Equipment
Accumulated Depreciation- Furniture & Equip.
Bank Loan due 2022
Subscriptions in Arrears
Subscriptions in Advance
General Expenses (including Depreciation $4,000)
Bar Trading (Surplus)
Accumulated Funds 01/07/2019
Complete the following:
Prepare a statement of Assets and Liabilities at 30 June 2020 for the Sun Holidays Club.
Following is the table given for CV Processes Pty Ltd. for credit sales and credit purchases made during the August 2018.
Name of the subsidiary ledgers
1. M Smith - customer
2. J Ghost - customer
3. M James - customer
4. S Sweeney - supplier
5. P Peter - supplier
6. N Crazy - supplier
7. L Holland - customer
8. J Martin - customer
9. Q Holland - supplier
10. T Sweeney - supplier
11. K Scarlet - supplier
12. N Tony - Customer
Extract of Accounting policies relating to Chart of Accounts
The Accounts receivables subsidiary ledgers need to be numbered as per below in the chart of accounts:
Prefix AR and 001, 002 and so on
The Accounts payables subsidiary ledgers need to be numbered as per below in the chart of accounts:
Prefix AP and 001,002 and so on
The accounts receivables and accounts payables reconciliation need to be done at the end of every month. If there are discrepancies found in the reconciliation report, the bookkeeper needs to send the report to the manager and seek authorisation to rectify the errors.
Following are the balances for Accounts receivables and Accounts Payables control accounts:
Accounts receivables – 72,660 DR
Accounts Payables – 74,400 CR
Complete the following:
You are required to prepare an accounts receivables reconciliation report and an accounts payables reconciliation report. In your report the subsidiary ledgers accounts need to be labelled as per the chart of accounts.
The customer named Nathan Smith is overdue by more than 90 days and he has promised that the payment will be remitted by 10th August 2019.
Complete the following:
Check if the payment is successfully received into the bank account (statement given below).
Note: Please highlight the line in the below given Bank statement that indicates the amount is being received from Nathan Smith as per the schedule.
BANK STATEMENT for month ending 31/8/2019
Account name: CV Processes Pty Ltd
Account number: XXXXXXXXXX
385 Simple Road
From 01/08/2018 to 31/8/2019
Smithfield NSW 2134
Opening Balance: $44,600.00
Closing Balance: $ 34,256.00
Description of Transaction
Statement Opening Balance
Direct Deposit – N. Tony
Dishonoured deposit – Cook Shop
Dishonoured bank fee
Account Keeping Fee
Direct Debit#111223 Rent
Direct Credit#056 Warehouse Rent
Statement Closing Balance
Section B – Marking Guide
Describe the product to be assessed
Assessment Task 2: Portfolio – Financial Statements
Criteria for assessment
1. Demonstrated the ability to calculate ratios correctly and written the explanation of the results
2. Demonstrated the ability to format the financial reports and prepare the balance sheet, profit and loss statement and cash flow for the partnership with correct workings for capital and profit appropriation for a partnership business
3. Obtained verification and authorisation to prepare the financial statements in accordance with the organisational requirements
4. Prepared an amended bank ledger after correcting the error for the cash sales
5. Prepared the income and expenditure statement and receipts and payments for the not-for profit organisation
6. Prepared the balance sheet for the not-for profit organisation
7. Prepared the accounts receivables and accounts payables reconciliation report and coded the accounts.
8. Checked workings as well as both internal and external financial data for consistency, accuracy and reliability.
(All Questions 1, 2, 3, 4, 5)
Section C – Feedback to Student
Has the student successfully completed the task?
Feedback to student:
[Portfolio – Financial Statements_FNSACC414_Task 2_Student] [ 2 of 2] [26/04/2021]
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