ASSESSMENT 1 – STUDENT INFORMATION

Please complete below all the tasks as per instructed by your trainer.
Remember to use a BLACK or BLUE pen. Assessment in pencil will NOT
be accepted.
Your trainer will set a date and a time you have to complete the tasks
below outlined and no further time will be allocated for the tasks.

Task 1 (Journal Entry) (Daily, Weekly, Monthly Transactions)

Liliana has her own a cake shop in Melbourne. On June 25 she received the
deposit for securing a wedding cake from Ms Anderson of $250. She had
recorded this over the Bank journal, and updated the balance

CASH
JOURNAL
Month June Year 2016
Day CREDIT DEBIT DESCRIPTION
1 20.00    
2 65.00    
3 33.00    
4 33.00    
5      
6 85.00    
7 199.00    
8 365.00 362.00 Expenses for cakes
9 30.00 111.00 Expenses for cakes
10 95.00 300.00 Expenses for cakes
11 420.00 80.00 Expenses for cakes
12      
13 33.00 450.00 Gas bill
14 222.00    
15 45.00    
16 35.00    
17 66.00    
18      
19      
20 22.00    
21 66.00    
22 368.00 Unpresented cheque
23 123.00    
24 211.00    
 Deposit for securing
25 250 wedding cake from Ms
Anderson
26
27
28
29
30
TOTAL
2418 1671 747 Balance
BALANCE

TASK 2 (Account Summary and Balance) (Daily Transaction)

After having received the deposit for the cake. (Refer to Task 1) You are to issue
an invoice to Ms Anderson for the value of the deposit and the agreed price for
the cake of $1250.00. Today is 25 June 2017.

Invoice to: From:

Ms Anderson Liliana Cake Shop
1 Melbourne Dr 1 Belle Av.
2000 Sydney 3000 Melbourne
ABN # 10 100 100
ABN # 11 222 333 444 100
   
Date 25/06/2017  
   
Amount Description Price  
$1250 Wedding cake deposit $250  
Balance due
$1000 $1000  
 
TOTAL $1250  

NOTE: The remainder needs to be paid on the pick-up/delivery of the

goods

Task 3 (Bank deposit documentation) (Daily Transaction)

While Liliana recorded the cheque in the cash journal, she noticed she had an
envelope ready for the deposit of 10 x $100 notes, 3 x $50 notes, 25 x $20, 5 x
$10 and 3x $5. On the following day, before she went to the shop, Liliana

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deposited the money, but first she had to fill in the deposit slip (fill in the form
below)

Bank Deposit Slip

Date
_2016__/__06_/_18
__
BSB:
Account Number: ___________ Dollars Cents
$ 20*25 =
Currency Dollar $ 100*10= 1000 500
Coins cents $50*3=150 $10*5 = 50
TOTAL CASH $ 1715 $ 5* 3=15
One thousand seven hundred
and fifteen only.

CHEQUES  $  
1  $  
2  $  
3  $  
4  $  
TOTAL CHEQUES  $  
TOTAL DEPOSIT  $ 1715  

Task 4 (Merchant Copies & Merchant Statements) (Daily Transaction)

During her working day, she had a customer who collected a birthday cake and
paid the balance of $130.00. Unfortunately, the EFTPOS printer does not work
properly, and Liliana cannot read the amount on the MERCHANT COPY nor on
the MERCHANT STATEMENT. To keep track of the purchase, she decided to
write the amount herself over the copies.
You are to fill in the below statements.

Liliana’s Cake Shop TRAN 000050

1 Belle St CREDIT
Melbourne 3000 MasterCar
39428555000 d
MasterCar
I
MID 24458705 d
TSP 100 362999945 CARD ...……………...
TIME 21JUN 2017 ……….4444

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RID A000000000A 1 Belle St
PIX 1010 Melbourne 3000
TVR 00000000000 39428555000
TSI E800
TC 125C79E5E33E6 MID 24458705
9D8 TSP 100 362999945
TIME 21JUN 2017
PURCHASE TRAN 000050
TOTAL CREDIT
MasterCar
APPROVED d
Customer Copy MasterCar
I
d
CARD ...……………...
……….4444
RID A000000000A
PIX 1010
TVR 00000000000
TSI E800
TC 125C79E5E33E6
9D8

PURCHASE $130
TOTAL

APPROVED
Merchant Copy

Liliana’s Cake Shop

Task 5 (Merchant Statement and EFTPOS Journal) (Daily Transaction)

At the end of the day Liliana records the merchant summary statement the
EFTPOS terminal prints every night. The EFTPOS Journal equal to $ 11, 500.00.
Today’s date is 27/06/2017

DATE EFTPOS STATEMENT JOURNAL

DEBIT CREDIT
27/06/2017 $11,500

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Task 6 (Average Customer Spend) (Sales Performance) (Daily, Weekly,
Monthly Transactions)
You are the owner of Vanessa’s Lunch Bar and the figures below represent two
months of trading.
Study the data and answer the questions that follow the information.

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VANESSA'S LUNCH BAR

MONTH 1
Average
Total Total Spend per
REVENUE ($) Revenue Customers Customer
MONTH Total
WEEK 1 WEEK 2 WEEK 3 WEEK 4 TOTAL Transactions
1500 1550 1450 1800 6300 970 $6.49

MONTH 2
Average
Total Total Spend per
REVENUE ($) Revenue Customers Customer
MONTH Total
WEEK 1 WEEK 2 WEEK 3 WEEK 4 TOTAL Transactions
1200 1300 1400 1600 5500 960 $5.73

1. What could account for the revenue in Week 1 of Month 2 dropping by 20%
compared to Month 1?
2. If Total Transactions is used to calculate AVERAGE SPEND PER
CUSTOMER, is this an accurate figure? Explain you answer.
3. What factors may have contributed to a lower Average Spend per
Customer in Month 2?

1. There could be multiple factors that contributed to the revenue drop in

Week 1 of Month 2 compared to Month 1. It could be due to seasonal factors,
changes in consumer behavior, or changes in the menu or pricing. It could
also be due to external factors such as competition, economic conditions, or
weather conditions.

2. No, using Total Transactions to calculate Average Spend per Customer is not
an accurate figure because Total Transactions only provides the total number of
transactions that have occurred during the specified period, and it does not take
into account the number of customers who made those transactions. Therefore,
using Total Transactions to calculate Average Spend per Customer assumes that
each transaction was made by a unique customer, which is not always the case.
To calculate the Average Spend per Customer accurately, we need to divide the
total revenue generated during the period by the number of unique customers

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who made purchases. This method gives us an accurate representation of how
much each customer spent on average during the specified period.

3. There could be several factors that contributed to a lower average spend per
customer in Month 2. For example, the menu items may not have been as
appealing, or the pricing may have been too high. There could have also been
changes in the customer demographic or preferences. Additionally, external
factors such as competition or economic conditions could have also played a
role.

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 Task 7 (Bank Statement, Bank Reconciliation) (Daily, Weekly, Monthly
Transactions)
You have received your bank statement, you now need to do a bank
reconciliation. Every transaction must be in both the cash journal & the bank
statement. Fix the discrepancies.
CASH BANK
JOURN STATEME
AL NT
Month June Year 2016 Month June Year 2016
DESCRIPTI DESCRIPTI
Day CREDIT DEBIT Day CREDIT DEBIT
ON ON
1       1      
2 $65.00     2      
3 $33.00     3      
4 $33.00     4 $131.00    
5       5      
6 $85.00     6      
$362.0 Expenses for $362.0 Expenses for
7 7
$199.00 0 cakes   0 cakes
$111.0 Expenses for $111.0 Expenses for
8 8
$365.00 0 cakes   0 cakes
$300.0 Expenses for $300.0 Expenses for
9 9
$30.00 0 cakes   0 cakes
Expenses for Expenses for
10 10
$95.00 $80.00 cakes   $80.00 cakes
Cash
11 11
$420.00 $1,194.00   Deposit
12       12      
$450.0 $450.0
13 13
$33.00 0 Gas bill   0 Gas bill
14 $222.00     14      
15 $45.00     15      
16 $35.00     16      
Cash
17 17
$66.00     $401.00   Deposit
18   $5 Bank fees 18   $5.00 Bank fees
19     19      
20 $22.00   20      
Cheque
21 21
$66.00   $88.00   deposit
Deposit Deposit
22 22
$368.00 cheque $368.00 cheque

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  Unrepresent $368.0 Unpresented
23 23
$368 ed cheque   0 cheque
24 $123.00   24
Cash
25 25
$211.00 $334.00   Deposit
26 $48.00   26 $48.00   Cash deposit
27   27    
Deposit for Deposit for
28 28
$250.00 cake $250.00   cake
Returned $250.0 Returned
29 29
  $250 deposit   0 deposit
Cash
30 30
$212.00   $212.00   Deposit
TOTA TOTA
$1100 $1100
L L  
Task 8 (Profit and Loss statement)

You now need to help Liliana in preparing the Profit and Loss Statement for the
Financial Year 2016/2017. You are to help in calculating the GROSS Profit, Total
Expenses without Labour, the NET profit before Liliana’s salary and the ACTUAL
profit using the following data.

YEARLY PROFIT AND LOSS ACCOUNT

(Input the value of each item for your business in the spaces provided)
Liliana Cake Shop
As of June 30, 2017
 
Chart of
Account %
100 TOTAL REVENUE $ 1000000 100.00%
Less 200 COST OF GOODS $ 426200 42.62%
  GROSS PROFIT $ 57.38%
Less 300 LABOUR $ 225000 22.50%
   
  EXPENSES:  
401 Accounting fees $ 11700 1.17%
404 Electricity $ 2700 0.27%
405 Insurance $ 15200 1.52%
407 Postage $ 1500 0.15%
408 Printing and stationery $ 8700 0.87%

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 501 Rent for premises $ 74300 7.43%
502 Vehicle operating costs $ 21100 2.11%
506 All other expenses $ 14100 1.41%
   
Less TOTAL EXPENSES $ 14.93%
   
Equals NET PROFIT $ 19.95%
   
Less 399 Liliana’s Salary $ 102600 10.26%
  0.00%
  Actual Profit $ 9.69%

Based on the given data, here's the Profit and Loss Statement for Liliana Cake
Shop for the Financial Year 2016/2017:

Profit and Loss Statement

For the Financial Year 2016/2017
Liliana Cake Shop

Revenue:
Total Revenue: $1,000,000

Cost of Goods Sold:

Cost of Goods: $426,200

Gross Profit:: $573,800

Expenses:
Accounting fees: $11,700
Electricity: $2,700
Insurance: $15,200
Postage: $1,500
Printing and stationery: $8,700
Rent for premises: $74,300
Vehicle operating costs: $21,100
All other expenses: $14,100
Total Expenses: $149,300

Net Profit before Liliana's Salary : $199,500

Less Liliana's Salary:

Liliana's Salary: $102,600

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Actual Profit: $96,900

Working note

GROSS PROFIT:
Gross Profit = Total Revenue - Cost of Goods
Gross Profit = $1,000,000 - $426,200
Gross Profit = $573,800
Therefore, the Gross Profit is $573,800.

TOTAL EXPENSES WITHOUT LABOUR:

Total Expenses without Labour = Accounting fees + Electricity + Insurance + Postage +
Printing and stationery + Rent for premises + Vehicle operating costs + All other expenses
Total Expenses without Labour = $11,700 + $2,700 + $15,200 + $1,500 + $8,700 + $74,300 +
$21,100 + $14,100
Total Expenses without Labour = $149,300
Therefore, the Total Expenses without Labour is $149,300.

NET PROFIT BEFORE LILIANA'S SALARY:

Net Profit before Liliana's Salary = Gross Profit - Labour - Total Expenses without Labour
Net Profit before Liliana's Salary = $573,800 - $225,000 - $149,300
Net Profit before Liliana's Salary = $199,500
Therefore, the Net Profit before Liliana's Salary is $199,500.

ACTUAL PROFIT:
Actual Profit = Net Profit before Liliana's Salary - Liliana's Salary
Actual Profit = $199,500 - $102,600
Actual Profit = $96,900
Therefore, the Actual Profit is $96,900.

Task 9 (Business Activity Statement)

Look at the Business Activity Statement on the following pages and decide if you
need to pay taxes or you need to ask for refund to the Australian Taxation Office.

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Use the template on the following two pages.

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Based on the given information, we can determine whether the business needs
to pay taxes or is eligible for a refund using the Business Activity Statement
(BAS).

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Page 14 of 26
Accounts you owe to ATO
GST on sales $100000
PAYG tax withheld 20000
PAYG tax instalment 5000

Amounts that ATO owes you

GST on purchases $10000

Solution:

The GST on sales is $100,000 and the GST on purchases is $10,000. To

calculate the net GST payable or refundable, we need to subtract the GST on
purchases from the GST on sales:

Net GST = GST on sales - GST on purchases

Net GST = $100,000 - $10,000
Net GST = $90,000

Since the net GST is positive, the business owes this amount to the Australian
Taxation Office (ATO).

The PAYG tax withheld is $20,000, and the PAYG tax instalment is $5,000.
These amounts are prepayments of income tax, which will be offset against the
business's income tax liability for the year. It is not possible to determine whether
the business owes additional income tax or is eligible for a refund based on this
information alone.

Therefore, based on the information provided, the business owes $90,000 in net
GST to the ATO.

Task 10 (Trial Balance)

You are to add to the trial balance the wages for the year 2016/2017 which are
$135,500.00, the petty cash equal to $2,500.00 and owner’s equity equal to
$100,000.00.
You also need to calculate the Debit and Credit total and balance the difference if
it occurs.

Trial Balance
30/06/2017
 
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 General Ledger
Account Balance
 
Account Name   Debit   Credit
         
Petty cash   $2500  
Reserve for bad debts     $100,000.00
Inventory $2,500.00    
Furniture and fixtures $150,000.00    
Accumulated depreciation - furniture
and fixtures     $150,000.00
Equipment $2,500.00    
Accumulated depreciation -
equipment     $2,500.00
Goodwill $101,000.00    
Sales tax payable     $900,000.00
Owner's equity     $100,000
Owner's drawing account   $845,000.00    
Sales       $450,000.00
Revenues       $350,000.00
Sales returns and allowances   $150,000.00    
Purchases   $450,000.00    
Bank charges   $0.00    
Credit card fees expense   $0.00    
Insurance   $19,000.00    
Miscellaneous   $70,000.00    
Payroll taxes   $6,500.00    
Telephone   $10,000.00    
Travel   $15,000.00    
Utilities   $35,000.00    
Vehicle expenses   $58,000.00    
Wages   $135,500    
         
Totals   2,052,500   2,052,500
         
         
Difference       0
       

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Task 11 (Credit Card Transaction Statement, Merchant Summary, Monthly
Transaction)
Look at this sample merchant statement and answer the questions below.

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1) What are the total of sales for the month of August 2013?

___Total sales for the month of august

=______$3,748.85_________________________________________________
____________

2) What is the amount deducted?

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_____Amount deducted $169.60

________________________________________________________________
__

Task 12. (Credit Card Statement) (Daily, Weekly, Monthly Transactions)

Your bank has just sent you your credit and debit card transaction statement.

Explain why the statement highlights the same amount twice?

________________________________________________________________
______

It is common for merchants to pre-authorize a certain amount on a customer's

card before finalizing the sale. This is done to ensure that the customer has
enough credit or funds available to cover the cost of the purchase. The pre-
authorized amount is then held as a pending transaction until the final sale is
processed.

In this case, the pre-authorization of $64.79 and the final sale of the same
amount for merchandise at Spirit Halloween were two separate transactions. The
pre-authorization was not a charge but was temporarily held by the bank until the
final sale was processed. Once the final sale was processed, the pre-authorized
amount was released and the actual charge for the merchandise was posted on
the statement as a separate transaction.

Therefore, both transactions were for the same amount and description but had
different transaction types, hence they are highlighted twice on the statement.
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________________________________________________________________
______

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Task 13 (Balance Sheet)
Liliana’s Cake Shop owns the building they work in valued at $250,000.00, has
$25,000.00 cash and owes its suppliers (creditors) $12,000.00. Fill in the
following Balance Sheet with all the information provided. Include Owner’s Equity
in your calculation.

BALANCE SHEET

ASSETS $ LIABILITIES $
Building 250000 Creditors 12000
Cash 25000 Owners equity 263000
TOTAL TOTAL
275000 275000

Owner’s Equity is $___263000__(__275000-12000)____

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Task 14 (Outstanding Accounts) (Daily Transaction)

Accounts Payable

You need to complete the following credit note to Mrs. Brown for the cost of a
Wedding Cake valued at $700.00 and 100 Cupcakes valued at $2.00 each

CREDIT NOTE

Liliana’s Cake Shop

123 Queen Street
Melbourne, Victoria
3000

To: Mrs Brown Date:

Address: Melbourne, Victoria
Invoice Number:
Credit Note
Number:
Attention: Your Order

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 Number:

Description Quantity Unit Price Amount

Credited

Wedding cake 1 $700 $700

Cupcakes 100 $2 $200

Total $900

Total Credit $900

Due

Authorised XXX
By:

Name Signature Date :

: : 2015-
05-01

Accounts Receivable (Daily, Weekly, Monthly Transactions)

You need to complete the following invoice to Mrs. Brown for the cost of a
Wedding Cake valued at $700.00 and 100 Cupcakes valued at $2.00 each

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Liliana’s Cake Shop INVOICE

123 Queen Street, Melbourne, Victoria

3000
INVOICE # DATE
ABN : 234 567 890
[123456] 5/1/2014

BILL TO
Mrs Brown
123 Queen Street,
Melbourne, Victoria

DESCRIPTION   AMOUNT
   
1 x Wedding Cake $700
100 x Cupcakes $200

   
   
 
 
 
   
Thank you for your business!  
 
 
TOTAL $ 900

Task 15 (Variance from Budget)

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The formula to calculate vari

ance is:

Variance % = Actual / Forecast – 1 or Variance $ = Actual – Forecast

In the example above the revenue forecast was $150,000 and the actual result
was $165,721

Using this information calculate the above figures below and express the answer
as a percentage.

To calculate the variance as a percentage using the formula:

Variance % = (Actual / Forecast - 1) x 100

where Actual = $165,721 and Forecast = $150,000

Variance % = ((165,721 / 150,000) - 1) x 100

Variance % = (1.1048 - 1) x 100

Variance % = 0.1048 x 100

Variance % = 10.48%

Therefore, the variance between the actual revenue of $165,721 and the
forecasted revenue of $150,000 is 10.48%. This indicates that the actual revenue
was higher than the forecasted revenue by 10.48%.

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Is this a positive or favourable variance?

Yes, a variance of 10.48% in this scenario would be considered a positive or

favorable variance because the actual revenue exceeded the forecasted
revenue.

Why is the variance formula useful in budgeting and forecasting when analysing
results?

The variance formula is useful in budgeting and forecasting as it allows for a

quantitative comparison between the actual results and the forecasted results. By
analyzing the variance, businesses can determine whether their actual results
are better or worse than expected, and can identify areas where they need to
make improvements or where they may be able to reduce costs.
This information can then be used to make more informed decisions and adjust
future budgets and forecasts accordingly. It can also help businesses to identify
trends and patterns in their financial performance, which can inform strategic
planning and decision-making.

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