Complete business activity and instalment activity statements
Assessment Instructions for the Candidate
Requirement:
Access to a computer loaded with Microsoft Word and MYOB v2017.2
Access to the Internet and PDF Reader
Calculator
It is recommended that on completion of this unit, participants should be able to produce accurate work with not more than two re-submissions.
On completion
Upload your assessment document to the online platform.
Ensure the files you submit are clearly named following all task requirements.
Reasonable Adjustment
If you are unable to complete the assessment as designed, please raise a support ticket to discuss with your Assessor.
Assessment Outcomes
There are only two possible results of any assessment:
Competent
Not yet competent
Competent
An assessment of ‘Competent’ recognises that you have clearly demonstrated to your assessor that you have current skills and knowledge as outlined in the units of competency for which application was made.
Not Yet Competent
If an assessment of ‘Not Yet Competent’ is made, the assessor will give you specific feedback as to the reasons for the result. This will also provide information about gaps found in the assessment of competency. You may also discuss options to address the gaps in competency with your assessor.
Student Name
Type full name.
Date of Assessment
Practical Activity
For this assessment you are required demonstrate your ability to process GST transactions and prepare a Business Activity Statement (BAS) and Instalment Activity Statement (IAS) using a computerised accounting system. We recommend MYOB V2017.2 which can be downloaded from the student portal. This assessment is for MYOB software. Students wishing to use other software packages must contact their Assessor for further information, as they would need a modified version of this assessment.
Ensure you consider ergonomics, WHS policies and procedures and conservation techniques when completing this assessment.
There are two case studies for this assessment:
Case study 1: Company – Sports Play Pty Ltd
Case study 2: Sole Trader – John Smith
Case Study 1 – Sports Play Pty Ltd
You have been appointed as the BAS Agent for Sports Play Pty Ltd. Refer to the following policies and procedures when completing this assessment.
Sports Play Pty Ltd Accounting & GST Policies & Procedures:
Accounting Procedures
Sports Play is a retailer of sporting goods.
Sports Play Pty Ltdmaintains an Accrual Accounting System.
The financial year is 1 July to 30 June.
Sports Play has 1 employee Craig Chapman, who is the owner of this business. He receives a salary of $52,000 per annum paid fortnightly. Craig has a 30% withholding variation.
GST and Tax Reporting
Sports Play Pty Ltd is registered for GST, reporting Quarterly on an Accrual basis using the Full Reporting Method.
Preparation of the BAS return is the responsibility of the BAS Agent and lodged manually.
PAYG Withheld is reported and paid monthly.
The designated PAYG Instalment amount is paid quarterly.
The company pays Fringe Benefits Tax and is able to claim Fuel Tax Credits for backup electricity generation.
TASK 1 – Chart of Accounts
Open the MYOB Company file for Sports Play.
Review the chart of accounts list and ensure the default tax codes for each account is as you would expect for a sporting retailer business that is registered for GST.
After making changes, produce the Accounts List detail report as at 01/06/2019 showing all accounts and all tax codes, filtered to include Zero balances.
SUBMISSION ACTIVITY
Printout 1
Submit your Accounts List detail report as of 01/06/2019, filters to include Zero Balances. Ensure you also have filter options as all on accounts and tax codes.
TASK 2 – Process Transactions for June 2019
All of your transactions are to be recorded in the last month of the current financial year (June 2019).
1st June: Purchased a new Nissan Navara dual cab Ute from Northern Nissan and paid via EFT. Enter this transaction. Allow the bank account to go into overdraft.
ABN 75 922 724 097
Sports Play PTY lTD Date: 1st June
Tax Invoice: 5677Prices are inclusive of GST where applicable
Total $4,200 of GST charges included IN Above costs
What is the Luxury Car Tax (LCT) threshold at the time of this purchase? Has LCT been included in the cost of the Ute?
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Who would you ask for advice, if you’re unsure if you have entered the GST correctly? Must provide at least two examples.
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Craig has asked you whether a fringe benefits tax return needs to be lodged for this car. What would your advice be (in your role as a BAS Agent)?
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4th of June: Sale of sporting goods delivered domestically to Jims Sports & Leisure – $11,000. This amount remains unpaid.
5th June: Sale of sporting goods delivered domestically to Aim International Sports – $4,000. This amount remains unpaid.
7th June: Sale of Goods shipped internationally to customer based in China called “Great Outdoors” – $16,500.
14th June: Received Payment of $16,500 from Great Outdoors for 7th June Sale.
14th and 28th June: Fortnightly wages have already been processed. Review the below report extracted from the company file for the month of June and answer the following questions.
Craig has a PAYG Withholding variation of 30%. Has this amount been calculated correctly?
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What legislation dictates the current rate of superannuation guarantee, and what is the current rate?
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Review the superannuation guarantee amount for Craig. Has the amount been calculated correctly?
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If either of these calculations were incorrect, who would you consult with?
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28th June: Paid Office World via Electronic Funds Transfer $320, for below bill. Enter this transaction.
Date:28th June ********************************************
28th June: Enter a sale of sporting goods delivered domestically to customer Daytona Sports – $18,000. This amount remains unpaid.
29th June: Enter weekly sales from store of $17,000 incl GST. Deposited as cash on 29th June to bank account.
30th June: Paid fuel account for the quarter. 620 litres of diesel at $1.42 = $880.40 Paid by Business bank (cheque account) using BPAY to Ampol.
Sports Play Pty Ltd
ABN: 56 456 789 554
30th June Account summary
620 Litres of Diesel@ $1.42p/l
$880.40Total inc GST
The fuel purchase above was used for backup electricity generation. The client will be claiming the fuel tax credits in the current BAS. A journal needs to be processed to claim the credit on the 30th June 2019. Refer to the ATO website for a fuel tax calculator or table showing available Fuel Tax Credit Rates (April -June 2019).
30th June: Nigel Smith rendered his invoice for office cleaning. Repeated attempts to get his ABN have failed. Pay his account in strict accordance with ATO policy in relation to failure to furnish an ABN number.
Sports Play Pty LtdBill #67
N. Smith CleaningDate:30th June
All prices listed are ex GST. No GST charged on this invoice
Cleaning services
$65 p/h x3 hours
Total Bill
$195.00
30th June: Paid Power Bill of $990 inc GST to “Aus Power”. Enter this transaction.
This is to advise you that the BPAY payment requested was successful.
Payment details: From account 32887 – Sports Play (cheque Acc) Biller code: 86654 ~ Biller name: Aus Power Reference: 882 4471198 14 ~ Payment amount $990.00 Payment date: 30th June ~ Receipt number 558741
30th June: Paid water rates of $55 to Water Corporation.
Sports Play Pty Ltd Customer No. aFJ2007 Bill Tax Invoice #454 252005
Date: 30th June
Fixed charges – GST free water service
$30
Usage charges – GST free
$25
Total amount due
$55
30th June: A general journal has been entered in the company file to account for shareholders deposit of $20,000 into bank account from their personal savings. This was to keep the business in a financially stable position. This is an out of scope transaction. Correct the journal entry to ensure your tax code report will be correct for BAS.
It was noted that the sale of $4,000 on 5th June (transaction 3, for Aim International Sports) was actually shipped internationally to the customer overseas. You have been given authorisation to modify the original invoice and resend to client. Recode transaction to correct error.
Upon further investigation the power bill paid on 30th June for $990 had GST of $85 as there was a GST Free component. Below is the original copy of the bill that confirms this. You have been given authorisation to correct the earlier transaction.
Sports Play Pty Ltd Customer No. 2257a Bill Tax Invoice #547
Date: 30th June
Fixed charges inc GST
$935.00
Account services fee (no GST)
$55.00
Total amount due
$990.00
Create the General Ledger Detail report for the month of June and save it as Printout 2.
SUBMISSION ACTIVITY
Printout 2
Submit the report produced from your accounting system. General Ledger Detail report for the month of June.
TASK 3 – BAS Preparation and Reporting
Produce GST Detail – Accrual report for April to June Quarter 2019. Print for PDF and save as Printout 3.
Produce GST Summary – Accrual report for April to June Quarter 2019. Print for PDF and save as Printout 4.
Produce the Profit & Loss report for the April to June Quarter 2019. Print for PDF and save as Printout 5.
Produce the Balance sheet as at 30th June 2019. Print for PDF and save as Printout 6.
You must set up BAS information in the company file prior to preparing the BAS return.
PAYG Instalments of $5,200 per quarter
FBT instalment of $1,500 per quarter
Fuel tax credits
Refer to the policies and procedures for any further BAS set up details.
Prepare the BAS return for the June quarter for Sports Play Pty Ltd.
Reconcile the amounts on your BAS return to the general ledger in your accounting system. Complete the following table:
Amount on BAS Return
GL Account Number
Balance of GL Account
Salary & Wages
$Click here to enter figure.
Click here to enter figure.
$Click here to enter figure
PAYG Withholding
$Click here to enter figure.
Click here to enter figure.
$Click here to enter figure.
GST Collected
$Click here to enter figure.
Click here to enter figure.
$Click here to enter figure.
GST Paid
$Click here to enter figure.
Click here to enter figure.
$Click here to enter figure.
Create a backup of your company file and save this file as BAS June 19 backup. It is important that you complete this task, submit it and also keep a copy of this file. Complete this prior to starting Task 4.
SUBMISSION ACTIVITY
Backup file
BAS June 19 backup file created in Task 3
Printout 3
GST Detail (non-cash) report
Printout 4
GST summary Report
Printout 5
Profit & Loss
Printout 6
Balance Sheet
Printout 7
Print or create a PDF of the BAS from MYOB BAS link or your software showing all pages of the BAS.
IMPORTANT: Ensure you have produced and saved Printouts 3 to 7, prior to starting Task 4. Ensure you have made a backup of your MYOB file.
TASK 4 – BAS Journal entry and Payment
You have reported the June BAS obligations and now need to pay an amount to the ATO.
Note: ensure you enter the following transactions on the correct dates.
Enter the BAS Journal to transfer the amounts owing into the BAS clearing account. Run a Balance Sheet or Trial Balance report and check the BAS clearing account is equal to the amount payable to the ATO and that the relevant liability accounts are now zero.
Once you have confirmed you BAS journal entry has been processed correctly, run a General Journal Report (Reports > Accounts > Transaction Journal > General Journal) to display your transaction and save as Printout 8.
In July, you are required to pay the above BAS Liability using the business bank account. Enter the transaction into MYOB. Print this payment to PDF and save as Printout 9.
What payment methods can you use to pay your liability to the ATO? If required refer to ATO website for acceptable payment methods.
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If the business no longer has access to an overdraft facility, is Sports Play able to pay their BAS obligation to the ATO?
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What options are available to the company if they don’t have sufficient funds available?
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SUBMISSION ACTIVITY
Printout 8
General Journal report (BAS Journal transaction)
Printout 9
BAS payment transaction
TASK 5 – IAS for July
Fortnightly wages for 12th and 26th July have already been processed. Review the below report and compare with your company file. Ensure payroll reconciles.
Prepare the IAS return for July.
Pay the IAS liability using the business bank account, enter the transaction into your accounting software. Print this payment to PDF and save as printout 11.
SUBMISSION ACTIVITY
Printout 10
Print or create a PDF of the IAS from MYOB BAS link or your software.
Printout 11
IAS payment transaction (Pdf file or screenshot)
Case Study 2 – John Smith
To complete this case study you are required to produce and submit a manual Business Activity Statement for John Smith (template can be downloaded from student portal under the Assessment tab for the unit).
You do not require access to a computerised accounting system for this case study.
Company Information & Procedures
John Smith is a sole trader providing IT consulting services to local clients.
John Smithmaintains a manual cash accounting system.
The financial year is 1 July to 30 June.
John smith is registered for GST, reporting Quarterly on a cash basis using the Simpler BAS reporting method.
Preparation of the BAS return is the responsibility of the BAS Agent and lodged manually.
PAYG instalment is calculated and paid quarterly. The designated PAYG Instalment rate is 4%.
Task 1 – Manual BAS Preparation
John has provided you with the following figures for the December 2019 quarter. Amounts are inclusive of GST where applicable:
Revenue
Consulting Income
$ 22,000
Bank Interest received
$ 50
Expenses
Accounting Fees
$ 660
Bank Fees
$ 120
Computer Purchase
$ 880
Depreciation
$ 500
Office Expenses
$ 440
Petrol
$ 770
Stationary
$ 330
Office Furniture
$ 200
John has also provided you with the following information:
A bill for $200 was received from Golden Dragon Furniture (Singapore based company) for the office furniture purchased. John considers it to be a non-taxable bill and has therefore coded this transaction in his accounting system as a Non-Capital Purchase – GST Free.
Has John applied the correct GST treatment for the imported office furniture bill mentioned above?
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Complete the quarterly Business Activity Statement for John Smith (can be downloaded from the student portal) and submit to the ATO (your Applied Education Assessor).
What date is the BAS return due for John Smith?
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A local businessman has contacted you asking for the amount of GST that John usually pays for the quarter.
What legislation should you abide by when answering this query?
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What provisions within the BAS Agent’s Code of Professional Conduct also apply to this situation?
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Task 2 – BAS Agent Requirements
Describe how you comply with the following requirements of the TPB Code of Professional Conduct:
Competence
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Honesty and Integrity
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List three (3) services that can be provided by a registered BAS Agent.
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List one (1) service that must be provided by a registered Tax Agent
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What are the Continuing Professional Education (CPE) requirements of a BAS Agent?
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List two (2) professional associations that are recognised by the Tax Practitioner’s Board?
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SUBMISSION ACTIVITY
Printout 12
Completed December 2019 manual Business Activity Statement form for John Smith.
CHECKLIST
Documents to be uploaded
The following documents should be uploaded to the Student Portal for marking.
DOCUMENT
DOCUMENT NAME
Assessment
Completed Assessment document.
Printout 1
Chart of Accounts list
Printout 2
General Ledger Detail report for the month of June
Printout 3
GST Detail (Non-Cash) report
Printout 4
GST Summary Report
Printout 5
Profit & Loss
Printout 6
Balance Sheet
Printout 7
Sports Play BAS June
Printout 8
BAS Journal Transaction (screenshot)
Printout 9
BAS Payment Transaction
Printout 10
Sports Play IAS July
Printout 11
IAS Payment Transaction (PDF file or Screenshot)
Printout 12
John Smith BAS December
Backup file
BAS June 19 MYOB Backup File (created Case Study 1, Task 3 Activity 3)
You have now completed this Assessment.
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