BACC012 ACCOUNTING BUSINESS AND SOCIETY SEMESTER 1 2024Haskell

Java Python DIPLOMA OF BUSINESS

ACCOUNTING, BUSINESS AND SOCIETY

BACC012

SEMESTER 1, 2024

Prerequisites: BACC011

ASSESSMENT TASK: ACCOUNTING FOR YOUR BUSINESS (AFYB)

(WEIGHT 25%)

TASK DESCRIPTION

Students with their peer working in a pair work will create their own business and account for their business  operations. Business ideas and accounting knowledge for a partnership business is the fundamental part of the assessment. In addition, students are required to use the  set of technical  skills including the use of accounting application MYOB to record for their business transactions and Excel spreadsheet to prepare for NCA’ s Depreciation Schedule. The successful completion of this task will demonstrate that students have a strong understanding of business concepts and accounting principles applied in real business context, as  well as the ability to use the computer accounting system.

LEARNING OUTCOMES

SLO   1:  Demonstrate  the  process  of  recording   economic  events  in  accounting information system

SLO 3: Identify and address the practical issues in accounting for assets.

ASSSSMENT BRIEF

PART A – Introducing the business and the partners

You are required to write a great story to introduce about your business and your business partner.
ABOUT BUSINESS
•	What is the name of the business & where is it located?
•	Describe the business in details. E.g.: What is the business engaged in? Are you selling a product or providing a service? What product/s or what services?
•	Who are its expected customers or clients? (Target market).
•	What strategies would you do to attract customers to your business?
•	What strengths do you have over your competition? Why would potential clients or customers choose your business instead of one of your competitors?
•	What are major plans for business development in future?
ABOUT PARTNERS
•	Introduce the partner: Who are they? What were they doing before forming the partnership?
•	Why/How did you come up with this business idea?
•	What are partners’ capital contributions (Cash/Car/Equipment/etc...)? (using a table)
•	Recording Each partner’scapital contribution (a table for journal entries)
•	What else can they contribute into the business apart from their capital? How will they use their knowledge/background/experience etc. to help the business?
•	Partnership agreement. How are profits and losses to be shared etc.? (Partnership agreement template may be downloaded from the Internet. Just change names etc. and delete unwanted sections. Using Referencing & Keep it short with 1 page only.)
Commencement of Business

•    Write a narrative: What date did business commence? (It will be at least a month after the partnership agreement is signed). Anything interesting at start?

•    Prepare  a trial  balance showing all accounts & their beginning balance on the day of business commencement (using the format given below & make up different amount & more accounts to be used in your business).

LINH DO ACCOUNTING BUSINESS

TRIAL BALANCE

AS AT 1st Feb 2024

ACCOUNT NAMES	DEBIT	CREDIT
Cash at Bank	$        200,000
Petty Cash	$           1,000
Account Receivable	$                -
Inventory	$                -
Prepaid Insurance	$           16,000
Furniture and Fittings at Cost	$        50,000
Furniture and Fittings Accum Dep		$                -
Equipment at Cost	$        43,500
Equipment Accum Dep		$                -
Delivery Vehicles at Cost	$        100,000
Delivery Vehicles Accum Dep		$                -
Cash Register System at Cost	$          25,000
Cash Register Accum Dep		$                -
Account Payable		$        50,000
GST Collected		$                -
GST Paid	$           14,500
PAYG Withholding Payable		$                -
Your Capital		$        200,000
Your peer ‘s Capital		$        200,000
TOTAL	$      450,000	$      450,000

***Note ***

  The reason why some accounts have their beginning balances is just because you must have had some purchase activities prior to the commencement date (e.g.: you already purchased Delivery Vehicles/ Equipment etc…)

  Some accounts can have 0 balance if you have not had any business transaction.

PART B -BUSINESS DURING THE OPERATION PERIOD

FIRSTLY, you will need to makeup suppliers’ name, customers’ name & inventory items for your business. Those suppliers& customers are regular to your business. Remember these names must be creative, unique and appropriate for the business described in your business introduction above.

Required:

•    Making tables showing names for 10 customers/10 suppliers/10 main products(services)

•    For products/services: You might need to setup Cost & Selling price (if needed)

EXAMPLES

Customer ID	Customer Name	Australian Business Number (ABN)	Business Address
CUS01	ANZ Bank Staffs	12345678910	1 Sydney St, Sydney, NSW Australia
CUS02	Coles	00112233445	89 Paris St, Sydney, NSW Australia

Supplier ID	Customer Name	Australian Business Number (ABN)	Business Address
SUP01	Woolworths	55566699988	15 Crown St, Sydney, NSW Australia
SUP 02	Optus	12378955599	80 King St, Sydney, NSW Australia

PRODUCTS/SERVICE	COST PRICE	SELLING PRICE
Mouse	$100	$180
Keyboard	$250	$300
Laptop	$400	$500
Bookcase	$280	$400

(Make recording simple by buying and selling the same product. E.g. you buy laptop, table… etc and sell laptop/table…)

SECONDLY, during the period of business operation, you are requested to prepare some tables for:

•     30 sales transactions (some with regular customers, some with Cash SALE)

•     30 purchase transactions (mostly from regular suppliers)

•    20 Cash Receipt Transactions (15 from regular customers/5 from other sources)

•     20 Cash Payment Transactions (15 to regular suppliers/ 5 to other sources)

•     5 General Journals to record for Depreciation of any Non-Current Assets (any Depreciation method is fine as long ashow the method is applied in the situation is reasonably explained in writing.)

EXAMPLE

Date            Transactions during July

1st Feb        Purchase from Office Work (Supplier 1): 200 Mouses for $10,000

2rd Feb       Sales to Fancy Home Ltd (Customer 4) : 10 Book Cases ( P03)

6 th Feb      Cash Sales: 5 products P05; 4 products PO3

10 th Feb     Paid wages to staff for the week of $1000

PART C -USE MYOB TO RECORD TRANSACTIONS FROM PART B     

Learning resources on how to use MYOB are provided under the bottom of Module page in Canvas.

After the completion of recording, you are required to generate those reports from MYOB:

•    General Journal Transaction Journal

•    Sales and Receivable Transaction Journal

•    Purchase and Payable Transaction Journal

•    Cash Disbursement Transaction Journals

•    Cash Receipts Transaction Journals

•    Standard Balance Sheet

•    Profit and Loss Statement (Accrual)

PART D - ANALYSE THE BUSINESS PERFORMANCE

Financial Statement Analysis and Ratio Analysis are commonly used to produce information on the

business performance and therefore it helps to identify the problems early so that the prompt decisions can be made to correct the problems and improve the business performance.

Your pair is required to use the reports obtained from MYOB to demonstrate some analysis to draw information on your business performance during the period of business operation.

Your calculations and writing should be well developed in a structure of analysing business performance based on 4 main categories:

   Profitability

   Liquidity

   Efficiency

   Solvency

Finally,  you  might  need  to  provide  some  suggestions  (future  plans)  to  improve  the  business performance in the future if you believe that your business is currently facing some problems given your analysis.

PART E -DEPRECIATION SCHEDULE FOR NON-CURRENT ASSET     

You are required to select ONE (1) depreciating Non-Current Asset from your Balance Sheet to complete the following tasks:

o Clearly explain the depreciation method used to determine the its depreciation expense for this business operation period.

o Using Excel to construct Depreciation Schedule for this NCA over 3-5-year period under both methods: Straight-line & Reducing balance (at double S-L rate)

o Draw graphs on NCA’s depreciation & Book Value to make a comparison between two methods