BSBFIA401A

Prepare Financial Reports

Prepare Financial Reports

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant information relating to the preparation of financial reports. Accounting is defined as a collection of data in a systematic, structured, and valuable quantitative information expressed in currency units on the transactions. It is the art of recording the data then classify it and summarize in an important manner in the monetary terms and last interpret the results. Bookkeeping can be defined the recording of the transactions on a daily basis in an unsystematic way. Accounting is divided into different types: financial accounting, management accounting, tax accounting, environmental management accounting etc. Financial accounting can be defined as the collecting data, sorting it, and recording, adding together and reporting in monetary terms. It uses certain principles to record, classify, and summarize the data collected in monetary terms. The main function of financial accounting is to maintain the economic life history of a company: record the past figures that can use to make future decisions. The cost accounting is based on the data which is attained from the financial accounting procedures. The book keeping and cost accounting is used for tracing the expenses, costs, savings, investments, and different indicators. To demonstrate competency in these competency elements, we will demonstrate understanding of the skills and knowledge in this assessment by solving three questions.

Question 1 (50 marks)

Required

From the above information and the Trial Balance (already posted to the 10 column worksheet on the following page):

Post all necessary balance day adjustments to the Ten Column Worksheet (20 marks)

Balance the worksheet to calculate the Gross and Net Profit amounts (10 marks)

Prepare a classified Income Statement for the year ended 30 June 2010 (10 marks)

Prepare a Classified Balance Sheet as at 30 June 2010 (10 marks)

Note - the Perpetual Inventory system is used.

Ten Column Worksheet as at 30 June 2010-Lar Pty Ltd

Trial Balance

Adjustments

Trading Acc

P&L Account

Balance Sheet

 

Dr

Cr

Dr

Cr

Dr

Cr

Dr

Cr

Dr

Cr

Inventory

18,760





18760







18760



Accounts Receivable

14,040





14040







14040



Allowance for doubtful debts

230

1540

562



748







748

Bank

9,500

400



9900







9900



Land and Buildings

90,000





90000







90000



Furniture and Fittings

17,000





17000







17000



Acc Depreciation Furniture and fittings

4,250



3,750



8000







8000

Motor Vehicle

65,000





65000







65000



Acc Depreciation MV

26,000



12,500



38500







38500

Accounts Payable

9,020



3300



12320







12320

GST Clearing(GST Payable)

2,700







2700







2700

Mortgage

20,000







20000







20000

Capital

140,000







140000







140000

Drawings

10,500





10500

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10500



Sales

96,500







96500



96500





Rental income

2,400



400



2800



2800





Interest income

1,300







1300



1300





Cost of goods sold

38,000





38000



38000







Advertising

2,300





2300



2300







Insurance

4,000



2400

4000



4000







Lease expenses

1,600





1600



1600







Postage

500





500



500







Salaries

29,700

3300



33000



33000







Bad Debt

1,500

562

1540

522



522







302,400

302,400

































Insurance expense

2400



2400



2400







Depreciation Expense (MV)

12,500 ...