Student Assessment
SITXFIN002 Interpret financial information
In order to be assessed as Competent (C) in this unit, you need to provide evidence which demonstrates that you can perform the required competencies to the required standard. Competency depends on consistently demonstrating the skills, attitude and knowledge that enables you to complete workplace tasks confidently in a variety of situations.
This unit describes the skills and knowledge required to interpret financial information and reports used by organisations to monitor business performance and provide information on operational or departmental financial activities.
To attain competence in the unit ‘Interpret financial information’ you must:
· Successfully complete the Theory Assessment (via the exam portal)
· Successfully complete the Project
Project
SITXFIN002 Interpret financial information
Instructions
Your Task is to complete the following tasks 1-7. Once completed, please upload your final answer in one document via your student portal. You need to complete this assessment by 14 March 2021.
Task 1
You work as a bookkeeper for Happy Feet Walking Tours. You need to prepare an invoice issued to Sweet Life Pty Ltd for walking tours that were organised for them as a part of their team building.
There were 3 different walking tours organised and provided for 3 different groups of their staff and all took place on 1 March 2021. As per the organisational policies and procedures, the invoices must be issued within 48 hours of the event occu
ing and 14-day credit terms must follow.
· Add the co
ect invoice date and due date
· Add the co
ect business names (the company issuing and the company receiving the invoice)
· Calculate total amounts for each category
· Calculate the total price excluding GST
· Calculate the GST
· Calculate the total price including GST
Tax Invoice
BUSINESS NAME
ABN: XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX886 Point Nepean Rd, Rosebud VIC 3939
Invoice Date: 01/03/ XXXXXXXXXXDUE Date: XXXXXXXXXX/03/2021
To:
BUSINESS NAME
XXXXXXXXXX6 Lyon St, Rosebud VIC 3939, ABN: XXXXXXXXXX
Description of supply
Price/Item
Total $
10 Units
Walking tour organised and delivered to Group 1 (10 people)
$85.00
$850
12 Units
Walking tour organised and delivered to Group 2 (12 people)
$90.00
$1,080
12 Units
Walking tour organised and delivered to Group (12 people)
$95.00
$1,140
34 Units
Refreshments
$19.00
$646
Total Price Excluding GST
$3,716
GST
$371
Total Price Including GST
$4,087
Task 2
As a Happy Feet Walking Tours bookkeeper, you are responsible for maintaining their daily financial records and record every transaction in a chronological order.
The following transactions occu
ed during the months of January and Fe
uary 2021. Your task is to chronologically record all the transactions into the co
ect journals and accounts. For the purpose of this assessment, use table below and record the transactions as shown in an example.
As per the organisational policies and procedures, credit terms are usually 14 days. The same applies for the credit purchases unless specified otherwise.
Transactions during the month of January (not listed/not organised in chronological order):
· 1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with capital of $100,000 cash and one car $50,000
· 2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500
· 4/1/2021 Purchased equipment for cash $10,500
· 5/1/2021 Purchased stationary for cash $150
· 6/1/2021 Purchased 3 computers from JB Hi-Fi on credit $4,500
· 7/1/2021 Sold walking tours for cash $990
· 7/1/2021 Returned 1 computer to JB Hi-Fi as it was too slow and it was agreed it was not necessary for the business $500
· 9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200
· 10/1/2021 Cash sales $2,000
· 12/1/2021 Purchased equipment for cash $450
· 13/1/2021 Sold walking tours to customer Mr Ford on credit $5,500
· 13/1/2021 Paid rent in cash $2,000
· 15/1/2021 Mr Ford complained that the invoice should have been only for $5,300 (mistake in the invoice has occu
ed)
· 17/1/2021 Mr Smiley decided to take a bank loan for purchase of 2 new company vehicles $75,000
· 19/1/2021 Paid the outstanding invoice to JB Hi-Fi by cash
· 20/1/2021 Paid salaries $10,000 via bank transfe
· 25/1/2021 Owner of Happy Feet Walking Tours Mr Smiley withdrew cash from the company account for his personal expenses $1,000
· 27/1/2021 Mr Ford paid the outstanding amount on his invoice by cash
· 31/1/2021 Owner Mr Smiley sold old furniture for cash to Mr Mitsubishi $1,000
· 1/2/2021 Sold goods on credit $1,000 to Mrs Renault
· 5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit and cash sales were $3,000
· 7/2/2021 Owner Mr Smiley withdrew $5000 cash for personal use
· 11/2/2021 Purchased goods for cash $500 and on credit $2,000 from Sun Pty Ltd
· 10/2/2021 Sold walking tours for cash $5,000
· 12/2/2021 Purchased goods for cash $2,000 and on credit $3,000 from Sky Pty Ltd
· 13/2/2021 Paid rent in cash $2,000
· 15/2/2021 Mrs Renault paid the invoice by cash
· 20/2/2021 Paid salaries $12,000 via bank transfe
· 23/2/2021 Took a bank loan $40,000, where $10,000 was withdrawn for business (cash) and the rest in the bank account
· 24/2/2021 Paid the invoice to Sun Pty Ltd in cash
· 27/2/2021 Sold walking tours on credit $2,500 to Mr Volvo
· 28/2/2021 Sold walking tours on credit $4,500 to Mr Fiat
a) Use the table on the following page to record the above transactions and determine:
· Type of a journal you will use:
· General Journal (GJ)
· Cash Receipts Journal (CRJ)
· Cash Payments Journal (CPJ)
· Purchase Journal (PJ)
· Purchase Returns Journal (PRJ)
· Sales Journal (SJ)
· Sale Returns Journal (SRJ)
· Account names to be used
· Sales
· Purchases
· Sales Returns
· Purchases Returns
· Cash
· Capital
· Furniture
· Equipment
· Accounts Payable
· Accounts Receivable
· Drawings
· Bank Loan
· Vehicles
· Computers
· Rent
· Stationery
· Salaries
· Account types
· Assets
· Liabilities
· Owner’s Equity
· Revenue
· Expenses
· Whether the balance in each account increases or decreases
· Whether the account would be debited DR or credited CR
Date
Transaction in chronological orde
Journal
Account Names
Account
Balance
Increase
o
Decrease
DR
or
CR
Example:
1 January 2021
Sold goods to a customer Byrne on credit terms.
SJ
A/c Receivable
Sales
Assets
Revenue
Increase
Increase
DR
CR
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with capital of $100,000 cash
GJ
Capital
Cash
Assets
Owner’s Equity
Increase
Increase
DR
CR
1/1/2021 Owner of Happy Feet Walking Tours Mr Smiley started business with one car $50,000
GJ
Vehicles
Capital
Assets
Owner’s Equity
Increase
Increase
DR
CR
2/1/2021 Owner Mr Smiley purchased new office furniture from Ikea on 30-day term $4,500
GJ
Purchases
A/c payables
Assets
Expenses
Liabilities
Increase
Increase
DR
CR
4/1/2021 Purchased equipment for cash $10,500
CPJ
Cash
Equipment
Assets
Assets
Decrease
Increase
CR
DR
5/1/2021 Purchased stationary for cash $150
CPJ
Cash
Stationary
Assets
Assets
Decrease
Increase
CR
DR
6/1/2021 Purchased 3 computers from JB Hi-Fi on credit $4,500
GJ
Computers
A/c payables
Assets
Liabilities
Increase
Increase
DR
CR
7/1/2021 Sold walking tours for cash $990
CRJ
Cash
Sales
Assets
Revenue
Increase
Increase
DR
CR
7/1/2021 Returned 1 computer to JB Hi-Fi as it was too slow and it was agreed it was not necessary for the business $500
GJ
Computers
A/c payable
Assets
Liabilities
Decrease
Decrease
CR
DR
9/1/2021 Walking tours provided to Toyota Pty Ltd. Invoice has been issued $3,200
SJ
A/c Receivables
Sales
Assets
Revenue
Increase
Increase
DR
CR
10/1/2021 Cash sales $2,000
CRJ
Cash
Sales
Assets
Revenue
Increase
Increase
DR
CR
12/1/2021 Purchased equipment for cash $450
CPJ
Cash
Equipment
Assets
Assets
Decrease
Increase
CR
DR
13/1/2021 Sold walking tours to customer Mr Ford on credit $5,500
SJ
Sales
A/c receivables
Revenue
Assets
Increase
Increase
CR
DR
13/1/2021 Paid rent in cash $2,000
CPJ
Cash
Rent
Assets
Expenses
Decrease
Increase
CR
DR
15/1/2021 Mr Ford complained that the invoice should have been only for $5,300 (mistake in the invoice has occu
ed)
SRJ
A/c receivables
Sales Return
Assets
- Revenue
Decrease
Increase
CR
DR
17/1/2021 Mr Smiley decided to take a bank loan for purchase of 2 new company vehicles $75,000
CRJ
Bank Loan
Vehicle
Liabilities
Assets
Increase
Increase
CR
DR
19/1/2021 Paid the outstanding invoice to JB Hi-Fi by cash
CPJ
Cash
A/c payable
Assets
Liabilities
Decrease
Increase
CR
DR
20/1/2021 Paid salaries $10,000 via bank transfe
GJ
Bank
Salaries
Assets
Expenses
Decrease
Increase
CR
DR
25/1/2021 Owner of Happy Feet Walking Tours Mr Smiley withdrew cash from the company account for his personal expenses $1,000
GJ
Cash
Drawings
Assets
- OE
Decrease
Increase
CR
DR
27/1/2021 Mr Ford paid the outstanding amount on his invoice by cash
CRJ
Cash
A/c Receivable
Assets
Assets
Decrease
Increase
CR
DR
31/1/2021 Owner Mr Smiley sold old furniture for cash to Mr Mitsubishi $1,000
CRJ
Cash
Furniture
Assets
Assets
Increase
Decrease
DR
CR
1/2/2021 Sold goods on credit $1,000 to Mrs Renault
SJ
Sales
A/c receivables
Revenue
Assets
Increase
Increase
CR
DR
5/2/2021 Sold walking tours to Skoda Pty Ltd $9,000 on credit
SJ
A/ Receivable
Sales
Assets
Revenue
Increase
Increase
DR
CR
5/2/2021 Sold walking tours to Skoda Pty Ltd $3000 cash
CRJ
Cash
Sales
Assets
Revenue
Increase
Increase
DR
CR
7/2/2021 Owner Mr Smiley withdrew $5000 cash for personal use
GJ
Cash
Drawings
Assets
- OE
Decrease
Increase
CR
DR
10/2/2021 Sold walking tours for cash $5,000
SJ
Sales
Cash
Revenue
Assets
Increase
Increase
CR
DR
11/2/2021 Purchased goods for cash $500 from Sun Pty Ltd
CRJ
Cash
Purchases
Assets
Expenses
Decrease
Increase
CR
DR
11/2/2021 Purchased goods on credit $2,000 from Sun Pty Ltd
PJ
A/ Payable
Purchases
Liabilities
Expenses
Increase
Increase
CR
DR
12/2/2021 Purchased goods for cash $2,000 from Sky Pty Ltd
CPJ
Cash
Purchases
Assets
Expenses
Decrease
Increase
CR
DR
12/2/2021 Purchased goods on credit $3,000 from Sky Pty Ltd
PJ
A/ Payable
Purchases
Liabilities
Expenses
Increase
Increase
CR
DR
13/2/2021 Paid rent in cash $2,000
CPJ
Cash
Rent
Assets
Expenses
Decrease
Increase
CR
DR
15/2/2021 Mrs Renault paid the invoice by cash $1,000
CRJ
Cash
A/c receivables
Assets
Assets
Increase
Decrease
DR
CR
20/2/2021 Paid salaries $12,000 via bank transfe
GJ
Bank
Salaries
Assets
Expenses
Decrease
Increase
CR
DR
23/2/2021 Took a bank loan $40,000, where $10,000 was withdrawn for business (cash) and the rest in the bank account
CRJ
Cash
Bank
Bank Loan
Assets
Assets
Liability
Increase
Increase
Increase
DR
DR
CR
23/2/2021 $10,000 was withdrawn for business (cash) and the rest in the bank account
CRJ
Cash
Bank
Bank Loan
Assets
Assets
Liability
Increase
Increase
Increase
DR
DR
CR
24/2/2021 Paid the invoice to Sun Pty Ltd in cash $2,000
CPJ
A/ Payable
Cash
Liabilities
Assets
Decrease
Decrease
DR
CR
27/2/2021 Sold walking tours on credit $2,500 to Mr Volvo
SJ
Sales
A/c receivables
Revenue
Assets
Increase
Increase
CR
DR
) Then transfer all January transactions into ‘T-account’ structure and determine the account balance
** Please fix January cash T-account – DR ($100,000, $990, $2000, $5,300, $1,000) and CR ($10,500, $150, $450, $2,000, $4,000, $1,000
DR XXXXXXXXXXCash XXXXXXXXXXCR
DR
Bank
CR
XXXXXXXXXXDR Equipment XXXXXXXXXXCR
7/1/21 $990 4/1/21 $10,500 XXXXXXXXXX20/1/21 $10,000 4/1/21 $10,500
1/1/21 $100, XXXXXXXXXX/1/21 $150 XXXXXXXXXX12/1/21 $450
10/1/21 $2,000 12/1/21 $450
13/1/21 $5,300 13/1/21 $2,000
31/1/21 $1,000 19/1/21 $4,000
XXXXXXXXXX25/1/21 $1,000
DR Accounts Receivable CR
DR
Accounts Payable CR DR XXXXXXXXXXBank Loan CR
9/1/21 $3, XXXXXXXXXX/1/21 $5, XXXXXXXXXX/1/21 $500