BFA507 - The Accounting Framework

Group Assignment Information Sheet – Semester Two 2020

Wanda’s Wardrobes Ltd

Objective:

The objective of this assignment is for you to become familiar with the process of entering transaction data into a manual accounting system, and to test your understanding of accounting concepts and practice.

Assignment overview:

· To undertake this assignment, you need to enter the transaction data from the Company Information Sheet into the appropriate journals and ledgers provided, and prepare the requested reports.

· In addition, you will be required to complete a reflective journal of your experience as you undertake the assignment.

Working in groups

· You are required to work in groups of two on the assignment.

· Assignment group members DO NOT need to attend the same workshop group

· You need to register your assignment group on MyLO and once you do that you will be assigned a group discussion board and a group submission dropbox will automatically appear on MyLO.

· Your completed assignment needs to be uploaded to your group assignment submission dropbox on MyLO by Friday 9 October at midnight.

· You need to contact the unit coordinator by Friday 11 September if you have any problems finding a group or signing up to a group on MyLO.

· Both group members need to complete ALL parts of the assignment, so I suggest you work together on Zoom or similar, and share your screen as you take turns in complete parts of the assignment in the template.

Part A – Manual Accounting (30 Marks)

Required:

In your group, complete the following tasks for the month of June 2020 for Wanda’s Wardrobes Ltd in the following order:

Step 1.

Read the Company Information Sheet carefully and look through the blank accounts

Step 2.

Review the GST information available on MyLO and work through the practice activity

Step 3.

Enter the opening balances in the General Ledger accounts from the Trial Balance provided. Then enter the transactions into the appropriate journals – you are expected to use the general and the special journals provided ie: Sales, Purchases, Cash Receipts and Cash Payments journals. You should put the monthly transactions through the special journals ie: sales will go into the Sales Journal, Purchases in the Purchases journal and so forth. The general journal can be used for any transactions that do not fit naturally into one of the special journals.

Step 4.

Balance the special journals and post the balances for the month from the journals to the subsidiary ledgers, and to the general ledger T accounts. Balance the accounts and prepare a trial balance to check your work. The sum of the debit balance accounts should equal the sum of the credit balance accounts.

Step 5.

Prepare a bank reconciliation at the end of the month, and enter any necessary journal entries to record adjustments to the company records. These entries can be entered into the general journal then posted to the general ledger accounts.

Step 6.

Complete any other adjusting entries in the general journal then post them to the general ledger accounts. Ignore GST for all adjusting entries. Balance the general ledger accounts again, and prepare a pre-closing trial balance.

Step 7.

Prepare closing entries in the general journal then post them to the general ledger accounts. Prepare a post-closing trial balance at 30 June 2020.

Step 8.

Reconcile the control account balances with the subsidiary ledgers.

Step 9

Prepare an Income Statement (Statement of Financial Performance) for the year ending 30 June 2020 and a Balance Sheet (Statement of Financial Position) as at 30 June 2020.

Please Note:

• Each group should submit one copy of Part A to your group submission box on MyLO

• Please provide a brief narration for all entries entered in the general journal and a description for entries in all other journals, as this is what you would do in the real world.

• Each transaction should be entered in ONE journal type ONLY. DO NOT enter transaction in both a special journal and the general journal. Use the general journal for any entries you think don’t fit neatly into one of the special journals. Marks will be deducted if you enter each entry in more than one journal type.

• GST is included in this assignment to provide you with an opportunity to learn how GST is accounted for when entering transactions in the accounts. You are not expected to know everything about GST, just how to account for transactions with a GST component.

• Marks for Part A will be earned or not according to the extent to which you have the correct final account balances shown in the trial balances, prepared the required financial reports, and completed all the other tasks as required.

• It will not be possible to mark your assignment unless you submit all of the required reports. You can submit the parts of the assignment as separate files in Word or Excel format, but make sure that you check your file(s) before submission, to ensure the accounts and all required reports are readable. DO NOT compress your files before uploading. Do not submit your assignment in PDF format.

Please submit the following for Part A:

When you have entered all transaction data, you should prepare and submit the following reports:

· All journals and the full set of general ledger T accounts.

· Pre-Closing Trial balances as at 30 June 2020

· Post-Closing Trial Balance as at 30 June 2020

· Income Statement (Statement of Financial Performance) for the year ended 30 June 2020

· Balance Sheet (Statement of Financial Position) as at 30 June 2020

· Bank Reconciliation as at as at 30 June 2020

· A stock-card to show the movement of inventory in June 2020

Part B – Reflective Journal [Total 10 Marks]

Every student must complete one (1) reflective journal each and submit it to the individual reflective journal submission box on MyLO

• Please complete your reflective journal AS you work through the assignment (using the template below)

• You will get lose marks if you do not consistently complete the journal each time you work on the assignment

• Your journal will be marked based on evidence that you have participated in all parts of the assignment process through regular journal entries outlining;
• when you met/worked with your team members
• which tasks you worked on

• As you work through the assignment comment on the following:
• how you found the experience of using the different journals
• was it useful to complete a trial balance at different points in the process?
• anything you learnt about the business by preparing the accounts

• The length of the journal is entirely up to you, but I would expect the journal to be at least two typed pages. Feel free to include screenshots and videos of you and your partner working together but please make sure that you have your partners permission before you include their photo.

• You will receive full marks for completing the journal in your own words over the time it takes you to complete the assignment

• You will not be judged on your language in this part of assignment

• You must use your own words, if your journal is found to be the same as another team members you can both be reported for academic misconduct. The purpose of the journal is for you to reflect on the processes you undertook

• I expect you to use your own words. Thus, you probably won’t need to provide any references. However, if you do use any other resources in preparing your answer you will need to acknowledge these sources as a reference using the guidelines set out on the UTAS Library website (available at: https://www.utas.edu.au/accounting-communication-matters/writing-an-essay-or-report/referencing)

Reflective Journal (one per student)

Student Name: Student ID:
Date and duration	Task undertaken	What you learnt/experienced/discovered

Company Information Sheet - Wanda’s Wardrobes:

• Wanda’s Wardrobes Ltd is a local retail business that sells wardrobes. The business was set up by Wanda who registered the company on 1 July 2014 and issued XXXXXXXXXXshares.

• The Financial year for the company ends on 30 June.

• Wanda’s Wardrobes Ltd use sales, purchases, cash receipts, cash payments journals and a general journal, along with a general ledger and subsidiary ledgers for debtors and creditors. The majority of their customers pay in cash but they do offer credit to a handful of valued customers. Credit sales are on the terms: 5/10, n/30.

• Wanda’s Wardrobes Ltd rent a local warehouse paying rent of $1 650 each month (including GST).

• The business uses a perpetual inventory system and applies the FIFO inventory flow assumption. Opening inventory is made up of 75 wardrobes @ $1 000 each.

• The company’s warehouse fittings are being depreciated over 10 years with an estimated residual value of $6 500. The company has two delivery vans which are being depreciated over 6 years with an estimated combined residual value of $8 500.

• This new loan was taken out on the 31^st May and loan payments of $ XXXXXXXXXXper month plus interest will be made monthly with the first payment due on the 1^st July 2020. Interest is to be paid at a rate of 7% per annum. The first month’s interest is to be calculated on the full value of the loan of $60 000.

• Provision for doubtful debts is always adjusted at the end of each month to equal 4% of the value of debtors at that time.

• The company account for GST on an accrual basis and reconcile and pay GST every quarter. All figures are GST inclusive unless otherwise stated, thus you will need to divide each figure by 11 to identify the GST component.

• GST was last paid in April 2020 and was next due to be paid in July 2020 thus you DO NOT need to reconcile or pay GST at the end of June 2020 for the quarter. This will be done by the accountant in July.

• Gross wages represent the total wages expense. Tax taken from wages needs to be treated as “Tax Payable” ie: Gross wages = net wages paid + PAYG Tax Payable

• Round all amounts to the nearest dollar.

The trial balance of the company at 31 May 2020 was as follows:

Wanda’s Wardrobes Ltd

Trial Balance

as at 31 May 2020

DR CR

100 Cash at bank XXXXXXXXXX

101 Debtors control 14 800

102 Provision for doubtful debts 592

103 Inventory 75 000

104 Warehouse Fittings 80 300

105 Accumulated depreciation – W/H Fittings 14 145

106 Motor Vehicles (Delivery Vans XXXXXXXXXX

107 Accumulated depreciation –m/vehicles 9 000

200 Creditors control 16 200

250 Accrued Expenses 7 980

260 Loan 60 000

300 Share capital XXXXXXXXXX

310 Retained profits 97 125

400 Sales Revenue XXXXXXXXXX

401 Sales returns 3 900

402 Discount revenue 5 850

500 Cost of goods sold XXXXXXXXXX

501 Depreciation Expense – W/H Fittings 6 765

502 Depreciation Expense – M/V 8 250

503 Discount expense 2 620

504 Electricity expense 11 200

505 Income Tax expense 60 000

506 Interest expense 4 125

507 Motor Vehicle expenses 7 500

508 Rent expense 16 500

509 Sundry expenses 5 200

510 Telephone expense 2 250

511 Wages expense XXXXXXXXXX

600 GST Collected 9 100

610 GST Paid 6 550

$ XXXXXXXXXX $ XXXXXXXXXX

Schedule of Debtors Schedule of Creditors

as at 31 May 2020 as at 31 May 2020

Red Ltd XXXXXXXXXXMelon Ltd 1 300

Amber Ltd 3 200 Plum Ltd 7 600

Jade Ltd 1 700 Pineapple Ltd 1 900

White Ltd 7 500 Yack Ltd 5 400

$14 800 $16 200

The following transactions occurred in June 2020:

(All figures are inclusive of GST unless otherwise stated)

June 1 Received a cheque for $2 200 from Red Ltd (no discount allowed) as part

payment of their account, and deposited it in the bank account [Hint: GST does not need to be considered when you record this transaction, as GST received would have been recorded at the time of the original sale]

2 Sold 3 wardrobes for $6 000 (before discount) to Jade Ltd on credit, the

company was also given a trade discount of $500, then the normal credit

terms) [Hint: Sale = $5 000; GST Collected = $500; COGS/Inventory =

$3 000]

4 Purchased 10 wardrobes on credit from Pineapple $ XXXXXXXXXXno discount)

5 Paid Yack $5 200 in full settlement of amount owing, chq no. 252(the business was given a settlement discount for the difference)

8 Received and deposited payment in full from White Ltd (no discount

allowed)

11 Sold 10 wardrobes on credit to White for $22 000

12 Paid Pineapple Ltd $3 495, being part payment of account owing to date, chq no. 253

12 Paid telephone account of $825, chq no. 254

14 Received a cheque for $5 500 from White Ltd in part payment of their

account (no discount allowed)

14 Banked cash sales of 25 wardrobes sold for a total of $51 150

14 Withdrew cash from the bank account to pay wages of $3 900(after PAYG

tax, gross wages were $5 900 (wages before tax).

17 Paid $462 for plastic bags and stationery items, chq no.255

18 Sold 2 wardrobes credit to Amber Ltd $3 564

23 Paid Melon Ltd $ 1 300, chq no. 256

27 Paid sundry expenses of $250, chq no. 257

28 Wrote off the balance of the account owed by Red Ltd as a bad debt

28 Deposited Cash from sales of 15 wardrobes of $30 800

29 Withdrew cash from the bank to pay wages of $4 300, gross wages were

$6 200.

29 Purchased 4 wardrobes on credit from Pineapple Ltd of $5 380 (before discount) The business was allowed a trade discount of $100 and terms of 1/10, n/30

30 Banked cash sales from the sale of 3 wardrobes for a total of $7 700

30 Amber Ltd paid their debt in full by cash (no discount allowed).

30 Paid the rent for June, chq 258

Additional information at the end of the month:

· Ignore GST for all adjusting entries.

· Gross wages owing at the end of the month total $5 000 (no PAYG tax payable)

· Electricity owing for the month of June is $500 (no GST)

· Advertising owing for the month was $500 (no GST)

· Income tax for the month of June 2020 is estimated to be $8 200 (no GST)

· On the last day of the month (30 June) the business traded both of the delivery vans in for two larger vans worth $ XXXXXXXXXXin total(GST free - no GST). They were given a trade in of $60 000 on the old vans, with the balance to be paid in 30 days. The new vans depreciation rate and residual value have not yet been determined

· No entries had been made in the accounts to allow for any of these items yet

The bank statement received at the end of June shows the following information:

Bank Statement

Wanda’s Wardrobes Ltd

2020 Debit Credit Balance

June 1 Balance XXXXXXXXXXCR

Deposit XXXXXXXXXXCR Deposit XXXXXXXXXXCR

3 Chq.no XXXXXXXXXXCR

4 Chq.no XXXXXXXXXXCR

8 Chq. no XXXXXXXXXXCR

Deposit XXXXXXXXXXCR

14 Chq. no XXXXXXXXXX CR

14 Deposit XXXXXXXXXXCR

14 Deposit XXXXXXXXXXCR

14 Chq. no XXXXXXXXXXCR

14 Cash withdrawal XXXXXXXXXXCR

19 Chq. no XXXXXXXXXXCR

27 Chq. no XXXXXXXXXX CR

29 Deposit XXXXXXXXXXCR

30 Cash withdrawal XXXXXXXXXXCR

30 Bank fees/charges XXXXXXXXXXCR

30 Dividend Received XXXXXXXXXXCR

At 31 May 2020 there were two outstanding cheques – cheque no. 200 for $3 500 and cheque no. 201 $750 and an outstanding deposit for $4 800.

General Journal GJ1

Date	Particulars	Ref	Debit	Credit

General Journal GJ2

Date	Particulars	Ref	Debit	Credit

Purchases Distribution Journal PDJ:

Date	Tax Inv. No.	Accounts Payable and/or Particulars	Ref	Inventory	GST Paid	Accounts Payable Total
				DR	DR	CR

Sales Distribution Journal SDJ:

Date	Tax Inv. No.	Accounts Receivable and/or Particulars	Ref	Sales	GST Collected	Other	Accounts Receivable Total	COGS/ Inventory
				CR	CR		DR	DR./CR

Cash Payments Journal CPJ:

Date	Chq. No.	Particulars	Ref	Cash at Bank	Tax Payable	Discount Revenue	GST Paid	Accounts Payable	Rent Expense	Wages Expense	Other
				CR	CR	CR	DR	DR	DR	DR	DR

Cash Receipts Journal CRJ:

Date	Rec. No.	Particulars	Ref	Cash at Bank	Discount Expense	GST Collected	Accounts Receivable	Sales	COGS/ Inventory
				DR	DR	CR	CR	CR	DR/CR

General Ledger ‘T’ Accounts:

Account Name: Cash at Bank - Cheque Account Acct #: 100

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Accounts Receivable - Debtors Control Acct #: 101

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Provision for Doubtful Debts 102

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Inventory Acct #: 103

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Warehouse Fittings Acct #: 104

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acc Depreciation – Warehouse Fittings Acct #: 105

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Motor Vehicles (Delivery Vans) Acct #: 106

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acc Depreciation – Motor Vehicles Acct #: 107

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Accounts Payable - Creditors Control Acct #: 200

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Accrued Expenses Acct #: 250

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Loan Acct #: 260

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Share Capital Acct #: 300

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Retained Profits Acct #: 310

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: GST Paid Acct #: 610

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: GST Collected Acct #: 600

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount		Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Account Name: Acct #:

Date	Particulars	Ref	Amount	Date	Particulars	Ref	Amount

Trial Balance as at . . . . . . . . . . . .

Account Name	Folio	Debit	Credit
	Totals

Income Statement for the period ended . . . . . . . . . . . .

Account Name	$	$	$
	Totals

Balance Sheet as at . . . . . . . . . . . .

Particulars	$	$	$	$

Bank Reconciliation as at

Particulars	$	$	$	$

Accounts Receivable (Debtors) Subsidiary Ledger

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Accounts Receivable (Debtors) Subsidiary Ledger

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Accounts Payable (Creditors) Subsidiary Ledger

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Accounts Payable (Creditors) Subsidiary Ledger

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Account Name: Acct #:

Date	Description	Ref	Debit	Credit	Balance

Schedule of Debtors Balances

Debtor Name	Amount $
Total $

Schedule of Creditors Balances

Creditor Name	Amount $
Total $

Stock-card:

Date	Details	Inward	Outward	Balance	Balance $
31/5/20	Balance			75 wardrobes @ $1 000 each	75 000