Assessment 2
FNSACC504: Assessment 2 (Ed1&2)
What you have to do
This assessment consists of 5 questions. You are required to attempt every question in this
assessment. The excel answer template provided on the OLS is Compulsory.
Students must achieve a satisfactory result in each element to pass this assessment.
In order to achieve a satisfactory result in this assessment you must meet the performance
levels set out in the requirements of this unit below.
Question Topic Element of
competency
Marks
available
Marks
equired for a
satisfactory
esult
1 Income statement and changes in
equity
FNSACC504/2.2
FNSACC504/2.3
25 13
2 Balance sheet FNSACC504/2.2
FNSACC504/2.3
25 13
3 Cash flow statement FNSACC504/2.2
FNSACC504/2.3
15 8
4 Consolidation FNSACC504/1.2
FNSACC504/2.1
10 5
5 Consolidation FNSACC504/1.2
FNSACC504/2.1
25 13
If you do not achieve a satisfactory result in this assessment, you will be required to
complete the assessment again. You will not be able to attempt the assessment more than
twice.
Ensure you refer to “Assessment instructions” (Located on the link for
Assessment Information) on the OLS for any updates that may have
een made since publication of this assessment.
LA019349 Assessment 2, FNSACC504, Ed 1 & 2 1
© State of New South Wales, Department of Education and Communities, 2015 (TAFE NSW – WSI), Archive Version 1, June 2015
Question 1 (25 Marks)
Part (a) (17 Marks)
Monet Ltd recorded the following operational income and expenses for the year ending 30
June 2016.
$’000
Revenue (Sales) 1,055
Cost of sales 295
Commission received 50
Interest received 20
Distribution expenses 195
Marketing expenses 85
Occupancy expenses 110
Administration expenses 150
Other expenses 48
Finance cost expenses 42
Additional information:
1. Administration expenses included:
• Audit fees: $7,000
• Fees for taxation services paid to the auditors: $4,000
• Depreciation of plant & equipment: $10,000
2. Share capital at 1 July 2015 was 1,500,000 ordinary shares of $1.00 each, fully paid
3. The company issued 200,000 ordinary shares on 1 April 2016 at $1.25 each, fully paid
4. Retained earnings balance 1 July XXXXXXXXXXcredit) $288,000
5. General reserve balance 1 July 2015 $30,000
6. Transfe
ed during the year to general reserve from retained earnings $25,000
7. Asset revaluation reserve balance 1 July 2015 $110,000
8. On 30 June 2016, the directors adopted a new valuation of land and buildings of
$950,000. The previous valuation of land and buildings was $900,000.
9. A fully franked interim dividend of $0.04 per ordinary share was paid on 15
Fe
uary 2016
10. The directors declared a proposed final dividend of $0.05 per ordinary share, fully
franked, on 30 June 2016
11. Income tax rate is 30%
12. Franking credits available at the end of the year were $58,000
2 LA019349 Assessment 2, FNSACC504, Ed 1 & 2
© State of New South Wales, Department of Education and Communities, 2015 (TAFE NSW – WSI), Archive Version 1, June 2015
Required:
(i) Prepare a Statement of comprehensive income with both expenses (classified by
function) and revenues disclosed on the face of the statement.
(ii) Prepare the following notes to support the statement of comprehensive income
and statement of changes in equity:
• Profit for the period
• Dividends
• Dividend franking credit
(iii)In order to prepare information in a business report, Prepare graphical
information to illustrate the
eakup of expenses.
Part (b) (8 Marks)
From the information supplied in part (a), prepare the Statement of Changes in Equity for
the year ended 30 June 2016.
LA019349 Assessment 2, FNSACC504, Ed 1 & 2 3
© State of New South Wales, Department of Education and Communities, 2015 (TAFE NSW – WSI), Archive Version 1, June 2015
Question 2 (25 Marks)
The following trial balance of Matisse Ltd as at 30 June 2012, extracted from the
company’s MYOB accounting software, disclosed:
Matisse Ltd
Trial Balance at 30 June 2012
Account YTD Debit YTD Credit
Cash at Bank $55,080.00
Petty cash $1,275.00
Accounts receivable $220,575.00
Allowance for doubtful debts $6,375.00
Inventory (at cost) $124,950.00
Land & Buildings (valued 2011) $3,570,000.00
Plant & Machinery (at cost) $969,000.00
Acc. deprec - Plant & Mach. $191,250.00
Investments (at market value) $459,000.00
Goodwill (at cost) $165,750.00
Accum. Impairment Goodwill $51,000.00
Trade marks (at cost) $63,750.00
Defe
ed tax assets $18,360.00
Accounts payable $106,080.00
Accrued expenses $16,320.00
Taxation Payable $70,125.00
Defe
ed tax Liabilities $6,885.00
Mortgage $1,530,000.00
Prov. for Long Service Leave $45,900.00
Share Capital $2,550,000.00
General Reserve $127,500.00
Asset Revaluation Reserve $114,750.00
Retained Earnings $831,555.00
Total: $5,647,740.00 $5,647,740.00
Additional information:
1. Investments include shares in companies listed on the Australian Stock Exchange
($191,000) and debentures available for trading ($268,000).
2. The mortgage, secured by land & buildings, is due to be repaid in six equal instalments,
due on 1 July each year, commencing on 1 July 2016.
3. Land was re-valued by the directors on 30 June 2016 to $2,420,000.
4. Buildings were re-valued by the directors on 30 June 2016 to $1,150,000.
5. Long service leave payable within the next twelve months is $12,000.
4 LA019349 Assessment 2, FNSACC504, Ed 1 & 2
© State of New South Wales, Department of Education and Communities, 2015 (TAFE NSW – WSI), Archive Version 1, June 2015
6. The company is cu
ently involved in a lawsuit where damages amounting to $500,000
are being claimed against the company. The company’s legal advisers believe that
there is a 30% chance that the company may lose this case.
Required:
(i) Prepare the Statement of financial position for Matisse Ltd as at 30 June 2016.
(ii) Prepare the notes to the Statement of financial position (balance sheet)
showing all the required disclosures as per AASB 101 for all items listed
above.
Question 3 (15 Marks)
Part (a) (8 Marks)
A summary extract from the Cash Book of Turner Ltd for the year ended 30 June 2016
disclosed:
Cash Book
Opening balance XXXXXXXXXX,048 Accounts payable XXXXXXXXXX,600
Accounts receivable XXXXXXXXXX,440 Office Furniture XXXXXXXXXX,400
Sales - cash XXXXXXXXXX,600 Inventory purchased XXXXXXXXXX,200
Commission received XXXXXXXXXX,120 Salaries & wages XXXXXXXXXX,800
Office furniture XXXXXXXXXX,000 Taxation payable XXXXXXXXXX,320
Share capital XXXXXXXXXX,000 Provision for annual leave XXXXXXXXXX,640
Motor vehicles XXXXXXXXXX,600 Petty Cash XXXXXXXXXX,000
Interest income XXXXXXXXXX,952 Other operating expenses XXXXXXXXXX,480
Deposits at call XXXXXXXXXX,200 Dividend payable XXXXXXXXXX,200
Closing balance XXXXXXXXXX,320
$1,548,960 $1,548,960
Additional Information – The petty cash float was $1,000 on 30 June 2015. There was $127,200 in
deposits at call on 30 June 2015.
Required:
Prepare a cash flow statement for the financial year ended 30 June 2016, including the note
equired for the reconciliation of cash.
LA019349 Assessment 2, FNSACC504, Ed 1 & 2 5
© State of New South Wales, Department of Education and Communities, 2015 (TAFE NSW – WSI), Archive Version 1, June 2015
Part (b) (7 Marks)
An extract from the balance sheets of Dali Pty Ltd showed the following for the years
ended 30 June 2015 and 30 June 2016 were:
30 June 2015
30 June 2016
Cu
ent Assets
Bank XXXXXXXXXX, XXXXXXXXXX,760
Accounts receivable XXXXXXXXXX, XXXXXXXXXX,680
Allowance (provision) for doubtful debts (5, XXXXXXXXXX,880)
Inventory XXXXXXXXXX, XXXXXXXXXX,560
Cu
ent Liabilities
Accounts payable