Determine the effective life using the hair style designs

Reference no: EM131498888

Task 1

Assessment Instructions

This is an individual assessment. Using the scenario information supplied, the candidate will determine the effective life, determine the appropriate depreciation method, complete depreciation calculations and complete Asset Registers for two fixed assets and one associated depreciation schedule for the specified organisation. If you need help understanding any questions, ask your assessor to explain.

Procedure
1. Read the Hair Style Designs scenario provided.
2. Using the information in the scenario, the Hair Style Designs Policies and Procedures Manual, and the templates provided in the appendices of this task, complete the Asset Registers and associated Depreciation Schedule for Hair Style Designs Pty Ltd:
a. Determine the effective life using the Hair Style Designs Policy and Procedure for Fixed Assets.
b. Determine the appropriate method of calculating depreciation for each asset listed in accordance with the policies and procedures provided.
c. Calculate and record the initial value of the assets (excluding GST)
d. Calculate and record yearly accumulated depreciation.
e. Complete Asset Registers and associated Depreciation Schedule in accordance with accounting requirements, particularly with respect to what is recorded as a debit and what as a credit.
3. Submit all documents to your assessor as per the specifications below. Ensure you keep a copy of all work submitted for your records.

To be deemed competent you will need to successfully demonstrate the following:
You must provide:
- two Asset Registers, one for each asset listed in the scenario
- one Depreciation Schedule
- calculations showing how you arrived at your figures for the value of the asset excluding GST, accumulated depreciation for each year (including part years) and residual value using the appropriate equations.
- completed fields on the asset register
- demonstration that you accurately calculated depreciation using the correct method of calculation as outlined in the policies and procedures, which will be demonstrated through your completion of the two Asset Registers and one Depreciation Schedule.

Task 2

Assessment Instructions
This is an individual assessment. Using the scenario information provided for a simulated workplace, the candidate will manually record General Journal entries for depreciation, disposal and balance day adjustments. The candidate will then record these entries into MYOB. If you need help understanding any questions, ask your assessor to explain.

Part A: Manual procedure
1. Read the scenario provided.
2. Read the Hair Style Design Policies and Procedures Manual for Fixed Assets. Familiarise yourself with the organisation's chart of accounts, depreciation policy, disposal policy.
3. Record the balance day adjustments in the General Journal template provided:
a. Record this year's depreciation of the barber chairs.
i. Account for part year's depreciation
b. Record disposal information for the motor vehicle.
i. Account for GST on sale
ii. Account for profit and loss
c. Record adjustments for revenues and expenses:
i. Prepaid expenses on insurance
ii. Accrued expenses on wages and salaries
iii. Prepaid revenue on rental income
iv. Accrued revenue on interest.
d. Record bad and doubtful debts:
i. Bad debt on the Kirsty McBride wedding party
ii. Doubtful debt allowance of %10 of Trade Debtors.
e. Record adjustment for inventory
4. Using the chart of accounts and General Ledgers provided, post inventory adjustment to General Ledger Inventory Adjustment and Trading accounts.
5. Submit the General Journal and General Ledger to your assessor. Ensure you keep a copy of all work submitted for your records. Your assessor will review your work before authorising you to perform Part B.

Part B: MYOB procedure
1. Open the MYOB file (Hair Style Designs Pty Ltd_Task 2.myo) provided with this assessment.
a. Record the General Journal entries in the MYOB file.
b. Print the General Journal for 01 July 2013 to 30 June 2014

2. Submit your updated MYOB file to your assessor. Ensure you keep a copy of all work submitted for your records.
To be deemed competent you will need to successfully demonstrate the following:
You must provide:
? manual General Journal
? manual General Ledger
? printed copy of MYOB General Journal for 01 July 2013 to 30 June 2014
? copy of your up-to-date MYOB file for Hair Style Design Pty Ltd.
? adherence to accounting requirements, particularly with respect to preparing balanced General Journal entries
? adherence to taxation legislation with respect to GST
? adherence to business policies and procedures
? Use of accounts
? Policies for entering adjustments into MYOB.

Task 3

Assessment Instructions
This is an individual assessment. Using the scenario provided, the candidate will post General Journal entries for balance day adjustments (depreciation of a van) to the General Ledger. The candidate will post revenue and expense account balances to the Trading and Profit and Loss General Ledger accounts and prepare the General Ledger accounts to reflect gross and net profit for the reporting period. The candidate will then prepare a Statement of Financial Performance and Statement of Financial Position using the templates provided. The candidate will then view the financial statements in MYOB and note any discrepancies. Finally, the candidate will resolve errors in accordance with organisational policy and procedures. If you need help understanding any questions, ask your assessor to explain.

Part A: Manual procedure
1. Read the scenario provided.
2. Read the Hair Style Design Policies and Procedures Manual for Financial Statements. Familiarise yourself with the organisation's chart of accounts, Financial Statement templates, authorisation policy and corrections policy.
3. Using the 10-Column worksheet information and the template provided, post the depreciation for the company van to the appropriate General Ledger accounts. Ensure you use the correct Chart of Accounts. Ensure total debits equal total credits.
4. Using the template provided, post revenue and expense accounts balances to the Trading and Profit and Loss General Ledger accounts. Ensure you transfer the balance of the depreciation expense to the correct General Ledger account.
5. On the template provided, show gross and net profit
6. Using the template provided, prepare a Trial Balance.
7. Using the template provided, prepare the Statement of Financial Performance.
8. Using the template provided, prepare the Statement of Financial Position.
9. Submit all documents to your assessor. Ensure you keep a copy of all work submitted for your records.

Part B: MYOB procedure
1. Open the MYOB file (Hair Style Designs Pty Ltd_Task 3.myo) provided with this assessment.
a. View Profit & Loss (Accrual) report.
b. View Standard Balance Sheet report.
2. Compare manual statements with MYOB reports and note any discrepancies
3. As per organisational policy, obtain authorisation from the CEO (your assessor) to correct any errors.
4. Correct any errors in MYOB.
5. After you have corrected any errors, print the General Journal (30/6/2014), Profit & Loss (Accrual) and Standard Balance Sheet reports.

6. Submit documents to your assessor, including your updated electronic MYOB file. Ensure you keep a copy of all work submitted for your records.
To be deemed competent you will need to successfully demonstrate the following:
You must provide:
? manual General Ledger entries for depreciation
? manual General Ledger entries to Trading and Profit and Loss General Ledger accounts showing gross and net profit balances
? manual Trial Balance
? manual Statement of Financial Performance
? manual Statement of Financial Position
? printed MYOB reports (post-correction) for General Journal (30/6/2014), Statement of Financial Performance and Statement of Financial Position
? electronic copy of MYOB file.
? adherence to accounting requirements, particularly with respect to posting General Ledger entries, preparing final accounts, and ensuring a balanced ledger (through a Trial Balance) before creating the financial statements.
? adherence to organisational policies and procedures
? use of chart of accounts
? use of templates
? policies for authorising corrections to financial statements.

Attachment:- Appendix and data.rar

Reference no: EM131498888

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