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SEMESTER 3, 2024

Prerequisites: BACC011

Academic Coordinator: Linh Do

Deadline: End of Week 8, Sunday @ 23.59 pm

ASSESSMENT TASK: ACCOUNTING FOR YOUR BUSINESS (AFYB) (WEIGHT 25%)

Students with their peer working in a pair work will create their own business and account for their business operations. Business ideas and accounting knowledge for a partnership business is the fundamental part of the assessment. In addition, students are required to use the set of technical skills including the use of accounting application MYOB to record for their business transactions and Excel spreadsheet to prepare for NCA’ s Depreciation Schedule. The successful completion of this task will demonstrate that students have a strong understanding of business concepts and accounting principles applied in real business context, as well as the ability to use the computer accounting system.

SLO 1: Demonstrate the process of recording economic events in accounting information system

SLO 3: Identify and address the practical issues in accounting for assets.

PART A – Introducing the business and the partners

You are required to write a great story to introduce about your business and your business partner.

• Your business is assumed to be operating within a 3 month-period from 1/09/2024- 31/12/2024
• What is the name of the business & where is it located?
• Describe the business in details. E.g.: What is the business engaged in? Are you selling a product or providing a service? What product/s or what services?
• Who are its expected customers or clients? (Target market).
• What strategies would you do to attract customers to your business?
• What strengths do you have over your competition? Why would potential clients or customers choose your business instead of one of your competitors?
• What are major plans for business development in future?

• Introduce the partners – You and your peer who doing the group work.
• Who are they? What were they doing before forming the partnership?
• Why/How did you come up with this business idea?
• What are partners’ capital contributions (Cash/Car/Equipment/etc...)? (using a table)
• Recording Each partner’s capital contribution (a table for journal entries)
• What else can they contribute into the business apart from their capital? How will they use their knowledge/background/experience etc. to help the business?
• Partnership agreement. How are profits and losses to be shared etc.?

• Write a narrative: What date did business commence? (It will be at least a month after the partnership agreement is signed). Anything interesting at start?
• Prepare a trial balance showing all accounts & their beginning balance on the day of business commencement (using the format given below & make up different amount & more accounts to be used in your business).

LINH DO ACCOUNTING BUSINESS

TRIAL BALANCE

AS AT 1st September 2024

***Note ***

➢ The reason why some accounts have their beginning balances is just because you must have had some purchase activities prior to the commencement date (e.g.: you already purchased Delivery Vehicles/ Equipment etc…)

➢ Some accounts can have 0 balance if you have not had any business transaction.

FIRSTLY, you will need to make up suppliers’ name, customers’ name & inventory items for your business. Those suppliers& customers are regular to your business. Remember these names must be creative, unique and appropriate for the business described in your business introduction above.

Required:

• Making tables showing names for 15 customers/15 suppliers/10 main products(services)

• For products/services: You might need to set up Cost & Selling price (if needed)

(Make recording simple by buying and selling the same product. E.g. you buy laptop, table… etc and sell laptop/table…)

• 40 sales transactions (some with regular customers, some with Cash SALE)
• 40 purchase transactions (mostly from regular suppliers)
• 30 Cash Receipt Transactions (25 from regular customers/5 from other sources)
• 30 Cash Payment Transactions (25 to regular suppliers/ 5 to other sources)
• 5 General Journals to record for Depreciation of any Non-Current Assets (any Depreciation method is fine as long as how the method is applied in the situation is reasonably explained in writing.)

Learning resources on how to use MYOB are provided under the bottom of Module page in Canvas.

• General Journal Transaction Journal
• Sales and Receivable Transaction Journal
• Purchase and Payable Transaction Journal
• Cash Disbursement Transaction Journals
• Cash Receipts Transaction Journals
• Standard Balance Sheet
• Profit and Loss Statement (Accrual)

Finally, you might need to provide some suggestions (future plans) to improve the business performance in the future if you believe that your business is currently facing some problems given your analysis.

You are required to select ONE (1) depreciating Non-Current Asset from your Balance Sheet to complete the following tasks:

• Clearly explain the depreciation method used to determine the its depreciation expense for this business operation period.
• Using Excel to construct Depreciation Schedule for this NCA over 3-5-year period under both methods: Straight-line & Reducing balance (at double S L rate)
• Draw graphs on NCA’s depreciation & Book Value to make a comparison between two methods.
• Explain the key findings for differences between Straight-line & Reducing balance in accounting for the NCA’s depreciation and Book Value

The deadline to submit this AFYB assignment is by the end of Week 8 Sunday @ 23.59 pm Anything handed in after the above deadline will incur late penalties.

Only ONE (1) single file (Word or PDF) must be submitted to Canvas before the deadline, which should include all of the followings:

ASSESSMENT CRITERIA

• Demonstration of a quality work submission (10%)
• Demonstration of the ability to :
• Set up a partnership business in practice and understand how accounting principles are applied
• in business (20%)
• Analyze the business performance for the period of operation (20%)
• Demonstration of the ability to use MYOB & accounting principles to record for business transactions (sales/purchases/ cash collections & payments/ general journals…) (30%)
• Demonstration of the technical skills of using Excel to construct Depreciation schedule for NCA and knowledge required to account for depreciation expense using different methods (20%)