3 MontH accounting course

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FINANCE COACH

3 MONTH ACCOUNTING COURSE WEEK 12 EXAM SUPPORT MATERIAL

H e l p i n g

U B T

y o u

s e t

&

a c h i e v e

y o u r

A C C O U N T I N G

f i n a n c i a l

&

t a r g e t s

F I N A N C E

H E L P I N G

Y O U

S E T

&

A C H I E V E

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

Index APPENDIX 1 FINANCIAL STATEMENTS

4

APPENDIX 2 BREAK EVEN CALCULATION TEMPLATES

14

APPENDIX 3 BANK RECONCILIATION DOCUMENTS

16

Appendix 4 Cash Flow Statements

24

Appendix 5 FINANCIAL PLAN

26

Appendix 6 BUDGETING SCENARIO

27

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F

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FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

APPENDIX 1 FINANCIAL STATEMENTS ABC Confectionery Co. Balance Sheet As at 30th June 2012 Note

2012

2011

$

$

Current Assets Cash and Cash Equivalents

125,728

47,376

Trade Debtors (Accounts Receivables)

9

369,731

291,213

Stock on Hand (Inventory)

479,317

457,685

2,000

-

976,776

796,274

Other Total Current Assets Non-Current Assets

4

Property, Plant and Equipment

10

400,694

440,542

Intangible Assets

11

325,698

325,698

726,392

766,240

1,703,168

1,562,514

432,470

571,474

100,245

89,303

Total Non-Current Assets Total Assets Current Liabilities Trade Creditors (Accounts Payables) Financial Liabilities

12

Other Total Current Liabilities

-

27,147

532,715

687,924

Non-Current Liabilities 336,276

436,521

Total Non-Current Liabilities

Financial Liabilities

12

336,276

436,521

Total Liabilities

868,991

1,124,445

Net Assets

834,177

438,069

Partnership Funds Partners Capital Account John Bluewater

13

271,104

130,117

Mary Bluewater

13

480,065

342,680

Peter Bluewater

13

83,008

(34,728)

834,177

438,069

Total Partnership Funds

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached .

© Copyright Universal Business Team Pty Ltd 2012

ABC Confectionery Co. Trading Statement For the Year ended 30th June 2012 2012

2011

$

$

5,956,214

4,911,737

5,956,214

4,911,737

457,685

346,389

3,005,212

2,538,856

3,462,897

2,885,245

Income Sales Less Cost of Sales Opening Stock Purchases

Closing Stock

479,317

457,685

2,983,580

2,427,560

Less Direct Expenses Direct Wages

164,950

163,520

Warehousing Costs

160,800

168,052

Freight & Cartage

194,856

173,200

17,532

15,870

356,376

326,100

Light & Power Packing Supplies Repairs & Maintenance

Gross Profit

22,516

18,700

917,030

865,442

2,055,604

1,618,735

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached .

© Copyright Universal Business Team Pty Ltd 2012

5

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

ABC Confectionery Co. Trading Statement For the Year ended 30th June 2012 Note

2012

2011

$

$

19,500

25,250

-

(9,181)

2,055,604

1,618,735

2,075,104

1,634,804

20,865

16,500

400

250

Income Other Revenue Loss on Sale of Non-current Assets Gross Profit from Trading Expenditure Accountancy Fees Administration Costs Advertising

3

Bank Charges Borrowing Costs

5

Building Costs Consultancy Fees Depreciation

6

4

113,750

84,300

9,400

10,200

400

500

25,115

21,290

8,535

7,250

81,943

89,101

Hire of Plant & Equipment

2,980

3,650

Hire Purchase Interest Charges

9,999

8,170

Insurance

6

53,500

52,150

Interest Paid

5

19,513

29,501

Motor Vehicle Expenses

7

89,382

87,200

Postage

7,097

6,850

Printing & Stationery

30,784

27,300

Rates & Taxes

45,200

41,020

2,480

2,100

144,800

139,600

Registration Fees Rent Repairs & Maintenance

17,327

15,600

Research & Development Costs

19,600

23,600

Security Costs Staff Ameneties Staff Training & Welfare Subscriptions Superannuation Contributions - Employees Telephone Travelling Expenses

6,750 13,600

9,600

18,300

2,473

1,750

51,930

48,213

49,205

47,800

57,151

58,620

9,679

8,260

587,250

535,780

10,730

5,995

1,505,392

1,411,200

569,712

223,604

8

Uniforms Wages Waste Disposal

Profit

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached .

© Copyright Universal Business Team Pty Ltd 2012

8,280 16,024

ABC Confectionery Co. Partnership Distribution Statement For the Year ended 30th June 2012

Profit Available for Distribution

2012

2011

$

$

569,712

223,604

189,904

74,535

Distribution to Partners John Bluewater Mary Bluewater

189,904

74,535

Peter Bluewater

189,904

74,534

569,712

223,604

7

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached .

© Copyright Universal Business Team Pty Ltd 2012

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

ABC Confectionery Co. Notes to the Financial Statements For the Year ended 30th June 2012



1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report is a special purpose financial report prepared for use by the partners of the partnership. The partners have determined that the partnership is not a reporting entity. The financial report is prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets.

2012

2011

$

$

5,956,214

4,911,737

5,956,214

4,911,737

19,500

25,250

19,500

25,250

5,975,714

4,936,987

90,152

66,440

23,598

17,860

113,750

84,300

2 Revenue

Sales Revenue

Sale of Goods

8



Other Income

Other Revenue

3 Advertising and Marketing Advertising - General Advertising - Catalogues 4 Depreciation

Depreciation - Buildings

1,063

1,063



Depreciation - Plant & Equipment

44,355

37,011



Depreciation - Motor Vehicles

34,491

47,773



Depreciation - Pooled Assets

2,034

3,254

81,943

89,101

400

500

5 Finance Costs

Borrowing Costs

Interest Paid

- Other Persons/Corporations

19,513

29,501

19,913

30,001

40,912

41,370

12588

10780

53,500

52,150

6 Insurance Insurance - General

Insurance - Work cover

These notes should be read in conjunction with the attached Compilation Report.

© Copyright Universal Business Team Pty Ltd 2012

ABC Confectionery Co. Notes to the Financial Statements For the Year ended 30th June 2012

7

2012

2011

$

$

20,548

19,478

Motor Vehicle Expenses

Isuzu FV1400

VW Transporter REG: WMZO45I

9,334

8,681



VW Transporter REG: TGG857A

9,675

9,114



VW Transporter REG: FCE798M

11,698

9,986



VW Crafter REG: TGE012X

12,485

11,258



VW Multivan REG: WMC355A

14,899

11,589



Motor Vehicle Expenses - Other

10,743

17,094

89,382

87,200

8 Travelling Expenses Travel - Domestic Travel - International Travel - Clients & professionals

7,269

5,849

46,284

44,615

3,598

8,156

57,151

58,620

9 Cash and Cash Equivalents Cash on Hand Cash at Bank

300

300

125,428

47,076

125,728

47,376

10 Property, Plant and Equipment

Land and Buildings

Land Buildings Less Accumulated Depreciation & Impairment

-

-

87,574

87,574

8,504

7,441

79,070

80,133

Plant and Equipment

Plant & Equipment

439,346

384,746

Less Accumulated Depreciation & Impairment

266,068

221,713

173,278

163,033

310,039

310,039

165,082

118,086

144,957

191,953

3,389

5,423

3,389

5,423

321,624

360,409

400,694

440,542



Motor Vehicles

Less Accumulated Depreciation & Impairment

Low Value Pool

Total Plant and Equipment

Total Property, Plant and Equipment

These notes should be read in conjunction with the attached Compilation Report.

© Copyright Universal Business Team Pty Ltd 2012

9

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

ABC Confectionery Co. Notes to the Financial Statements For the Year ended 30th June 2012 2012

2011

$

$

320,410

320,410

5,288

5,288

325,698

325,698

11 Intangible Assets

Non-Current

Goodwill Patents & Trademarks

Total Intangible Assets

12 Financial Liabilities

Current



Hire Purchase



Hire Purchase Liability

56,856

50,935

43,389

38,368

100,245

89,303

31,830

88,686

Loans - Bank

10



Non-Current



Hire Purchase



Hire Purchase Liability

Loans - Bank

159,446

202,835

Loans - Unsecured

145,000

145,000

336,276

436,521

436,521

525,824

130,117

107,890

Total Financial Liabilities 13 Partners Funds

Partners Capital Accounts



John Bluewater



Balance at Beginning of Year

Share of Profit

189,885

74,527

Drawings

(48,898)

(52,300)

271,104

130,117

342,680

316,803

189,885

74,527



Mary Bluewater



Balance at Beginning of Year

Share of Profit Drawings

(52,500)

(48,650)

480,065

342,680

Peter Bluewater

(34,729)

(23,095)

Share of Profit

Balance at Beginning of Year

189,942

74,550

Drawings

(72,205)

(86,183)

83,008

(34,728)

834,177

438,069

Total Partners Funds

These notes should be read in conjunction with the attached Compilation Report.

© Copyright Universal Business Team Pty Ltd 2012

ABC Confectionery Co. Notes to the Financial Statements For the Year ended 30th June 2012 2012

2011

$

$

Business Details The principal place of business is: ABC Confectionery Co. 26 Birk Street Lucknow EA 9823 The principal activities of the business include: Confectionery Manufacture and Wholesaling

11

These notes should be read in conjunction with the attached Compilation Report.

© Copyright Universal Business Team Pty Ltd 2012

42,500 87,574

Sub-total

© Copyright Universal Business Team Pty Ltd 2012

Electronic Test Equipment

Sub-total

TrufflesShifter. Model D46

Conveyor System -

Automatic Scales TRWite 875s

Riboon scanner 2nd hand

Toshiba 2820C Printer

Dell 58700 Server Installation

Printer Xerox 2500

Bivan Carton erector S.hand

Wordex 2000

Wrapper SS Feed

LHO Horizontal Flow

Fredd - Chocolate Moulding Machine

Test Equipment MG 9898

Automatic Palet Wrapper

Scales TRWite

Flow Wrapper

384,746

163,033

6,078

6,500

3,752 21,974

3,752 23,500

18,136

625

23,011

24,181

2,500

53,000

2,855

1,620

9,000

12,500

1,847 5,930

7,500 12,500

15,602

14

9,605

8,319

12,573

8,249

1,697

37,000

600

25,952 18,400

Chocolate Melt Tank - R.Bloome

Mesh Conveyor System

Nwhaigh TL879

32,967 41,000

Coolroom panel system

3,610

Pallett Truck

Robynn Conveyor

1,116

488

4,775

13,500

Seiko QR380 Time Clock

VAPAK Vacuum lifter

8,538

28,000 27,668

7,345

80,133

35,059

45,074

Opening W.D.V 01/07/2011

WMO - Model 879 Carton Rev tuck

Cost Limit

Hyster Forklift H3.90 XLP

PLANT & EQUIPMENT

45,074

Cost Price

Factory Additions

Private Use

Factory 2698 Hanwood Road

BUILDINGS

Asset

12 54,600

29,500

9,500

15,600

Additions Disposals

Gain/Loss on Disposal

ABC Confectionery Co. Fixed Asset and Depreciation Schedule For the Year ended 30th June 2012 Capital Gains

25.0%DV

25.0%DV

25.0%DV

30.0%DV

30.0%DV

0.0%

25.0%DV

50.0%DV

25.0%DV

25.0%DV

40.0%DV

15.0%DV

30.0%DV

20.0%DV

25.0%DV

15.0%DV

15.0%DV

15.0%DV

30.0%DV

15.0%DV

15.0%DV

15.0%DV

15.0%DV

15.0%DV

2.5%PC

0.0%

Rate

0

44,355

4,284

781

3,868

1,823

6,592

0

4,534

313

5,753

714

648

890

554

3,120

4

1,441

1,248

1,886

2,475

255

73

716

1,281

1,102

1,063

1,063

$

---- D e p r e c i a t i o n ----

266,068

4,284

781

3,868

2,245

8,118

0

10,579

2,188

35,742

6,859

11,528

7,460

6,207

24,518

590

10,236

18,881

30,313

27,193

2,168

701

9,441

20,411

21,757

8,504

8,504

0

Accum Deprec 30/06/2012

173,278

25,216

8,719

11,732

4,255

15,382

3,752

13,602

312

17,258

2,141

972

5,040

1,293

12,482

10

8,164

7,071

10,687

5,774

1,442

415

4,059

7,257

6,243

79,070

33,996

45,074

Closing W.D.V 30/06/2012

FINANCE COACH

3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

© Copyright Universal Business Team Pty Ltd 2012

Total

Low Value Pool

Less Personal Apportionment

Sub-total

29,514

440,542

5,423

191,953

71,457

54,600

Additions Disposals

Gain/Loss on Disposal Capital Gains

37.5%DV

165,082

46,996

10,495 450,149

2,034

22,505

94,448

34,491

12,505

24,907

5,903 17,864

20.0%DV 25.0%DV

28,990 24,518

6,504 7,327

25.0%DV

28,990

35,172

Accum Deprec 30/06/2012

25.0%DV

2,894 6,504

30.0%DV

$

25.0%DV

Rate

---- D e p r e c i a t i o n ----

Note: This Statement is to be read in conjunction with the accompanying Notes and the Accountant’s Disclaimer

796,243

13,884

310,039

46,116 78,500

VW Crafter VIN WBB 46545XX

VW Multivan VIN WT05196XX

29,309

26,014

48,500 46,500

VW Transporter VIN WMT799XX

VW Transporter VIN WVG777XX

26,014

9,645

Opening W.D.V 01/07/2011

41,923

Cost Limit

48,500

Cost Price

Isuzu FV1400

70%

Private Use

VW Transporter VIN 598818XX

MOTOR VEHICLES

Asset

ABC Confectionery Co. Fixed Asset and Depreciation Schedule For the Year ended 30th June 2012

13

400,694

3,389

144,957

53,593

23,611

21,982

19,510

19,510

6,751

Closing W.D.V 30/06/2012

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

APPENDIX 2 BREAK EVEN CALCULATION TEMPLATES Sales Figure Break Even Analysis A. Enter the drawings figure (after tax) that you require: B. Add your loan repayments (Principal portion) per year: C. SUB TOTAL (this is the target Net Profit After Tax that you require): D. TARGET Net Profit (Before Tax) [A + B] divided by (1- Tax Rate): E. Add Back (Tax Deductible) Overhead: F. EQUALS Target (Required Gross Profit Figure): G. Target divided By Estimated Gross Profit Percentage

÷

%

÷

%

H. …equals Break Even Sales:

14

Sales Figure Break Even Analysis A. Enter the drawings figure (after tax) that you require: B. Add your loan repayments (Principal portion) per year: C. SUB TOTAL (this is the target Net Profit After Tax that you require): D. TARGET Net Profit (Before Tax) [A + B] divided by (1- Tax Rate): E. Add Back (Tax Deductible) Overhead: F. EQUALS Target (Required Gross Profit Figure): G. Target divided By Estimated Gross Profit Percentage H. …equals Break Even Sales:

© Copyright Universal Business Team Pty Ltd 2012

Unit Break Even Analysis OLD PRICING NEW PRICING A Variable Cost per Unit



B Fixed Costs (Total)



C Expected Sales (in Units)



D Sell Price per Unit



E Total Expected Sales [C x D = E]



F Total Variable Costs [A x C = F]



G Gross Profit [E – F = G]



H Net Profit (Loss) [G – B = H]







Break Even Sales

I Units [B ÷ (D – A) = I] Rounded



J Sales [I x D = J]



Under / Over Break Even



K Units [C – I = K]



L Sales [E – J = L]



© Copyright Universal Business Team Pty Ltd 2012

15

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

APPENDIX 3 BANK RECONCILIATION DOCUMENTS YourBank BEST OF THE YEAR 2011

You can Bank on Us!

||||| ||| |||||| | |||| ||||| |||||| || || |||| ||||||| ||

Client Number: BSB Number: Account Number: Account Name: Statement Number: Statement From:

ABC Confectionery Co 26 Birk Street Lucknow EA 9823

16 99 092216 09-81421 99-124578 ABC Confectionery Company 158 13 June 2012 to 30 June 2012

Your balance

16

Opening Balance

Total Money In (credits)

Total Money Out (debits)

58,541.12

186,896.70

113,354.84

Closing Balance

132,082.98

Your transactions Date

Description

2012

STATEMENT OPENING BALANCE

13-Jun 13-Jun 13-Jun 14-Jun

Banking Deposit Payment Payment

17-Jun 17-Jun 20-Jun 23-Jun 23-Jun 23-Jun 23-Jun 23-Jun 24-Jun 24-Jun 25-Jun 25-Jun 26-Jun 26-Jun 26-Jun 27-Jun 28-Jun 28-Jun 26-Jun 29-Jun 29-Jun 29-Jun

Deposit - Wholesale Food People - 28715 Deposit - Zings Things INVOICE 28789 Withdrawal - Cheque 1000141 Banking Batch 9845-0015 Withdrawal - EFTPOS Post Office Bank Fee Withdrawal - EFTPOS Post Office Withdrawal - EFTPOS Birk Cafe Deposit - Harry Gills Catering (27904) Deposit - Albow Movers INV28825 Deposit - Yipper Icecream (Feb 2012 Account) Deposit - My Party Supples (2/12) Withdrawal - Cheque 1000150 Withdrawal - EFTPOS Albatros Supplies Withdrawal - Cheque 1000139 Deposit - Best Banquets (Jan AC) Deposit - The Food Stop (Dec ABC) Deposit - Eight Meals - Thanks Deposit - Pimpernel's Distribution Co. Withdrawal - Cheque 1000145 Deposit - Thompson Wholesale (27502) Withdrawal - Internet Online Banking (Barton)

14-Jun 16-Jun 17-Jun

Batch 9844-8455 - Jartonda Foods INV8845 by Authority; TELCO 11-95844 by Authority; ADP Payline 5412145

Debit    

Banking Batch 9844-9548 Deposit - Marks Fast Foods - Jan A/C Deposit - Hardvark Adventures [28851]

Page 1 of 1

© Copyright Universal Business Team Pty Ltd 2012

Credit

565.14 54,845.90



9,845.11

 

154.12 12.50 154.10 57.13

 

  

  

25,036.15

15,421.10 10,845.15 2,314.25

 

25,143.30 325.10



8,447.50

   

975.97 1,254.77 3,654.55 9,843.12



1,245.11 901.99 11,325.74 73,984.20

12,541.00 4,713.52 5,411.92

18.25

Balance 58,541.12 5,215.15 63,756.27 1,015.50 64,771.77 64,206.63 9,360.73

14,984.20

24,781.83 35,626.98 37,941.23

63,084.53 63,409.63 53,564.52 62,012.02 61,857.90 61,845.40 61,691.30 61,634.17 62,610.14 63,864.91 67,519.46 77,362.58 64,821.58 60,108.06 54,696.14 55,941.25 56,843.24 68,168.98 142,153.18 142,134.93 157,119.13 132,082.98

Statement Number 158

The bookkeeping software bank reconciliation console displaying unreconciled transactions up to 30 June 2012 (ticks indicate a reconciled transaction):

1

Reconcile Accounts Account

4-1500 [Cheque Account]

Last Reconciliation: This Reconciliation

13/06/2012 30/06/2012

Last Bank Balance:

58,541.12

Date

28-Apr 28-Apr 11-May 11-May 12-May 12-May 12-May 12-May 13-May 27-May 29-May 1-Jun 2-Jun 2-Jun 7-Jun 7-Jun 7-Jun 9-Jun 13-Jun 13-Jun 14-Jun 16-Jun 17-Jun 17-Jun 17-Jun 23-Jun 23-Jun 23-Jun 23-Jun 23-Jun 24-Jun 24-Jun 25-Jun 25-Jun 25-Jun 26-Jun 26-Jun 27-Jun 28-Jun 28-Jun 29-Jun 29-Jun

Reference 1000030 1000073 1000108 1000129 1000128 1000136 1000133 1000135 1000141 1000139 20120229 20120501 1000143 1000142 1000145 1000146 1000144 1000147 20120601 DEP 20110303 DEP DEP DEP DEP 20110305 EFTPOS BNK EFTPOS EFTPOS INV27904 INV28825 INV27895 DEP 1000150 DEP EFTPOS DEP DEP DEP DD DEP

q

This Bank Balance: Calculated Balance:

132,082.98 132,082.98

Out of Balance:

Transaction Details Sally's Cleaning Baz Train Freight Sally's Cleaning Gardens Galore The Paint Place Martins Mowing Ford Lucknow Jaxx Tyres Hunters Freight Lines Drawings - John Daily Banking 9844-8455 Daily Banking 9844-9548 Post Office Barry Thoms Fabrications Petty Cash Total IT Support Onefuel Corporate Express Wages - Payroll Jartonda Foods INV28845 Wages - Payroll Marks Fast Foods - Jan A/C Hardvark Adventures Wholesale Food People - 28715 Zings Things INVOICE 8799 Daily Banking 5.03.2011 Withdrawal - EFTPOS Post Office Bank Fee Withdrawal - EFTPOS Birk Coffees Withdrawal - EFTPOS Post Office Harry Gills Catering Albow Movers Yipper Icecream My Party Supples AMCOPE Solutions Pimpernel's Distribution Co. Withdrawal - EFTPOS Albatros Supplies Best Banquets The Food Stop Eight Meals Barton Jones & Co Thompson Wholsale Cleared:

-

Withdrawals 112.50 244.85 112.50 49.00 248.64 50.00 255.75 350.00 9,845.11 5,411.92

152.60 400.00 18.25 432.50 2,125.31 2,121.33 565.14 54,845.90

154.12 12.50 57.13 154.10

12,541.00 4,713.52

25,036.15

113,354.84

Deposits

  5,215.15  15,421.10 



 1,015.50   10,845.15  2,314.25  25,143.30  325.10  8,447.50      975.97  1,254.77  3,654.55  9,843.12   73,984.20   1,245.11  901.99  11,325.74   14,984.20  186,896.70

? Help F1

Import 4

Reconcile

Bank Fee

Transfer

Cancel

© Copyright Universal Business Team Pty Ltd 2012



17

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

ABC Confectionery Co Bank Reconciliation Statement as at 30 June 2012 Balance as per Bank Statement

132,082.98

Deduct unpresented cheques 15-Jan

18

1000030

Sally’s Cleaning

112.50

27-Jan

1000073

Baz Train Freight

244.85

12-Feb

1000108

Sally’s Cleaning

112.50

20-Feb

1000129

Gardens Galore

20-Feb

1000128

The Paint Place

28-Feb

1000136

Martins Mowing

28-Feb

1000133

Ford Lucknow

49.00 248.64 50.00 255.75

28-Feb

1000135

Jaxx Tyres

350.00

2-Mar

1000143

Post Office

152.60

2-Mar

1000142

Barry Thoms Fabrications

400.00

11-Mar

1000146

Total IT Support

11-Mar

1000144

Onefuel

2,125.31

432.50

13-Mar

1000147

Corporate Express

2,121.33

6,654.98 125,428.00

Add outstanding deposits: -

-

Balance as per Bookkeeping System (Cheque Account)

© Copyright Universal Business Team Pty Ltd 2012

125,428.00

YourBank BEST OF THE YEAR 2011

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Client Number: BSB Number: Account Number: Account Name: Statement Number: Statement From:

ABC Confectionery Co 26 Birk Street Lucknow EA 9823

16 99 092216 09-81421 99-124578 ABC Confectionery Company 159 1 July 2012 to 13 July 2012

Your balance Opening Balance

Total Money In (credits)

Total Money Out (debits)

132,082.98

271,858.17

220,066.13

Closing Balance

183,875.02

Your transactions Date

Description

2012

STATEMENT OPENING BALANCE

1-Jul 1-Jul 1-Jul 1-Jul 4-Jul 4-Jul 5-Jul

Withdrawal - Cheque 1000129 Withdrawal - Cheque 1000133 Withdrawal - Cheque 1000135 Withdrawal - Cheque 1000136 Banking Batch 9846-1608 Withdrawal - EFTPOS Helston Bros. Deposit - Pimpernel's Dist. Co. [29042)

5-Jul 6-Jul 7-Jul 7-Jul 7-Jul 8-Jul 8-Jul 8-Jul 11-Jul 11-Jul 11-Jul 11-Jul 11-Jul 11-Jul 12-Jul 12-Jul 12-Jul 12-Jul 13-Jul 13-Jul 13-Jul 13-Jul 13-Jul 13-Jul

Deposit - Yak Freightlines Interest Credit Withdrawal - Cheque 1000152 Withdrawal - Cheque 1000146 Withdrawal - Cheque 1000143 Account Service Fee Withdrawal - Cheque 1000128 Withdrawal - Cheque 1000108 Payment by Authority; #Ybnk558452145 Payment by Authority; #Ybnk488555833 Payment by Authority; #Ybnk514775841 Withdrawal - Cheque 1000156 Withdrawal - Cheque 1000142 Withdrawal - EFTPOS MNN Technology Deposit - Bards Food [28751] Deposit - Thomas Zen Limited Withdrawal - Cheque 1000157 Withdrawal - EFTPOS UBT Finance Coach Deposit - R.B. Sweets Sales (US) Deposit - Royal Lucknow Show [28575] Withdrawal - Cheque 1000153 Withdrawal - AMCOPE Solutions (#45775) Withdrawal - Watson Express Limited Withdrawal - Jaxx Tyres (8788)

Page 1 of 1

© Copyright Universal Business Team Pty Ltd 2012

Debit

Credit 49.00 255.75 350.00 50.00

97,828.26

78.80 432.50 152.60 58.00 248.64 112.50 1,758.00 5,875.00 2,755.80 750.00 400.00 6,050.50

2,168.00 2,827.50

2,000.00 48,534.90 45,779.00 1,551.38

Balance 132,082.98 132,033.98 131,778.23 131,428.23 131,378.23 3,227.00 134,605.23 36,776.97 115,395.54 152,172.51 4,534.80 477.36

25,122.00 76,395.47

3,762.00 42,944.00

156,707.31 157,184.67 157,105.87 156,673.37 156,520.77 156,462.77 156,214.13 156,101.63 154,343.63 148,468.63 145,712.83 144,962.83 144,562.83 138,512.33 163,634.33 240,029.80 237,861.80 235,034.30 238,796.30 281,740.30 279,740.30 231,205.40 185,426.40 183,875.02

Statement Number 159

19

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

The bookkeeping software bank reconciliation console displaying unreconciled transactions up to 13th July 2012 (ticks indicate a reconciled transaction): Reconcile Accounts Account

4‐1500 [Cheque Account]

Last Reconciliation: This Reconciliation Last Bank Balance: Date

20

28‐Apr 28‐Apr 11‐May 11‐May 12‐May 12‐May 12‐May 12‐May 2‐Jun 2‐Jun 7‐Jun 7‐Jun 9‐Jun 1‐Jul 3‐Jul 4‐Jul 4‐Jul 4‐Jul 5‐Jul 5‐Jul 6‐Jul 7‐Jul 8‐Jul 11‐Jul 11‐Jul 11‐Jul 11‐Jul 12‐Jul 12‐Jul 12‐Jul 13‐Jul 13‐Jul 13‐Jul 13‐Jul 13‐Jul 13‐Jul



Reference 1000030 1000073 1000108 1000129 1000128 1000136 1000133 1000135 1000143 1000142 1000146 1000144 1000147 1000153 9846‐1608 EFTPOS 1000156 DEP DEP DEP Interest 1000152 Bank Fee 558452145 488555833 514775841 EFTPOS 1000157 DEP EFTPOS DEP DEP EFTPOS EFTPOS EFTPOS 9847‐5896



30/06/2012 13/07/2012      132,082.98

This Bank Balance: Calculated Balance:

         183,875.02          183,875.02

Out of Balance:

                       ‐

Transaction Details Sally's Cleaning Baz Train Freight Sally's Cleaning Gardens Galore The Paint Place Martins Mowing Ford Lucknow Jaxx Tyres Post Office Barry Thoms Fabrications Total IT Support Onefuel Corporate Express Cancer Research Center Banking Batch Helston Brothers Ford Lucknow Thomas Zen Limited Pimpernel's Distribution Co. Yak Freightlines YourBank ‐ credit interest Birk Café YourBank ‐ account service fee Ybnk ‐ Equipment Loan Ybnk ‐ Equipment Loan Ybnk ‐ Business Loan MNN Technology HML & Associates Bards Foods UBT Finance Coach R.B. Sweets Sales (US) Royal Lucknow Show Corp. AMCOPE Solutions Watson Express Limited Jaxx Tyres Banking Batch

Withdrawals                 112.50                 244.85                 112.50                   49.00                 248.64                   50.00                 255.75                 350.00                 152.60                 400.00                 432.50             2,125.31             2,121.33             2,000.00           97,828.26                 750.00

                  78.80                   58.00             1,758.00             5,875.00             2,755.80             6,050.50             2,168.00             2,827.50

          48,534.90           45,779.00             1,551.38

Cleared:

220,066.13

Deposits

        

              3,227.00               76,395.47           115,395.54               4,534.80                   477.36                    25,122.00                3,762.00             42,944.00                  5,800.00 271,858.17

? Help F1

Import 

Reconcile

Bank Fee

Transfer

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© Copyright Universal Business Team Pty Ltd 2012



ABC Confectionery Co Bank Reconciliation Statement as at 13th July 2012 Balance as per Bank Statement Deduct unpresented cheques

Add outstanding deposits:

Balance as per Bookkeeping System (Cheque Account)

© Copyright Universal Business Team Pty Ltd 2012

21

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

Review the five source documents below then see over page and trace how they have been entered into ABC Confectionery Co.’s bookkeeping software.

Jaxx Tyres

Tax Invoice No. 97

MNN Technology

Date: 13th July.2012

Tax Invoice

Bill to:

ABC Confectionery Co. 26 Birk Street Lucknow EA 9823

Date: 13th July 2012 Invoice No: 1547

Bill to:

Being for: Tyres supply & Fit x 8

$1,410,35

GST*

$ 141.03

TOTAL AMOUNT DUE

$1,551.38

ABC Confectionery Co. 26 Birk Street Lucknow EA 9823

DESCRIPTION:

Quarterly maintenance of printers, computer networks and software. TOTAL GST (Value added tax 10%) TOTAL AMOUNT DUE

$5,500.45 $ 550.05 $6,050.50

Tax Invoice

22

Watson Express Limited 'Industry #1 supplier of raw materials & ingredients for confectionery production' 13 July 2012 Invoice 2891 To:

ABC Confectionery Co. 26 Birk Street Lucknow EA 9823

TAX INVOICE

Invoice No: FC- 3MACExam Date: 13th July 2012

ABN 40 968 503 138

Bill to: ABC Confectionery Co. 26 Birk Street Lucknow EA 9823 DESCRIPTION

TOTAL

Ingredients 220 & 3562C x 3T

$45,779.00

5 x Attendees to The Achiever seminar 2012

$2,570.45

Total Invoice Amount (Incl.GST*) (GST* of $4,161.73 included)

$45,779.00

GST*

$ 257.05

TOTAL AMOUNT DUE (inc. GST*)

$2,827.50

*GST is a value added tax of 10%

*GST is a value added tax of 10%

TAX INVOICE Bill to: Thomas Zen Limited Postal Box 2550 ALFRED PC 11823 DESCRIPTION

Invoice No: 28850 Date: 13th July 2012 Terms: Payment due now

TOTAL

4500x Cartons Assorted Sweets

$69,450.40

GST* TOTAL AMOUNT DUE (inc. GST*)

$ 6,945.07 $76,395.47

*GST is a value added tax of 10%

© Copyright Universal Business Team Pty Ltd 2012

© Copyright Universal Business Team Pty Ltd 2012

GL Account

Sales

Repairs & Maintenance

Staff Training & Welfare

Purchases (COGS)

Depreciation expense

Sales

Date

04-Jul

11-Jul

12-Jul

13-Jul

13-Jul

14-Jul

Income

Expense

Cost of Goods Sold

Expense

Expense

Income

Account type

28850

97

2891

FC-3MACExam

1547

28850

Reference

Thomas Zen Limited

Jaxx Tyres

Watson Express Limited

UBT Finance Coach

MNN Technology

Thomas Zen Limited

Customer/Supplier

GST / VAT GST / VAT

Tyres supply & Fit x 8 4500x Cartons Assorted Sweets

1551.38 76,395.47

GST / VAT

Ingredients 220 & 3562C x 3T

45,779.00

GST / VAT

5 x Attendees to High Achiever seminar 2012

2,827.50

6,050.50

GST / VAT

Quarterly maintenance of printers, computer networks and software.

Credit

76,395.47

Debit

GST / VAT

Tax Code

4500x Cartons Assorted Sweets

Description

Mary has entered the five transactions from the source documentation provided into the bookkeeping system as follows:

23

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

Appendix 4 Cash Flow Statements ABC Confectionery Co. Cash Flow Statement For the Year ended 30 June 2012 Note

2012

2011

$

$

CASH FLOWS FROM OPERATING ACTIVITIES Funds Generated from Trading

1

651,655

312,705

Decrease/(Increase) in Non-cash Working Capital

2

(268,301)

(149,955)

383,354

162,750

(42,095)

(72,849)

Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of Property, Plant & Equipment

24

3

Sale (Purchase) of Investments

-

-

Sale (Purchase) of Goodwill

-

-

(42,095)

(72,849)

Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Owners Capital Introduced Owners Drawings

-

-

(173,604)

(187,133)

Hire Purchase / Current Portion of Fixed Loans

4

10,942

34,112

Non-Current Loans (Fixed)

5

(100,245)

11,196

-

-

(262,907)

(141,825)

78,352

(51,924)

47,376

99,300

125,728

47,376

Bonus/Profit Distributions Paid to Shareholders / Beneficiaries Net cash provided by (used in) financing activities

Net increase/(decrease) in cash held plus Cash at beginning of the Period equals Cash at end of the Period

© Copyright Universal Business Team Pty Ltd 2012

ABC Confectionery Co. Cash Flow Statement For the Year ended 30 June 2012

1

2012

2011

$

$

569,712

223,604

81,943

89,101

-

-

Funds Generated from Trading Profit/(Loss) as per Financial Statements Add Back Non-fund Items - Depreciation/Amortisation - Non-Cash Salaries

2

- Profit on Sale of Non-current Assets

-

-

- Accrued Rent

-

-

- Accrued Interest

-

-

651,655

312,705

Decrease/(Increase) in Non-cash Working Capital Decrease/(Increase) in Trade Debtors

(78,518)

47,650

Decrease/(Increase) in Trading Stock on Hand

(21,632)

(111,296)

Decrease/(Increase) in Prepayments Decrease/(Increase) in Other Current Assets Increase/(Decrease) in Trade Creditors

135,485

-

-

-

-

-

-

(27,147)

(221,794)

(268,301)

(149,955)

(42,095)

(72,849)

Sale (Purchase) of Non-current Assets Property, Plant & Equipment Sale (Purchase) of Investments

-

-

Sale (Purchase) of Goodwill

-

-

(42,095)

(72,849)

10,942

34,112

-

-

10,942

34,112

Hire Purchase / Current Portion of Fixed Loans Hire Purchase Loans Movement Current Portion of Fixed Loans Movement

5

(139,004)

Increase/(Decrease) in Credit Card Liability Increase/(Decrease) in Tax Liability

4

-

Increase/(Decrease) in Income in Advance Increase/(Decrease) in Other Current Liabilities

3

(2,000)

Non-Current Loans (Fixed) Owners' Loans / Current Accounts Hire Purchase Loans - Bank

© Copyright Universal Business Team Pty Ltd 2012

-

-

(56,856)

49,564

(43,389)

(38,368)

(100,245)

11,196

25

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

Appendix 5 FINANCIAL PLAN BALANCES FOR 2013 AS PER YOUR FINANCIAL PLAN [Table from question 35 - 40] 2012

Profit/(Loss) as per Financial Statements

"Increase/(Decrease)”

400,000

(169,712)

77,000

(4,943)

Depreciation

81,943

Trade Debtors

369,731

420,000

50,269

Trading Stock on Hand

479,317

560,000

80,683

1,000

1,000

-

(2,000)

Prepayments Other Current Assets

26

569,712

2013

2,000

Trade Creditors

432,470

300,000

(132,470)

Hire Purchase Loans

132,075

102,075

(30,000)

Bank Loan

159,446

150,000

(9,446)

Unsecured Loans

145,000

145,000

-

Cash Drawings

173,604

152,860

(20,744)

Cash at Bank

125,728

148,000

22,272

Property, Plant & Equipment

400,694

323,694

(77,000)

Intangible Assets (Goodwill)

325,698

325,698

-

© Copyright Universal Business Team Pty Ltd 2012

Appendix 6 BUDGETING SCENARIO INFORMATION EXTRACT FROM QUESTION 41 - 50 This section refers to the financial statements provided (APPENDIX 1). The date is 31 July 2012. The Bluewater family are in a management meeting and making business decisions for the current financial year. They are pleased with their profitability increase in the 2012 financial year, and they agree that now is the perfect time to go for further growth. They make the following business decisions: 1. Purchase a nearby warehouse for a total cost of $500,000. They should be able to settle on the proposed property on 31 December 2012. They won’t be able to depreciate the property at all; however it will save them rent $4,000 per month. 2. Take out an interest only bank loan at the time of settlement, for 80% of the cost of the property. The interest rate would be 10%. 3. Purchase a new machine on 1 September 2012 for $80,000 on a hire purchase agreement. The machine will be depreciated at 25% utilising the prime cost/straight line depreciation method from date of purchase. The hire purchase charges equate to 8.8% per annum. They will take advantage of a special offer where the financier is offering no capital repayments to be made for the first 12 months of the agreement. The machine will be installed and ready for use on 30 November 2012. Management set a 2013 FY goal for this machine to achieve a net return on investment (R.O.I.) of 50% per annum. 4. Set a goal of increasing the total sales by 5% more than what they were for the 2012 financial year. 5. Increase marketing for the 2013 FY to a total of 3% of the budgeted sales. 6. Take on a new sales representative on 1 September 2012. His salary package will be $60,000 per annum. By 31 December 2012 management hope that he should be able to achieve a productivity factor of 4 and will set his targets accordingly thereafter. 7. Cut costs

© Copyright Universal Business Team Pty Ltd 2012

27

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

Notes

28

© Copyright Universal Business Team Pty Ltd 2012

Notes

FINANCE COACH 3 MONTH ACCOUNTING COURSE EXAM SUPPORT MATERIAL

Notes

30

© Copyright Universal Business Team Pty Ltd 2012

Notes

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y o u

s e t

&

a c h i e v e

y o u r

f i n a n c i a l

t a r g e t s

head offic e She p herds Bay House, Level 2 127 B o wd en S treet, Meadowban k NS W 2 1 1 4 S y dn ey, Australia all en quiries

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