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Instructions to Student |
General Instructions: This assessment is made up of 3 Tasks. You must be successful in all tasks to be successful in the assessment. The assessment is unsupervised and open book. Complete all questions within each task. Submit your assessment once you have completed all tasks. Instructions for what is required in each task are contained within the task.
Information / Materials provided: Assessment Task Templates within the tasks MYOB file for Bean There Coffee Van Instalment Activity Statements (IAS) Learning Resources MYOB AccountRight Version 2022 software
Information / Materials to be provided by the student: Computer and word processing software Internet access and ability to access and navigate Connect Blank sample BAS downloaded from the ATO website
Work, Health and Safety: follow TAFE Queensland Student Rules access TAFE Queensland Student Services for any additional support conduct risk assessments prior to any assessment task to ensure the safety of all participants and the environment ensure an ergonomically safe work environment to complete all assessment tasks
Assessment Criteria: To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard: research, critically evaluate and apply any changes to current or new legislative or professional conduct requirements relevant to the preparation of activity statements identify financial transactions required to prepare activity statements and apply goods and services tax (GST) principles and classifications prepare both business activity statements (BAS) and instalment activity statements (IAS) for a range of legal entities that comply with: Australian taxation law, Australian Taxation Office (ATO) rulings, Tax Practitioner Board (TPB) requirements and any lodgement schedules accounting principles and practices organisational policy and procedures present activity statements for verification and approval.
Number of Attempts: You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules. |
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Submission details |
Insert your details on page 1 and sign the Student Declaration. Include this template with your submission. Due Dates: Refer to Unit Study Guide Assessment to be submitted via: TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/login Username; 9 digit student number For Password: Reset password go to https://passwordreset.tafeqld.edu.au/default.aspx> |
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Instructions to Assessor |
Students are to: Satisfactorily complete all tasks Provide their own computers/devices, software and internet facilities to produce the assessment task. professionally present their responses in the assessment task completed all tasks in their own time and space, no time restrictions applied refer to notes and resources and seek clarification on tasks and questions Assessors are to: ensure the safety of all assessment activities by conducting and supporting risk assessments and ensuring all follow TAFE Queensland Student Rules provide feedback on all assessment attempts and identify additional learning and/or practice required by the student before their second attempt. use the Benchmark Answers and Marking Criteria to record their assessment and feedback. negotiate to complete assessment tasks and/or resubmissions verbally, where the opportunity presents: scribe the student’s response verbatim on the assessment task/marking criteria, and note the questions verbally addressed as reasonable adjustment on the coversheet. initial and date additional comments |
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Note to Student |
An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide. |
NOTE: Current tax rates and thresholds are to be used throughout this assessment unless otherwise specified.
Task 1 – Theory
Fringe Benefits Tax instalments are payable by employers who had an FBT liability over what amount in the previous year?
Who can claim Fuel Tax Credits?
Jerry has a landscaping business and uses unleaded petrol in his ute and various gardening equipment. For the quarter ended 30th June he used a total of 273 litres, 182 litres in the ute and the rest in the equipment. How much fuel tax credit can Jerry claim for the June quarter?
Petro’s Pastoral Company Ltd runs a dairy farm. It operated a tractor and 4WD vehicle which are used only on the property, both of which use diesel fuel. For the June quarter 816 litres of diesel was used, 267 litres in the tractor and the rest in the 4WD. How much fuel tax credit can Petro’s Pastoral Company claim for the June quarter?
When is Wine Equalisation Tax paid in Australia and by whom?
Valley Vineyards is a wine producer who is registered for GST. They sell bottled wine to The Local Bottle Shop Ltd, a retailer who sells direct to the public. Valley Vineyards is preparing an invoice for $1650.00 worth of wine before adding WET and GST.
Who will collect WET and pay it too the ATO?
Calculate how much WET and GST should be charged on this sale.
When is Luxury Car Tax (LCT) payable?
Monty’s Motor Sales is a car dealer who sells new cars. Monty sells a vehicle with a new price of $89,500 including GST. The car is not rated as fuel-efficient.
Calculate the LCT to be charged
Calculate the GST to be charged
Calculate the total selling price of the vehicle
If the buyer is registered for GST and uses the vehicle 100% for business purposes what input tax credit (GST paid) will they be able to claim? Explain your answer.
For an entity with a turnover of more than 1 million but less than $20 million:
a) On what dates are Business Activity Statements (BAS) due to be lodged and paid?
b) What penalties could apply if a BAS or IAS is lodged after the due date?
Task 2 – Practical Exercise – computerised
Introduction
Bean There Coffee Van is a mobile food vendor that provides coffee and snack foods to various commercial premises each day at morning tea, lunch and afternoon tea time. The business is registered for GST and PAYG withholding on an accrual basis and reports monthly.
The business has 2 employees: Jack a part time barista who claims the tax free threshold; and Heidi a casual barista who does not claim the tax free threshold for this job. Wages are reported to the ATO through separate Single Touch Payroll (STP) software. The owner Jane is the authorised signatory for all documentation and must approve any payments made by the business.
A cash register records sales and prints a summary each day of the sales broken down into GST and GST free categories.
Step 1
The following is a practical exercise requires you to access the MYOB file for Bean There Coffee Van 2022 Template.myox which has been provided.
Note: This exercise is to be done in MYOB AccoutRight Plus Version 2022 as supplied within the Learning Resources in Unit 7. Do not use a different version of MYOB.
Download a copy of this file to your MYOB library and open the file. The username is “Administrator” and there is no password.
Step 2
Check your chart of accounts and edit where necessary to ensure that you have the following accounts with the correct GST codes:
| Account name | Account type |
GST code |
| Your Bank Account | Asset (Bank account) |
N-T |
| Trade Creditors | Liability |
N-T |
| GST Collected | Liability |
N-T |
| GST Paid | Liability |
N-T |
| ABN Withholding Payable | Liability |
N-T |
| Superannuation Payable | Liability |
N-T |
| PAYG Withholding Payable | Liability |
N-T |
| Owners Capital | Equity |
N-T |
| Owners Drawings | Equity |
N-T |
| Sales Coffee | Income |
GST |
| Sales Other drinks | Income |
GST |
| Sales Fruit | Income |
GST Free |
| Sales Snacks | Income |
GST |
| Purchases coffee & Milk | Cost of goods sold |
GST Free |
| Purchases Other drinks | Cost of goods sold |
GST |
| Purchases Fruit | Cost of goods sold |
GST Free |
| Purchases Snacks | Cost of goods sold |
GST |
| Advertising | Expense |
GST |
| Bank Charges | Expense |
FRE |
| Bookkeeping Fees | Expense |
GST |
| Coffee Van Fuel | Expense |
GST |
| Coffee Van Lease | Expense |
GST |
| Coffee Van registration | Expense |
GST Free |
| Coffee Van insurance | Expense |
GST |
| Telephone | Expense |
GST |
| Coffee Van Stamp Duty | Expense |
GST Free |
| Wages | Expense |
N-T |
| Superannuation | Expense |
N-T |
Step 3
Process the following transactions:
Receipt from Jane – on 01.07.22 Jane deposited $5000.00 from her personal funds into the business bank account. Record this transaction in the accounting system.
Other receipts are all in cash and a cash register total is printed on Sunday each week. Cash on hand is reconciled to this then banked. Record the following receipts for July 2022.
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Bean There Coffee Van |
Bean There Coffee Van | ||||||||||||
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3/07/2022 |
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10/07/2022 | |||||||||||
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Sales Coffee |
GST |
1255.50 |
Sales Coffee |
GST |
1189.50 |
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Sales Softdrinks |
GST |
322.20 |
Sales Softdrinks |
GST |
381.80 |
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Sales Fruit |
Free |
62.35 |
Sales Fruit |
Free |
52.50 |
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Sales Snacks |
GST |
831.10 |
Sales Snacks |
GST |
756.95 |
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Total (incl GST $218.98) |
$ 2471.15 |
Total (incl GST $211.66) |
$ 2380.75 |
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Bean There Coffee Van |
Bean There Coffee Van | ||||||||
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17/07/2022 |
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24/07/2022 | |||||||
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Sales Coffee |
GST |
1240.70 |
Sales Coffee |
GST |
1520.40 |
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Sales Softdrinks |
GST |
318.45 |
Sales Softdrinks |
GST |
510.25 |
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Sales Fruit |
Free |
70.50 |
Sales Fruit |
Free |
81.60 |
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Sales Snacks |
GST |
910.55 |
Sales Snacks |
GST |
946.50 |
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Total (incl GST $224.52) |
$ 2540.20 |
Total (incl GST $270.65) |
$ 3058.75 |
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Bean There Coffee Van |
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31/07/2022 |
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Sales Coffee |
GST |
1006.20 |
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Sales Softdrinks |
GST |
296.30 |
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Sales Fruit |
Free |
45.00 |
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Sales Snacks |
GST |
690.40 |
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Total (incl GST $181.17) |
$ 2037.90 |
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Payments are usually made by cheque and you need record the following cheques for June:
| Date | Cheque no. | Amount | Details |
| 01.07.22 | 1201 |
500.00 |
Purchases – Stock from previous owner (Coffee $150.00, Softdrinks $120.00, Milk $50.00 and Snacks $180.00) Previous owner not registered for GST.(Use tax code GNR) |
| 03.07.22 | 1202 |
318.00 |
Purchases – coffee beans |
| 06.07.22 | 1203 |
200.70 |
Purchases – Softdrinks $122.50, Plain milk $78.20 |
| 13.07.22 | 1204 |
232.00 |
Purchases – Plain milk |
| 13.07.22 | 1205 |
189.65 |
Purchases – snack foods |
| 15.07.22 | 1206 |
89.95 |
Telephone account |
| 17.07.22 | 1207 |
435.00 |
Purchases – coffee beans |
| 20.07.22 | 1208 |
240.00 (net of tax) |
Concept Advertising (Tax withheld for no ABN on invoice) Use tax code ABN. |
| 20.07.22 | 1209 |
150.00 |
Budget Bookkeeping (Not registered for GST) |
| 30.07.22 | 1210 |
340.95 |
Purchases – snack foods $84.45, Plain milk $256.50 |
| 30.07.22 | 1211 |
200.00 |
Drawings – Jane |
| 30.07.22 | 1212 |
720.00 |
Qld Transport Van Registration (including $340.40 for Registration $370.60 for CTP Insurance $9.00 Stamp Duty |
| 30.07.22 | 1213 |
348.75 |
Purchases – Softdrinks |
Step 4
Record the following outstanding creditors at 31st July 2022:
28.07.22 $376.54 Invoice no. 8436 Coffee Van fuel owed to Local Service Station Ltd (Includes GST)
31.07.22 $158.40 Invoice no. D00732 Purchases – Snack foods owed to Allen’s Confectioners (Includes GST)
Step 5
Reconcile the bank account – The following bank statement has been received from Your Bank Ltd. Reconcile the bank account and print a Bank Reconciliation Report as at 31 July 2022.
Your Bank Ltd Account Number 00123456
Bank Statement for July 2022
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Opening Balance |
Withdrawals |
Deposits |
Balance |
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01.07.22 |
Opening Balance |
2000.00 |
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01.07.22 |
Deposit |
5000.00 |
7000.00 |
Cr |
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03.07.22 |
EFT – Wages |
150.00 |
6850.00 |
Cr |
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03.07.22 |
Cheque 1201 |
500.00 |
6350.00 |
Cr |
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03.07.22 |
Deposit |
2471.15 |
8821.15 |
Cr |
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08.07.22 |
Cheque 1202 |
318.00 |
8503.15 |
Cr |
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10.07.22 |
EFT – Wages |
675.00 |
7828.15 |
Cr |
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10.07.22 |
Deposit |
2380.75 |
10208.90 |
Cr |
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14.07.22 |
Cheque 1204 |
232.00 |
9976.90 |
Cr |
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15.07.22 |
Cheque 1205 |
189.65 |
9787.25 |
Cr |
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17.07.22 |
Deposit |
2540.20 |
12327.45 |
Cr |
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17.07.22 |
EFT – Wages |
675.00 |
11652.45 |
Cr |
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17.07.22 |
Cheque 1206 |
89.95 |
11562.50 |
Cr |
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21.07.22 |
Bpay – ATO July BAS |
1289.00 |
10273.50 |
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20.07.22 |
Cheque 1207 |
435.00 |
9838.50 |
Cr |
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24.07.22 |
Deposit |
3058.75 |
12897.25 |
Cr |
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24.07.22 |
Cheque 1209 |
150.00 |
12747.25 |
Cr |
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24.07.22 |
EFT – Wages |
675.00 |
12072.25 |
Cr |
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26.07.22 |
Direct debit – Your Bank Ltd – coffee van lease |
748.00 |
11324.25 |
Cr |
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30.07.22 |
Cheque 1208 |
240.00 |
11084.25 |
Cr |
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30.07.22 |
Cheque 1212 |
720.00 |
10364.25 |
Cr |
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31.07.22 |
Bank fee |
25.00 |
10339.25 |
Cr |
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31.07.22 |
Merchant fees |
35.20 |
$10304.05 |
Cr |
Step 6
The weekly wages for Bean There Coffee Van are reported through complying Single Touch Payroll (STP) software each pay day. The following report from the STP software summarises the wages and other amounts reported for the month of July:
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Payroll Register Report |
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01 July 2022 to 31 July 2022 |
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Employee name |
Salary & wages |
Deductions |
PAYG W/H |
Net Pay |
Superannuation Guarantee |
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Jack |
1620 |
0 |
75 |
1545 |
170.1 |
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Heidi |
810 |
0 |
180 |
630 |
85.05 |
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Totals |
2430 |
0 |
255 |
2175 |
255.15 |
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Reconcile the monthly wages with the payments made from the bank account in the table below:
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Net wages paid from bank account |
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$ |
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Add PAYG withheld |
$ |
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Total gross wages in MYOB |
$ |
* |
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Wages & salaries from STP report |
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$ |
* |
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* These 2 figures must match |
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Record journal entries in MYOB to account for the amounts shown in the STP report above for:
the PAYG withholding
the Superannuation Guarantee
Step 7
Print the following reports:
Profit & Loss (Accrual) for July 2022
Balance Sheet as at 31 July 2022
Trial Balance for July 2022
GST (Detail Accrual) for July 2022
Step 8
From the information in your reports complete the BAS for Bean There Coffee Van for July 2022, to be approved and signed by the authorised person. A blank sample BAS form (G – Monthly BAS) is attached.
Who is required to authorise the lodgement of the BAS?
Step 9
Reconcile the completed BAS with financial statements by completing the following table:
| Sales from GST (Detail – Accrual): | Purchase Value from GST (Detail Accrual) | |||
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GST Free |
$ |
ABN |
$ | |
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GST |
$ |
FRE |
$ | |
| Less Tax collected in sales | $ |
GNR |
$ | |
| Equals Net sales | *$ |
GST |
$ | |
| Sales from Profit & Loss Statement | *$ |
Add tax withheld no ABN |
$ | |
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Less Tax Paid in purchases |
$ | |||
| * These two figures should match |
Add Gross wages and super expenses + any business expenses coded to N-T |
$ | ||
| ** These two figures should match |
**Net Purchases |
$ | ||
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**Purchases from Profit and Loss statement (Cost of Sales plus Total Expenses) |
$ | |||
| Liabilities outstanding on Balance Sheet: | BAS Labels | |||
| GST Collected | $ | 1A | $ | |
| Less GST Paid | $ | 1B | $ | |
| PAYG Withholding payable | $ | W2 | $ | |
| ABN Tax Withheld | $ | W4 | $ | |
| Total | $ | 9 | $ | |
Step 10
From your file print a GST (Detail cash) report. Explain why the GST collected and GST paid amounts on this report are different to those on the GST (Detail accrual) report printed to prepare the BAS.
Step 11
Prepare a brief letter to Jane, the owner, enclosing the BAS for approval and signing. The letter should include:
Amount owed
Due date and payment options
Note if there are currently sufficient funds in the bank account to make the payment (check the current bank statement balance and compare this to amount owing on the BAS). Enquire if Jane anticipates any cash flow difficulties with making the payment by the due date.
Advice to contact you regarding a payment arrangement if there could be a payment problem
A section at the bottom of the letter, to be signed by Jane, that is her declaration that:
she authorises you to lodge the BAS on her behalf and
the information it contains is true and correct.
Task 3 – Oral presentation
In Task 2 you prepared a letter to “Jane”, the business manager. In this task you are required to present your letter to “Jane” and explain the information it contains. In order to demonstrate your competence in doing this you are required to use a smart phone or similar device to record a short video (including sound and approximately 3 to 4 minutes) of you performing this task while a friend/associate plays the part of Jane. The video recording must include:
Your full explanation to Jane of the information in the letter
An explanation of why you consider it important to consider the cash flow situation of the business
At least one question from Jane that requires you to provide further explanation to her
Jane needs to sign the authorisation at the bottom of your letter once it has been explained to her.
Note: This is a simulated business meeting so you should not be simply reading information prepared beforehand. You need to demonstrate active listening and communication skills. The video file should be submitted as evidence of completion of this task.
Task 4 – Amending a BAS
Aussie Replica Engines Limited (ABN 12 345 678 910) is registered for GST on an accrual basis. The company has already lodged their BAS for the quarter ended 30 September 2021 and paid the outstanding liability of $36,480. The following month an error was discovered in which the following invoice was found to have the wrong tax code used:
15.09.21 Sale to New Zealand Train Tours 1 steam engine $220,000 GST
As this was an export sale there was no GST on this sale and the correct code should have been EXP. GST collected on the invoice was actually nil not $20,000 as recorded in the MYOB reports.
Aussie Replica Engines Limited wishes to lodge an amended BAS immediately to recover the overpaid GST. Listed below are the original values at the various labels on the September BAS.
Complete the third column to indicate what the new amended figures should be at each label when the amended BAS is prepared for lodgement.
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BAS Label September BAS lodged Amended September BAS G1 1760000
G2 0
G10 55000
G11 1358720
1A 160000
8A 160000
1B 123520
8B 123520
9 36480
Complete an amended paper BAS for Aussie Replica Engines Limited for the September 2021 quarter. A blank sample BAS form (C – Quarterly BAS) is attached.
Assessment Submission:
Follow organisational procedures to develop and submit your documents, including:
Use of technology and word processing software
Professional presentation – spelling, grammar, formatting
Clear, industry relevant language and terminology
Naming convention and version control
Storing, security and uploading/submitting
To be submitted:
Task 1 – Theory
Answers to nine (9) questions
Task 2 – Practical Exercise – computerised
Bank reconciliation report as at 31/07/22
Profit & Loss (Accrual) for July 2022
Balance Sheet as at 31 July 2022
Trial Balance for July 2022
GST (Detail Accrual) for July 2022
GST (Detail Cash) for July 2022
Completed reconciliation from Step 6
Completed Business Activity Statement BAS G and written question response in Step 8
Completed reconciliations from Step 9
Written response to question in Step 10
Completed letter from Step 11
Task 3 – Oral presentation
Recording of interview with Jane
Signed letter
Task 4 – Amending a BAS
Amended September BAS table
Amended paper BAS C
End of assessment.