FNSTPB401 Complete Business Activity

OCT2019

FNSTPB401 Complete Business Activity and Instalment Activity Statements (using MYOB)

Instructions:

  • This assignment contains multiple Assessment Activities
  • Please complete the Declaration of Authenticity at the bottom of this page
  • Save this assignment (e.g. on your desktop)
  • To complete the assignment, read the instructions for each question carefully.
  • You may be required to refer to your learning materials or other sources to complete this assessment.
  • You are required to type all your responses in the spaces provided
  • Once you have completed all parts of the assignment and saved it, login to the Monarch Institute LMS to submit your assignment for grading
  • To submit your assignment click on the file “Submit FNSTPB401 – Activity Statements assignment” in the LMS module of your course and upload your assignment file.
    • Please be sure to click “Continue” after clicking “submit”. This ensures your assessor receives notification of your submission – very important!

Declaration of Understanding and Authenticity *

I have read and understood the assessment instructions provided to me in the Learning Management System.

I certify that the attached material is my original work. No other person’s work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose

of detecting plagiarism.

Student Name*: Date:

* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.

Important assessment information

Aims of this assessment

This assessment focuses on Business Activity & Instalment Activity Statements as well as the underlying theory of taxation including GST and Pay As You Go (PAYG).

Marking and feedback

This assignment contains multiple Assessment Activities each containing specific instructions.

You are required to attempt all questions.

This particular assessment forms part of your overall assessment for the following unit(s) of competency:

  • FNSTPB401 Complete business activity and instalment activity statements (MAS001)

Grading for this assessment will be deemed “competent” or “not-yet-competent” in line with specified educational standards under the Australian Qualifications Framework.

What does “competent” mean?

These answers contain relevant and accurate information in response to the question/s with limited serious errors in fact or application. If incorrect information is contained in an answer, it must be fundamentally outweighed by the accurate information provided. This will be assessed against a marking guide provided to assessors for their determination.

What does “not-yet-competent” mean?

This occurs when an assessment does not meet the marking guide standards provided to assessors. These answers either do not address the question specifically, or are wrong from a legislative perspective, or are incorrectly applied. Answers that omit to provide a response to any significant issue (where multiple issues must be addressed in a question) may also be deemed not-yet-competent. Answers that have faulty reasoning, a poor standard of expression or include plagiarism may also be deemed not-yet-competent. Please note, additional information regarding Monarch’s plagiarism policy is contained in the Student Information Guide which can be found here: http://www.monarch.edu.au/student-info/

What happens if you are deemed not-yet-competent?

In the event you do not achieve competency by your assessor on this assessment, you will be given one more opportunity to re-submit the assessment after consultation with your Trainer/ Assessor. You will know your assessment is deemed ‘not-yet-competent’ if your grade book in the Monarch LMS says “NYC” after you have received an email from your assessor advising your assessment has been graded.

Important: It is your responsibility to ensure your assessment resubmission addresses all areas deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in meeting competency after resubmitting your assessment, you will be required to repeat those units.

In the event that you have concerns about the assessment decision then you can refer to our Complaints & Appeals process also contained within the Student Information Guide.

Expectations from your assessor when answering different types of assessment questions:

Knowledge based questions:

A knowledge based question requires you to clearly identify and cover the key subject matter areas raised in the question in full as part of the response.

Performance based questions:

A performance based question requires you to clearly demonstrate your ability to complete certain tasks, that is, to perform these tasks.

Good luck

Finally, good luck with your learning and assessments and remember your trainers are here to assist you 

Assessment Activities Short Answer and Worked Answer Questions FNSTPB401 – Complete business activity and instalment activity statements

The following questions are based on the material in the textbook “Carry Out Business Activity & Instalment Activity Statement Tasks” by Phillip Charles & Sonia Deaner, 8th Edition (January, 2017) or 9th Edition (January 2018) or 10th Edition (January 2019) and the supplementary materials ‘Australian Privacy Principles Fact Sheet’ and the ‘Guide to Information Security’ as issued by the Australian Government; Office of the Australian Information Commissioner.

Activity instructions to candidates

  • This is an open book assessment activity.
  • You are required to read this assessment and answer all questions that follow.
  • Please type your answers in the spaces provided.
  • Please ensure you have read “Important assessment information” at the front of this assessment
  • Estimated time for completion of this assessment activity: 4-5 hours

Q1.3:Silver Fields Industries received an invoice from a supplier for $1,650. The supplier does not have an ABN. All other aspects of the invoice are valid.

  1. Under the PAYG Withholding requirements, what must Silver Fields do in this instance?
a)






Q1.5, Part B: Explain the level of PII required.

Part B



Q 1.9:Refer to the following two information sources:

https://www.tpb.gov.au/bas-services
https://www.tpb.gov.au/tax-agent-services

Compare the scope of services that may be provided by a registered BAS Agent and the scope of services that may be provided by a registered Tax Agent.

Select two (2) from the following services that a registered BAS Agent is prevented from providing?

Service descriptionBAS Agent is prevented from this (mark with X)
a) Ascertaining or advising about the liabilities, obligations or entitlements of a client under a BAS provision
b) Representing a client in their dealings with the Commissioner of Taxation in relation to a BAS provision
c) Ascertaining (that is, working out) or advising about liabilities, obligations or entitlements of entities (that is your clients) under a taxation law
d) Representing entities in their dealings with the Commissioner of Taxation (Commissioner) in relation to a taxation law

Q 1.10:Think about the frequent changes to legislation that happen regularly in the ‘real world’.

Now consider the Continuing Professional Education (CPE) requirements for BAS Agents.

(c). List three (3) high quality sources of information used to maintain your knowledge of professional and legislative requirements relating to activity statements and BAS Agent services.

1.
2.
3.

Q 1.14:You are a registered BAS Agent and a client has engaged you to prepare their quarterly BAS.

As a registered BAS Agent, identify the relevant code of conduct obligation you must consider and apply when preparing the BAS or when dealing with the following scenarios.

Tip!: Reflect on the four (4) Code of Conduct obligations you have identified in the previous question.

The first scenario has been completed for you as an example.

Scenario (Action, Policy or Issue)Relevant Code of Conduct Obligation (state the main title of this obligation)
There have been many changes to legislation and other obligations that impact on the preparation of a BAS and you have attended training courses and undertaken professional reading to keep up to date.Competence
a) You (the BAS Agent) collect information and fully inform yourself of the client’s affairs as necessary for you to prepare this BAS
b) You (the BAS Agent) have advised the client that you also act for the main business competitor of the client. The client has raised their concerns with you about this.
c) You (the BAS Agent) have missed the required lodgement date for your own personal income tax return and been found to have deliberately misstated your taxable income.
d) You (the BAS Agent) have been asked by a professional friend to provide the financial details about this client’s business.
e) The client has provided you with a cash amount (in actual dollar notes) for the total amount payable to the ATO as determined in the BAS.

Q2.3:Jordan Jones is employed at a local library on a casual basis but sources most of his income from a substantial investment portfolio that he manages in his spare time. Jordan reports his investment income and pays a PAYG instalment quarterly using an IAS (Type B) Option 2. Jordan has a pre-printed instalment rate of 22% but due to an increase in his borrowing costs, Jordan believes this may be too high. He has provided the following information relating to his expected investment income for the year:

Dividend Income39,339
Interest Income28,301
Investment deductions33,820
Estimated income tax payable10,146
T1 instalment income for the September quarter15,890

REQUIRED: Calculate Jordan’s revised instalment rate and complete the Option 2 box on his September IAS, including the variation reason code. Record the calculations that you used in the text box below then record on the Activity Statement panel:

Calculations:









Option 2: PAYG Instalment Rate

PAYG Instalment incomeT1
  





If varying the T2 rate, complete T3, T11, T4






New varied rateT3
 

.

%














T3 x T1T11$    






Write the amount at 5A on the front
Reason code for variationT4
 





Q 3.1:Taxable Supplies and GST-Free supplies are two different types of supplies for GST purposes.

Describe each of these supplies and give two (2) examples of each type:

Taxable Supplies:Record your description here
Example 1:


Example 2:


GST-Free Supplies:Record your description here
Example 1:


Example 2:


Q 4.1: Jones Cars wishes to sell a car worth $79,300 including GST, but before Luxury Car Tax (LCT). 1. Calculate the amount of LCT using the 2018-19 threshold amount; and

2. Calculate the total amount Jones Cars should charge for the car (record calculations and your answer below).

Tip: If you cannot find the threshold for the 2018-19 financial year in your textbook, visit www.ato.gov.au and search for ‘LCT threshold’.

1. Luxury Car Tax:


2. Total sale price:


Q 4.2:Scorching Motors sells a fuel-efficient luxury car to Joel for an ‘all up’ price of $102,000, including GST (10%) and Luxury Car Tax (33%). This price does not include stamp duty, registration or compulsory third party insurance.

1. Calculate the LCT (using the 2018-19 threshold amount); and

2. Calculate the GST Scorching Motors must pay on this sale.

(Record your calculations and your answer below).

Tip: If you cannot find the threshold for the 2018-19 financial year in your textbook, visit www.ato.gov.au and search for ‘LCT threshold’.

1. LCT:


2. GST:


Q 5.2: Leah owns a financial services business called Leah Hunter & Associates and lodges a quarterly Business Activity Statement (BAS). For the September quarter Activity Statement, the business paid a PAYG Instalment of $9,000. It is now January and you are completing the December quarter activity statement. The Australian Taxation Office has pre-printed an amount of $9,000 at field T7 of the Activity Statement for the December quarter PAYG instalment. However, Leah has decided to cease business operations for Leah Hunter & Associates effective from 1st March of the current income year and start a new business. As a result, Leah estimates that Leah Hunter & Associates total tax for the current income year will be $24,000.

REQUIRED: Answer the following regarding the PAYG instalments for this entity
Record your answers in the boxes below:
1.Based on Leah’s estimate for Hunter & Associates, what is the total amount of PAYG Instalments that they need to have paid for the September & December reporting quarters?
2.After applying the variation in the December quarter activity statement, how much is the PAYG Instalment amount to be paid for the December quarter?
3.How much will each of the PAYG Instalments be for the March & June quarters?
4.After all quarterly instalments have been made, how much will have been paid for the full financial year?
5.On the December Activity Statement, which Reason Code for Variation would you use?

REQUIRED: Use your answers above to complete the PAYG Instalment panel on the December quarter Activity Statement panel, correctly selecting either Option 1 (below), OR, Option 2 (next page).

PAYG income tax instalment







Option 1: Pay a PAYG instalment amount quarterly
 







T7$






Write the T7 amount at 5A in the Summary section OR if varying this amount, complete T8, T9, T4






Estimated tax for the yearT8$






Varied amount for the quarterT9$






Reason code for variationT4

PAYG income tax instalment5A$

(extract)

OR

PAYG income tax instalment








 Option 2: Calculate PAYG instalment using income times rate
 






PAYG instalment incomeT1$ 








T2 %




 

OR New varied rate
T3 %




 

T1 x T2 (or x T3)
T11$  
Write the amount at 5A in the Summary section below
Reason code for variationT4
 







PAYG income tax instalment5A$ 

Q5.3:Tim has a software development business, selling his software in Australia and to overseas customers. Tim uses the Cash basis when accounting for GST and is required to prepare and lodge a Business Activity Statement for the period 1st April to 30th June. Tim’s instalment rate is 5%. The following information has been summarised from Tim’s books for the required period and is to be used when completion the calculation sheet and BAS.

SALESAmount ($)
Sales (including GST)145,600
Exports46,350
Other GST-free sales18,150
TOTAL210,100
EXPENSES
Capital purchases (including GST)106,200
Non-capital purchases (including GST)68,850
Gross salaries and wages62,000
PAYG Withheld from Salaries and Wages23,400

Required: Complete Tim’s BAS for the period 1st April to 30th June using Option 1 to calculate GST (next page)

GST amounts you owe the Tax Office from sales





G1Total sales (including and GST)G1$
     





G2Export salesG2$





G3Other GST-free salesG3$





G4Input taxed salesG4$ 





G5G2 + G3 + G4G5$
     





G6Total sales subject to GSTG6$

(G1 minus G5)


G7Adjustments (if applicable)G7$ 
     





G8Total sales subject to GST after adjustmentsG8$

(G6 + G7)


G9GST on sales (G8 divided by eleven)G9$





GST amounts the Tax Office owes you from purchases





G10Capital purchasesG10$

(including and GST)


G11Non-capital purchasesG11$

(including any GST)


G12G10 + G11G12$
     





G13Purchases for making input taxed salesG13$ 





G14Purchases without GST in the priceG14$ 





G15Estimated purchases for private useG15$ 

or not income tax deductible


G16G13 + G14 + G15G16$ 
     





G17Total purchases subject to GSTG17$

(G12 minus G16)


G18Adjustments (if applicable)G18$ 
     





G19Total purchases subject to GST afterG19$

adjustments (G17 + G18)


G20GST on purchases (G19 divided by eleven)G20$

Business Activity Statement (extract)







Option 1: Calculate GST and report quarterly













Total salesG1














Does the amount shown at G1 include GST

Yes No











Export salesG2














Other GST-free salesG3














Capital purchasesG10














Non-capital purchasesG11




PAYG tax withheld






Total salary, wages and
other payments
W1$
      






Amounts withheld from payments shown at W1W2$



   
Amounts withheld where no ABN is quotedW4$



 
 
Other amounts withheld (excluding any amount shown at W2 or W4)W3$



   
     
Total amounts withheld
(W2 + W4 + W3)
W5$
Summary
Amounts you owe the Tax Office



 
GST on sales1A
Wine Equalisation Tax1C 
Luxury Car Tax1E 
PAYG tax withheld4
PAYG income tax instalment5A
FBT instalment6A 
Deferred company instalment7 
1A + 1C + 1E + 4 + 5a + 6A + 78A



Amounts the Tax Office owes you

GST on purchases1B
WET refundable1D 
LCT refundable1F 
Credit from PAYG instalment variation5B 
Credit from FBT instalment variation6B 
1B + 1D + 1F = 5B + 6B8B
Payment or refund

Is 8A more than 8B?

Yes8A – 8B is payable
 No8B – 8A is refundable




Your payment or refund amount
9

Q 5.5: From the following payroll information, complete the relevant BAS items for Fancy Meats.

  1. Johnny Stephens Gross wages $3,600 PAYG withheld $765
  2. McKenzie Mansour Gross wages $4,650 PAYG withheld $1125
  3. Taylor Vaughan Gross wages $8,850 PAYG withheld $2,340
  1. Nicole Roberts (meat supplier), no ABN provided:
  • Invoice total = $1,500
  • ABN withholding tax = $735 (please assume this withholding amount is correct)
  • Amount paid to Roberts = $765
  1. Charlie Maher invoice for services provided $7,500. Voluntary withholding tax was withheld by Fancy Meats at 20% of the invoiced amount.
PAYG tax withheld






Total salary, wages and
other payments
W1$
      






Amounts withheld from payments shown at W1W2$



   
Amounts withheld where no ABN is quotedW4$



   
Other amounts withheld (excluding any amount shown at W2 or W4W3$



   
     
Total amounts withheld
(W2 + W4 + W3)
W5$



   
PAYG tax withheld4$


Q 5.6:Swanston Enterprises report GST quarterly on a cash basis. They had the following account balances (on a cash basis) for the September quarter. All amounts include GST where applicable.

ACCOUNT DETAILSAmount ($)
Commercial rent received9,900
Residential rent received11,000
Sales of goods61,100
Interest received550
Sales of services17,000
Export sales26,000
Wages and salaries55,000
Stationery6,600
Depreciation3,000
Accounting fees4,400
Electricity660
Business insurance premiums440
Interest on loan88
Promotional expenses1,320
Bank fees66
Motor vehicle operating costs1,100
Telephone880
Council and water rates770
Repairs to residential rental property550
IPA subscriptions121
Superannuation contributions2,250
Stock purchases13,000
Commercial rent expenses735
Purchase of new printer2,860
PAYG tax withheld22,000
ATO Commissioner’s Rate2.50%

REQUIRED: using a cash basis, complete a GST Calculation worksheet and BAS for Swanston Enterprises for the quarter.

GST amounts you owe the Tax Office from sales





G1Total sales (including and GST)G1$
     





G2Export salesG2$





G3Other GST-free salesG3$ 





G4Input taxed salesG4$





G5G2 + G3 + G4G5$
    





G6Total sales subject to GSTG6$

(G1 minus G5)


G7Adjustments (if applicable)G7$ 
     





G8Total sales subject to GST after adjustmentsG8$

(G6 + G7)


G9GST on sales (G8 divided by eleven)G9$





GST amounts the Tax Office owes you from purchases





G10Capital purchasesG10$

(including and GST)


G11Non-capital purchasesG11$

(including any GST)


G12G10 + G11G12$
    





G13Purchases for making input taxed salesG13$





G14Purchases without GST in the priceG14$





G15Estimated purchases for private useG15$ 

or not income tax deductible


G16G13 + G14 + G15G16$
    





G17Total purchases subject to GSTG17$

(G12 minus G16)


G18Adjustments (if applicable)G18$
    





G19Total purchases subject to GST afterG19$

adjustments (G17 + G18)


G20GST on purchases (G19 divided by eleven)G20$

Goods and services tax (GST)











Option 1: Calculate GST and report quarterly










Total salesG1$










Does the amount shown at G1 include GST? (indicate with an X)
Yes
No









Export salesG2$











Other GST-free salesG3$ 










Capital purchasesG10$










Non-capital purchasesG11$


PAYG tax withheld









Total salary, wages and
other payments
W1$


   

 






Amounts withheld from payments shown at W1W2$







 
Amounts withheld where no ABN is quotedW4$







 
Other amounts withheld (excluding any amount shown at W2 or W4W3$







 
   


Total amounts withheld
(W2 + W4 + W3)
W5$


Summary
Amounts you owe the Tax Office



 
GST on sales1A
PAYG tax withheld4
PAYG income tax instalment [ (G1-G9) x Commissioner’s Rate ]5A
FBT instalment6A
Deferred company instalment7
1A + 4 + 5A + 78A



Amounts the Tax Office owes you

GST on purchases1B
Credit from PAYG instalment variation5B
Credit from FBT instalment variation6B
1B + 5B + 6B8B
Payment or refund

Is 8A more than 8B?

Yes8A – 8B is payable
 No8B – 8A is refundable




Your payment or refund amount
9

Q 6.4: Chris is a tiler who buys some tiles from Tile Mart Pty Ltd on 23rd September. Tile Mart provide commercial credit terms of 30 days from the date of invoice and Chris pays the invoice on 15th October.

Required: in which quarter will Tile Mart and Chris record the impact of this transaction if they each used: (a) cash accounting, and (b) accrual accounting.

Tile Mart: a) cash accounting
Tile Mart: b) accrual accounting
Chris: a) cash accounting
Chris: b) accrual accounting

Q 6.5:Using the information provided below, reconstruct the accounts payable account (T-account format) to determine the cash paid during the reporting period.

Opening accounts balance$3,950
Credit purchases during the period12,833
Closing account payable8,756
AccountsPayable
Cashpaid
Opening balance
Closing accounts payable
Credit purchases






Balance c/f

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