Prepare and Administer Tax Documentation for Legal Entities – FNSACC601
Case Study and Practical Assessment
- Type all the answers in a word document if required.
- You can conduct internet research to answer these questions.
- Provide explanation of 2-3 lines when answering ‘Describe’ questions.
- Provide detailed workings for calculations questions.
- Provide answers in table format wherever possible.
Question 1 – Stephen John
Review the information provided regarding ‘Stephen John’ in appendix ‘Case Study – Stephen John’ and conduct the following.
- Create a checklist that would assist you to with identifying all the relevant details from your client.
- Create a cash flow summary for Stephen
- Create a depreciation schedule for Stephen
- Create a profit and loss statement for Stephen
- Create a balance sheet for Stephen
the following questions:
- What rate of tax should Stephen be paying?
- What is his charge for the Medicare levy and surcharge?
- What superannuation should Stephen have received?
- What was Stephen’s assessable income?
- What was Stephen’s tax payable or refund amount?
- Did Stephen have any fringe benefits? If so what were they?
- How would you calculate the fringe benefits for reporting purposes?
- Is there any payroll tax due or paid?
- Create a BAS for Stephen for 12 months.
- Lodge Stephens taxation through paper based lodgement form.
- Write a short summary of the financial position for Stephen.
- Explain the current financial position of the client
- Explain the required documents that need to be kept for current financial year
- Expected tax refund/payment from ATO
- Approval for lodgement
Question 2 – Royal Watch Ltd
Use a word processor to create one document with your responses to all parts. Ensure you title each section of your response to match the assignment designation.
Review the ‘Case Study – Royal Watch Ltd’ and ‘RWL Income Tax Return’ files provided in Appendix and conduct the following:
- In the Depreciation Schedule worksheet (Tab No: 3) calculate and enter the depreciation and balancing adjustments for the tax year 2014/15.
- In the Franking Account schedule worksheet (Tab No: 4) complete the franking account for the tax year 2014/15.
- In the Tax Computation schedule worksheet (Tab No: 5) prepare the tax computations for the tax year 2014/15.
- In the ITR Profit and Loss worksheet (Tab No: 6) complete the financial data for the tax year 2014/15, by using the information from the Income Statement.
- In the ITR Reconciliation worksheet (Tab No: 7) prepare the reconciliation to taxable income or loss for the tax year 2014/15, by using the information from the Tax Computation worksheet.
- In the ITR Financial Information worksheet (Tab No: 8) enter the financial data for the tax year 2014/15, by using the information from other schedules.
- In the ITR Calculation Statement worksheet (Tab No: 9) calculate the tax amount due or refundable for the tax year 2014/15, by using the information from other schedules.
|Case Study – Stephen John||Case Study – Royal Watch Ltd|
|RWL Income Tax Return|
References / recommended resources
Prepare and administer tax documentation for legal entities – FNSACC601, Enhance Your Future.