CODE: TQA Level 3, Size Value = 15€¦ · Web viewGross profit and net profit calculated. Single...

T A S M A N I A N Q U A L I F I C A T I O N S A c c o u n t i n gA U T H O R I T Y

Accounting ACC315111: TQA Level 3, Size Value = 15

THE COURSE DOCUMENTThis document contains the following sections:

RATIONALE 1

COURSE SIZE AND COMPLEXITY 2

COURSE DESCRIPTION 2PATHWAYS 2

LEARNING OUTCOMES 2

COURSE CONTENT 3

ASSESSMENT 12EXTERNAL ASSESSMENT REQUIREMENTS 12QUALITY ASSURANCE PROCESSES 13CRITERIA 13STANDARDS 14QUALIFICATIONS AVAILABLE 21AWARDS REQUIREMENTS 21

COURSE EVALUATION 21

COURSE DEVELOPER 22

ACCREDITATION 22

VERSION HISTORY 22

APPENDICES23

RATIONALEAccounting is concerned with the collection, analysis and communication of economic information about organisations which operate in the private, public and not for profit sectors. With respect to business, accounting information is critical to those stakeholders who need to make decisions and plans about businesses and for managers who need to control those businesses. Accounting is often described as the language of business.

The study of accounting is therefore essential for those who wish to understand and explain the structure of business, how it works and how it contributes to the sustainability of communities, countries and how business functions in an international and global environment.

Tasmanian Qualifications Authority Period of Accreditation: 1 Jan 2011 – 31 Dec 2015Version 1.a Date of Publishing: 21 May 2023

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AccountingTQA 3

COURSE SIZE AND COMPLEXITYThis course has been assessed as having a complexity level of TQA level 3.

At TQA level 3, the student is expected to acquire a combination of theoretical and/or technical and factual knowledge and skills and use judgment when varying procedures to deal with unusual or unexpected aspects that may arise. Some skills in organising self and others are expected. TQA level 3 is a standard suitable to prepare students for further study at the tertiary level. VET competencies at this level are often those characteristic of an AQF Certificate III.

The TQA level 3 course has a size value of 15.

COURSE DESCRIPTIONAccounting is an information system that provides financial and other information for making and evaluating decisions about the allocation of resources of businesses. It involves recording, reporting, analysing and interpreting the financial information of a business and communicating that information to relevant stakeholders.

The study of this course enables students to understand the processes involved in generating, recording, classifying, reporting, analyzing and reporting accounting information as the basis for decision making in business. The changing processes involved in the accounting information system are recognised, especially with respect to the development and use of information and communication technologies. The course is designed to not only provide a foundation in accounting and finance, but also to prepare students for further education, training and employment.

PATHWAYS

This course is designed as a pathway to higher education studies, particularly in the business area. The course also provides skills and knowledge to aid students in future employment in areas such as finance, banking, accounting, economics, management, marketing, and other related positions. In addition, the course is designed to enable graduates to seek credit for some units of competence (financial record keeping) in a Certificate III of Financial Services.

LEARNING OUTCOMESAccounting as a discipline is increasingly becoming reliant upon information and communication technologies, especially in the process of recording and preparing financial information. It is therefore important that students use a range of information and communication technologies as part of their learning activities, including: spreadsheets, computerised accounting packages, the internet, word processors, and other online interactive learning media.

This course is designed for students to develop knowledge and skills that enable them to:

understand the nature and purposes of accounting, its role in business, and its relevance to business financial decision making

understand financial terms, concepts and ideas

record, report, analyze and interpret financial information for business organisations

make appropriate business decisions based on financial information


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achieve an awareness of the need for financial information systems in business organizations

communicate financial information in both written and verbal form

plan and conduct accounting and finance related tasks

COURSE CONTENTThis course has four (4) core units of study and one (1) elective unit of study. All topics within the core units of study are assessable through internal and external methodologies. The elective unit of study is assessable through internal methodology only.

CORE UNITS

All four (4) core units must be studied:

Unit 1 – Recording Financial Information

Unit 2 – Reporting Financial Information

Unit 3 – Interpreting Financial Information

Unit 4 – Recording and Controls

4.1 Recording and Controls – Cash

4.2 Recording and Controls – Inventories

4.3 Recording and Controls – Non-current Assets

4.4 Recording and Controls – Accounts Receivable and Accounts Payable

UNIT 1: RECORDING FINANCIAL INFORMATION

Introduction to accounting

o Definition

o Accounting as the language of business

o The Accounting profession in Australia

o Some factors and issues impacting upon Accounting in Australia

o Understanding the main forms of business ownership in Australia

The concept of the separate accounting entity

The nature of assets, liabilities, owner’s equity, incomes and expenses.

The accounting equation

The analysis of effects of transactions on the accounting equation

The double entry accounting process and the rules for debit and credit

The nature of GST

o Concepts


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o The Effect of GST

o Consideration of relevant documents – tax invoices

o Explanation of the Australian Business Number system

o Accounting entries for GST

The general journal approach to recording transactions (including GST) using the perpetual inventory system with amounts given for cost of goods sold:

o Opening entry

o Sale of inventory/services

o Sales returns

o Purchase of inventories/services

o Purchase returns

o Cash receipts

o Cash payments

o Drawings of cash and inventories

o Correction of errors

o Purchase of non-current assets

o Sale of non-current assets at book value.

(refer to Appendix 6 for formats for General Journals)

Recording entries for both service and trading entities

The flow of accounting data (accounting process or cycle) (i.e. source documents → journal(s) → general ledger → financial statements → decision making)

The function of source documents in the flow of accounting data

The general ledger:

o The need for general ledger accounts

o The purpose of the chart of accounts

o Posting transactions from the general journal to the general ledger

(NB. either format can be used – ‘T’ format or columnar format. Refer to Appendix 1 for T-account balancing methods)

o Determining the balance of a general ledger account.

The trial balance

o The purpose of a trial balance


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o The preparation of a trial balance

o Errors disclosed and not disclosed by a trial balance.

Completion of the accounting cycle (explanation or demonstration only)

o The need for closing entries for revenue and expense accounts to either the trading and profit and loss accounts in the general ledger

o The need to close the profit and loss account to the capital account

o The need for asset, liability and owner’s equity accounts to begin the next accounting period with their opening balances.

Preparation of simplified financial statements (based on the unadjusted trial balance):

o Income statement

Unclassified

Gross profit and net profit calculated

Single amount column

o Balance Sheet

Assets and liabilities not classified

Single amount column.

Introduction to analysis and interpretation of financial statements

o Calculation of three ratios (e.g. gross profit, rate of return on total assets, debt ratio) based on simplified financial statements.

o Introduction to interpreting the ratios and making recommendations.

UNIT 2: REPORTING FINANCIAL INFORMATION

Accrual accounting

o The difference between cash and accrual accounting

o The accounting period assumption, going concern assumption, and the matching principle

o Why balance day adjustments are necessary at balance date

o The need for estimates under accrual accounting

Prepare adjusting general journal entries (and post to general ledger (extract) to observe the effect) for the following:


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o Prepaid expenses

o Stocks of supplies/stationery

o Unearned revenues

o Accrued expenses

o Accrued revenues

o Bad and doubtful debts (simplified method) (refer to Appendix 5)

o Depreciation

o Stock loss

o GST Clearing.

Using a trial balance with balance day adjustment information (no complex calculations), prepare appropriately classified and presented:

o Income statement

o Balance sheet

o Note: templates are provided (refer to Appendices 2.A and 2.B).

Statement of cash flows

o The purpose of preparing a statement of cash flows

o Definition and examples of cash flows from operating, investing and financing activities

o Preparation of simple cash flow statements for a sole trader form of organisation (without credit sales, credit purchases and sales of non-current assets)

o Not required: notes to the statement of cash flows (e.g. reconciliation of operating cash flows to operating profit)

(Note: use standardised template, refer to Appendix 3).


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UNIT 3: INTERPRETING FINANCIAL INFORMATION

The users of financial statements

o The difference between internal users and external users

o The differences between the decisions they make and their information needs.

Analysis and interpretation of the income statement and balance sheet of sole traders (including comparative financial statements for at least three years) to assess:

o Profitability

o Financial stability

o Management effectiveness

(Note: Formulae sheet provided for relevant ratios, refer to Appendix 8)

Explanation and calculation of appropriate ratios to assess profitability, financial stability, and management effectiveness

Analysis and interpretation of the results of the business

Making recommendations to business owners

Interpretation of a simple cash flow statement in terms of:

o Operating activities – where cash is obtained and where it is used

o Investing activities – where major investments in assets have been made or realized

o Financing activities – how investments have been financed.

Overview of the limitations of the income statement and balance sheet.


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UNIT 4: RECORDING AND CONTROLS

4.1: Recording and Controls – Cash

Internal control and cash

o Explain the importance of cash to a business

o Describe the methods of internal control over cash and the importance of cash control

Recording cash transactions (explanation or demonstration only)

o Specialized journals for cash receipts and cash payments

o Recording transactions in the cash receipts and cash payments journals

o Post from the general journal, cash receipts journal and cash payments journal to the general ledger (totals of the journals to the cash at bank account only).

o (Note: subsidiary ledgers for accounts receivable and accounts payable not used).

Bank reconciliation process

o Explain why a business’s general ledger cash at bank account balance at the end of a month may differ from the bank’s balance (as per the bank statement)

o Completion of the bank reconciliation process incorporating:

Outstanding items from previous bank reconciliation statements

Both debit and credit bank balances

NOTE: but not dishonoured cheques and errors)

Cash budgets

o Explain the purpose of a cash budget and its role in cash control

o Prepare and present a cash budget, including a schedule of estimated cash collections from accounts receivable (templates provided, refer to Appendices 4.A and 4.B)

o Interpret a cash budget and explain how businesses may improve their cash flow situation

o List the main sources of finance available to business enterprises

o Explain some of the factors to be considered in seeking external finance


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4.2: Recording and Controls – Inventories

Internal control and inventories

o Define the term ‘inventories’ and explain their importance to a business

o Explain the methods of control over the purchase, sale and storage of inventories

Recording inventory transactions

o Overview of the perpetual inventory system

o Explain the significance of the stock take in the perpetual inventory system

o Prepare an adjusting general journal entry and post to the general ledger for a stock loss/adjustment.

o (NOTE: Lower of cost or net realizable value is not required to be covered)

Unit 4.3: Recording and Controls – Non-Current Assets

Internal control and non-current assets

o Define the terms non-current assets and recognize the types of assets included under this classification in the statement of financial position (balance sheet)

o Define the terms property, plant and equipment

o Define the term depreciation

o Understand the importance of the property, plant and equipment register.

Recording property, plant and equipment transactions

o Distinguish between capital and revenue expenditure

o Record the purchase of items of property, plant and equipment using general journal entries and post to the general ledger

o Explain the nature of depreciation expense (i.e. cost allocation process)

o Calculate depreciation using the straight line and diminishing balance methods

o Record depreciation as a balance day adjustment in the general journal and post to the general ledger

o Explain the concepts of original cost, scrap or residual value, accumulated depreciation and written down value (net asset or carrying value)

o Recognise that depreciation does not set aside funds for replacementTasmanian Qualifications Authority Period of Accreditation: 1 Jan 2011 – 31 Dec 2015Version 1.a Date of Publishing: 21 May 2023

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o Calculate the gain or loss on disposal (derecognition) of non-current assets (simplified method, refer to Appendix 7).

4.4: Recording and Controls – Accounts receivable and Accounts payable

Internal control and accounts receivable and accounts payable

o Define the terms accounts receivable and accounts payable

o Describe some of the methods of control over accounts receivable and accounts payable such as separation of duties and credit policies

Recording credit transactions

o Prepare balance day adjustments in general journal form for bad and doubtful debts (simplified method only, refer to Appendix 5) for inclusion in the financial statements.

ELECTIVE UNIT

One (1) of the following units is to be chosen for study - either for whole group guided learning or individual independent study and research. Students will be required to assemble a portfolio of their learning activities in this unit. This elective unit will not be externally assessed.

ELECTIVE UNIT 1: CURRENT AND CONTEXTUAL ISSUES IN ACCOUNTING

This elective unit is aimed at allowing students to engage in guided learning, independent study or research in order to either extend their knowledge of units 1 to 4 or research a different field or fields of accounting and finance.

This unit may be integrated into learning and assessment activities as the course progresses, or may be delivered as a discrete unit.

In terms of current issues of relevance to the field of study of accounting, these generally arise as the course is delivered (e.g. (at the time of writing) global financial crisis, resource sector super profits tax).

Other topics for guided learning, research or independent study might include:

o Preparation of a business plan for a business venture

o Social and environmental accounting

o Accounting ethics

o Forensic accounting

o E Commerce

o Corporate Governance

o Accounting for unincorporated associationsTasmanian Qualifications Authority Period of Accreditation: 1 Jan 2011 – 31 Dec 2015Version 1.a Date of Publishing: 21 May 2023

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o Advanced spreadsheet applications

o Accounting for a different sector (e.g. extractive industries)

Aspects of the other elective topics 5.2 to 5.4 may also be included in this elective topic.

ELECTIVE UNIT 2: COMPUTERISED ACCOUNTING PACKAGE

Differences between manual and computerised accounting processes

Introduction to a computerised accounting package

The set up of a computerised accounting system for a small business that has inventory items, accounts receivable and accounts payable (not payroll)

The complete accounting process for a sole trader, including GST, perpetual inventory method and subsidiary ledgers for accounts receivable, accounts payable.

Recording balance day adjustments

Presentation of an income statement, balance sheet and other reports from the computerized information system

Roll over to a new accounting period.

ELECTIVE UNIT 3: UNDERSTANDING COMPANY FINANCIAL STATEMENTS

Legal and accounting considerations of companies

o Definition of a company

o Types of companies

o Types of shares

o Debentures and unsecured notes

o Formation and share issue

o Provisions

o Reserves

o Dividends

Investigation of actual published company reports

o Statement of comprehensive income

o Statement of financial position

o Statement of changes in equity

o Cash flow statement

Analysis and interpretation of the published annual reports of an Australian public company.


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NOTE: This unit does not require any financial accounting entries. The emphasis is upon understanding the structure of published company annual reports.

ELECTIVE UNIT 4: PERSONAL FINANCIAL MANAGEMENT

Reasons for personal investment

Main forms of personal investment

Factors affecting personal investment decisions

Costs associated with personal investing

Calculation of returns on investment

Decision making based on the ‘best’ investment for a specific purpose

Comparison and analysis of the performance of an investment portfolio over time

Participation in a simulated investment activity (e.g. the share market game).

ASSESSMENTCriterion-based assessment is a form of outcomes assessment which identifies the extent of student achievement at an appropriate end-point of study. Although assessment – as part of the learning program - is continuous, much of it is formative, and is done to help students identify what they need to do to attain the maximum benefit from their study of the course. Therefore, assessment for summative reporting to the Tasmanian Qualifications Authority should focus on what both teacher and student understand to reflect end-point achievement.

The standard of achievement each student attains on each criterion is recorded as a rating ‘A’, ‘B’, or ‘C’, according to the outcomes specified in the standards section of the course.

A ‘t’ notation must be used where a student demonstrates any achievement against a criterion less than the standard specified for the ‘C’ rating. The ‘t’ notation sits outside the continuum of ratings and is thus not described in course standards.

A ‘z’ notation is to be used where a student provides no evidence of achievement at all.

Providers offering this course must participate in the quality assurance processes.

Internal assessment of all criteria will be made by the provider. Providers will report the student’s rating for each criterion to the Tasmanian Qualifications Authority.

The Tasmanian Qualifications Authority will supervise the external assessment of designated criteria (*). The ratings obtained from the external assessments will be used in addition to those provided from the provider to determine the final award.

EXTERNAL ASSESSMENT REQUIREMENTS


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The external assessment requirements for this course assess criteria 3, 4, 5, 6 and 7.

Further information regarding external assessment processes and requirements is articulated in the TQA issued Assessment Guidelines.

QUALITY ASSURANCE PROCESSES

The following processes will be facilitated by the TQA to ensure there is:

a match between the standards for achievement specified in the course and the standards demonstrated by students

community confidence in the integrity and meaning of the qualification.

Processes – the Authority gives course providers feedback about any systematic differences in the relationship of their internal and external assessments and, where appropriate, seeks further evidence through audit and requires corrective action in the future.

CRITERIA

The assessment for Accounting TQA level 3 will be based on the degree to which the student can:

1 communicate accounting and financial concepts and information

2 plan, organize and complete activities related to accounting and finance

3 * demonstrate knowledge and understanding of financial terms, principles and concepts

4 * apply and understand the principles of double entry accounting in the recording of financial transactions

5 * apply and understand accrual accounting techniques to prepare appropriately presented accounting reports

6 * apply and understand the use of accounting control techniques

7 * analyse, evaluate and understand financial data and information.

* = externally and internally assessed criteria


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STANDARDS

CRITERION 1 COMMUNICATE ACCOUNTING AND FINANCIAL CONCEPTS AND INFORMATION

Rating ‘C’ Rating ‘B’ Rating ‘A’

The student can: The student can: The student can:

convey basic accounting and financial information

accurately describe accounting and financial information

accurately and comprehensively describe accounting and financial information

apply a basic understanding of the conventions of report writing and extended writing to convey accounting and financial information

apply a good understanding of the conventions of report writing and extended writing to convey accounting and financial information that is clearly understood

apply a sophisticated understanding of the conventions of report writing and extended writing to convey accounting and financial information that is clearly understood

address the basic intent of a written accounting and finance case study or question

structure a response to a written accounting and finance case study or question so as to be readily understood

sequence information and arguments to create a logical answer to a written accounting and finance case study or question

contribute to oral presentations of accounting and financial information in a manner that demonstrates a degree of confidence and addresses a task or question.

contribute to oral presentations of accounting and financial information in a manner that demonstrates confidence and logically addresses a task or question

provide a contribution to oral presentations of accounting and financial information in a manner that demonstrates a high level of confidence and logically addresses a task or question with some degree of analysis

apply relevant principles of academic integrity.




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CRITERION 2 PLAN, ORGANISE AND COMPLETE ACTIVITIES RELATED TO ACCOUNTING AND FINANCE



set targets for activities and meet set deadlines at least some of the time

set targets and use strategies for activities in order to meet deadlines most of the time

set targets and use strategies to manage the completion of assigned accounting and finance activities in order to meet deadlines all of the time

in a group situation, provide a contribution to the planning and completion of assigned accounting and finance tasks

in a group situation, provide an active and positive contribution to the planning and completion of assigned accounting and finance tasks

in a group situation, demonstrates leadership in planning and completion of assigned accounting and finance tasks

when working independently, work to achieve outcomes for assigned accounting and finance tasks with some supervision

when working independently, work to achieve outcomes for assigned accounting and finance tasks with limited supervision

when working independently, work to achieve outcomes for assigned accounting and finance tasks with no supervision

seek assistance frequently, and respond appropriately to advice about completing accounting and finance tasks.

seek assistance where required and respond positively to advice about completing accounting and finance tasks.

seek assistance where required and respond positively to advice about completing accounting and finance tasks and applying such advice to new learning situations.


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CRITERION 3 DEMONSTRATE KNOWLEDGE AND UNDERSTANDING OF FINANCIAL TERMS, PRINCIPLES AND CONCEPTS



use basic accounting and financial terms in discussions and reporting

list and define relevant accounting and financial terms In discussions and reporting

list, define and explain a broad range of accounting and financial terms

outlinebasic accounting and financial principles, concepts and ideas

describe a broad range of accounting and financial principles, concepts and ideas

provide a detailed explanation of a broad range of more complex accounting and financial concepts and ideas

use several accounting and financial terms, principles, concepts and ideas in discussion, explanation and argument

use a broad range of accounting and financial terms, principles, concepts and ideas in discussion, explanation and argument

consistently use a broad range of complex accounting and financial terms, principles, concepts and ideas in discussion, explanation and argument

distinguish between contrasting accounting and financial terms, principles, concepts and ideas.

distinguish between contrasting but related accounting and financial terms, principles, concepts and ideas.

distinguish and recognise subtle differences between related complex accounting and financial terms, principles, concepts and ideas.


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CRITERION 4 APPLY AND UNDERSTAND THE PRINCIPLES OF DOUBLE ENTRY ACCOUNTING IN THE RECORDING OF FINANCIAL TRANSACTIONS



complete straight-forward calculations accurately

complete more complex calculations accurately

complete complex calculations accurately

analyse transactions, in terms of their effect on the accounting equation, with some accuracy

analyse transactions, in terms of their effect on the accounting equation, mostly accurately

analyse transactions in terms of their effect on the accounting equation, with high levels of accuracy

analyse basic transactions into their double entry components

analyse transactions into their double entry components most of the time

analyse transactions into their double entry components nearly all of the time

prepare financial records (e.g. journals and general ledgers) from a set of transactions with accuracy at least some of the time

prepare financial records (e.g. journals and general ledgers) from a set of transactions accurately most of the time

prepare financial records (e.g. journals and general ledgers) from a set of transactions accurately nearly all of the time

demonstrate a basic use of a computerised accounting package to record a set of transactions.

use a computerised accounting package to record a set of transactions accurately.

use a computerised accounting package to record a set of transactions accurately and efficiently.


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CRITERION 5 APPLY AND UNDERSTAND ACCRUAL ACCOUNTING TECHNIQUES TO PREPARE APPROPRIATELY PRESENTED ACCOUNTING REPORTS



analyse straight-forward balance day adjustments into their double entry components

analyse more complex balance day adjustments into their double entry components

analyse complex balance day adjustments into their double entry components

prepare appropriately classified financial statements with some degree of accuracy

prepare appropriately classified financial statements with a higher degree accuracy

prepare appropriately classified financial statements with a high degree of accuracy

incorporate some balance day adjustments into the preparation of appropriately classified financial statements with some degree of accuracy

Incorporate most balance day adjustments into the preparation of appropriately classified financial statements with a higher degree of accuracy

Incorporate nearly all balance day adjustments into the preparation of appropriately classified financial statements with a high degree of accuracy

complete basic calculations accurately



use a spreadsheet package to prepare a set of appropriately classified financial statements incorporating some spreadsheet functions.

use a spreadsheet package to prepare a set of appropriately classified financial statements using a range of spreadsheet functions.

use a spreadsheet package to prepare a set of appropriately classified financial statement using a broad range of spreadsheet functions.


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CRITERION 6 APPLY AND UNDERSTAND THE USE OF ACCOUNTING CONTROL TECHNIQUES



complete straight-forward calculations accurately



record transactions incorporating accounting controls with some degree of accuracy

record transactions incorporating accounting controls with a higher degree of accuracy

record transactions incorporating accounting controls with a high degree of accuracy

prepare financial records relevant to accounting controls with an acceptable (able to be understood) degree of accuracy and presentation

prepare financial records relevant to accounting controls with a higher degree of accuracy and with a higher standard of presentation

prepare financial records relevant to accounting controls with a high degree of accuracy and with a high standard of presentation

explain the significance of, and some of the procedures for, a limited range of accounting controls.

explain the significance of, and procedures for, a range of accounting controls.

explain the significance of, and the procedures for, a broad range of accounting controls.


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CRITERION 7 ANALYSE, EVALUATE AND UNDERSTAND FINANCIAL DATA AND INFORMATION



complete appropriate calculations accurately some of the time

complete appropriate calculations accurately most of the time

complete appropriate calculations accurately nearly all of the time

make interpretative comments regarding financial ratios and other financial data that are largely definitional and display at least a limited knowledge of the relationship between financial statement elements

make interpretative comments regarding financial ratios and other financial data that display a reasonable knowledge of the relationship between financial statement elements

make interpretative comments regarding financial ratios and other financial data that display a sound knowledge of the relationship between financial statement elements

make interpretative comments regarding financial statements and other reports that describe the current position

make interpretative comments regarding financial statements and other reports that describe the current position and provide some insight for business improvement

make interpretative comments regarding financial statements and other reports that describe the current position and provide a sound insight for business improvement

observe financial data on a time series basis and superficially explain trends in the data

observe financial data on a time series basis, explain the trends in the data, and provide superficial comments regarding the possible causes of the trends

observe financial data on a time series basis, explain the trends in the data, and provide sound comments regarding the possible causes of the trends

explain relevant financial information in a logical and correctly expressed manner using some appropriate financial terminology.

explain relevant financial information in a logical and correctly expressed manner using sound financial terminology.

explain relevant financial information in a logical and well expressed manner using a more sophisticated level of financial terminology.


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QUALIFICATIONS AVAILABLE

Accounting (with the award of):

EXCEPTIONAL ACHIEVEMENT

HIGH ACHIEVEMENT

COMMENDABLE ACHIEVEMENT

SATISFACTORY ACHIEVEMENT

PRELIMINARY ACHIEVEMENT

AWARD REQUIREMENTS

The final award will be determined by the Tasmanian Qualifications Authority from 12 ratings (7 ratings from internal assessment and 5 ratings from the external assessment).

EXCEPTIONAL ACHIEVEMENT (EA)

10 ‘A’ ratings, 2 ‘B’ rating (with 4 ‘A’ ratings and 1 ‘B’ rating in the external assessment)

HIGH ACHIEVEMENT (HA)

4 ‘A’ ratings, 5 ‘B’ ratings, 3 ‘C’ ratings (with 2 ‘A’ rating, 2 ‘B’ ratings and 1 ‘C’ rating in the external assessment)

COMMENDABLE ACHIEVEMENT (CA)

6 ‘B’ ratings, 5 ‘C’ ratings (with 2 ‘B’ ratings and 2 ‘C’ rating in the external assessment)

SATISFACTORY ACHIEVEMENT (SA)

10 ‘C’ ratings (3 ‘C’ ratings in the external assessment)

PRELIMINARY ACHIEVEMENT (PA)

6 ‘C’ ratings

A student who otherwise achieves the ratings for a CA (Commendable Achievement) or SA (Satisfactory Achievement) award but who fails to show any evidence of achievement in one or more criteria (‘z’ notation) will be issued with a PA (Preliminary Achievement) award.

COURSE EVALUATIONCourses are accredited for a specific period of time (up to five years) and they are evaluated in the year prior to the expiry of accreditation.

As well, anyone may request a review of a particular aspect of an accredited course throughout the period of accreditation. Such requests for amendment will be considered in terms of the likely improvements to the outcomes for students and the possible consequences for delivery of the course.

The TQA can evaluate the need and appropriateness of an accredited course at any point throughout the period of accreditation.Tasmanian Qualifications Authority Period of Accreditation: 1 Jan 2011 – 31 Dec 2015Version 1.a Date of Publishing: 21 May 2023

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COURSE DEVELOPERThe TQA acknowledges the significant leadership of Steve Allen.

ACCREDITATIONThe accreditation period for this course is from 1 Jan 2011 to 31 Dec 2015.

VERSION HISTORYVersion 1 Accredited version. This course supersedes Accounting ACC5C.

Version 1.a Addition of Appendices on 15 November 2013.

VERSION CONTROL

This document is a Word version of the course. It is not a TQA controlled version. The current PDF version of the course on the TQA website is the definitive course.


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APPENDICES

APPENDIX 1: INFORMAL (PENCIL) BALANCES

a) Example of a formal balancing of an account

InventoriesDec 1 Balance b/d 20 000 Dec 2 Cost of Goods Sold 750

6 Cash 1 000 4 Cost of Goods Sold 1 55012 D Austin 400 19 D Austin 100

24 Drawings 25031 Balance c/d 18 750

$21 400 $21 400Jan 1 Balance b/d 18 750

b) Example of an informal or pencil/circle balance

InventoriesDec 1 Balance b/d 20 000 Dec 2 Cost of Goods Sold 750

6 Cash 1 000 4 Cost of Goods Sold 1 55012 D Austin 400 19 D Austin 100

24 Drawings 250


18750

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APPENDIX 2.A: INCOME STATEMENT PRO-FORMA

Net Sales

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Gross Profit

Add Other Revenue...............................................................................................................................................................................................................................................................................................................................................Less Other ExpensesSelling and Distribution Expenses

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General & Administrative Expenses

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Finance Expenses

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Net Profit / (Net Loss)

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.............................

.............................

.............................

.............................

.............................

.............................

.............................

.............................

.............................

.............................

$ ________________


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AccountingTQA 3


27

AccountingTQA 3

APPENDIX 2.B: BALANCE SHEET PRO-FORMA

ASSETSCurrent Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Add Non-Current AssetsOther Financial Assets.........................................................................................................................................................................................................................................................................................................................................................

Property, Plant and Equipment.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Intangibles....................................................................................................................................................................................................................................................................................

Total Assets

$

...........................

...........................

...........................

...........................

...........................

...........................

...........................………................

...........................

...........................

...........................

...........................

...........................

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...........................

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...........................

...........................

...........................

...........................

...........................

...........................

...........................

$

...........................

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...........................

...........................

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...........................

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...........................

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...........................

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...........................

...........................

...........................

...........................

...........................

...........................

........................... ......................................................................................................................................

...........................

...........................

...........................

...........................

$

...........................

...........................

...........................

...........................

...........................

...........................

...........................

...........................

...........................

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...........................

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...........................

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...........................

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...........................

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...........................

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...........................

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...........................

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...........................

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$

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.............................

.............................

.............................

.............................

$..........................


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AccountingTQA 3

Less LIABILITIESCurrent Liabilities...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Non-Current Liabilities

.....................................................................

.....................................................................

.....................................................................

.....................................................................

.....................................................................

.....................................................................

.....................................................................

.....................................................................

.....................................................................

Total Liabilities

NET ASSETS

OWNER’S EQUITY

.....................................................................

.....................................................................

.....................................................................

$

...........................

...........................

...........................

...........................

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...........................

...........................

$

...........................

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...........................

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...........................

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...........................

$

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...........................

$

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.............................

.............................

...........................

.............................

.............................

$..........................

$ ________________

$ ________________


29

AccountingTQA 3

APPENDIX 3: CASH FLOW STATEMENT PRO-FORMA


30

AccountingTQA 3

APPENDIX 4.A: SCHEDULE OF COLLECTIONS FROM ACCOUNTS RECEIVABLE PRO-FORMA

Statement of Estimated Receipts from Accounts Receivable

Month of Credit Sales:

Amount Estimated Cash to be received in:

$

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

…………………. ………………… ………………… ………………….. ……………………

Any other working:


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AccountingTQA 3

APPENDIX 4.B: CASH BUDGET PRO-FORMA

Cash Budgetfor the three months ending ………………………………………………………….

Estimated Cash Receipts

...............................................................

...............................................................

...............................................................

$

...........................

...........................

...........................

$

...........................

...........................

...........................

$

...........................

...........................

...........................

Total Estimated Receipts

Estimated Cash Payments

...............................................................

...............................................................

...............................................................

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...........................

...........................

...........................

Total Estimated Payments

Bank Balance at the start of the month

Excess of Receipts over Payments

Excess of Payments over Receipts

Bank Balance at the end of the month


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AccountingTQA 3

APPENDIX 5: BAD AND DOUBTFUL DEBTS (SIMPLIFIED METHOD)

WRITING OFF BAD DEBTSGeneral Journal Extract

Dr Cr

Bad and Doubtful Debts 100

GST Collected 10

Accounts Receivable 110

(Debt Written off as Bad)

DECREASING THE PROVISION

Trial Balance extract as at 30 June 20XX (before balance day adjustment)

Dr Cr

Bad and Doubtful Debts 130 000

Provision For Doubtful Debts 15 000

Additional information requires the provision to be $10 750. Simply create the journal entry to make the Provision for Doubtful Debts $10 750.

General Journal Extract

Dr Cr



(Provision for doubtful debts to $10 750)

Trial Balance extract as at 30 June 20XX (after balance day adjustment)

Dr Cr




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AccountingTQA 3

INCREASING THE PROVISION Trial Balance extract as at 30 June 20XX (before balance day adjustment)

Dr Cr



Additional information requires the provision to be $16 000. Simply create the journal entry to make the Provision for Doubtful Debts $16 000.

General Journal Extract

Dr Cr



(Provision for doubtful debts to $16 000)

Trial Balance extract as at 30 June 20XX (after balance day adjustment)

Dr Cr




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AccountingTQA 3

APPENDIX 6: GENERAL JOURNALS

The following are examples of acceptable formats/setting out for General Journals

Dates may also be presented in formats such as: June 19th, 19th June 2014, 19/6/2014


Date Particulars Debit Credit

18th June Wages 400

Cash at Bank 400

(Paid Wages)

19th June Insurance 1500

GST Paid 150

Cash at Bank 1650

(Paid Lighthouse Insurance brokers for Insurance for the months July to December)

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AccountingTQA 3

APPENDIX 7: DISPOSAL OF NON-CURRENT ASSETS (SIMPLIFIED METHOD)

Students simply need to know how to calculate a gain or a loss on disposal based on information given in additional information and how to classify the gain as revenue and the loss as an expense in the statements.

Do not use Disposal or Gain and Loss on Disposal accounts. Journal entries will not be required.

Written Down Value (book value) = Cost – Accumulated Depreciation

THEREFORE:

Gain or Loss on Disposal = Sale Price (or Trade In) - Written Down Value (book value)

PRACTICAL EXAMPLE

Equipment cost $600

Accumulated Depreciation $200

Price received on the sale of the equipment was $300

Written Down Value = $600- $200 = $400

Gain (or Loss) on Disposal = $300 - $400 = ($100)


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AccountingTQA 3

APPENDIX 8: FORMULAE SHEET

Analysis & interpretation formulaeMeasures of earning capacity or profitabilityGross Profit Ratio = Gross Profit x 100

Net Sales

Net Profit Ratio = Net Profit x 100Net Sales

Rate of Return on Owner’s Equity = Net Profit x 100Average Owner’s Equity

Rate of Return on Total Assets = Net Profit + Interest Expense x 100

Average Total Assets

Expenses to Sales Ratio = Expense x 100Net Sales

Measures of financial stabilityCurrent (or Working Capital) Ratio = Current Assets

Current Liabilities

Quick Asset (or Acid Test) Ratio = Cash Assets + ReceivablesCurrent Liabilities

Equity Ratio = Owners Equity x 100Total Assets

Debt Ratio = Total Liabilities x 100Total Assets

Measures of management effectivenessTurnover of Accounts Receivable = Net Credit Sales

Average Accounts Receivable

Turnover of Inventories = Cost of Goods SoldAverage Inventories

Depreciation formulaeDiminishing Balance Method = Rate of Depreciation x (Original Cost - Accumulated Depreciation)

Straight Line Method = Original Cost - Estimated Residual Value


37

AccountingTQA 3

Estimated Life


CODE: TQA Level 3, Size Value = 15€¦ · Web viewGross profit and net profit calculated. Single...

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Transcript of CODE: TQA Level 3, Size Value = 15€¦ · Web viewGross profit and net profit calculated. Single...