Financial

FNSACCT504A - Prepare Financial Reports For A Reporting Entity  |

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Student Name : Soo Shew Yeang |

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Student ID : S076601Date: 1-March-2016 |

Assessment 1: Assignment

Task 1

1. Classify the following items as Assets, Liabilities, Equity, Revenue and Expenses.

Asset | Cash at bank Account receivableLand InventoryPlant and machineryPetty cashInvestment |

Liabilities | MortgageDrawingBank overdraft |

Equity | Capital |

Revenue | Rent receivedSalesInterest receivedFees received |

Expenses | Rent paidTelephone expensesInsuranceWagesShop fittings |

Task 2

Answer the following questions:

1. What is sole trader mean?

When a person conducts business as an individual, he or she is a sole trader. From a legal

point of view there is no difference between the person and the business. As such, the

liabilities of the business are the liabilities of the individual – he or she is personally liable for

any and all business-related obligations, such as debts resulting from the purchase of goods or services or from court judgments and for the performance of warranty obligations in respect of goods supplied or work performed. It is possible for a sole trader to carry on business under a name other than his or her own name. In that case, the name must be registered as a business name.

Sole trader will responsible for his own super arrangements and any staff employed.

The key features of a sole trader business structure are that you:

* use your individual Tax File Number (TFN) when lodging your income tax return

* apply for an ABN and use this number for all your business dealings

* register for Goods and Services Tax (GST) if you carry on an enterprise (you must be registered for GST if your annual GST turnover is $75,000 or more)

* pay tax at the same income tax rates for individual taxpayers

* pay quarterly Pay As You Go...