Report on Compilation of Financial Information; Chart of Accounts / Cash Control; Research on statutory Financial Reporting

Report on Compilation of Financial Information; Chart of Accounts / Cash Control; Research on statutory Financial ReportingReport on Compilation of Financial Information; Chart of Accounts / Cash Control; Research on statutory Financial ReportingFor the purpose of this assignment, refer to the following Financial Reports: Part 1 - Report on Compilation of Financial InformationBACKGROUND INFORMATIONConsider the following summative (total) data from these financial reports for Current Year: • Statement of Financial Performance o Sales ...............................................$501,325 o Staff Costs.........................................$47,996 o Depreciation ..................................... $7,200 • Statement of Financial Position o Non-current Asset – Plant & Equipment.......$9,500 o Current Liabilities – Accounts Payable........$27,342Included in these summative totals are individual transactions: • Sale of an appliance for $800. Payment was received in cash • Payment to a casual sales employee of wages for a fortnight $400. Payment made by cheque • Depreciation expense on a piece of Office Equipment purchased for $1000. Depreciated over 5 years at 20% straight-line method • Purchase of a second-hand plant $6,000. Payment made by drawing on a Bank Loan • Purchase of appliance spare parts from wholesaler $500. Payment agreed on a 30 day account. REQUIREMENT - YOU MUST RELATE YOUR ANSWERS to this case studyFOR INDIVIDUAL TRANSACTIONS SUCH AS THESE you are required to describe HOW: 1. SUPER RETAILERS would be able to: o validate such transactions to ensure consistency, quality and accuracy of recording o control the processing of such transactions o record and consolidate such transactions through the accounting process o vet such transactions to reveal errors or discrepanciesTo support your description, please obtain copy of a business accounting procedure/policy document which could be adopted/adapted by SUPER RETAILERS to cover one of these transactions. Procedure/Policy document(s) can be accessed from any organisation or from research on the www. A suitable procedure/policy document is to be written for SUPER RETAILERS' use. A copy of SUPER RETAILERS' procedure/policy is to be included with your report. 2. The Financial Reports of SUPER RETAILERS comply with the Accounting ConventionsFOR TWO OF THESE TRANSACTIONS, prepare a Transaction Analysis in the format:Ledger Account Name Type Change Amount Source Document Journal Part 2 - Chart of Accounts and Cash Control1. Compile a suitable Chart of Accounts to cover the accounting and financial recording needs of SUPER RETAILERSCoding must cover the five ledger account groups (Assets, Liabilities, Equity, Revenue and Expenses)

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2. If you were responsible for supervising the management of cash received from sales for SUPER RETAILERS, explain the control procedures that you might use. Merit ComponentThere are several subsidiary systems that support an organisation’s financial records. Amongst these are: • Subsidiary Ledgers • Payroll Records • Asset Registers Choose one of these Sub-systems and describe how it supports the organisation’s management of financial data.  Assessment Activity 2: This assessment has two parts. BOTH must be satisfactorily completed.Part 1 - Financial Activity Analysis and Report for use in Business RecommendationsPart 2 - Research on Statutory Financial ReportingFor the purpose of this assignment, refer to the previous Financial Reports & the budgeted statement below: Part 1: Financial Activity Analysis and Report for use in Business Recommendations Requirement 1. Based on the Budgeted and Actual Statements of Financial Performance – Current Year Ending 30th June  complete: o Variance Analysis Report, including: ? Variance Amount and % ? Evaluation of variances, including financial impact (consider favourable or unfavourable impacts) – use ‘variance >5%’ as significant) ? What steps might be taken to ascertain why the actual figures do not match the projected figures? 2. Based on the Actual Statement of Financial Position and Actual Statement of Financial Performance - Current Year Ending 30th June complete: o Calculation of the following performance ratios: ? Current (working capital) ? Stock Turnover ? Average Collection Period (Accounts Receivable) – assume Credit Sales are 90% of Total Sales ? Gross Profit ? Net Profit o Prepare of a brief report comparing these ratios with the benchmarks outlined below. The report should highlight and discuss the key issues and potential impact of variances, and propose constructive action.Benchmarks: Current (Working Capital) 3.50:1.00, Stock Turnover 4.2 times, Collection Period 16 Days, Gross Profit 40%, Net Profit 15% The above sections must include graphical (Charts, Tables, etc) display of relevant data.o Include in the report examples of procedures which could be employed to manage stock and debtors’ control functions. Please explain how these procedures would enhance the effectiveness and efficiency of these functions Merit Component Assuming SUPER RETAILERS are registered for Goods and Services Tax (GST), describe the accounting transaction and record keeping implications for the company

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