Scenario:

A new client Stephen John Murphy has arrived at your office. Your receptionist has greeted him, provided him with coffee and has ushered him into the interview room. During the initial interview you identify that he is a sole trader and needs to lodge a tax return. The following information is provided by Stephen:

He is an Australian resident

Has not changed his name since the last return

DOB: 15/12/1975

Address: 15 Kangaroo Lane, Bentmore Victora 8888

Post address: PO Box 555 Bentmore Victoria 8888

TFN: 666 666 666

ABN: 12 222 222 222

Ph: 03 555 5555

Sales for the year: $294,423

Expenditure: $262,452

Personal drawings: $32,000

Stephen also received income from a rental property of $$22,000

Stephen paid mortgage payments on his rental property at $256 per week

Stephen had repairs to his rental property totaling $2,435

Insurance for rental property: $374

Bank interest: $231

Stephen is registered for GST

Stephen purchased a new laptop computer and telephone for work purposes. $2500 and $1250 respectively

Stephen has $12,400 outstanding for debtors

Stephen has $2,300 outstanding to creditors

Private health insurance: Yes with no loading

Stephen received a box seat at the Football from a client with a value of $2000

Now you must complete the following activities:

Task 1

Create checklist that would assist you to with identifying all the relevant details from your client.

Task 2

Create cash flow summary for Stephen

Task 3

Create depreciation schedule for Stephen

Task 4

Create profit and loss statement for Stephen

Task 5

Create balance sheet for Stephen

Task 6

Answer the following questions:

a.What rate of tax should Stephen be paying?

b.What is his charge for the Medicare levy and surcharge?

c.What superannuation should Stephen have received?

d.What was Stephen's assessable income?

e.What was Stephen's tax payable or refund amount?

f.Did Stephen have any fringe benefits? If so what were they?

g.How would you calculate the fringe benefits for reporting purposes?

h.Is there any payroll tax due or paid?

Task 7

Create BAS for Stephen for 12 months.

Task 8

Write short summary of the financial position for Stephen and detail the steps you would take to lodge his BAS for 12 months.

You will need to answer all the above questions and address each point for competency in this unit. You must ensure you provide copies of each item above to your trainer.

Submit your completed tasks