TASK DESC R] PTION Students with their peer working in a pair work will create their own business and account for their business operations. Business ideas and accounting knowledge for a partnership business is the fundamental part of the assessment. In addition. students are required to use the set of technical skills including the use of accounting application MYOB to record for their business transactions and Excel spreadsheet to prepare for NCA' 5 Depreciation Schedule. The successful completion of this task will demonstrate that students have a strong understanding of business concepts and accounting principles applied in real business context, as well as the ability to use the computer accounting system. LEARNING OUTCOMES SLO 1: Demonstrate the process of recording economic events in accounting information system SLO 3: Identify and address the practical issues in accounting for assets. |PART A Introducing the business and the partners You are required to write a great story to introduce about your business and your business partner. ABOUT BUSINESS 0 What is the name of the business & where is it located? 0 Describe the business in details. E.g.: What is the business engaged in? Are you selling a product or providing a service? What product/s or what services? 0 Who are its expected customers or clients? (Target market). I What strategies would you do to attract customers to your business? a What strengths do you have over your competition? Why would potential clients or customers choose your business instead of one of your competitors? 0 What are major plans for business development in future? ABOUT PARTNERS 0 Introduce the partner: Who are they? What were they doing before forming the partnership? 20.05 Sat 29 Apr 20f6 a inst-fs-syd-prod.inscloudgalenei "- nus. auuusuna uu Juu uuvu uvun JUL\" uuxurwuuuu; n u] vruuxu FUL'VJIIILII \ llhlll u: uuuuuuuna choose your business instead of one of your competitors? What are major plans for business development in future? ABOUT PARTNERS Introduce the partner: Who are they? What were they doing before forming the partnership? Why/How did you come up with this business idea? What are partners' capital contributions (Cash/Car/Equipment/etc...)? (using a table) Recording Each partner's capital contribution (a table for journal entries) What else can they contribute into the business apart from their capital? How will they use their knowledge/background/experience etc. to help the business? Partnership agreement. How are prots and losses to be shared etc? (Partnership agreement template may be downloaded from the Internet. Just change names etc. and delete unwanted sections. Using Referencing & Keep it short with 1 page only.) Commencement of Business I Write a narrative: What date did business commence? (It will be at least a month after the partnership agreement is signed). Anything interesting at start? 0 Prepare a trial balance showing all accounts & their beginning balance on the day of business commencement (using the format given below 8:. make up different amount 8: more accounts to be used in your business). 3' G) 74%lili \f\fPART B-BUSINESS DURING THE OPERATION PERIOD FIRSTLY, you will need to make up suppliers' name, customers' name & inventory items for your business. Those suppliers& customers are regular to your business. Remember these names must be creative, unique and appropriate for the business described in your business introduction above. Required: Making tables showing names for 10 customers/10 suppliers/10 main products(services) . For products/services: You might need to set up Cost & Selling price (if needed) EXAMPLES Customer ID Customer Name Australian Business Number (ABN) Business Address CUSOI ANZ Bank Staffs 12345678910 1 Sydney St, Sydney, NSW Australia CUS02 Coles 00112233445 89 Paris St, Sydney, NSW Australia Supplier ID Customer Name Australian Business Number (ABN) Business Address SUP01 Woolworths 55566699988 15 Crown St, Sydney, NSW Australia SUP 02 Optus 12378955599 80 King St, Sydney, NSW Australia PRODUCTS/SERVICE COST PRICE SELLING PRICE Mouse $100 $180\fIPART C USE MYOB TO RECORD TRANSACTIONS FROM PART B Learning resources on how to use MYOB are provided under the bottom of Module page in Canvas. After the completion of recording, you are required to generate those reports from MYOB: General Journal Transaction Journal Sales and Receivable Transaction Journal Purchase and Payable Transaction Journal Cash Disbursement Transaction Journals Cash Receipts Transaction Journals Standard Balance Sheet Prot and Loss Statement (Accrual) I PART D ANALYSE THE BUSINESS PERFORMANCE Financial Statement Analysis and Ratio Analysis are corru'nonly used to produce information on the business performance and therefore it helps to identify the problems early so that the prompt decisions can be made to correct the problems and improve the business performance. Your pair is required to use the reports obtained from MYOB to demonstrate some analysis to draw information on your business performance during the period of business operation. Your calculations and writing should be well developed in a structure of analysing business performance based on 4 main categories: > Protabilitv 20.05 Sat 29 Apr Sof i insr-fs-syd-prodjnscloudgaienei I PART D ANALYSE THE BUSINESS PERFORMANCE Financial Statement Analysis and Ratio Analysis are commonly used to produce information on the business performance and therefore it helps to identify the problems early so that the prompt decisions can be made to correct the problems and improve the business performance. Your pair is required to use the reports obtained from MYOB to demonstrate some analysis to draw information on your business performance during the period of business operation. Your calculations and writing should be well developed in a structure of analysing business performance based on 4 main categories: > > > l> Protability Liquidity E ict'ency Solvency Finally, you might need to provide some suggestions (future plans) to improve the business performance in the future if you believe that your business is currently facing some problems given your analysis. I PART E DEPRECIATION SCHEDULE FOR NON-CURRENT ASSET You are required to select ONE (1) depreciating NonCurrent Asset from your Balance Sheet to complete the following tasks: 0 Clearly explain the depreciation method used to determine the its depreciation expense for this business operation period. Using Excel to construct Depreciation Schedule for this NCA over 3-5 -year period under both methods: Straight-line & Reducing balance (at double S-L rate) Draw graphs on NCA'S depreciation & Book Value to make a comparison between two methods. Explain the key ndings for differences between Straight-line & Reducing balance in accounting for the NCA'W '5' 74%1