accounts, ensuring you provide adescription of each account. You must include at least 2 different accountsAnswermayinclude,butisnotlimitedto:No AccountTitle ToIncrease DescriptionA Citizen, Amount the owner invested in the company (through cash290 Capital Credit or other assets), plus earnings of the company notwithdrawn by the ownerA Citizen, Amount the owner of the sole proprietorship has295 Drawing Debit withdrawn for personal use during the current accountingyear.FNSACC406 Version 2.1 August 2016 Page 22 of 24
19Below you are to develop and sample chart of OPERATING EXPENSE accounts, ensuring you providea description of each account. You must include at least 6 different accountsAnswermayinclude,butisnotlimitedto:No AccountTitle ToIncrease DescriptionSalaries Expenses incurred for the work performed by salaried500 Expense Debit employees during the accounting period (workers on fixedamounts)Expenses incurred for the work performed by non-salaried510 Wages Expense Debit employees during the accounting period (workers onhourly rates of pay)540 Suppliers Debit Costofsuppliesused upduringtheaccountingperiodExpense560 RentExpense Debit Cost of occupying rented facilities during the accountingperiod570 Utilities Debit Cost of electricity, heat, water and sewer that were usedExpense during the accounting period576 Telephone Debit Cost of telephone used during the current accountingExpense periodCost incurred by the company during the accounting610 Advertising Debit period for ads, promotions, and other selling and expensesExpense (other than salaries)20What requirements does the government have in relation to using Computerised Accounting Systems?Answer may include, but is not limited to:The ATO requires businesses to manage invoices, payments and record people. These records will be used to report to the owners, manage the health of the business, and report to the ATOWhilst it is not mandatory for an organisation to use a computer based system, it is highly preferable, as it will enable a business to comply with the ATO and State Revenue Office reportingrequirements more easilyFNSACC406 Version 2.1 August 2016 Page 23 of 24
FNSACC406 Version 2.1 August 2016 Page 24 of 24
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