Accounting assignment

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 1

ASSESSMENT PLAN

ASSESSMENT TASKS CPP40307

C E R T I F I C A T E I V I N P R O P E R T Y S E R V I C E S ( R E A L E S T A T E )

R E C O R D S A N D F I N A N C E S I N R E A L E S T A T E B S B R K G 3 0 4 M a i n t a i n b u s i n e s s r e c o r d s

B S B S M B 4 0 6 A M a n a g e s m a l l b u s i n e s s f i n a n c e s

C P P D S M 4 0 0 6 A E s t a b l i s h a n d m a n a g e a g e n c y t r u s t a c c o u n t s

ASSESSMENT TASK 3

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 26

ASSESSMENT TASK 3

Assessment Task 3: Pr0ject – Preparing financial documents

What you need to do:

§ Complete the following financial documents for ABC Real Estate.

What you will need:

§ Research materials such as books, internet, magazines, workplace documentation etc. § Calculator § Templates (supplied as part of this task).

What you need to submit:

§ All parts to this task.

Instructions:

1. Consider the following extract from ABC Real Estate’s income budget. § Calculate the variance on income § Explain the possible causes of any negative variances.

Revenue for ABC Real Estate for July 20XX

July budget $

July actual $

Variance $

Variance %

Sales commissions 70,000 67,000

Property management commission 3,500 3,750

Letting fees 500 525

Auction fees 2,000 1,700

76,000 72,975

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 27

ASSESSMENT TASK 3

2. From the following trial balance, prepare the following using the templates provided at the end of this task.

§ Profit and loss statement for the period ending 30 April 20XX

§ Statement of financial position as at 30 April 20XX.

Trial balance – ABC Real Estate as at 30 April 20XX

Account name Debit Credit

Premises 370,000

Bank (overdraft) 20,000

Utilities 3,750

Legal expenses 1,500

Accountant's fees 1,000

Sales commissions 380,000

Commissions receivable 67,500

Telephone 9,200

Office equipment 35,000

Auction fees 5,500

Bank interest paid 1,250

Capital 100,000

Accounts payable 5,250

Sales staff commission 105,000

Letting fees 4,800

Corporate advertising 5,000

Repairs and maintenance 3,450

Bank loan 50,000

Office furniture 10,000

Property manager's salary 50,000

WorkCover premium 7,600

Stationery 7,500

GST payable 7,645

Newspapers/magazines 850

Property management commission 63,000

Bank fees and charges 1,000

Motor vehicles 63,000

Petty cash float 500

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 28

ASSESSMENT TASK 3

Trial balance – ABC Real Estate as at 30 April 20XX

Account name Debit Credit

Insurances 4,500

Interest received 250

Office staff salaries 52,000

Mortgage 175,000

Motor vehicle expenses 1,500

Professional and licence fees 2,000

General office expenses 3,000

Interest on mortgage 10,200

GST receivable 2,400

Creditors 7,255

818,700 818,700

3. Calculate the following ratios: § Current ratio § Working capital § Contribution margin ratio § Net profit ratio § Net profit after tax § Return on equity ratio § Debt to equity § Total debt to total assets

4. Report on the financial position of the organisation by reviewing the following: § Liquidity

§ Profitability

§ Leverage

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 29

ASSESSMENT TASK 3

Templates:

Profit and loss statement – ABC Real Estate for period ending 30 April 20XX

$ $

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 30

ASSESSMENT TASK 3

Profit and loss statement – ABC Real Estate for period ending 30 April 20XX

$ $

CPP40307 Certificate IV in Property Services (Real Estate) © 2015 National Real Estate Learning Page 31

ASSESSMENT TASK 3

Statement of financial position – ABC Real Estate as at 30 April 20XX