Security for Counting and Transporting Cash and Methods of Accounting in Financial Reporting - Assignment Example

Case Study (Name of Student) (Name of Tutor) (Course) FINANCIAL MANAGEMENT ASSESSMENT #1 PART 1 ________________________________________________________________________ CASE STUDY: 21 MARKS 1. You start the day with the following cash float: 1 bag of 5c coins 1 bag of 10c coins 2 bags of 20c coins 1 bag of 50c coins 2 bags of $1.00 coins 1 bag of $2.00 coins 2 bundles of $5.00 notes 1 bundle of $10.00 notes 1 bundle of $20.00 notes Complete the cash float sheet below COLESWORSTH SUPERMARKET, BONDI JUNCTION Cash Register Operator: _______________________________________ Cash Register # _______________________________________ Date: _3/7/2012______________________________________ Denomination Amount 5c 1 10c 2 20c 4 50c 10 $1.00 40 $2.00 50 $5.00 100 $10.00 100 $20.00 200 Total 507 Signed: ______________________________________________________________ During the course of the day, the duty manager collects the following amounts from your cash register: 9. 50 am $650 11 10 am $700 12.45 am $800 1.30 am $1,050 2.55 am $850 At the end of the shift, you count up the following 5c $0.35 10c $2.40 20c $1.60 50c $3.00 $1 $16.00 $2 $38.00 $5 $15.00 $10 $120.00 $20 $60.00 $50 $100.00 $100 $200.00 You are advised by the duty manager that cash register was over by $5.00. What were your official sales for the day? 456.35-507=-50.65 4050-50.65=3999.35 2. A customer purchases 3 goods. Their respective values are $23.85, $4,65 & $12.35. the customer gives you a $100 note to pay for there purchases. What change will you back to the customer? 23.85+4.65+12.35=40.85 100-40.85=59.15 3. On the 13th February, 2011, Coca Cola pays you $7865 for a Hunter Valley day tour that you have organized as part of their annual conference. Complete the receipt below. Date_3/7/2012____ (Fill this) RECEIVED FROM Coca Cola Company A.B.N/G.T.S No. (of supplier) ********************** THE SUM OF Seven thousand eight hundred and sixty five dollars only BEING FOR Hunter Valley Day annual conference tour TOTAL G.T.S. Total Inc G.S.T. 7078 .5 786 .5 7865 .0 PROJECT A. Devise a memo for staff advising them of security for counting and transporting cash. MEMO To: Staff From: [CEO or senior management official] Subject: Security for Counting and Transporting cash Date: 3/7/2012 The purpose of this memorandum is to let you know about the security to be considered in counting and transporting cash. There has being developments in the field and this would like to be passed on to you. To ensure that you are up to date with all the developments, the company has initiated a program to see to this. The research and development department will head this program begin from (date). We would like to ask for your cooperation on this. This policy will be strictly enforced to make sure that you and the company do not lag behind in the security sector. The manager will be present on the day of the launch so I would kindly request your attendance. Feel free to contact me in case of any questions. B. Devise a statement of company policy advising staff what to do if there is a cash discrepancy. Statement of Company Policy We are pleased that you are all a part of this company. It is our commitment to establish a working and sound relationship based on cooperation and trust with you all. To enhance this, it is in your best interest to be well informed of the rules and policies that impact you and the company Cash discrepancy within the company is the main agenda in this statement. You are requested and expected to familiarize yourselves with the penalties that will arise incase this scenario is to occur. The company relies almost entirely on the revenue from transporting cash. The money is entrusted to us by the customers and we have the responsibility of doing what we are requested to do. In case anyone within the company has inconsistencies in cash, action will have to be taken. The person will be held accountable for the error. The working contract will be terminated with immediate effect. Outstanding payments will be used to finance the error in the case of a deficit. Litigation is soon to follow in the quest to uphold the image of the company. (Signature of the manager) WRITTEN QUESTIONS 1. If you were to make a payment to a supplier, what details would you expect on the receipt? My name, address, email & phone number Name if the supplier, address, email & phone number Details of the goods purchased, quantity and price Date of purchase and a place for me to sign acknowledging the receipt of the goods stated on the receipt. 2. What is the first and last day of the Australian financial years? The Australian financial year begins on July 1st and ends on June 30th. 3. What does GST stand for? What is the GST rate in Australia? GTS stands for Goods and Services Tax. The current GST rate in Australia is 10% 4. What does BAS stand for? Explain who needs to submit a BAS and how often? BAS stand for Business Activity Statement. The form has to be submitted by all businesses to the Australian Taxation Office on a quarterly basis but some institutions are required to submit more frequently. 5. Explain the financial reporting guidelines for a business operating in Australia? Financial reporting includes GST, BAS and profit. The business has to pay GTS on its products and provide the BAS in order to verify their tax obligations. 10% of the profit is a method used to calculate the tax. 6. What is an ABN and who needs one? ABN represents Australian Business Number. It is required by everyone and every institution that pays tax to the Australian Taxation Office. 7. Financial Reporting has two methods of accounting. They are: Accrual method Cash method 8. Explain the 2 methods and give examples of which reporting method can be used by what size organization 1. -Cash method- in this case the financial transactions are only recorded when there is exchange of cash. It is an accurate method of maintain a business cash flow record. This method is suitable for small organizations that use simple ways of managing their financial information -Accrual method- financial transactions are recorded as they occur irrespective of when there is exchange of cash. This method is normally employed by large organizations as it can provide a clear picture of all the financial operations of the business. 9. As a manager of retail travel agency identify 3 pieces of financial information of reports that would be relevant to your day to day operations. Tax File Number Receipts Statement of financial position PART 2 WRITTEN QUESTIONS 1. Identify and briefly discuss the licenses needed to open and operate a new travel agency in NSW. (a) Tax File Number. Sole proprietors require a personal TFN while partnerships require a separate TFN (b) Australian Business Number (ABN). It is essential if one requires to pay GST. (c) Application for Goods and Services Tax Credit. Applications should be done to the ATO 2. Summarise your obligations as an employer and a business in respect to each of the following (maximum 100 words for each) a. Taxation -It is in the right action to pay taxes for the efficient running of a country and proves to be crucial for any business to run efficiently. Governments without funding through taxation are most likely to be unstable which is bad for any institution. b. Industrial relations -Industrial relations facilitate uninterrupted production which means continuous employment for employees and managers. It also reduces industrial conflicts through offering adequate satisfaction and expression for all. This also leads to high morale for the workers. This should be a big consideration for anyone operating a business. c. Equal employment opportunity -The issue of equal employment opportunities lies in that everyone with the required skills and expertise should be considered for a position equally. This discourages negative factors such as nepotism and gives the business an advantage. d. Anti-discrimination e. -Discrimination should be denigrated at all institutions. Discrimination is bound to form division in the workplace instead of creating unity. This is bad for any business as it decreases efficiency and hence production has to go down. f. Sale of travel products 3. On which of the above obligations could you possibly require legal or professional advice? Taxation and equal employment opportunities 4. How would you stay up to date with the legal requirements of managing a travel agency? The government has means mainly through its websites to communicate new developments. This includes agencies such as ATO, BLIS and GST. CASE STUDY 1. These 3 advertisements are placed in an employment section of a paper. Define the advertisement as one of the 3 options below, and provide an explanation for your choice of definition. If you feel they are discriminatory explain who the advertisement discriminates against, and how it discriminates. Overt discrimination a. Covert discrimination b. Non discriminatory i. AD #1: “large travel wholesaler requiring reservations staff. Must have a Certificate III in travel and tourism or, 1 years experience in a similar role. Travel experience to Europe and USA will be looked upon favorably”. Covert discrimination.-Reservation staff does not necessarily require to have traveled specifically to the USA and Europe. This however might be having added advantage. ii. AD#2: “New airline to the market requires staff. Must be young and single as travel from home required. Great pay and benefits”. Overt discrimination.-One does not require to be young and single to be a airline employee. It is a representation that they are discrimination those outside this bracket. iii. AD#3: “Exciting job opportunity at Globe Travel. We require enthusiastic individuals who are prepared to work hard and party hard. Must be prepared to work a 7 day, rotating roster. Out of hours industry functions compulsory”. Non discrimination.-the advertisements clearly states all the requirements of the vacancy. There is significance evidence of overworking but no discrimination of who should apply. 2. What workplace systems could you put in place to ensure that any recruitment advertisement your agency places are not discriminatory? a) Pro-active and vigilant management. There should be no tolerance any vice of discrimination to facilitate unity hence more efficiency within the workplace. b)  Make an audit of human resource plans and practices that has influence on trimming down discrimination at the workplace. c) Offer training to the workforce on the adverse effects of discrimination. Reference Bank, W. (2009). Doing Business: Comparing Regulation in 181 Economies. In W. Bank, Doing Business: Comparing Regulation in 181 Economies (pp. 150-153). Washington: World Bank. Gregory, R. F. (2003). Women and workplace discrimination: overcoming barriers to gender equality. In R. F. Gregory, Women and workplace discrimination: overcoming barriers to gender equality (p. 53). Piscataway: Rutgers University Press. Read More