Business Department
Year 12
Accounting 2015
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Curriculum Statement


To promote the knowledge and understanding of accounting as a financial language for individuals and business
To develop key competencies in a range of financial contexts (Thinking; Using language, symbols and text;
Managing self; Relating to others; Participating and

Contributing) and values (excellence; innovation; inquiry and curiosity; diversity; equity; community and
participation; ecological sustainability; integrity)
To apply financial knowledge and key competencies to practical situations
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Course Expectations
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Examine, understand and apply the assumptions on which accounting is based
Process financial data into meaningful information
Develop a knowledge and understanding of the systems and controls required to ensure financial data
is processed accurately and efficiently
Prepare financial reports which meet user needs and professional and legal requirements
Analyse and interpret financial reports
Develop key competencies in managing self; relating to others; participating and contributing;
thinking; using language, symbols and texts
Assessment Calendar
There will be topic tests, (generally timed for the completion of each unit of study), 3 internal NCEA assessments
and one set of school examinations.
Course of Study
Standard
Credit
Date
Demonstrate understanding of
accounting processing using
accounting software. (MYOB)
91175 I
4
12,13 and 16 March
Prepare financial information for an
entity that operates accounting
subsystems
91176 Ex
Demonstrate understanding of an
accounts receivable subsystem for an
entity
91179 I
3
19 May in class 25th May hand in report
Part B
91405 I
4
4 and 6 August in class
Demonstrate understanding of
accounting for Partnerships
Open book
5
External Exam
Mid and end of year school exams
Level 3
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Standards Outline
EXTERNALLY ASSESSED – 5 credits
91176 – 5 credits
Prepare financial information for an entity that operates accounting subsystems
INTERNALLY ASSESSED – 11 credits (including 4 at Level 3)
91175 – 4 credits
Demonstrate understanding of accounting processing using accounting software This is a MYOB computer
program which will be done in class time. An open book assessment after a block of lessons in the computer
room.
91179 – 3 credits
Demonstrate understanding of an accounts receivable subsystem for an entity. This looks at Debtors and the
accounts and credit policies surrounding them. This is a 4 hour assessment which includes a written report and
some accounts. A mixture of test and homework.
91405 – 4 credits at Level 3
Demonstrate understanding of Accounting for Partnerships
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
2015 YEAR PLANNER Level 2 Accounting
Week
Date
Topic
1A
Feb 2
2B
Feb 9
Demonstrate understanding of
accounting processing using
accounting software (MYOB)
MYOB
3A
Feb 16
MYOB
4B
Feb 23
MYOB
5A
Mar 2
MYOB
6B
Mar 9
MYOB Assessment Week
7A
Mar 16
Financial Statements
8B
Mar 23
Financial Statements
9A
Mar 30
Financial Statements
AS
Credits
91175 I
4
Assessment Date
Internal
3 periods 12,13 & 16
March
91176 E
5
External
91179 I
3
Internal
Term 1 Holidays 3 April – 19 April
1B
April 20
Financial Statements
2A
April 28
3B
May 4
Demonstrate understanding of an
accounts receivable subsystem
for an entity (Accounts
Receivable)
Accounts Receivable
4A
May 11
Accounts Receivable
5B
May 18
Accounts Receivable
6A
May 25
Financial Statements
Exams
Friday
7B
June 2
Financial Statements
Q Bday
Exams Tues/Wed
8A
June 8
Demonstrate understanding of
accounting for PARTNERSHIPS
91405 I
9B
June 15
Partnerships
10A
June 22
Partnerships
11B
June 29
Partnerships
Part 1 test 19
Hand in 25th
4
(Level 3)
Term 2 Holidays 4 July – 19 July
1A
July 20
Partnerships
2B
July 27
Partnerships
3A
Aug 3
Partnerships Assessment
4B
Aug 10
Financial Statements
5A
Aug 17
Financial Statements
6B
Aug 24
Financial Statements
7A
Aug 31
Financial Statements
8B
Sept 7
Senior exams begin (Thursday)
9A
Sept 14
Senior exams end (Wednesday)
10B
Sept 21
Revision for rest of year
4&6 Aug
91176
Term 3 Holidays 26 Sept – 11 Oct.
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Checklist Accounting – Level 2 - 2.3
AS90(2.3). Prepare financial information for an entity that operates accounting
subsystems (5 credits)
This achievement standard focuses on the preparation of financial statements and
related accounting entries for a sole proprietor
I can fill in a PPE table and transfer as a Note to the Statement of
Financial Position
  
I can fill in the Accounts Receivable section as a Note to the
Statement of Financial Position
  
I can classify the Income Statement with classification of
expenses appropriate to the business activities.
  
I can classify and give examples of Distributive expenses
  
I can classify and give examples of Administrative expenses
  
I can classify and give examples of Finance costs
  
I can classify the Statement of Financial Position assets
  
I can classify the Statement of Financial Position assets into
current and non-current assets
  
I can classify the Statement of Financial Position non-current
assets into (investments, property, plant and equipment and
intangibles)
  
I can classify the liabilities into current and non-current liabilites
  
Cash Flow Statement
I can explain cash movements to be shown as cash receipts and
cash payments
  
I can draw up a cash flow from a summary list of transactions,
source documents and bank statement
  
I can reconstruct entries for cash collection from Accounts
Receivable customers
  
I can reconstruct entries for cash collection from Accounts
Payable customers
  
I can prepare in Income Statement in vertical form
  
I can prepare a Statement of Financial Position in vertical form
  
I know how to amend the trial balance to include the following adjustments:


accrued expenses, limited to wages and interest
  
accrued income, limited to interest and dividends
received
  

accounts payable (including GST) for expenses where
there is an invoice on hand dated before Statement of
Financial Position day
  
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
prepayments
  
income received in advance
  
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Depreciation, selected from:

straight-line depreciation
  

diminishing value
  

units of use
  
  
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bad debts
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accrued expenses, limited to wages and interest
  
accrued income, limited to interest and dividends
received
  

accounts payable (including GST) for expenses where
there is an invoice on hand dated before Statement of
Financial Position day
  



prepayments
  
income received in advance
  
depreciation, selected from:

straight-line depreciation
  

diminishing value
  

units of use
  
  
doubtful debts.
I know how to record General Journal entries for the following adjustments:


bad debts
  
  
doubtful debts.
I know how to transfer opening balances in to the ledger accounts
  
I know how to record the balance day adjustments in the ledger accounts:


accrued expenses, limited to wages and interest
  
accrued income, limited to interest and dividends
received
  

accounts payable (including GST) for expenses where
there is an invoice on hand dated before Statement of
Financial Position day
  



prepayments
  
income received in advance
  
depreciation, selected from:

straight-line depreciation
  

diminishing value
  

units of use
  


bad debts
  
  
doubtful debts.
I know how to close the expense accounts to the income
summary
  
I know how to close the income accounts to the income summary
  
I know how to close the cost of goods sold account
  
I know how to transfer net profit to capital
  
I know how to transfer drawings to capital
  
  
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Accounting NCEA Level 2 Appendix
This appendix is provided for teacher guidance in relation to the external Level 2 Achievement standards: AS
91176 (2.3) and AS 91177 (2.4).
AS 91176 (2.3)
These are special purpose financial statements prepared for sole proprietors with emphasis on reporting to
management.
The following period end adjustments may be assessed
(a)
(b)
(c)
(d)
(e)
Accrued expenses
Accrued income
Prepayments
Income in advance
Unpaid invoices on hand for sales/income/expenses/property, plant and equipment items dated before
the end of the year
(f) Depreciation
(g) Bad and/or doubtful debts including adjusting the allowance for doubtful debts
(h) Valuation of inventory to net realisable value limited to debit cost of goods sold, credit inventory
Statement of Financial Position
A Statement of Financial Position is the same as a Balance Sheet. Statement of Financial Position will be used
in all NCEA Level 2 assessments.
Teachers should note that in classroom teaching Balance Sheet can be used as a title for this statement.
Students may use the term Balance Sheet to refer to this statement in both internal and external NCEA
assessments.
The following templates will be used in assessments when a template is provided.
Note: xx represents a figure to be entered in the financial statement
xxx represents a calculation within the financial statement
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Income Statement
Service Entity
(Business Name)
Income Statement
for the year ended 31 March 2…
$
$
$
Revenue
State primary source of income (1)
xx
Add other income (2)
(list)
xx
xx
xxx
xxx
Less Expenses
Group One expenses (3)
(list)
xx
xx
xxx
Administrative expenses
(list)
xx
xx
xxx
Finance costs
(list)
xx
xx
xxx
Total expenses
Profit (loss) for the year
xxx
$ xxx
Additional information clarifying the Income Statement for a service entity
(1)
Revenue is the primary income source such as Plumbing Fees (Received) for a plumber.
(2)
Other income is income incidental to the main activity/ies for a service business such as interest
received, dividends received, rent received
(3)
Group One expenses – the name of this expense category will be provided and will be appropriate to
the service firm being assessed, eg Plumbing Expenses for a Plumber
These are comprised of Distribution expenses (as per trading entity) and any other expenses specific to
the provision and delivery of the service.
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Trading Entity
(Business Name)
Income Statement
for the year ended 31 March 2…
$
$
$
Revenue
Sales
xx
Less Sales Returns
xx
Net Sales
xxx
Less Cost of goods sold
xx
Gross profit
xxx
Add Other income
(list)
xx
xx
xxx
xxx
Less Expenses
Distribution costs
(list)
xx
xx
xxx
Administrative expenses
(list)
xx
xx
xxx
Finance costs
(list)
xx
xx
Total expenses
Profit (loss) for the year
xxx
xxx
$ xxx
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
(Business Name)
Statement of Financial Position
as at 31 March 2…
Note
$
$
$
Current assets
Accounts Receivable
1
(list others)
4,900
xx
xx
xx
xxx
Non-current assets
Investments
Eg Shares in ABC Ltd
2
8,000
Property, plant and equipment
3
127,200
Intangible asset
Eg Goodwill
4,000
xxx
Total assets
xxx
Less Liabilities
Current liabilities
(list)
xx
xx
xxx
xx
xxx
Non-current liabilities
(list)
4
Total liabilities
xxx
Net assets
$ xxx
Equity
Opening Capital
Plus Profit (loss) for the year
Less Drawings
Closing Capital
xx
xx
(xx)
xxx
$xxx
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Notes to the Financial Statements
1 Accounts Receivable
Accounts Receivable
5,000
Less Allowance for doubtful debts
100
$4,900
2 Investments
Investments comprise shares in (eg ABC Ltd). The current fair value of the shares is (eg $7,200) which is
their market value on 31 March 2….
Or
Investments are in Government Stock / a Fixed Term Deposit with an interest rate of x% and a maturity
date of …
Property, Plant and Equipment
Land
Equipment
Vehicles
Total
$
$
$
$
Opening carrying amount
60,000
19,200
32,000
111,200
Plus additions
20,000
0
16,000
36,000
Less disposals
0
0
(14,000)
(14,000)
Less depreciation
0
(2,400)
(3,600)
(6,000)
$ 80,000
$ 16,800
30,400
$127,200
80,000
24,000
36,000
140,000
0
(7,200)
(5,600)
(12,800)
$80,000
$16,800
30,400
$127,200
For year ended 31 March
2…
Closing carrying amount
As at 31 March …
Cost
Accumulated depreciation
Carrying amount
Depreciation is calculated on a straight-line basis at the following rates
Equipment 10% pa Vehicles 20% pa
3 Loan / Mortgage
The loan / mortgage has an interest rate of x% and a maturity date of …
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Additional information clarifying the Statement of Financial Position and Notes to the Financial Statements
Classifying Bank and GST

When Bank and/or GST have a debit balance they are classified as a Current Asset.

When Bank and/or GST have a credit balance they are classified as a Current Liability.
Property, plant and equipment (PPE)

All amounts in the property, plant and equipment note are GST exclusive

The amount recorded for additions is the GST exclusive purchase cost. Students may be required to
calculate the GST exclusive cost from a given GST inclusive purchase price.

The carrying amount of disposals will be provided. Carrying amounts are naturally exclusive of GST.

The opening carrying amount will be provided if additions and / or disposals have occurred during the year

The opening carrying amount will be able to be determined from the trial balance where no additions and
/or disposals have occurred during the year

Depreciation, for a full year only, may require a calculation.

Depreciation method(s) will be selected from
o
Straight line
Diminishing value
Units of use
Investments
All investments, such as shares, government stock, term deposits will be classified as non-current assets.
Investments will be stated at cost in the Statement of Financial Position. The market value of shares on
balance sheet date will be disclosed as being their current fair value in the notes. The interest rate and
maturity date of investments in Government Stock or Fixed Term Deposits will be disclosed in the notes or on
the face of the balance sheet.
Non-current liabilities
The interest rate and maturity date of (term) loans or mortgages will be disclosed in the notes or on the face of
the balance sheet.
Equity
Equity may be shown as follows
Opening capital
xx
Plus Profit (loss) for the year
xx
Less Drawings
(xx)
Closing capital
$xxx
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.
Cash Flow Statement
The cash flow statement uses the direct approach and all amounts are GST inclusive where relevant. Payment
to/from the IRD to settle the amount of GST owing/receivable may be assessed.
(Business Name)
Cash Flow Statement
for the month/period/year ended (date)
$
$
Receipts
(list)
xx
xx
Total receipts
xxx
Payments
(list)
xx
xx
Total payments
xxx
Net increase (decrease) in cash
xxx
Opening bank balance
xx
Closing bank balance
xxx
Note: Calculations for cash received from accounts receivable and cash paid to accounts payable may be
required. Students will be expected to be familiar with source documents used to record transactions
with accounts receivable and accounts payable. Information may include bad debts and/or discount
allowed or received. Students will not be required to reconstruct an inventory account to determine
the purchases figure used in the calculation of cash paid to accounts payable.
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit of Mary.