Establish and maintain a payroll system

Assessment Task

SECTION A

Farmer Trading reports its PAYG obligations on a quarterly basis. Complete the following from the data provided.

1. Prepare the payroll register for the week ended 30 June

2. Prepare the journal entries to record the weekly payroll and to pay employees via EFT

3. Update the earnings record of S. Hall

4. Prepare the pay advice for S. Hall

5. Calculate the amounts that must be recorded on S. Hall's payment summary

6. Calculate the amounts payable to each employee's superannuation fund arising from the Superannuation Guarantee Question (note: all employees have chosen the fund named PLUS)

7. Explain how the payroll will be included on the quarterly Activity Statement

8. S. Hall has queried her pay, stating that she has paid too much tax. Explain how you would respond

SECTION B

Produce a month-end and year-end checklist to ensure compliance with deadlines

Describe the back-up and disaster recovery systems that could be put in place for this company

Prepare financial reports

Question 1
What types of period end adjustments can you calculate and process? Explain why each of these is necessary.

Question 2
Briefly outline the steps that occur when the general ledgers are closed at the end of a financial period.

Question 3
Explain the purpose of the revenue statement and balance sheet of a business.

Question 4
How do you detect and rectify errors arising during the preparation of financial reports?

Question 5
Discuss the policies and procedures that can be implemented for the purchase and sale of assets and how these are recorded.

Question 6
Describe how you account for inventories, including recording the purchase of inventory, valuing inventory and reconciling inventory records to the general ledger

Question 7
List the various financial statements or reports that can be prepared and briefly outline their function anc purpose

Question 8
Describe how you can undertake the task of preparing reports and discuss the impact of legislative and organisational procedures