Rod Caldwell - Learn bookkeeping in 7 days: dont fear the tax man

Appendix AUseful resources

Authors website

On my website www.tpabusiness.com.au, under Learn Bookkeeping in 7 Days, you will find a full set of blank accounting forms as well as blank exercise forms for the revision exercises from day 2 through to day 6.

In addition, I will provide additional resources as time permits. Please check the website for the latest updates. If you are a reader, student or lecturer and wish to share examples, overheads and other material with the general community, please email me at rod@tpabusiness.com.au and I will consider them for inclusion in the resources.

Australian Taxation Office fact sheets

The following fact sheets are available from the ATO website www.ato.gov.au. Just type the relevant NAT number indicated into the search box to go straight to the publication you wish to access. Some of these fact sheets can be down-loaded as PDF files and others can only be read onscreen or printed for your reference:

Cash and Non-cash Accounting (NAT 3136)

Correcting GST Mistakes (NAT 4700)

Goods and Services Tax How to Complete Your Activity Statement (NAT 7392)

GST and Motor Vehicles (NAT 4629)

GST for Small Business (NAT 3014)

Home-based Business (NAT 10709)

Tax Basics for Small Business (NAT 1908).

Computerised accounting packages

Demonstration versions of computerised accounting packages are available for both a full accounting program and cash book accounting:

Full accounting program: MYOB Accounting by MYOB Technology Pty Ltd; www.myob.com.au.

Cash book accounting: Cashbook Complete by Acclaim Software Ltd; www.acclaimsoftware.com.au.

Books

The following For Dummies books may be useful:

Bookkeeping For Dummies by Veechi Curtis and Lynley Averis, Wiley, 2010.

This brand-new book has been completely rewritten from the original US edition to reflect Australian conditions. It applies to all small businesses but is especially focused on the SME enterprises with over $2 million in turnover and using accrual accounting in accordance with Australian accounting standards. This contrasts with Learn Bookkeeping in 7 Days, which is aimed at micro businesses earning less than $2 million per year and using cash accounting methods as outlined by the ATO.

Tax for Australians For Dummies by Jimmy B Prince, Wiley, 2009.

This book explains Australian taxation in simple terms. Its author, Jimmy B Prince, is a former lecturer in income tax law at La Trobe University. It has been technically reviewed by the CPA Australia senior tax counsel and therefore has the tick of approval of Australias leading accounting association.

DIY Super For Dummies by Trish Power, Wiley, 2009.

Superannuation, especially DIY super, is a minefield for the unwary. If you are contemplating setting up your own super fund, this book is a must. Its author, Trish Power, is a highly respected writer of 10 books on the subject. It has been technically reviewed by Mark Morris in the CPA December issue of InTheBlack, and therefore comes highly recommended by Australias leading accounting association.

GST calculation worksheet

Below is the GST calculation worksheet that you can use to help you calculate your BAS.

Appendix B: Exercise solutions

Day 1: introduction to bookkeeping and accounting

Revision exercise for day 1

1. In the following list indicate which should be classified as an asset, liability, equity, income, cost of sales or expense:

2. If I sold you a pair of shoes, do I debit or credit the Sales account? CREDIT

3. If I paid a Western Power bill, do I debit or credit the Electricity account? DEBIT

4. Please fill in the headings in the following general ledger account:

Exercise 2.4

Exercise 2.5

Revision exercise for day 2

General Journal GJ1

Note

Creditors are also known as Accounts Payable or Trade Payables.

Debtors are also known as Accounts Receivable or Trade Receivables.

The GST is accounted for on the initial purchase or sale and not when the account is settled (well modify this rule for cash accounting later).

We are only using the one GST account.

Where the GST is included in the cost, the amount of GST is obtained by dividing the cost by 11. The amount is not rounded but is truncated. You cannot be asked to pay more GST than the 10 per cent defined by the law.