Business Accounting/PBL 1 Discussion (Case Study)

Running Head: Business Accounting/PBL 1 Discussion (Case Study)
Case Study on Business Accounting (PBL 1) Group Discussion
Greenway Golf Pty Ltd & Ramjet Pty Ltd
[Writer’s Name]
[Subject/Course Code]
[University’s Name]
Part A
Mr. Wild,
It’s a great pleasure to know that your esteemed organization “Greenway Golf Development Pty Ltd” has recently invested a handsome capital amount in purchasing block of land on Queensland Gold Coast with the plan of developing a 16 Hole Golf Course and Club House. As the investment in purchasing Queensland Gold Coast has been made after the financial year ended at 30th June 2010, it is of significant importance for the organization to mention all the related investment expenses in the external financial statement of the year ended 30th June 2010.
The major expenses that have been incurred in this investment venture include Value of the land that has been purchased and the development cost in order to develop and equip the facility with all proper means. Both these expenses are to be classified into Fixed Assets section in the financial statement of the year ended 30th June 2010. After the major costs of assets, the expenses are to be classified in the expenses portion/section of the financial statement.
There have been various expenses incurred in this venture which includes Stamp Duty, Design Layout, Application expenses, Legal Fees and actual construction costs. There have been liabilities too that have been involved in this venture which includes the loan (Long term Liability) and the fixed interest to be paid to the creditors itself (Burton, 2006).
Greenway Golf Developments Pty Ltd Financial Statement as at 30th June 2010  as per Australian Accounting Standards

As Per AASB  Fixed Assets $ (Dollars)
Value of the Land 8000,000
Development cost 2400,000

As Per AASB 1040, 0000
Expenses
 Stamp Duty 160,000 Design Layout 140,000 Council Application 100,000 Legal Fees 60,000 Actual Construction ...