Assessment Coversheet

Unit/s Assessed

FNSACC311 Process financial transactions and extract interim reports

Assessment Name

FNSACC311Assignment

Type of Assessment

This summative assessment will enable your assessor to make a judgement of competency based on the submission of your completed assessments against the requirements of the unit/s of competencyin this module.

Benchmark

The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e. the assessment decision-making rules).Assessors use these benchmarks to make judgements on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements.

Reasonable Adjustment

Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.

Assessment Coding

Assessment of this course is based on competency-based principles.

S= Satisfactory

NS= Not Satisfactory

If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as 'Not Satisfactory'.You are required to be assessed as 'Satisfactory' in all assessments for each unit of competency.

Re-assessment

Your assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your resubmission. You have two weeks from your last submission feedback to resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially assessed as NS.It is at the assessor's discretion to re-assess the entire assessment should an overall understanding not be demonstrated.When you are re-assessed as 'satisfactory' after re-submission you will achieve competency for this assessment.

Declaration of Understanding and Authenticity

I acknowledge the assessment process has been explained and agree that I am ready to undertake assessment. I am aware of where to find the assessor's feedback for the assessment. I am aware of the appeals process, should the need arise. I also understand I must be assessed as 'satisfactory' in all parts of the assessment/s to gain an overall competent result for the unit/s of competency. If I am found to be NS after a second attempt, it is at the assessor 's discretion whether I may be permitted one final attempt. I am aware that a 'not competent' final outcome means I may incur fees for re-enrolment in the unit/s.

I certify that the attached material is my original work. No other person's work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to Student Information Guide).

* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.

Student Name*:

Date:

Submission instructions:

1.Complete the Declaration of Understanding and Authenticity (above).

2.Once you have completed all parts of the assessment login to the Monarch Learning Management System (LMS) to submit your assessment.

3.In the LMS, click on the link to 'Submit [assessment name]' in your course and upload your assessment files. Clicksaveand then clicksubmit assignment

4.Please be sure to click 'continue' after clicking 'submit assignment'.

Assessment Activities

Short Answer and Worked Answer Questions

Activity instructions to candidates

This is an open book assessment activity.

You are required to read this assessment and answerallquestions that follow.

Please type your answers in the spaces provided.

Estimated time for completion of this assessment activity: approximately 3 hours

The following questions are based on the material in the textbook "Accounting Principles" by Anne Collins & Andrew Duncan, Book 1. Book 1 contains Chapters 1- 13.

The following questions are based on the material in Chapter 1:

1a. Explain the concept of the 'accounting entity'.

1b.List and describe the 6 legislative requirements that must be complied with by accountants and bookkeepers.

1c. Definethe accounting function. What 3 accounting practices are carried out under the accounting function?The following questions are based on the material in Chapter 2:

2.For the following accounts, show the Account Type (Asset, Liability, Owner's Equity, Revenue or Expense) and the Report (Balance SheetorIncome Statement) to which it belongs:

AccountType

Report

Inventory

Mortgage

AccountsReceivable

Wages

Sales

Cost of GoodsSold

Advertising

AccountsPayable

Furniture andFittings

FeesReceived

Capital

TelephoneExpense

Drawings

ElectricityExpense

Loan

MotorVehicle

Cleaning Feespaid

InterestReceived

The following questions are based on the material in Chapter 3:

3a.Surveying Consultantsprovides surveying services and are registered for GST in accordance with the legislative and regulatory requirements relating to financial transactions for businesses of their size.

Their services are mainly surveying services: revenue accounts are set up as Surveying Fees (A/C 410) and Other Fees (A/C 411).

The following cash receipt documents are for the first week in August. The firm banks daily.

Required:

i)What type of documents are these?

Source Documents (Cash receipt docket)

ii)What information should be included in such a document, and has this been done?

Information to be included are :

Sequence number

names of the parties involved (payor name)

amounts received,

the date,

the substance of the transaction (service provided or job performed)

Yes it's been done.

iii)Please record the information from these documents, per the firm's organisational procedures, in the Cash Receipts Journal for August using the following template.

Cash Receipts Journal

Date

Receipt No.

Details

A/C

No.

Survey Fees

Other Fees

GST Collected

Amount Banked

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

TOTAL

N/A

3bi).List 3 key details you need to look for on a cheque to ensure the cheque is valid.

3bii).What checks does the EFTPOS system perform before processing an EFTPOS transaction?

3biii).Fromthe information provided below, you are required to complete a receipt.Chemco Pty Ltd received a cheque from AC Cleaning on 1 June 2018 for the amount of $240 being payment for their account.

Chemco Pty LtdDate.................................

RECEIPT

Received from: .....................................................................................

The sum of: ...........................................................................................$........................... Cash/Cheque

For: .................................................................................................................................................................

Signature

3c.Describe the banking procedures that could be used for depositing batch cheques and cash using a deposit slip. Include the details that should be included in the deposit form.

3d.Identify some industry-accepted security and safety precautions when transporting cash from a workplace to a bank.

3e.What documentation is provided to a business as 'proof of lodgement' for banking monies? How would you file these?

Tip: Think about whether you would file these with other records/documents and if in any specific order.

The following questions are based on the material in Chapter 4:

4a.According to its organisational procedures, enter thetransactions ofSalt Worksinto the Cash Payments Journal and the totals at 17 May.

May03

Chq52

Wages

730 (noGST)

May05

Chq53

Telephone

320 plusGST

May09

EFT

Rent

820 plusGST

May12

EFT

Drawings

120 (noGST)

May12

EFT

Inventory

1,800 plusGST

May16

EFT

Inventory

1,400 plusGST

May17

Chq54

Wages

730 (noGST)

Cash Payments Journal

Date

Chq # or EFT

Details

Account No.

Purchases of Stock

Wages

Rent

Other Payment

GST

Paid

Total Paid

N/A

N/A

N/A

N/A

N/A

N/A

N/A

TOTAL

4b.Please list the controls / procedures that you could adopt in a business for the handling of Electronic payments, Cheques and Cash.

The following questions are based on the material in Chapter 5:

5(a) Required:For the following transactions, complete the Transaction Analysis Chart.

(The first transaction has been completed for you.)

Date

Transaction

Account Name

Account Type

$ Increase +or

$ Decrease -

DR orCR

01/6

Initial capital paid into business bank account $35,000

Bank

Capital

A

OE

+$35,000

+$35,000

DR

CR

02/6

Received money for a long term loan $100,000

03/6

Paid business insurance premium $700 + $70 GST + $40 stamp duty (no GST).

04/6

Paid cash for stationery $165 including GST

05/6

Interest received on bank account $25 (GST does not apply)

06/6

Service revenues earned in cash amounted to $2,000 + $200 GST

07/6

Commission revenue received $1200 + $120 GST

08/6

Paid cash for a vehicle $16,000 + $1,600 GST

09/6

Drawings $1,000

10/6

Paid $20,000 off the loan

Also required:Using the templates provided:

(b)Prepare General Journal entries for the transactions.

(c)Post the General Journal entries to the ledgers and include 'DR' or 'CR' to each running Balance for each ledger account.

(d)Prepare a Trial Balance as at 10 June.

(5b)General JournalGJ

Date

Particulars

Folio

Debit

Credit

N/A

N/A

Owner's Contribution

N/A

N/A

N/A

Received long term loan

N/A

N/A

N/A

N/A

Paid insurance (expense)

N/A

N/A

N/A

N/A

Purchased stationery

N/A

N/A

N/A

Interest Received

N/A

N/A

N/A

N/A

Received Service Revenue

N/A

N/A

N/A

N/A

Received Commission Revenue

N/A

N/A

N/A

N/A

Purchased Motor Vehicle

N/A

N/A

N/A

Owners Drawings

N/A

N/A

N/A

Repayment on Loan

N/A

5(c) Consistent with industry codes of practice Ledger Accounts should include 'DR' or 'CR' to each running Balance for each ledger account.

Bank (ASSET)

Date

Details

Folio

Debit

Credit

Balance

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

GSTPaid(ASSET)

N/A

N/A

N/A

Vehicle (ASSET)

N/A

GST Collected (LIABILITY)

N/A

N/A

Loan (LIABILITY)

N/A

N/A

Capital (EQUITY)

N/A

Drawings (EQUITY)

N/A

Service Revenue (REVENUE)

Date

Details

Folio

Debit

Credit

Balance

N/A

Commission Revenue (REVENUE)

N/A

Interest Revenue (REVENUE)

N/A

Insurance (EXPENSE)

N/A

Stationery (EXPENSE)

N/A

5(d) Trial Balance

(5d)TrialBalance

Debit

Credit

Bank

GSTPaid

Vehicle

GSTCollected

Loan

Capital

Drawings

ServiceRevenue

CommissionRevenue

InterestRevenue

Insurance

Stationery

TOTAL

Tip:

If your trial balance does not balance, please perform the following checks:

Completing the general journal entries - ensure that for each journal, the total of the debit entries equals the total of the credit entries.

Posting the general journal entries to the ledger accounts - ensure that you post the entries exactly in $ terms and dr/cr terms. Post all journal entries and do not post any extra entries.

Totaling the ledger accounts - ensure that you observe the dr/cr nature of the entries.

Transferring the ledger account balances to the trial balance - ensure that you transfer the balances exactly in $ terms and dr/cr terms

5(e)Ifa trial balance does not balance, what steps would you take to ensure that it balances? If the trial balance balances, does that mean it is fully correct, and why?

5(f) Describethe concept of double entry accounting.

The following questions are based on the material in Chapter 6:

6a.T. Rade operates a petty cash system per its organisational procedures. Vouchers are checked and processed by the Petty Cashier and recorded in the Petty Cash Book.

From the following information forT. Rade:

(a)prepare and balance thePetty Cash Book.

(b)prepare theGeneral Journal entries for:

(i)Establishment of the petty cash fund, and

(ii)Reimbursement of the fund.

01/7 The Petty Cashier received cheque 4233 for $100 to establish the fund.

In their organisational policy and procedure documents T. Rade specify that each expense is to be recorded on a separate voucher.

During the following week the Petty Cashier checked and paid the following amounts (GST inclusive), with each expense being on a separate voucher (starting at Voucher No. 1):

01/7 Tea & coffee $17.60 (GST Free),

01/7 taxi fare $7.70

02/7 Courier $11.00,

02/7 stationery $4.40

04/7 Biscuits $9.35,

04/7 taxi fare $9.90

06/7 Courier $5.50,

06/7 stationery $3.30

07/7 Office cleaning $11.00

The fund was reimbursed on July 8 (cheque 4275).

(a)PettyCash Book - T.Rade

Cash Received

Date

Particulars

Voucher

Payments

Courier

Amenities

Stationery

Travel

Sundries

GST

Jul 1

Advance

1

2

Jul 2

3

4

Jul 4

5

6

Jul 6

7

8

Jul 7

9

Sub-Total

$

$

$

$

$

$

$

Bal. c/d

$

$100.00

$100.00

$

Bal. b/d

$

Jul 8

Reimbrsmt.

(b)General Journal - T. Rade

Date

Particulars

Debit

Credit

Petty Cash advance

Reimbursement of Petty Cash

6c. Small business, in particular those that are owner-operated, often have less formal ways of dealing with petty cash expenses. Instead of using a cash imprest system, list 2 alternative methods that could be used to deal with petty cash expenses which would still maintain the integrity of the relationship of the business' financial systems. Why might a business review and update the way they treat petty cash expenses?

The following questions are based on the material in Chapter 7:

7.Below are selected transactions from the general journal ofBrian Smith Cateringfor the month of March. These journals are in line with its policies and procedures and have been approved by the Finance Accountant.

GeneralJournal-BrianSmithCatering

Date

Particulars

Folio

Debit

Credit

March 01

Catering Supplies

GST Paid

Accounts Payable - Andrea

Credit purchase of catering stock

715

125

210.01

600

60

660

20

Catering Supplies

GST Paid

Accounts Payable - Dave

Credit purchase of catering stock

715

125

210.03

300

30

330

27

Accounts Payable - Andrea

Bank

Paymentofaccount

210.01

100

660

660

30

Telephone

GST Paid

Accounts Payable - Telstra

Telephone account received

765

125

210.04

100

10

110

31

Accounts Payable - Office Shop

Bank

Payment of account

210.02

100

88

88

Required:

(a)In line with its policies and procedures, post from the general journal to the general ledger and to the individual creditor accounts in the accounts payable subsidiary ledger. The opening balances have been entered for you.

(b)Prepare a schedule of accounts payable as at 31 March.

(7a)General Ledger - Brian Smith Catering

Bank100

Date

Details

Folio

Debit

Credit

Balance

01/03

Balance

10,000DR

GSTPaid125

Accounts Payable Control210

Date

Details

Folio

Debit

Credit

Balance

01/03

Balance

N/A

88CR

N/A

N/A

N/A

N/A

N/A

Telephone765

N/A

Catering Supplies715

N/A

N/A

PayablesSubsidiaryLedger-BrianSmithCatering

Date

Details

Folio

Debit

Credit

Balance

Andrea210.01

N/A

N/A

Office Shop210.02

01/03

Balance

N/A

88CR

N/A

Dave210.03

N/A

N/A

Telstra210.04

N/A

N/A

(7b) Schedule of Accounts PayableAmounts

Supplier Name:

$

Total (must equal balance as per Accounts Payable Control Account)

8.Paymore Landscaperssupplies you with the following information for October.

Required:

(a)Enter the above transactions into the General Journal.

(b)Post to the General Ledger and to the individual debtor accounts in the Receivables Subsidiary Ledger.

(c)Prepare a schedule of Accounts Receivable as at 31 October(the total must equal the balance of the Accounts Receivable Control account).

(a) General Journal -PaymoreLandscapers

Date

Particulars

Folio

Debit

Credit

N/A

N/A

N/A

Credit Sales Invoice 81

N/A

N/A

N/A

N/A

Credit Sales Invoice 82

N/A

N/A

N/A

Receipt 71

N/A

N/A

N/A

N/A

Credit Sales Invoice 83

N/A

N/A

N/A

Receipt 72

N/A

N/A

N/A

Receipt 73

N/A

N/A

N/A

N/A

Credit Sales Invoice 84

N/A

N/A

N/A

N/A

Cash Sales - Receipt 74

N/A

(b)PaymoreLandscapersLedger

Bank100

Date

Details

Folio

Debit

Credit

Balance

N/A

N/A

N/A

N/A

Accounts Receivable Control110

N/A

N/A

N/A

N/A

N/A

N/A

N/A

GST Collected230

N/A

N/A

N/A

N/A

N/A

Service Revenue400

N/A

N/A

N/A

N/A

N/A

PaymoreLandscapers-ReceivablesSubsidiaryLedger

Me Kong Restaurant110.1

Date

Details

Folio

Debit

Credit

Balance

N/A

N/A

Hilltown Hotel110.2

N/A

N/A

GracePark110.3

N/A

N/A

Delice Resort110.4

N/A

N/A

(c) Receivables SubsidiaryReconciliation

Customer Name

$

BalanceperControlAccount

8(d)Please advise what is required in setting up subsidiary ledgers. How are transactions now processed?

8(e)What steps would you take if, in 8c), the total of the subsidiary ledger did not reconcile with the control account balance?

8(f) Youare developing the policies and procedures in relation to credit sales. What processes would you include in relation to?

i.preparing invoices

ii.preparing journal entries for these invoices

iii.authorising these journal entries

iv.filing invoices for auditing purposes (this may be related to the invoice numbering system).

Tip: the specific answers to these questions may not be completely found in the textbook. Use your learning and understanding of recording credit sales to arrive at your answers. Feel free to research other sources to assist you.For example, i) preparing invoices would include ensuring that an invoice contains an invoice number, company details, customer details, details of the good sold and credit terms.

i. preparing invoices

ii. preparing journal entries for these invoices

iii. authorising these journal entries

iv.filing invoices for auditing purposes (this may be related to the invoice numbering system).

8(g)Please complete the tax invoice based on the following sales details:

Sale of a quantity of 1,000 ABC books at $15 each (including GST) to Ben Smith (123 Smith St, Smithville 9015), on 30-day terms, based on order #236, invoice #89. Shipped on 16 June 2018 via Alpha Couriers.

ABC Books

12 Mountain Rd

Hill Top NSW 3101

ABN: 11 123 123 123

Tax Invoice No. 89

Date: .............................

To:

Your Order No:

Date Shipped:

Shipped Via:

Terms:

Quantity

Description

Price

Total (incl GST)

The following questions are based on the material in Chapter 8:

9.At 30 June,H. Henryhas been examining the amounts outstanding from his Accounts Receivable.

One account, I. Doubt, owes $1,650 (including GST) but pays only $550 on 30 June, stating that he will be unable to pay the balance. Henry decides to write off the balance of Doubt's debt as being unrecoverable.

Lester is both a customer and a supplier. Henry wants to adjust for a $660 balance both owing to, and owed by, L. Lester.

Required:

(a)Record, as General Journal entries, the receipt of cash from customer I. Doubt and the write-off of the balance as irrecoverable.

(b)Record the General Journal entry for the contra adjustment.

(c)Post the entries to the General Ledger accounts and to the Subsidiary Ledger accounts for I. Doubt and L. Lester.

9(a)

General Journal of H. HenryGJ4

Date

Details

Folio

Debit

Credit

N/A

N/A

Part payment received on debt owing - I. Doubt

N/A

N/A

N/A

N/A

Balance of debt written off as bad - I. Doubt

N/A

9(b)

General Journal of H. HenryGJ4

Date

Details

Folio

Debit

Credit

N/A

N/A

Contra Entry - L. Lester

N/A

9(c)Ledger of H.Henry

Accounts Receivable - L Lester110.01

Date

Details

Folio

Debit

Credit

Balance

30/06

Balance

N/A

660DR

N/A

Accounts Receivable - I Doubt110.02

30/06

Balance

N/A

1,650DR

N/A

N/A

Bad Debts820

N/A

Accounts Payable - L Lester210.01

30/06

Balance

N/A

660CR

N/A

GST Collected230

N/A

Bank

N/A

9(d)What report can be used to manage debtors and assist in the identification of bad or doubtful debts, and what information does it contain?

9(e)You are establishing a credit policy to assist in the collection of monies owing by your customers. Please provide details of the steps you would include to recover overdue debts, based on varying levels of lateness.

How would your policy change if you believed the level of overdue debts was too high?

9(f)Peters Plants sells artificial plants for indoor and outdoor use. The company is owned and managed by Peter Petersen.

Credit Policy

Terms and conditions -Standard credit terms are net 30 days. At the end of the month an aged receivables report and overdue accounts are reviewed. Monthly statements are issued at the end of the month.

Collection Procedures

The following steps are taken regarding the collection of monies owing:

0-30 days current:Invoice/s sent to customer with month end statement

31-60 days overdue account:Overdue sticker sent with next statement

61-90 days overdue account:Phone call informing customer credit facility will be put on hold

91 + days overdue account:If a customer's debt is more than $150 a letter informing the customer their account will be turned over to a collection agency if payment is not received within 14 days

Customer Delinquency

A debt that is 90 + days overdue and less than $150 will be written off as a bad debt.

Tip: the specific answers to all of the following questions for 9(f) may not be completely found in the textbook. Use your learning and understanding of recording and administering credit sales and dealing with credit customers to arrive at your answers. Feel free to research other sources to assist you.

Required:

9f(i)Using the information provided in Peters Plants Aged Receivable report as at 31 March 2018, complete an overdue accounts review.

Aged Receivables(Detail)

31 March 2018

Customer/ Invoice No.

Date

Total Due

0 - 30

31 - 60

61 - 90

91 +

Rosie Rose

000123

8/1/2018

$1200.00

$1200.00

Total

$1200.00

$0.00

$0.00

$1200.00

$0.00

Cam Camelia

000345

18/2/2018

$670.00

$670.00

Total

$670.00

$0.00

$670.00

$0.00

$0.00

Leonard Lilly

000567

5/12/2017

$400.00

$400.00

Total

$400.00

$0.00

$0.00

$0.00

$400.00

Grand Total

Ageing Percent

$2270.00

$0.00

0.0%

$670.00

29.5%

$1200.00

52.9%

$400.00

17.6%

Overdue Accounts Review - Peters Plants

Customer

Invoice Number

Days Overdue

Amount Owing

Previous Communications

9f(ii)Using the information from Peters Plants' Credit Policy and Aged Receivables report as at 31 March 2018, what steps would you take regarding the collection of monies outstanding as at 31 March 2018?

Customer

Collection Procedures

9f(iii)Who would you distribute these reports to?

9f(iv)Where would these reports be filed?

9(g)In order to pay the invoices that have been received from your suppliers, what checks would you first undertake on these invoices before making payment?

Tip: the specific answer to this question may not be completely found in the textbook. Use your learning and understanding of recording and administering credit purchases to arrive at your answers. Feel free to research other sources to assist you.

The following questions are based on the material in Chapter 9:

10.The accountant ofHarvey Importsprovides trading information for the year ending 30 June 2016. As most stock is imported, customs duty is paid on many items of stock. There are also delivery charges incurred.

At 30 June 2016, the records of Harvey Imports provide the following details:

Purchases ledger balance$32,300

Stocktake at 30 June 2016$17,800

Customs Duty account balance$1,600

Opening inventory$32,000

Freight Inwards account balance$1,550

Sales account balance$51,800

Required:Prepare a Trading Statement for the year ending 30 June 2016 with detail for the COGS

Harvey Imports - Trading Statement for the year ending 30 June 2016

$

$

Sales

Less: Cost of Goods Sold(provide details in lines below)

Gross Profit (Loss)

The following questions are based on the material in Chapter 10:

11.ABC Boxesmade the following credit sales transactions during the month of August. ABC Boxes use a periodic inventory system.

Required:

11a.Enter the above transactions into the Credit Sales Journal. Cross-balance using the column totals.

Credit Sales Journal of ABCBoxes(August)SJ15

Debits

Credits

Date

Invoice # / Adjustment Note#

Particulars

AccountReceivable

Sales

Asset

GST

Collected

Total

11b.Refer to the invoices above.ABC Boxes received a payment from B Brown and issued the following payment receipt.

The funds were banked and the following journal entry was recorded in the Cash Receipts Journal.

Dr Bank$1,340.00

Cr Debtors$1,340.00

Required:

Check the invoice for B Brown and the cash receipt given to B Brown.

(Hint: Have the amounts in the Cash Receipts Journal been recorded correctly?)

Record theadjustmentneeded in the Cash Receipts Journal to correct the error?

Cash Receipts Journal

Date

Receipt No.

Details

A/C

No.

Sales

Debtors

GST Collected

Amount Banked

N/A

12.McGuire Corpmade the following Credit Purchases and Returns during April.

All amounts include GST, and McGuire Corp uses a periodic inventory system.

Date

TaxInvoice/TaxAdjustment

Details

Amount(inc.GST)

April02

A1356

ReceivedinvoicefromBBrownforinventorypurchases

$1,100

06

B9686

BoughtgoodsoncreditfromRubyRose

770

13

8923

Purchasedofficeequip.oncreditfromEquipwerx

1,320

18

A1421

BoughttradegoodsfromBBrown

671

21

C00134

ReceivedtaxadjustmentnotefromBBrownfor overcharge on invoiceA1356

33

26

B9888

ReceivedataxinvoiceforstockfromRubyRose

1,100

30

060509

PurchasedgoodsfromPrettyinPink

550

Required:Enter the transactions into the Credit Purchases Journal.

Credit Purchases Journal of McGuire Corp (April)PJ17

AccountstobeDebited

Accounts tobeCredited

Date

Invoice/

Adjustment Note#

Particulars

Purchases/

Inventory

Asset

GSTPaid

AccountsPayable

Total

The following questions are based on the material in Chapter 11:

13.From the following information forA. Liuprepare for May 31:

(a)Cash Balance Summary for May and Bank Ledger Account for May

(b)Bank reconciliation statement.Tip: Follow the steps in the bank reconciliation process at chapter 11.5.Tip: in particular steps 2a) and 2b) which refer to the previous periods Bank Reconciliation Statement.

The reconciliation on April 30 showed that the Bank Ledger Account had a credit balance (overdraft) of $3,182.90.

The Bank Statement had reconciled to the Bank Ledger Account after allowing for:

An outstanding deposit $733.10, and

Unpresented cheque #324856 for $934.02

For May:

ExtractCashReceiptsBookofA.Liu

ExtractCashPaymentsBookofA.Liu

02/05

$1,446.52

01/05

324875

$1,526.16

07/05

3,486.72

04/05

324876

905.70

11/05

1,538.90

08/05

324877

2,404.38

11/05

436.84

12/05

324878

1,702.86

12/05

2,360.20

15/05

324879

1,296.98

21/05

1,039.30

20/05

324880

561.40

30/05

846.76

28/05

324881

1,958.30

The Best BankLtd

Bank StatementforA.Liu

Date

Particulars

Debit

Credit

Balance

Broughtforward

$2,981.98Dr

01/05

Cheque#324875

$1,526.16

4,508.14Dr

Cash/chequesdeposit

$733.10

3,775.04Dr

02/05

Cash/chequesdeposit

1,446.52

2,328.52Dr

05/05

Cheque#324856

934.02

3,262.54Dr

07/05

Cash/chequesdeposit

3,486.72

224.18Cr

11/05

Cash/chequesdeposit

1,538.90

1,763.08Cr

12/05

Cheque#324877

2,404.38

641.30Dr

Cash/chequesdeposit

436.84

204.46Dr

15/05

Cheque book fee

50.00

254.46Dr

17/05

Cheque #324879

1,296.98

1,551.44Dr

18/05

Cash/chequesdeposit

2,360.20

808.76Cr

21/05

Cheque#324878

1,702.86

894.10Dr

24/05

L. Mami chequedishonour

551.56

1,445.66Dr

Dishonourfee

15.00

1,460.66Dr

25/05

Cheque #324876

905.70

2,366.36Dr

26/05

Cash/chequesdeposit

1,039.30

1,327.06Dr

31/05

Cheque#324880

561.40

1,888.46Dr

(a)Cash Balance Summary for A. Liu as at 31May

Cash Receipts

Cash Payments

Date

Details

Amount $

Date

Details

Amount $

Total

Total

Bank Ledger Account May-specify if Balance is DR or CR.

Bank100

Date

Details

Folio

Debit

Credit

Balance

1/5

Balance b/d

N/A

$3,182.90 CR

31/5

Receipts

N/A

31/5

Payments

N/A

(b) Tip:If any, be certain to list any Unpresented Cheques or Outstanding Deposits in this Bank Reconciliation.

BankReconciliationStatementasatMay31

Cheque No.

$

Debit balance as per Bank Statement

$

Add: Unpresented Cheques

$

$

Sub-total

$

Less: Outstanding Deposits

$

Credit Balance per the Bank Ledger Account

$

(c)Provide 3 examples that would give rise to a difference between a bank statement and the bank ledger account of a business.

The following questions are based on the material in Chapter 12:

14.Joshua Owencommenced business on 1 September, and had several special transactions during the month:

Date

Transactions

Sept01

Owen contributed the following to the business: Premises $85,000, Cash $4,000,

Mortgage on Premises $30,000 and Shop Fittings $3,000.

Sept 09

Owen gave the business a Motor Vehicle valued at $5,000 to be used for delivering goods to customers.

Sept 11

Stock costing $80 plus $8 GST was taken by Owen's children.

Sept 14

Surplus shelving, valued at $50 plus $5 GST, was taken by Owen for storing tools in his home garage.

Required:GeneralJournalentriestorecordthesetransactions.

General Journal - Joshua OwenGJ1

Date

Particulars

Folio

Debit

Credit

N/A

N/A

N/A

N/A

N/A

Assets and liability contributed by owner at

commencement of business

N/A

N/A

N/A

Contribution of motor vehicle by the owner

N/A

N/A

N/A

N/A

Drawings of inventory by the owner for personal

use

N/A

N/A

N/A

N/A

Shop shelving taken by owner

N/A

The following questions are based on the material in Chapter 13:

15.Please find below aTrialBalancefromtheledgerofE.Norman,as well as Income Statement and Balance Sheet templates per its policies and procedures:

Required:(a)Complete the worksheet.

(b)PrepareanIncomeStatementforyearended30June.

(c)Prepare a Balance Sheet at 30June.

(d)Identify features of interim reports.

(a)

WORKSHEET

TrialBalance

Income Statement

Balance Sheet

Accounts

Debit

Credit

Debit

Credit

Debit

Credit

Building

31,483

Bank

1,900

AccountsReceivable

3,700

AccountsPayable

5,000

GSTCollected

2,600

GSTPaid

2,000

Sales

44,593

Cost of GoodsSold

21,118

OfficeEquipment

950

Inventory

13,832

DeliveryExpenses

475

Insurance

228

Electricity

532

Telephone

190

Salaries

2,470

Rates

238

DiscountAllowed

1,007

Rent

484

CommissionIncome

807

Capital(opening)

27,607

NetProfit

Totals

80,607

80,607

(b)E. Norman - Income Statement for the year ended 30 June

$

$

Sales

$

Less Cost of Goods Sold

$

Gross Profit

$

Add Other Revenue:

$

Total Operating Income

$

Total Operating Expenses:

$

$

$

$

$

$

$