Using the following information provided by the licensee of Sellit Real Estate Agency, you are required to:

Correctly complete the

1. Trust Cash Book
2. Trust Ledgers,
3. aTrial Balanceand prepare
4. aBankReconciliationas at 31 January 2019

You should note the following:

• The Trust Cash Book, Trust Ledger and Trust Trial Balance are to be completed so as to comply with the Regulations
• The nextTrust Receipt Number to be issued is number 800
• The nextTrust Cheque Number is number 300
• All trust receipts are banked on day of receipt
• All receipts and payments are by cheque unless otherwise stated
• The accounts in the Trust Ledger had the following balances as at 1st January 2019
• The first thing you need to do is to carry forward the balances below onto the relevant ledgers

110

Hope to Charity

$50,000

Credit

120

Juice to Mc Duff

$30,000

Credit

130

Mr Toolong

$10,000

Credit

140

Rental Bond Suspense

$8,000

Credit

Total Balance brought forward

$98,000

January 2019

Below is a pile of source documents, ie receipts, invoices for you to enter into the cash book. Thefirst thingto do is go through the list carefully and cross a line through any items that wouldNOT BE TRUST MONIES.

Then go through each item and note whether they areReceiptsorPaymentsand then put them in the corresponding page in the cash book.

1^st

• Received $25,000 (10% deposit) from Mr Rentalot - vendor is MrI Ownya

4^th

• Paid amount due to the Residential Tenancy Bond Authority - bonds to date - $8000

9^th

• Received $1500 rent from Mr. U. N. Lucky - Owner Toolong

10^th

• Paid to Mr Toolong's all funds in his account less the Property Management fee, which was $750. This is paid to us, the Agent
• Paid $2000 for Advertising sign on local Bus Stop

18^th

• The sale, Hope to Charity, was settled and the balance of the deposit was forwarded to the vendor's solicitor, Mr Grabitandrun, after deducting sales commission of $12,000.

20^th

• Received a cheque for $25,000 from B. Good, being 5% deposit for the purchase of property owned by Mr F.Lab. This has been cleared and is to be invested in an Interest Bearing Account the same day, with Westpac

21^st

• Owner, Mr L Lord, has a new tenant -Ms O Time who pays 2 weeks rent in advance with a personal cheque for $1000 and a bank cheque of $2000 for the bond. She signs the lease and moves into today.
• Purchased a company car for $15,000

23^rd

• Our bank statement shows a dishonoured cheque for $1000 from Ms O Time plus a dishonour fee of $35 has been charged to the business account

24^th

• Mrs O Time brings in $1035 in a bank cheque (think about where $35 might go - which ledger?)

31^st

• Obtained a new tenant Black - owner Toolong. The tenant paid with two cheques. One cheque was for 2 weeks rent which totalled $1600, and the other cheque was for bond of $3200 - this 2^ndcheque was made out Office Fair Trading - Renting Services
• Settled Toolongs's account for January 2019 after paying agents Pty Mgmt fees of $350.
• 31^stMr F lab property has settled and now we need to account to the vendor and purchaser for the 5% deposit. - Total Interest paid $220 to be shared equally with vendor and purchaser. Agents selling fee was $10,000

Question 1: Journalise transactions to the appropriate cashbook

Cash Receipts Book R1 Transaction Daily On Amount of Banking Rec Received Type Date Account :L. F.* Transaction # iType From Amount Of ie. $ rent/deposit $ *LF = Ledger Folio - in essence it means page number. In this column you put the LF number of the Ledger Account where you posted the transactionCash Payments Book P1 Date Cheque # Payee On Account Of L.F * Transaction Type Amount of Rates/water Transaction $ *LF = Ledger Folio - in essence it means page number. In this column you put the LF number of the Trust Account ledger where you posted thePost the transactions to the appropriate Ledger. A VV B Trust Ledgers First thing to do is go down the right-hand column and complete the LF numbers, we have done the first few for you. They run in sequential order of 10's Account Name: Hope LF 110 DATE Particulars LF DEBIT CREDIT BALANCE 1/1/2019 Balance Brought Forward 110 $50,000 Sales Commission P1 $12,000 $38,000 Settlement Grabitandrun P1 $38,000 Nil Account Name: O.Juice LF 120 DATE Particulars LF DEBIT CREDIT BALANCE Account Name: Toolong LF130 DATE Particulars LF DEBIT CREDIT BALANCEPost the transactions to the appropriate Ledger. AAV B I Account Name: Rental LF 140 Bond Suspense DATE | Particulars LF DEBIT CREDIT BALANCE Account Name: Mr I Ownya DATE Particulars LF DEBIT CREDIT BALANCE Account Name: Mr F Lab DATE Particulars LF DEBIT CREDIT BALANCEAccount Name: Mr L Lord LF 170 DATE Particulars LF DEBIT CREDIT BALANCE Account Name: Sundries Agents LF 180 Sundries DATE Particulars LF DEBIT CREDIT BALANCE TOTALS