FNSACC321 Assessment 3 Practical Tasks v4 (1)

.docx

School

Central Queensland University *

*We aren’t endorsed by this school

Course

FNSACC408

Subject

Accounting

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by PrivateSteel13374

ASSESSMENT FNSACC321 Process Financial Transactions and Extract Interim Reports Assessment 3 Practical Tasks Student Name Natasha Armstrong Student ID S0154967 This is an open-book, take-home assessment. It must be completed and submitted in week 9 of the intake. Participants can access the user guide FNSACC321 Process Financial Transactions and Extract Interim Reports, the additional reading material and MYOB Help. All work must be accurate. Errors will be indicated. Errors will be indicated. Participants must be able to produce work with no errors within two attempts. You will complete tasks and process transactions using MYOB Business. You are required to:  Verify supporting documentation  Prepare and process banking and petty cash documents  Prepare and process payable and received invoices  Prepare journals  Check ledger accounts  Prepare bank deposits and lodge flows  Finalise trial balance and interim reports Tools & Resources You will need:  Internet access  Access to a new online blank MYOB Business file  Filing system to save forms and reports Required files Download the following files from the Moodle assessment activity to use with this assessment.  Bright Spark BS 30 Sep 2022.QIF  Journal entries report for Tasks 7, 11 and 12 Scenario Bright Spark is owned by Sam Park, an electrician. Sam is a sole trader using subcontractors whenever needed. He has an ABN and is registered for GST reporting on an accrual basis. Sam performs the following services and follows these procedures: 1

Real Estate Maintenance, eg electrical installations, repairs and maintains rental houses and units managed by Mountain View Real Estate. A job card is kept by Sam and an invoice sent to Mountain View Real Estate on completion of the job. Domestic Maintenance, eg electrical installations and repairs and maintenance on houses and units. A handwritten invoice is always handed to the owner on completion of the job and payment is required on the completion of the job. Some domestic work is done for regular clients who are given a 30-day account. Sam employs a bookkeeper [You] to monitor the phone and look after the accounts of the business. The bookkeeper has permission to pay accounts using internet banking provided the owner has approved payments. Detailed extracts of Bright Spark Policies and Procedures are provided on the following pages. Sam purchases electrical materials from ABCD Electrical on credit. This is ABCD Electricals’ current price list. ABCD Electrical Price List – Trade Prices* [Extract] Item Number Item Name Selling Price Including GST GST or GST-Free Power Points PP0001 Single Power Point [Round] $6.05 GST PP0002 Single Power Point with Extra Switch [Round] $7.26 GST PP0003 Double Power Point [Square] $8.80 GST PP0004 Double Power Point Vertical [Round] $9.90 GST Circuit Breakers CB0001 IP56 MCB – Circuit Breaker $43.67 GST CB0002 IP58 MCB – Circuit Breaker $45.65 GST Brackets B0001 Flat Bracket STD 155 $.77 GST B0002 Flat Bracket STD 155 Hoz/Vert Fit $.88 GST * Any resemblance to actual products and prices is purely coincidental. 2

CHART OF ACCOUNTS (Extract) – BRIGHT SPARK ASSETS 1-1110 ANZ Business Account 1-1160 Petty Cash 1-1200 Accounts Receivable 1-2110 Tools & Equipment 1-2120 Accumulated Depreciation on Tools & Equipment 1-2510 Motor Vehicles 1-2520 Accumulated Depreciation on Motor Vehicles LIABILITIES 2-1140 Accounts Payable 2-1212 GST Balance 2-2105 Business Loan EQUITY 3-1000 Capital Contributed 3-2000 Drawings INCOME 4-1400 Sales 4-1450 Sales Returns and Allowances COST OF SALES 5-2000 Purchases 5-3000 Purchase Returns and Allowances EXPENSES 6-1120 Advertising & Marketing 6-1160 Bank Fees 6-1190 Cleaning 6-1400 Bad and Doubtful Debts 6-1470 Freight, Courier & Postage 6-1640 Merchant Fees 6-4280 Printing & Stationery 6-4460 Telephone & Internet OTHER INCOME 8-1000 Interest Received 3

Extract from Bright Spark Policies and Procedures Manual DOCUMENTATION PROCEDURES 1. All source documents are to be checked against computerised entries. 2. Where appropriate a copy of the source document should be uploaded to MYOB and/or filed in the Accounts filing cabinet. 3. All manual supplier invoices, adjustment notes, statements and receipts should be filed in the Accounts filing cabinet. 4. All manual customer invoices, credit notes, statements and remittance advices should be filed in the Accounts filing cabinet. BANKING PROCEDURES 1. Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to the Undeposited Funds account in MYOB. A receipt is written out or emailed for accounts paid. 2. On receipt of a cheque, the date, payee, amounts and signature must be checked. Any irregularities must be notified to the customer for reissue if necessary. 3. A transfer is made to the Business Account when the monies are deposited at the bank. 4. Two copies of the bank deposit slip must be taken to the bank to be stamped. A stamped copy must be returned and filed in the office as proof of lodgment. 5. Appropriate safety and security measures must be followed when banking cash and cheques. ACCOUNT RECONCILIATIONS 1. Reconciliations of the Business Account must be conducted upon receipt of the bank statement. 2. The Petty Cash account must be reconciled each time that a reimbursement is withdrawn from the Business Account. 3. Copies of the reconciliation reports must be stored with their source documents in arch lever folders in the Accounts filing cabinet. PETTY CASH 1. All entries over $20 must be authorized by Sam otherwise the Bookkeeper can authorize and process the transactions. 2. Vouchers are to be completed only when money is reimbursed to the purchaser. JOURNAL ENTRIES 1. All journals must be authorised by Sam with his initials at the side of the entry. 2. Entries are to be batched together and recorded at the end of month or end of quarter 4

Extract from Bright Spark Procedures Manual PURCHASING PROCEDURES 1 Sam personally purchases all electrical materials required by his business. A purchase order is rarely used because the materials are usually bought over the counter by Sam or online. Most materials are purchased from ABCD Electrical. 2 Business needs other than materials are usually purchased online. 3 At the time of purchase, a printed invoice is received listing all items and total cost of materials and supplies. All details are checked for accuracy. Should there be a discrepancy, a telephone call is made to the supplier and a new tax Invoice is requested. “ENTERED” date and initials must be recorded on the tax invoice when it is entered into MYOB. 4 Suppliers usually send a statement at the end of the month; however, some invoices are payable on invoice, not statement. 5 On receipt of the statement, the bookkeeper checks this statement with the invoices received at the time of the purchase. 6 Credit terms vary from supplier to supplier. No discounts are allowed by any suppliers. Any trade price discounts are provided at the time of purchase. SUPPLIER PAYMENT PROCEDURES 1 Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before it is entered into MYOB. 2 Statements received are reconciled with invoices received. 3 Expenses incurred by the bookkeeper, for example office supplies, must be first authorised by Sam. 4 At the end of the month, an Unpaid Bills report is printed to review the supplier transactions and identify any outstanding bills. 5 The Unpaid Bills report is reviewed by Sam who authorises which accounts are to be paid by the bookkeeper taking into consideration the cash flow situation. 6 Payments may also be made in response to supplier statements. Statements must be checked for accuracy and any due for payment should be presented to Sam for review and authorisation of payment. 7 The bookkeeper is authorised to pay accounts by BPAY, direct deposit or cheque. 8 The following security measures must be followed in relation to payments:  Only Sam and the bookkeeper have access to the banking password, and this is updated every month  Two-factor authentication is also used when accessing the bank account  The payment recipient must be verified before processing an electronic payment  Electronic payment receipts are printed to PDF and filed as proof of payment.  The business account cheque book is stored in a lockable cabinet  All cheques must be checked and signed by Sam and accompanied by a remittance slip. 5