Cl_TransReportLedgers_AE_Sk3of4 (2) (2)

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Skills Assessment 3 of 4 Criteria Unit code, name and release number FNSACC311 | Process financial transactions and extract interim reports FNSACC312 | Administer subsidiary accounts and ledgers Qualification/Course code, name and release number Teaching staff/student to select the correct qualification the student is enrolled in from the below dropdown list: Student details Student number 881074465 Student name Wyatt Frendo Assessment Declaration Note: If you are an online student, you will be required to complete this declaration on the TAFE NSW online learning platform when you upload your assessment. This assessment is my original work and has not been: plagiarised or copied from any source without providing due acknowledgement. written for me by any other person except where such collaboration has been authorised by the Teacher/Assessor concerned. Student signature and date Wfrendo 21/11/23 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 1 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Version: 20210816 Date created: 3 September 2020 Date modified: 16 August 2021 © 2021 TAFE NSW RTO Provider Number 90003 | CRICOS Provider Code: 00591E This assessment can be found in the: Learning Bank The contents in this document are copyright © TAFE NSW 2021 and should not be reproduced without the permission of TAFE NSW. Information contained in this document is correct at the time of printing: 11 February 2024. For current information please refer to our website or your Teacher/Assessor as appropriate. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 2 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Assessment instructions Table 1 Assessment instructions Assessment details Instructions Assessment overview The aim of this assessment is to assess your skills in: Processing financial transactions and extracting interim reports Administering subsidiary accounts and ledgers Assessment Event number 3 of 4 Instructions for this assessment This is a skill based assessment and will be assessing you on your ability to demonstrate skills required in both of the units listed above. This assessment is in one part: Part 1 Practical tasks And is supported by: Source documents - Cl_TransReportLedgers_AE_Sk3of4_Appx_SourceDocuments Finance Policy and Procedure Manual of Plan2go Note : This assessment may contain links to external resources. If a link does not work, copy and paste the URL directly into your browser. Submission instructions On completion of this assessment, you are required to submit it to your Teacher/Assessor for marking. Where possible, submission and upload of all required assessment files should be via the TAFE NSW online learning platform. It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment. What do I need to do to achieve a satisfactory To achieve a satisfactory result for this assessment you must be available at the arranged time to complete all the assessment criteria as outlined in the assessment instructions. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 3 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Assessment details Instructions result? If a resit is required to achieve a satisfactory result it will be conducted at an agreed time after a suitable revision period. What do I need to provide? TAFE NSW student account username and password. If you do not know your username and password, contact your campus or service centre on 131601. Access to: office equipment including a calculator computer with relevant software internet access student workbook, training materials and other research you have completed What the assessor will provide? Access to this assessment and learning resources, including the student workbook and any supporting documents or links. Source documents Cl_TransReportLedgers_AE_Sk3of4_Appx_SourceDocuments (https://share.tafensw.edu.au/share/items/b4f1a61a-3674-4ca1-8035- 3921df048491/0/?attachment.uuid=c6c37279-666b-4609-a825- dc4d2b0cf862) Finance Policy and Procedure Manual of Plan2go (https://share.tafensw.edu.au/share/items/b4f1a61a-3674-4ca1-8035- 3921df048491/0/?attachment.uuid=52147ca1-c011-4d7f-9986- 0a2d4ce8e11d) Instructions to access TAFE NSW online learning platform (e.g. TAFE Digital Campus, Moodle) and or Microsoft teams or Adobe Connect if required. Due date Time allowed Venue The assessment must be submitted by the due date noted on the Unit Assessment Guide or on the learning platform. 3 hours (indicative only) TAFE Digital Campus/ TAFE NSW Moodle Assessment In accordance with the TAFE NSW policy Manage Assessment Appeals, Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 4 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Assessment details Instructions feedback, review or appeals all students have the right to appeal an assessment decision in relation to how the assessment was conducted and the outcome of the assessment. Appeals must be lodged within 14 working days of the formal notification of the result of the assessment. If you would like to request a review of your results or if you have any concerns about your results, contact your Teacher or Head Teacher. If they are unavailable, contact the Student Administration Officer. Specific task instructions The instructions and the criteria in the tasks and activities below will be used by the Teacher/Assessor to determine whether the tasks and activities have been satisfactorily completed by the student. Use these instructions and criteria to ensure the student demonstrates the required skills and knowledge. If this assessment requires the student to record information, the Teacher/Assessor will provide the appropriate document/template. The structure of this assessment is as follows:- Complete the Practical Tasks Complete student declaration and upload completed assessment to Learning Platform for marking. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 5 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Part 1: Practical Tasks You will need to refer to the Finance Policy and Procedure Manual of Plan2go Trading as Piper Retail Services to complete some Tasks in this assessment. This document reference is Finance Policy and Procedure Manual of Plan2go . Once completed you will need to submit this assessment and the tasks and activities you are required to complete to your assessor for marking as instructed. Task 1: Prepare Journal Entries Refer to the Finance Policy and Procedure Manual of PLAN2GO trading as Piper Retail Services Section 11 Accounting requirements and financial reporting to complete this Task in accordance with organisational requirements. Required Using a range of industry-accepted accounting conventions, processes and procedures, perform the following: Refer to the Source documents provided to you by the Finance Assistant for the month of June 20X1. This document reference is Cl_TransReportLedgers_AE_Sk3of4_Appx_SourceDocuments a) CHECK and VERIFY the transactions in accordance with policies and procedures for accuracy, consistency and completeness. Correct any invoices according to the company procedure. b) ANALYSE the source documents to determine which journal they will be entered on. (Sales, purchases, cash receipts, cash payments or general journal). c) PREPARE the sales, purchases, cash receipts, cash payments and general journals according to the organisational policies and procedures and within the specified timeframe. Enter the journal entries on the templates provided. d) JOURNAL AUTHORISATION : Initial each journal as the preparer and submit for processing with the required authorisation e) FILING : File documents as per organisational policy. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 6 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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On the following pages, you will find Templates for the various journals you will need to record the transactions in: General Journal Cash Receipts Journal Cash Payments Journal Sales Journal Purchases Journal Use the chart of accounts for Plan2go Trading as Piper Retail Services provided to help you identify the correct account for Folio References. If you require additional lines in the journals, just insert them. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 7 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Chart of Accounts of PLAN2GO Trading as Piper Retail Services Account Number Account Name ASSETS Current Assets 1-1001 Accounts Receivable 1-1002 Bank 1-1003 GST Paid Non Current Assets 1-2001 Computers & Printers 1-2002 Fixtures & Fittings 1-2003 Office Furniture LIABILITIES Current Liabilities 2-1001 Accounts Payable 2-1002 GST Collected Non Current Liabilities 2-2001 Long Term Loan (TAFE Bank) PROPRIETORSHIP 3-1001 Capital 3-1002 Drawings INCOME 4-1001 Equipment Hire 4-1002 Interest Income Cost of Sales 5-1001 Diesel, Oil, Lubricant 5-1002 Freight EXPENSEs 6-1001 Repairs and Maintenance 6-1002 Photocopier charges 6-1003 Subscriptions 6-1004 Cleaning 6-1005 Salaries & Wages 6-1006 Bank fees and charges 6-1007 Rent 6-1009 Mobile & Internet Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 8 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
a) Invoice Correction Blank Tax Invoice for student to complete: Piper Retail Services TAX INVOICE Replacement 127 Piper Street Kingsway NSW 2999 DATE: 5/6/x1 ABN: 70 123 456 789 INVOICE # 5021 BILL TO: Star Traders Pty Ltd Customer No: STR001 225 Roe Street Kellyway NSW 2185 DESCRIPTION HOURS RATE AMOUNT Cleaning Equipment Hire 6 180 1080.00 SUBTOTAL $1080.00 FREIGHT 0.00 SUBTOTAL $1080.00 10% GST $108.00 TOTAL $1188.00 Please make all cheques payable to Piper Retail Services Total due in 30 days. Overdue accounts subject to a service charge of 1% per month. Discount of 3.5% for payment prior to due date Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 9 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4 Authorisation:………………………………. WFRENDO
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Refer to the organisational Finance policy and procedure manual. What is the timeframe for preparing customer invoices and what are the compliance requirements? Your answer should be between 5 and 10 words Immediately after following delivery of service or material, no later than within 5 working days after month end. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 10 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
b) & c) Prepare journals within the required timeframe General Journal of Piper Retail Services GJ08 Date Details Folio Debit $ Credit $ 15/6/x1 Drawings - Oil and lubricant taken by owner for own use 3-1002 55 15/6/x1 Diesel, Oil, Lubricant - Oil and lubricant taken by owner for own use 5-1001 50 15/6/x1 GST Paid – Oil and lubricant taken by owner for own use 1-1003 5 30/6/x1 Bank - Input error for EST Canoe club account 1-1002 295 30/6/x1 Accounts receivable – Est canoe club - Input error for EST canoe Club account 1-1001 295 30/6/x1 Bank - Input error for EST Canoe club account 1-1002 795 30/6/x1 Accounts receivable – EST canoe club - Input error for EST canoe club account 1-1001 795 Authorised for processing…………WF……………… Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 11 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Piper Retail Services SALES JOURNAL SJ08 Date Inv No Acc Rec Folio A/C Rec Equipment Hire GST Collected 1/6/x1 5020 Accounts Receivable - EST Canoe Club 1-1001 $165.00 $150.00 $15.00 5/6/x1 5021 Accounts Receivable - Star Traders Pty Ltd 1-1001 $1188.00 $1080.00 $108.00 7/6/x1 5022 Accounts Receivable - Ted’s Tyres Pty Ltd 1-1001 $528.00 $480.00 $48.00 10/6/x1 5023 Accounts Receivable - Jack’s Garage 1-1001 $1419.00 $1290.00 $129.00 15/6/x1 5024 Accounts Receivable - Ted’s Tyres Pty Ltd 1-1001 $660.00 $600.00 $60.00 29/6/x1 5025 Accounts Receivable - Jack’s Garage 1-1001 $594.00 $540.00 $54.00 16/6/x1 CN010 Accounts Receivable - Jack’s Garage 1-1001 -$165.00 -$150.00 -$15.00 1-1001 4-1001 2-1002 4389 3990 399 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 12 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4 Authorised for processing:………WF…………………
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Piper Retail Services PURCHASES JOURNAL PJ08 Date Inv No Acc Pay Folio A/C Pay Diesel Oil Lubricant Freight Repairs & Photocopy Cleaning Subscriptions GST           Maintenance Expenses Paid 3/6/x1 549 Accounts Payable - HP Copy Services 2-1001 $145.86 $89.00 $43.60 $13.26 5/6/x1 94386 Accounts Payable - Diamond heart fuel supplies 2-1001 $418.00 $360.00 $20.00 $38.00 7/6/x1 C00143 Accounts Payable - Diamond heart fuel supplies 2-1001 -$22.00 -$20.00 -$2.00 12/6/x1 1457 Accounts Payable - YZ Machinery Supplies 2-1001 $704.00 $640.00 $64.00 15/6/x1 94532 Accounts Payable - Diamond heart fuel supplies 2-1001 $401.50 $345.00 $20.00 $36.50 18/6/x1 121189 Accounts Payable - Spotless Cleaning 2-1001 $440.00 $400.00 $40.00 25/6/x1 876114 Accounts Payable - APS Publications 2-1001 $330.00 $300.00 $30.00 2-1001 5-1001 5-1002 6-1001 6-1002 6-1004 6-1004 1-1003 2417.36 685 40 729 43.60 400 300 219.76 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 13 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4 Authorised for processing:………WF…………………
Piper Retail Services CASH RECEIPTS JOURNAL CR08 Date Rec No Drawer Folio Bank Acc Equipment Interest GST Rec Hire Rcd Collected 2/6/x1 0148 Equipment hire - Cash Sale 4- 1001 $165.00 $150.00 $15.00 2/6/x1 0149 Equipment hire - Jacks Garage 4- 1001 $1200 1200 $1090.91 4/6/x1 0150 Equipment hire - Cash Sale 4- 1001 $396 $360.00 $36.00 12/6/x1 0151 Equipment hire - Ted’s Tyres Pty Ltd 4- 1001 $1287 $1287 $1170.00 15/6/x1 0152 Equipment hire - EST Canoe Club 4- 1001 $440.00 $440.00 $400.00 20/6/x1 0153 Equipment hire - Ted’s Tyres Pty Ltd 4- 1001 $2200.00 $2200.00 $2000 22/6/x1 0154 Equipment hire - Cash sale 4- 1001 $528.00 $480.00 $48.00 25/6/x1 0155 Equipment hire - Jacks garage 4- 1001 $990.00 $990.00 $900.00 30/6/x1 Interna l memo Interest income 4- 1002 8.90 8.90 1-1002 1-1001 4-1001 4-1002 2-1002 7214.90 6117 6550.91 8.90 99 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 14 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 15 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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CASH PAYMENTS JOURNAL CP08 Date Chq No Payee Folio Bank Acc Rent Diesel Oil Mobile & Wages Sundry GST           Pay Lubricant Internet Paid 1/6/x1 807126 Rent - Raine & Horne 6-1007 $880.00 $800.00 $80.00 2/6/x1 807127 Accounts payable - YZ Machinery supplies 2-1001 872 $792.73 4/6/x1 807128 Accounts payable - Dimond Head Fuel Supplies 2-1001 $695 631.82 5/6/x1 807129 Accounts payable - Dimond Head Fuel Supplies 5-1001 $55.00 $50.00 $5.00 10/6/x1 Salaries and wages - Cash - wages 6-1005 $2870.00 $2609.09 16/6/x1 Mobile and internet - VITell 6-1009 $187.00 $170.00 $17.00 22/6/x1 807130 Accounts payavle - HP Copy Service 2-1001 $145.86 $132.60 26/6/x1 87131 DRAWINGS - Cash - Drawings 3-1002 $200.00 181.82 28/6/x1 807132 Accounts payable - Spotless Cleaning 2-1001 $440.00 $400.00 30/6/x1 Bank fee Bank fees and charges 11 11 1-1002 2-1001 6-1007 5-1001 6-1009 6-1005 6-1006 1-1003 6355.86 1957.15 800 50 170 2609.09 192.82 102 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 16 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 17 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
Refer to the Finance Policy and Procedure Manual. What is the organisation’s timeframe for processing the journals and finalising monthly accounts? Your answer should be between 5 and 10 words Within 3 business days of the end of the month d) Journal authorisation After you complete and approve the journal, what is the next authorisation level prior to processing? Your answer should be between 2 and 5 words Senior accountant e) Filing Refer to the Finance Policy & Procedure Manual, how are invoices and supporting documentation filed? What is the timeframe for retaining invoices and supporting documentation? Your answer should be between 10 and 30 words grouped by type and filed in date order in the files for the month Retain records for 7 years Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 18 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Task 2: Banking Banking is to be completed in accordance with organisational policy and procedure. Refer to Finance Policy and Procedure Manual Section 2 Bank account policy . Bank Account details of Piper Retail Services are: Account name: Piper Retail Service Trading Account BSB: 024 442 Account No: 654987 Required: Using a range of industry-accepted accounting conventions, processes and procedures, perform the following: a) Using the information in TASK 1, prepare a bank deposit using the appropriate deposit facility for customer receipts on 2/6/x1 to 4/6/x1. Assume Customer Bank Account details are Big Bank Piermont Branch TAFE BANK Account Identification Number 024 442 654987 Please fill in the following particulars of cheques; proceeds will not be available until cleared DRAWER Bank Branch Amount 1 Jacks Garage Big Bank Piermont Branch 1200.00 2 3 4 5 6 7 8 Carried Forward Sub Total 1200.00 Paid in by –Signature DATE 6/6/x1 DEPOSIT JONES STREETS KINGSWAY NSW DATE 6/6/x1 TELLER USE Notes $560 Account Identification Number Teller $100 5 Coins $1 024 442 654987 $50 1 Account Name $20 0 Cheques $1200.00 Piper Retail Services $10 1 TOTAL $1761.00 ABN 70 123 456 789 $5 0 TOTAL $561 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 19 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
b) Refer to the Finance Policy & Procedure Manual. What proof of lodgement will you need to keep for the above deposit? File proof of lodgement in accordance with the Finance Policy & Procedure Manual (provide file name). Your answer should be between 10 and 20 words. Banked Stamped Deposit slips 20x1_July_ProofOfLodgement_06July c) You have been asked by your supervisor to bank funds for the week as the employee responsible for banking is away. As you have not done this role before, what steps will you take to determine the organisational policy and industry requirements for banking and apply these to bank funds in a safe and secure manner Your answer should be between 10 and 20 words You can use the website below as a reference: Safety: avoid quiet streets and alleyways. Don’t dress up. Use security bags. Security: drive rather than walk. Tell bank expected arrival time and fellow employee expected return time. Vary route and time. As per policy and procedure manual 2.3 banking arrangements can me made or changed by the senior accountant Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 20 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
d) APS Publications requires payment of account as per Term of Payment (Refer to Tax Invoice in the Source documents). Prepare electronic payment to a supplier in accordance with payment terms. TAFE BANK INTERNET PORTAL PAYEE DETAILS Payee Name APS Publications Payee’s Bank Name Big Bank Payee’s Bank BSB number 032 116 Payee’s Bank Account Number 2136548 Payee’s Account Name APS Publications Trading Description ( this will appear on the statement) Invoice# 876114 PAYER DETAILS Account Type Trading account Account Number 654987 Account Name Piper Retail Service Trading Account Amount $330 Date for Payment 2/7/x1 Payment Frequency (Pay once or Recurring) Once Confirm Details (Yes/No) Yes Authorisation Wyatt Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 21 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Task 3: Subsidiary Accounts and Ledgers – Debtors Management Task 3: Subsidiary Accounts and Ledgers – Debtors Management Refer to the Finance Policy and Procedure Manual of PLAN2GO trading as Piper Retail Services Section 11 Accounting requirements and financial reporting to complete this Task in accordance with organisational requirements Piper Retail Services customer, Jack’s Garage is a regular client, hiring equipment. Piper invoices Jack’s Garage as they provide their services. Jack’s Garage usually pays for each month's invoices on the first or second day of the following month. As at 1st Apr 20X1 Jack’s Garage owes Piper Retail Services $1,452.00, which it pays on 2nd May 20X1. On the 2nd June 20X1, Jack’s Garage pays Piper retail Services $1 200 for hire services provided in May. This amount does not agree with Piper Retail Services accounting record for Jack’s Garage for the same period. Below is Jack’s Garage remittance advice which shows how payment was calculated and an extract from Piper Retail accounts receivable ledger for Jack’s Garage, showing a balance of $582.00 as at 2nd June 20X1 Jack’s Garage Remittance Advice To: Piper Retail Services Account No: PPR002 Date Particulars Debit Credit Balance 20X1 $ $ $ Apr 1 Balance brought forward 1,452.00 1,452.00 20X1 May 2 Cheque 7382 – Payment to Piper Retail 1,452.00 0.00 6 Purchase invoice 4891 528.00 528.00 9 Purchase invoice 4932 495.00 1,023.00 11 Credit note CN 008 165.00 858.00 20 Purchase invoice 5001 198.00 1,056.00 27 Purchase invoice 5012 189.00 1,245.00 Discount for early payment 45.00 1,200.00 31 Cheque 7485 Payment to Piper Retail 1,200.00 0.00 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 22 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Piper Retail Services Accounts Receivable Subsidiary Ledger as at 2 nd June 20X1 Accounts Receivable Jack’s Garage Folio 1-104 Date Particulars Folio Debit Credit Balance 20X1 $ $ 1 Apr Opening Balance 1,452.00 2/5 Payment Received CR5 1,452.00 0.00 6/5 Sale invoice 4891 SJ5 528.00 528.00 8/5 Sale invoice 4932 SJ5 495.00 1 023.00 10/5 Sales credit CN 008 SJ5 165.00 858.00 19/5 Sales invoice 5001 SJ5 198.00 1,056.00 21/5 Sales invoice 5012 SJ5 198.00 1,254.00 31/5 Sales invoice 5019 SJ5 528.00 1,782.00 2/6 Payment received Chq 7485 CR5 1,200.00 582.00 Assume Piper Retail Services accounts receivable ledger for Jack’s Garage is correct if there is a discrepancy in any of the figures. Required a) Prepare a reconciliation of the Subsidiary ledger for Jack’s Garage (balance $582.00 as at 2nd June 20X1) to the Remittance advice balance of $0.00. Ensure that you check customer receipts for accuracy, consistency and completeness. Jack’s Garage - Accounts Receivable Reconciliation as at 2 June 20X1 $ $ $ Opening balance 582 Invoice 5019 528 54 Discounts 45 9 Invoice 5012 error 9 0 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 23 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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b) What action do you need to take as the Accounts Receivable clerk to investigate each discrepancy between the customer’s record and company record? Your answer should be between 10 and 30 words Get in contact with Jacks Garage regarding Purchase 5012 as there was an underpayment made. First contact – phone or email – keep record of conversation or email. Invoice 5019 has not been paid yet Discounts have been applied yet not accounted for Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 24 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Task 4: Subsidiary Accounts and Ledgers – Bad Debts Management Refer to the Finance Policy and Procedure Manual of PLAN2GO trading as Piper Retail Services Section 10 Customer debt collection policy for this task. Assume the date for this task is 31 May 20X1 . Piper Retail Services Accounts Receivable Subsidiary Ledger for Sunny Cleaning Service Extract Accounts Receivable Sunny Cleaning Service Folio 1-106 Date Particulars Folio Debit Credit Balance 20X1 $ $ $ 20X1 Jan 15 Sales invoice 4217 SJ1 590.00 590.00 Dr 20X1 Feb 20 Sales credit CN02 SJ2 45.00 545.00 Dr 27 Sales invoice 4243 SJ2 165.00 710.00Dr 20X1 Mar 1 Sales invoice 4252 SJ3 785.00 1,495.00 Dr 5 Bank rec no: 043 CR3 165.00 1,330.00Dr 20 Sales invoice 4297 SJ3 485.00 1,815.00Dr 20X1 Apr 15 Bank rec no: 048 CR4 785.00 1,030.00 Dr 20X1 Apr 18 Cheque dishonour – Cheque 00215 CR4 785.00 1,815.00 Dr Required Using a range of industry-accepted accounting conventions, processes and procedures, perform the following: a) Review the debtor’s ledger of Sunny Cleaning Services and complete the aged debtor’s analysis report for Piper Retail Services as at 31 May 20X1. Piper Retail Services Aged Debtors Report as at 31 May 20X1 Account name Account Ref Balance $ Current (May) $ 30 Days (April) $ 60 Days (March) $ 90 Days and over $ EST Canoe Club 1-101 1,995.00 165.00 630.00 1,200.00 Star Traders 1-102 1,050.00 1,050.00 Ted’s Tyres Pty Ltd 1-103 2,200.00 2,200.00 Jack’s Garage 1-104 1,782.00 1,782.00 Sunny Cleaning Service 1-106 1815 0 1270 545 Total 8842 4147 1680 2470 545 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 25 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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b) Review the above report and identify customers in default of trading terms according to organisational trading policy. Outline debt recovery type and debt recovery plan (if applicable) for each customer based on their balances in the aged debtors' report and notes in the overdue customer record. Refer to the organisation Finance Policy and Procedure Manual. Your answer should be between 80 and 100 words. Piper Retail Service Debtor Action Report as at 31 May, 20X1 Account name Action required EST Canoe Club Direct contact – 60 days or more – should have sent a second reminder notice now – secure a payment date and put services on hold Star Traders Overdue reminder notice – try calling, if cant get through – send 1 st overdue reminder notice via email or mail and make note of any attempt to contact Ted’s Tyres Pty Ltd no action is needed as everything is current Jack’s Garaged No action is needed as everything is current Sunny Cleaning Service Final notice is to be issued – this will be the 3 rd reminder notice – the final notice is to be sent via email or main Sunny Cleaning Service – Customer Collection Notes 28/3 – rang client regarding invoice 4217 for $590.00 . Client advised cannot find the invoice. 10/4 – rang client regarding outstanding account – client advised invoice for February balance is still missing. Promised payment for remaining March account balance. 3/5 – rang client regarding outstanding account and bounced cheque – client did not answer. 8/5 – sent client 1 st overdue reminder notice by email – no response 15/5 – rang client regarding payment for outstanding account – again no answer 15/5 - sent client overdue reminder notice by email – email address bounced Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 26 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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c) Construct an email to Start Traders about the outstanding debt and request payment. To: StarTraders@ymail.com From: AccountsReceivable@PiperRetail Date: (Insert current date) Subject: Star Traders Account Dear Star Traders, Please be advised of this formal notice of an overdue account with Piper Retail Service. Please find attached the outstanding invoices for reference. Your account is now overdue with an amount of $1050.00 outstanding for 30+ days. Please let us know if there are any issues with payment or the outstanding invoices, and please advise an expected payment date. All the best. Thanks and kind regards, d) Review previous activities and communication with Sunny Cleaning Services and comment on the adequacy of follow-up procedures to recover debt. What follow up procedure need to be implemented to ensure recovery of debt? Develop a plan to pursue debt recovery to comply with organisational policy for recommendation to Senior Accountant about the debt owed by Sunny Cleaning Service ? Use the Debt Recovery Plan Template to prepare a report to Senior Accountant for approval recommending a course of action. Your answer should be between 50-80 words. First contact did not ask when they will receive payment – assumed that client has been sent invoice – first contact should have been sooner. Did not advise how many people they attempted to contact – did not get a date Couldn’t get ahold of them – emailed but didn’t advise that the account is to be put on hold Send mail too Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 27 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Debt Recovery Plan - Report to Senior Accountant Debt Recovery Plan (insert Customer Name) Information Details Customer name Suny Cleaning Service Amount owning $1815 No days in arrears 60 days $1,270 and 90 days + $545 Action to be taken (specify type of contact) Final notice to be next action – sent by email or mail Debt recovery type Debt collection not financially effective Recommended action After final notice Close account – write off bad debt – do not engage in business with client in future Senior Accountant approval Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 28 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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e) In accordance with the policies and procedures, write an email to distribute the Aged Debtors Report, Action Report and Debt Recovery Plan to appropriate personnel and file in accordance with company policy and procedure. Your answer should be between 10 to 20 words. To: From: AccountsReceivable@PiperRetail Date: (Insert current date) Subject: Aged Debtors Report and Action Report Dear _____, Please find the attached files. Advise ASAP if cannot access or open files, and if you have any queries. Thanks and kind regards, Filed in _______20x1_Month_AccountsReceivable_StarTraders _________________________________ f) Prepare the general journal entries required to make an Allowance for Doubtful Debts. Refer to the company’s policy on Doubtful Debts to calculate the amount of the allowance. Refer to Finance Policy & Procedure Manual Section 11.2.2 Aged Accounts. (Show calculations, round to the nearest dollar) GJ…. Date Details Folio Debit $ Credit $ xx.xx.xx Doubtful debt $452 xx.xx.xx Allowance for Doubtful debt 452 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 29 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 30 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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g) Prepare the general journal entries required at the end of the period (30 June 20X1) to write off the debt owed by Sunny Cleaning Service. The client has declared bankruptcy and cannot be contacted. GJ….. Date Details Folio Debit $ Credit $ xx.xx.xx Bad debts 1650 xx.xx.xx Gst collected 165 xx.xx.xx Accounts receivable bad debts write off 1815 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 31 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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TAX INVOICE No 3250 Plant Supplies Pty Ltd Maryville ABN 89 667 998 NSW 2076 Date: 27/5/X0 To: Connelly Pty Ltd Task 5: Subsidiary Accounts and Ledgers – Creditors Management Connelly Pty Ltd placed a Purchase Order with a new supplier Plant Supplies Pty Ltd for gardening supplies as below. Prices quoted are excluding GST. You, as the Accounts payable officer at Connelly Pty Ltd are required to process the invoice and arrange payment to the supplier. Connelly Pty Ltd 111 Easy St BigTown 2995 ABN 61 789 456 321 Order Form Purchase Order No: PR002 To: Plant Supplies Maryville NSW 2076 Date: 25 May 20X0 Quantity Description Unit cost ($) Total cost ($) 250 units Plant Boxes 2.50 625.00 500 units Seedlings 1.54 770.00 20 bags Potting Mixture 8.50 170.00 Goods were received from the supplier as per the above order by the warehouse staff and matched to the delivery docket for accuracy and quality. Delivery was correct. Plant Supplies Pty Ltd sent a Tax Invoice (below) to Connelly Pty Ltd Accounts Payable department for payment. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 32 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Required: a) Before paying the tax invoice, review the Tax Invoice for accuracy and compliance with requirements. Identify any errors on the Tax Invoice, ensure that all goods were received and the correct amount charged. Your answer should be between 20 to 30 words. Plant boxes – correct amount – wrong price Seedlings – correct amount – correct price Potting mixture – wrong amount – correct price no payment information for EFT payment No contact information no addresses b) What steps will you take to rectify any errors? Your answer should be between 30 to 50 words. Kindly get in contact with plant supplies and querie the invoice – note the amount ordered and how it matches the amount supplied, however the invoice seems to have errors. They will issue a credit. Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 33 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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TAX ADJUSTMENT (Credit Note) No CN50 Plant Supplies Pty Ltd Maryville ABN 89 667 998 887 NSW 2076 Date: 29/5/X0 To: Connelly Pty Ltd 111 Easy St BigTown 2995 ABN 61 789 456 321 Quantity Description Price Total 250 units -$1.00/unit -$250.00 c) Prepare the general journal entries to record the original Tax Invoice and Tax Adjustment received from the supplier (see below). Connelly Pty Ltd GJ…. Date Details Folio Debit $ Credit $ Gardening supplies - COGS 1900 GST paid 190 Accounts payable – plant supplies Pty Ltd 2090 Accounts payavle – Plant supplies pty ltd 368.50 Gardening supplies COGS 335 Gst paid 33.5 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 34 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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d) The following Statement was received at the end of the month from Plant Supplies Pty Ltd. Check the statement for accuracy for tax invoices and tax adjustments received by Connelly Pty Ltd. (Assume Tax Invoices and Tax Adjustments dated 9/5/X0 to 11/5/X0 are correct). Prepare a reconciliation of the Subsidiary ledger for Plant Supplies Pty Ltd. Supplier Statement Plant Supplies Pty Ltd STATEMENT ABN 89 667 998 887 for the month of Maryville May 20X0 NSW 2076 TO: Connelly Pty Ltd 111 Easy Street BigTown NSW 2995 Terms : 30 days from Invoice Date Date Reference Description Charges Payments/ Adjustments Balance 1/05/20X0 Balance from previous month $236.00 8/05/20X0 Chq 00203 Payment $224.20 $11.80 9/05/20X0 Inv 3222 Sales $618.70 $630.50 10/05/20X0 Inv 3236 Sales $896.50 $1,527.00 11/05/20X0 Adj CN41 Adjustment - Returns $33.00 $1,494.00 25/05/20X0 Inv 3250 Sales $2,090.00 $3,584.00 29/05/20X0 Adj CN50 Adjustment $330.00 $3,254.00 > 60 days Overdue 30 days Overdue Current Total Amount Owing $11.80 $3,242.20 $3,254.00 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 35 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Extract of Connelly Pty Ltd Accounts Payable Subsidiary Ledger as at 31nd May 20X0 Accounts Payable – Plant Supplies Pty Ltd Folio 215-10 Date Particulars Folio Debit Credit Balance 20X0 $ $ $ 1 May Opening Balance 236.00 4/5 Payment of April Balance Chq 00203 CP5 224.20 11.80 4/5 Discount CP5 11.80 0.00 10/5 Purchase Inv 3222 PJ5 618.70 618.70 12/5 Purchase Inv 3236 PJ5 896.50 1 515.20 13/5 Purchase Adj CN41 PJ5 33.00 1 482.20 25/5 Purchase Inv 3250 PJ5 2 090.00 3 572.20 31/5 Purchase Adj CN50 PJ5 368.50 3203.70 Plant Supplies Pty Ltd - Accounts Payable Reconciliation as at 31 May 20X0 $ $ Balance owing as per supplier statement (3254) Less adjustment on supplier statement (CN50) (38.50) Less discounts missing from supplier statement (11.80) Balance as per sub ledger (3203.70) Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 36 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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e) Complete a short report to the Senior Accountant to identify any discrepancies a seek authorisation for payment. Your answer should be between 20 to 40 words. Accounts Payable Report To: Senior Accountant From: (Insert Your Name) Date: (Insert current date) Subject: Plant Supplies Pty Ltd Supplier Statement Discrepancies and recommended action: Discount not added to supplier statement $11.80 Adjustment on supplier statement differing from credit note issued $38.50 Bring to suppliers attention and request an amended statement. Senior Accountant Authorisation: f) Prepare a cheque requisition and cheque to pay the supplier for the purchase made on 25 May to comply with organisation policy. CHEQUE REQUISITION Cheque payable to: Plant Supplies Pty Ltd Cheque No: 0216 Date: 10-06-x0 Details Amount Invoices 3250 $2090 Cn50 ($368.5) 1721.50 AMOUNT TO BE DRAWN: 1721.50 APPROVED BY: Date: (date) Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 37 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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Date: 10/06/x0 To: plant supplies For: $1721.50 This cheque: 000216 g) Prepare the general journal entries to record the payment GJ…. Date Details Folio Debit $ Credit $ 10/06/x0 Accounts payable – Plant supplies pty ltd Paid supplier chq000216 1721.50 10/06/x0 Bank account 1721.50 Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 38 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4 TAFE BANK 00216 BigTown Branch Date: 10/6/X0 Pay_ -----Plant supplies------------------------ or bearer The sum of --one thousand, seven hundred and twenty one dollars and fifty cents--------------- $1721.50 Connelly Pty Ltd 000216 024 442 654987 Signature
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Assessment feedback NOTE: This section must have the Teacher/Assessor and student signature to complete the feedback. If you are submitting through the TAFE NSW online learning platform, your Teacher/Assessor will give you feedback via the platform. Assessment outcome Satisfactory Unsatisfactory Assessor feedback Has the assessment declaration for this assessment event been signed and dated by the student? Are you assured that the evidence presented for assessment is the student’s own work? Was reasonable adjustment in place for this assessment event? If yes, ensure it is detailed on the assessment document. Comments : Assessor name, signature and date Student acknowledgement of assessment outcome Would you like to make any comments about this assessment? Student name, signature and date Document title: Cl_TransReportLedgers_AE_Sk3of4 Page 39 of 39 Resource ID: PRJ0059792 _Cl_TransReportLedgers_AE_Sk3of4
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