a step by step approach to process financial … 2-77...© software publications pty ltd, 2013 1 a...

© Software Publications Pty Ltd, 2013 1

A step by step approach to Process Financial Transactions and Extract Interim

Reports (manually)

© Software Publications Pty Ltd, June 2015 All rights reserved. No part of this material may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying or by information retrieval systems) without permission in writing from Software Publications.

Written by:

Marian Brown, Dip T (Commerce), MICB BAS Agent Cert IV Training and Assessment, Cert IV in Financial Services (Bookkeeping) MYOB Certified Consultant since 1995 MYOB Accredited Author, MYOB Accredited Trainer, ABN Tax Client Manager

Revised by:

Lyn Joyce, Dip T (Commerce), B Ed Cert IV Training and Assessment Secondary and tertiary teacher for 40 years and Marian Brown

Publishers:

Software Publications Pty Ltd (ABN 75078026150) Head Office – Sydney Unit 10, 171 Gibbes Street Chatswood NSW 2067 www.softwarepublications.com.au

ISBN 978-1-922012-77-7

FNSACC301A Process financial transactions and extract interim reports (manually) 2013 edition

SUITABLE

FOR

FNSACC301

2 © Software Publications Pty Ltd, 2013

Limitations of Liability:

This material is designed to provide basic information on how to enter transactions and extract interim reports. Because business circumstances can vary greatly, the material is not designed to provide specific GST or business advice for particular circumstances. Also, because aspects of the GST are complex and detailed, the material is not designed to comprehensively cover all aspects of the GST. Further, the laws implementing GST and rulings and decisions under those laws may change. Before you rely on this material for any important matter for your business, you should make your own inquiries about whether the material is relevant and still current, and whether it deals accurately and completely with that particular matter; and as appropriate, seek professional advice relevant to that particular matter. This information is for learning purposes only and is not to be taken as a substitute for professional advice. Consequently Software Publications Pty Ltd, Marian Brown and Lyn Joyce accept no responsibility to any person who acts on information herein without consultation with an accounting professional.


Delivery

This workbook is designed to be used in trainer-directed or self-paced learning, as learners follow a set sequence of exercises.

As a guide, this workbook takes about 40 hours to complete.

Provision has been made in the workbook for both formative and summative assessment.

a. Revision exercises are placed strategically throughout the workbook to allow for feedback during the instructional process and to help assess learner progress.

b. Four formal assessments are available on the training resource CD, available to trainers. These assessments should be attempted at the following learning stages.

Assessment 1 follows unit 5, assessing the use of documents relating to transactions involving customers and accounts receivable.

Assessment 2 follows unit 7, assessing the use of documents relating to transactions involving suppliers and accounts payable.

Assessment 3 follows unit 8, assessing understanding of a petty cash system.

Assessment 4 follows unit 15. The final unit of this workbook is a comprehensive revision exercise to prepare for assessment. This is to be followed by a final summative assessment. Two options are available.

Relationship to Competency Standards

This workbook is designed to provide training for all the elements of competency in the following units:

FNSACC301A Process financial transactions and extract interim reports

This unit describes the functions involved in preparation and processing of routine financial documents, preparing journal entries, posting journals to ledgers, preparing, banking and reconciling financial receipts, and extracting a trial balance and interim reports.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.


Element Performance Criteria

1 Check and verify supporting documentation

1.1 Information from documents is identified, checked and recorded

Units 4, 5, 6, 7, 8

1.2 Supporting documentation is examined to establish accuracy and completeness and to ensure authorisation by appropriate personnel

Units 4, 5, 6, 7, 8

2 Prepare and process banking and petty cash documents

2.1 Deposits and withdrawals are accurately entered and balanced according to organisational procedures

Units 5 and 7

2.2 Cheques and card vouchers are checked for validity before processing

Unit 7

2.3 Banking documentation is reconciled with organisation’s financial records

Units 5 and 12

2.4 Petty cash claims and vouchers are checked, processed and recorded and the petty cash book is balanced according to organisational procedures

Units 8 and 15

3 Prepare and process invoices for payment to creditors and for debtors

3.1 Invoices are prepared in accordance with organisational procedures

Unit 4

3.2 Invoices are checked against source documents for accuracy and any errors corrected

Unit 6

3.3 All invoices and related documents are filed for auditing purposes

Throughout workbook

4 Prepare journals and batch monetary items

4.1 Journals are prepared accurately and completely and items batched within organisational timelines

Units 10, 11 and 15

4.2 Batch items are precisely matched to initial receipt records

Units 5 and 15

4.3 Journals are authorised in accordance with organisational policy and procedures

Throughout workbook

5 Post journals to ledger

5.1 Journals are posted to ledger accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts

Units 10, 13 and 15

6 Enter data into system

6.1 Data is entered into system accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts

Units 11 and 15

6.2 Related systems are updated to maintain the integrity of relationships between financial systems

Throughout workbook


Element Performance Criteria

7 Prepare deposit facility and lodge flows

7.1 A deposit facility is selected appropriate to the banking method to be used

Unit 5

7.2 Batch is balanced with deposit facility without error

Unit 5

7.3 Security and safety precautions are taken appropriate to the method of banking in accordance with organisational policy and industry and legislative requirements

Unit 5

7.4 Proof of lodgements is obtained and filed so that it is easily accessible and traceable

Unit 5

8 Extract a trial balance and interim reports

8.1 Any special transactions are processed accurately

Units 10, 11 and 15

8.2 Cash and credit journals are completed and posted to general ledger

Unit 13

8.3 A trial balance is extracted and checked and other required reports prepared

Units 13, 14 and 15

8.4 Any errors are found and corrected Units 13 and 15

Required skills: communication skills to:

determine and confirm work requirements, using questioning and active listening as required

share information, listen and understand

read and interpret documentation from a variety of sources

use language and concepts appropriate to cultural differences

Throughout workbook

numeracy skills to make financial calculations Throughout workbook

information technology skills for accessing and using spreadsheets and databases

Units 8 and 15

literacy skills for data analysis and interpretation Throughout workbook

evaluative and general analytical skills Throughout workbook

organisational skills, including the ability to plan and sequence work

Throughout workbook


Required knowledge:

accounting conventions, processes and procedures

Units 9 and 10

banking procedures and guidelines Unit 5

industry codes of practice Units 2 and 5

legislative and regulatory requirements relevant to the work

Throughout workbook

organisational policy and procedures Units 4, 5, 6, 7, 8, 11 and 15

relevant Acts and regulations Unit 2, 5, 9 and 10

security procedures for handling cheques, vouchers and cash

Unit 5 and 7

Learning Outcomes

On the completion of this workbook you should be able to:

accurately enter and balance deposits and withdrawals

process and balance petty cash transactions

check and verify supporting documentation

apply relevant security measures for preparing and banking receipts

batch monetary items and prepare deposit facilities

use knowledge of organisational policies and procedures and legislative requirements to accurately enter data into accounting systems and process journal entries

prepare and authorise journals and check journal processing reports

extract and check/correct basic financial reports

file documentation to meet all organisational and regulatory requirements.

28 Unit 2: Introduction to accounting © Software Publications Pty Ltd, 2013

Business structures

There are different types of business structures designed for different types of activities. Most businesses trade goods or services for profit or non-profit outcomes. The following is a brief explanation of the most common business structures.

Sole trader

The most basic type of business organisation is called a sole trader. Any individual who wishes to start a business can set up as a sole trader. That person controls and manages the business. The income of the business is treated as the person’s individual income and they are solely responsible for any tax payable by the business.

The business would need to be registered with the Australian Taxation Office who would issue an Australian business number (ABN).

It would also be necessary to register for goods and services tax (GST) if GST turnover will be more than $75,000 per year. Any business with a GST turnover of less than $75,000 per year can choose whether to register for GST or not.

GST turnover is the gross business income (not profit) excluding the following:

a. GST included in sales

b. sales not connected with Australia

c. input taxed supplies

d. transfer of capital assets

e. the result of ceasing an enterprise of substantially and permanently reducing the size of the enterprise.

If the business trades in a name other than the person’s legal name, the business name must be registered with the Office of Fair Trading under the Business Names Acts of each state and territory.

A sole trader is referred to as an unlimited liability organisation. As far as the law is concerned there is no difference between the business and the owner. This means that if the business is unable to pay its debts, then the owner’s personal assets may be sold to cover these costs.

From an accounting perspective, the business entity is regarded as an entity separate from its owner, and the accounting relates only to the affairs of the business entity. The owner’s personal affairs are kept separate from those of the entity.

Examples of a sole trader Bob Smith, Plumber Marian Brown, trading as MBS Training Services

Name a sole trader you know.

.............................................................................................................................................

What product or service does this sole trader sell?

.............................................................................................................................................

© Software Publications Pty Ltd, 2013 Unit 2: Introduction to accounting 29

Partnership

According to s5(1) of the Partnership Act 1892, a partnership is an association of two or more people who carry on business as partners and receive income jointly.

Although the partnership agreement may be oral, a written agreement which formalises the terms and conditions of the partnership will help resolve disagreements.

The partnership is not liable to pay income tax.

A partnership is required to lodge a tax return (P form) and the profit (or loss) of the partnership is determined and distributed to each partner to be included in their respective income tax returns.

Each partner includes their share of the partnership profit in their own income tax return and pays tax on it at their respective marginal tax rates.

The profit would be shared according to the terms of the agreement.

As with the sole trader it would be necessary to obtain an ABN and to register for GST if the GST turnover is greater than $75,000.

A partnership is also an unlimited liability organisation and each partner would be responsible for one hundred per cent (100%) of the debts.

Examples of a partnership Bob & Cheryl Smith T & L Brown, trading as Brown Bros

Name a business owned by a partnership.

.............................................................................................................................................

What product or services does this business provide?

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................


Trust

A trust is an obligation imposed on a person/entity to hold property or income for the benefit of others who are known as beneficiaries.

A trust requires a tax file number, which is used to lodge the annual income tax return and apply for an ABN. A trust can be registered for GST if required.

From a legal perspective, a trust is not a separate entity. Consequently the trustee is responsible for the debts of the trust. A person who wishes to sue a trust must sue the trustee.

From a taxation perspective, a trust is not a separate entity.

However a trust is required to lodge a tax return (T form). The profit of the trust is determined and distributed to the beneficiaries to be included in their respective income tax returns and pay tax at their marginal tax rate.

Example of a trust Brown Family Trust Ressem Pty Ltd as trustee, trading as Ressem Plumbing

Name a trust.

.............................................................................................................................................

List the names of the beneficiaries (if known).

.............................................................................................................................................

Company

When the owners of a business wish to protect themselves against liability for the debts of the business they can register the business with the Australian Securities and Investment Commission (ASIC) as a company.

On forming the company, an Australian Company Number (ACN) with nine digits is issued. When a company registers for an ABN, the number issued is usually its ACN with two check digits at the beginning.

The money invested into the company can be obtained from different people. These people are commonly known as shareholders and are given shares in exchange for the money they have invested.

A company is a limited liability organisation. This means that the shareholders are only liable for the amount of money invested in the company.

Companies can be either privately or publicly owned.

Different rules and regulations govern how private and public companies operate.

© Software Publications Pty Ltd, 2013 Unit 2: Introduction to accounting 31

A private company can have a sole director and shareholder provided the constitution of the company allows. Some older companies specify a minimum of two.

A private company has the abbreviations Pty Ltd (proprietary limited) on the end of the name, e.g. MBS Training Services Pty Ltd. Owners are actually employees of their company who receive a salary and have PAYG Withholding (Income Tax) withheld.

A public company has Ltd (limited) only on the end of the name, e.g. BHP Billiton Limited. Public companies (minimum of five shareholders) can apply for listing on the Stock Exchange. This means that the public can trade in the shares of the company and the price of the shares will fluctuate according to supply and demand.

The profit in a company (both private and public) is distributed to shareholders in the form of dividends.

Find the Stock Exchange report in a printed or online newspaper, or the Stock Exchange website. Find the listing for BHP Billiton Limited (BHP). What is the current selling price of shares?

$ ...........................................................................................................................................

Date of price ........................................................................................................................

Name a business owned by a private company:

.............................................................................................................................................

List the shareholder(s) if known.

.............................................................................................................................................

.............................................................................................................................................

What product or service does this business provide?

.............................................................................................................................................

Name a business owned by a public company:

.............................................................................................................................................

Refer to the Stock Exchange report. What is the selling price of shares in this company?

$ ...........................................................................................................................................

Date of price ........................................................................................................................

What product or service does this business provide?

.............................................................................................................................................


Traders organisations

Retail businesses which sell similar products, e.g. IGA Supermarkets, will often set up a traders organisation to provide mass advertising and bulk purchasing power to compete with larger companies such as Aldi, Coles and Woolworths.

The ownership of a traders organisation could be a sole trader, partnership, company or trust.

Name a traders organisation in your local area.

.............................................................................................................................................

Not-for-profit organisations

Not-for-profit organisations, e.g. charities, churches, public libraries, provide services to the public, but are not required to make a profit. Any surplus funds are reinvested in the organisation. These organisations are usually tax exempt.

Some of them are incorporated under an act of parliament which gives members protection from debts similar to the limited liability company, e.g. Pine Brass Band Inc. Other organisations are unincorporated, e.g. Wavell Soccer Club.

A not-for-profit organisation has to register for GST if the GST turnover is more than $150,000 excluding GST.

Name an incorporated not-for-profit organisation in your local area.

.............................................................................................................................................

Name an unincorporated not-for-profit organisation in your local area.

.............................................................................................................................................

@ For more information on business structures, visit www.business.gov.au.

110 Unit 6: Purchasing items and services © Software Publications Pty Ltd, 2013

Receipt of the invoice from North Springwater Pty Ltd

The following invoice has been received for the items delivered on purchase order 10.

The tax invoice looks like this:

North Springwater Pty Ltd Tax Invoice

ABN 35 903 251 421 1480

54 Valley Street

Blackburn VIC 3130

(03) 9555 6779

TO: Brightspring Traders Delivery address:

25 Spring Street Brightspring Traders

BLACKBURN VIC 3130 25 Spring Street

BLACKBURN VIC 3130

Date: 10/month 20yy Purchase Order Number: 010 Terms: 30 DAYS

Quantity Item Number

Description Unit Price inc GST (if applicable)

Total including GST

Tax Code

5 700 Pine stand $38.00 $190.00 GST 5 600 20 litres North Spring $13.25 $66.25 FRE $256.25 Amount of GST in this invoice: $17.27

Delivery method: North Springwater driver

Delivery date: 10/month 20yy

(i) Has the supplier quoted an ABN?

(ii) Has the correct amount been charged? (Check with the price list on page 100.)

.............................................................................................................................................

(iii) Are there any discrepancies? If so, identify them.

.............................................................................................................................................

(iv) What would you do about this discrepancy?

.............................................................................................................................................

Make the appropriate amendments to invoice 1480.

Assume an amended invoice has been sent.

© Software Publications Pty Ltd, 2013 Unit 6: Purchasing items and services 111

Returning items

Assume one pine stand was found to be faulty (screws missing) although checked on delivery. This stand was returned.

(i) Complete the goods returned form which would be completed by Mary in the storeroom, one copy would be given to Sue, the bookkeeper, and one copy sent with the faulty pine stand.

Brightspring Traders Goods Returned ABN 80 000 000 001 25 Spring Street Blackburn VIC 3130

Goods returned to:

……………………………………………

…………………………………………....

…………………………………………... Purchased on invoice number: ……….

Quantity Item Number Description Reason

Returned by…………………. Date: 11/current month

Method: Picked up by North Spring from store

(ii) On receipt of the faulty stand, North Springwater issued the following adjustment note.

North Springwater Pty Ltd Adjustment Note

ABN 35 903 251 421 1486

54 Valley Street

Blackburn VIC 3130

(03) 9555 6779

TO: Brightspring Traders Delivery address:

25 Spring Street Brightspring Traders

BLACKBURN VIC 3130 25 Spring Street

BLACKBURN VIC 3130

Date: 11/month 20yy Purchase Order Number: 010 Invoice Number: 1480

Terms: 30 DAYS

Quantity Item Number

Description Unit Price inc GST (if applicable)

Total including GST

Tax Code

-1 700 Pine stand $33.00 -$33.00 GST -$33.00 Amount of GST in this invoice: $

Reason: Faulty, screws missing

112 Unit 6: Purchasing items and services © Software Publications Pty Ltd, 2013

Check the accuracy of the adjustment note from North Springwater Pty Ltd against the goods returned docket and original tax invoice.

Are there any discrepancies?

.............................................................................................................................................

Checking the bill for a service

The following tax invoice (summary of the electricity account) was received from Metropolitan Electricity.

Metropolitan Electricity Tax Invoice

ABN 78 124 784 222 Account No: 4578111

PO Box 10002

Sydney NSW 2000

TO: Brightspring Traders

25 Spring Street

Blackburn VIC 3130

Date: 10/current month Period: 90 days Location: 25 Spring Street Blackburn VIC 3130

Due: 24/month

Description Total including GST Tax Code

Details of electricity supply $256.00 GST

TOTAL including GST $256.00

List 2 ways of checking the accuracy of the above tax invoice.

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

.............................................................................................................................................

© Software Publications Pty Ltd, 2013 Unit 6: Purchasing items and services 113

Summary of transactions with North Springwater Pty Ltd for the month

List below the documents you should have in the file of North Springwater Pty Ltd for the month. The first two documents have been entered.

Document Reference Number

Date Total Amount

Original purchase requisition 1001 3/month NA

Duplicate purchase order 9 3/month $618.69

260 Unit 13: Posting journals © Software Publications Pty Ltd, 2013

Preparing the trial balance

In this exercise, you will make a list of account balances (called a trial balance) in the general ledger of Brocks Tyreworld on pages 253 to 259.

Referring to the accounts on the previous pages, list all the accounts with balances in the trial balance as at 31 July on the following page.

For example the bank account and the petty cash account look like this in the general ledger.

110 BANK Date Particulars Ref Debit Credit Balance Dr/Cr

July 1 Balance GJ 10,000.00 10,000.00 Dr

July 31 Sundry receipts CRJ 16,847.00 26,847.00 Dr

Sundry payments CPJ 9,170.10 17,676.90 Dr

115 PETTY CASH Date Particulars Ref Debit Credit Balance Dr/Cr

July 1 Balance GJ 100.00 100.00 Dr

July 31 Petty Cash Expenditure GJ 88.10 11.90 Dr

Bank CPJ 88.10 100.00 Dr

Then write the name of the account and the balance in the Dr column or Cr column according to the Dr/Cr column in the account, i.e. whether the debit or the credit side of the account is larger.

Trial Balance

Account Name Dr Balance Cr Balance

Bank 17,676.90

Petty cash 100.00

On completion, add up the Dr Balance column and the Cr Balance column.

The two columns should be equal.

© Software Publications Pty Ltd, 2013 Unit 13: Posting journals 261

TRIAL BALANCE

AS AT 31 JULY XXXX

Account Name Dr Balance Cr Balance

TOTALS $ $

If the debit column does not equal the credit column you could have made the following errors:

incorrect calculation of the balance in the account

incorrect amount posted from the journal to the ledger

amount posted to the incorrect column in the ledger

incorrect balance written in the trial balance

balance written in the incorrect column in the trial balance.

262 Unit 13: Posting journals © Software Publications Pty Ltd, 2013

Revision exercise

Once you have completed posting the July transactions to the general ledger and your trial balance has been accurately prepared, it is now time to revise all the work you have covered so far in this guide.

You will find on the following pages a complete exercise for Brocks Tyreworld, for the month of August 20xx.

There are copies of invoices issued and received, adjustment notes issued and received, receipts, cheques and petty cash book. (In this exercise you need not concern yourself with bank reconciliation.)

Your responsibility as a bookkeeper is to:

prepare the journals for August 20xx, for which stationery has been provided

total all columns and check your work carefully.

Do not total the cash journals until all the transactions have been entered.

post all journal entries to the general ledger on pages 253 to 259.

Ample space has been provided in the general ledger used for the July transactions to allow you to add the August transactions to the accounts.

Do not commence a new ledger for August.

A ledger contains the complete story of each account and therefore the final balances must show the effects of all transactions.

calculate running balances for each line of each account

prepare a trial balance as at 31 August 20xx.

You may need to revised Brocks Tyreworld’s Accounting Policies and Procedures which were introduced in Unit 11.

Blank journals have been included, as well as a ruled trial balance on pages 271 to 275.

296 Unit 15: Revision exercise © Software Publications Pty Ltd 2013

Recording handwritten adjustment notes issued to customers in the sales returns and allowances journal

Occasionally, a customer returns furniture for a credit.

A handwritten adjustment note is issued and the duplicate is recorded in the sales returns and allowances journal.

Check the accuracy and record the following adjustment notes in the appropriate journal on page 291.

KOOKABURRA FURNITURE Adjustment Note ABN 99189123447

Timber Avenue, ESKDALE QLD 4350 44

TO: Synergy Accountants

Date: 7 July, xxxx Terms: EOM after EOM Quantity Item Number Description Unit Price

Ex GST Total Tax

Code

-1 T62145 Office desk - damaged 300.00 -300.00 GST

Add 10% GST -30.00

Total including GST -$330.00

KOOKABURRA FURNITURE Adjustment Note ABN 99189123447


TO: ECI Electrical

Date: 10 July xxxx Terms: EOM after EOM Quantity Item Number Description Unit Price

Ex GST Total Tax

Code

-1 C3426 Office chairs – green - damaged

160.00 -160.00 GST

Add 10% GST -16.00

Total including GST -$176.00

© Software Publications Pty Ltd, 2013 Unit 15: Revision exercise 297

Recording cash sales and customer payment of accounts

During the month, cash and cheques were received from customers and miscellaneous sources, e.g. insurance refund and banked.

After checking the accuracy of the cheques, record the following in the cash receipts journal on page 292. Receipts are banked daily.

Payment of account – receipt 60

Eastpac Bank ESKDALE QLD 4350 002299 Date: 10 July xxxx Pay Kookaburra Furniture OR BEARER The sum of Seven hundred and four dollars. $704.00 DRAWER Synergy Accountants

M Megan ''002299 ''062'''009: 9414551''

Insurance refund (no GST) – receipt 61

Eastpac Bank BRISBANE QLD 4350 1245781 Date: 10 July xxxx Pay Kookaburra Furniture OR BEARER The sum of One thousand six hundred dollars………..

$1,600.00

DRAWER Suncorp

M Smith

''1245781 ''062'''009: 1278451''

Part payment of account – receipt 62

Eastpac Bank ESKDALE QLD 4350 0312457 Date: 25 July xxxx Pay Kookaburra Furniture OR BEARER The sum of One thousand dollars $1,000.00 DRAWER ECI Electrical

B White

''312457 ''062'''009: 897887''

Cash sale – tax invoice 103

Eastpac Bank ESKDALE QLD 4350 04157812 Date: 25 July xxxx Pay Kookaburra Furniture OR BEARER The sum of Two thousand, two hundred dollars $2,200.00 DRAWER Lilydale Properties

B North ''04157812 ''062'''009: 897111''


KOOKABURRA FURNITURE Tax Invoice ABN 99189123447


TO: CASH SALE (PAID IN CASH)

Date: 25/July Terms: COD Quantity Item Number Description Unit Price

Inc GST Total including GST

Tax Code

4 C3426 Office chairs - green 176.00 $704.00 GST

Checking the accuracy of the Deposit Slip on 25 July

On 25 July, the following deposit slip was written out to bank cash and cheques received.

Eastpac Bank BANK DEPOSIT

ACCOUNT NAME: KOOKABURRA FURNITURE Coins 4 00 ACCOUNT NUMBER: 082-000 16789245 Notes $700 00 *Cheques etc $3,200 00 Details: Total $3,904 00 Drawer Bank Place Amount

ECI Electrical Eastpac Eskdale $1,000.00 Lilydale Properties Eastpac Eskdale $2,200.00 TOTAL Cheques/money orders and merchant summaries (transfer to * above) $3,200.00 Paid in by ………(Your name)…………………………………. Date: ….25./…7./…xxxx

(i) Check the accuracy of the deposit slip with your cash receipts journal.

(ii) Check the accuracy of cash deposited on the day by completing the following cash analysis of notes and coins counted at the end of the day.

Number counted Denomination Extended Total Coins: 5 20c 2 50c 0 $1 1 $2 Total Coins: $ Notes: $5 $10 5 $20 4 $50 4 $100 Total Notes: $

Total Coins and Notes: $

© Software Publications Pty Ltd, 2013 Unit 15: Revision exercise 299

Recording cheques written out in the cash payments journal

The following cheques (source documents are the cheque butt and the original tax invoice received from the supplier) were written out during the month. The tax invoices have been checked for accuracy and approved for payment by Jason.

Record these cheques in the cash payments journal printed on page 293.

No: 101 1/July To: Suncorp For: Motor vehicle insurance This cheque $660.00 (including GST)

No: 102 1/July To: Local garage For: Repairs This cheque $176.00 (Including GST)

No: 103 6/July To: Empire Theatre For: Theatre tickets for the family This cheque $400.00

No: 104 10/July To: Furniture Importers For: Part payment of account (no GST involved) This cheque $2,000.00

No: 105 12/July To: Judy Johns For: Net wages This cheque $400.00

No: 106 16/July To: G Hilder For: Accounting Fees This cheque $220.00 (including GST)

What would you do if the owner insisted that you allocate this entry to staff amenities and why?

……………………………..

……………………………..

……………………………..

……………………………...

………………………….......

……………………………...


No: 107 18/July To: Local Garage For: Fuel This cheque $110.00 (Including GST)

no: 108 20/July to: Officeworks for: New computer (office equipment) This cheque $1,870.00 (including GST)

No: 109 20/July To: Ergon For: Electricity This cheque $220.00 (including GST)

No: 110 28/July To: Judy Johns For: Net wages This cheque $400.00

No: 111 28/July To: Local garage For: Fuel This cheque $88.00

No: 112 29/July To: Furniture Importers For: Part payment of account (no GST involved) This cheque $970.00

With reference to cheque 112, what steps would be taken before this cheque was written out?

.......................................................................................................................................................

.......................................................................................................................................................

© Software Publications, 2013 387

FNS Financial Services Training Package

Supplement

This workbook can be used by learners completing a qualification in the FNS Financial Services Training Package.

388 © Software Publications, 2013

FNSACC301 Process financial transactions and extract interim reports

Application

This unit describes the skills and knowledge required to prepare and process routine financial documents, prepare journal entries, post journals to ledgers, prepare banking and reconcile financial receipts, and extract a trial balance and interim reports.

It applies to individuals who use specialised knowledge and follow agreed processes to carefully check and process detailed financial information to ensure standards are maintained.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

Elements and Performance Criteria

Element Elements describe the essential outcomes.

Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element.

Workbook reference

Assessment task

1. Check and verify supporting documentation

1.1 Identify, check and record information from documents

Units 4, 5, 6, 7, 8 All tasks

1.2 Examine supporting documentation to establish accuracy and completeness and to ensure authorisation by appropriate personnel

Units 4, 5, 6, 7, 8 All tasks

2. Prepare and process banking and petty cash documents

2.1 Enter accurately and balance deposits and withdrawals according to organisational procedures

Units 5 and 7 Tasks 1, 2 and 4

2.2 Check cheques and card vouchers for validity before processing

Unit 7

2.3 Reconcile banking documentation with organisation’s financial records

Units 5 and 12 Tasks 1, 2 and 4

2.4 Check, process and record petty cash claims and vouchers, and balance petty cash book according to organisational procedures

Units 8 and 15 Tasks 3 and 4

3. Prepare and process invoices for payment to creditors and for debtors

3.1 Prepare invoices in accordance with organisational procedures

Unit 4 All tasks

3.2 Check invoices against source documents for accuracy and correct any errors

Unit 6

3.3 File all invoices and related documents for auditing purposes

Throughout workbook


Element Elements describe the essential outcomes.

Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element.

Workbook reference

Assessment task

4. Prepare and post journals and batch monetary items

4.1 Prepare journals accurately and completely, and batch items within organisational timelines

Units 10, 11 and 15

Tasks 1 and 4

4.2 Match batch items precisely to initial receipt records

Units 5 and 15

4.3 Ensure journals are authorised by appropriate person and process in accordance with organisational policy and procedures

Throughout workbook

5. Post journals to ledger

5.1 Post journals accurately to ledger in accordance with organisational input standards, with transactions correctly allocated to system and accounts

Units 10, 13 and 15

Task 4

6. Enter data into system

6.1 Enter data accurately into system in accordance with organisational input standards and correctly allocate transactions to system and accounts

Units 11 and 15 All tasks

6.2 Update related systems to maintain integrity of relationships between financial systems

Throughout workbook

All tasks

7. Prepare deposit facility and lodge flows

7.1 Select deposit facility appropriate to banking method to be used

Unit 5 Tasks 1 and 4

7.2 Balance batch with deposit facility without error

Unit 5

7.3 Take security and safety precautions appropriate to method of banking, in accordance with organisational policy and industry and legislative requirements

Unit 5

7.4 Obtain and file proof of lodgement so that it is easily accessible and traceable

Unit 5

8. Extract trial balance and interim reports

8.1 Process accurately any special transactions

Units 10, 11 and 15

Task 4

8.2 Complete cash and credit journals and post to general ledger

Unit 13

8.3 Extract and check trial balance and prepare other required reports

Units 13, 14 and 15

8.4 Find and correct any errors Units 13 and 15

390 © Software Publications, 2013

Foundation skills

Skill Performance Criteria

Description Workbook reference

Reading 1.1, 1.2, 2.1, 2.2, 2.4, 3.2, 4.2, 8.4

Analyses, matches and interprets information, paying attention to detail to identify errors

Throughout workbook

Writing 1.1, 2.1, 2.4, 5.1, 8.2, 8.3

Records information accurately using correct spelling, grammar and terminology

Throughout workbook

Oral communication

4.3 Uses questioning and active listening to convey and clarify information and instructions

Liaising with trainer and felow students

Numeracy 1.1, 2.1-2.4, 3.1, 3.2, 4.1, 7.2, 8.1, 8.2

Performs mathematical calculations to check accuracy and completeness and reconcile numerical and financial data

Throughout workbook

Navigate the world of work

2.1, 2.4, 3.1, 4.3, 5.1, 7.3

Follows legislative requirements, and organisational protocols, policy and procedures relevant to own role

Throughout workbook

Interact with others

1.2, 4.3 Uses correct communication practices and protocols to gain processing authorisations from relevant personnel

Units 7, 11 and 15

Get the work done

1.1, 2.1-2.4, 3.1-3.3, 4.1-4.3, 5.1, 6.1, 6.2, 7.1-7.4, 8.1-8.4

Plans, organises and implements tasks according to organisational and legislative requirements

Throughout workbook

Responds to predictable routine problems by implementing standard or logical solutions

Umit 12

Uses the main features and functions of digital tools to complete work tasks and to access information

Throughout workbook


Assessment requirements v1.0

Performance evidence

Evidence of the ability to: Assessment task

accurately enter and balance deposits and withdrawals Tasks 1, 2 and 4

process and balance petty cash transactions Tasks 1–4

check and verify supporting documentation All tasks

apply relevant security measures for preparing and banking receipts

Tasks 1 and 4

batch monetary items and prepare deposit facilities Tasks 1 and 4

accurately enter data into accounting systems and process journal entries according to organisational policy and procedures and legislative requirements

All tasks

prepare and authorise journals and check journal processing reports

Task 4

extract, check and correct a trial balance Task 4

file documentation to meet all organisational and regulatory requirements.

All tasks

Knowledge evidence

To complete the unit requirements safely and effectively, the individual must:

To complete the unit requirements safely and effectively, the individual must:

Assessment task

identify a range of accounting conventions, processes and procedures

Task 4

describe banking procedures and guidelines Task 3

outline typical errors that can be made in processing financial transactions

All tasks

describe forms of ‘proof of lodgement’ Tasks 1 and 4

describe types of ‘special transactions’ Task 4

identify and describe the key features of:

industry codes of practice All tasks

legislative and regulatory requirements relevant to the work

All tasks

organisational policy and procedures All tasks

explain the security procedures for handling cheques, vouchers and cash

Task 1

describe the key features of a range of reports. Tasks 1 and 4

a step by step approach to process financial … 2-77...© software publications pty ltd, 2013 1 a...

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