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FNSACC301 Process financial transactions and extract interim reports
FNSACC302 Administer subsidiary accounts and ledgers
Assessment 1
Student Name: Name Here
Student Number:
Assessment Number: 32346/01
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Assessment 1: 32346/01
FNSACC301 Process financial transactions and extract interim reports
FNSACC302 Administer subsidiary accounts and ledgers
Instructions
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Assessment Description
By completing this assessment the learner will gather evidence of the knowledge and skills necessary to analyse and report on a broad range of financial and business performance information – encompassing assessing clients’ needs, analyzing data and preparing advice including:
• Check and verify supporting documentation
• Prepare and process banking and petty cash documents
• Prepare and process invoices for payment to creditors and for debtors
• Prepare journals and batch monetary items
• Post journals to ledger
• Enter data into system
• Prepare deposit facility and lodge flows
• Extract a trial balance and interim reports
• Review accounts receivable process
• Identify bad and doubtful debts
• Review compliance with terms and conditions and plan recovery action
• Prepare reports and file documentation
• Distribute creditor invoices for authorisation
• Remit payments to creditors
• Prepare accounts paid report and reconcile balances outstanding
Assessment Tasks
Assessment number Assessment type and methods
32346/01 Project
A project consists of the following assessment method:
- Evaluating an integrated activity
32346/01 Verbal questioning
Verbal consists of the following assessment method:
- Recording responses to questions to assess underpinning knowledge and skills.
Marks will be awarded as follows:
Assessment question Total possible marks Weighting Assessment Results
Marks Weighted %
Part A
1. Prepare journal entry for commencement of business 7 25%
2. Complete cheques per the payments for 1st of May only 3 5%
3. Complete invoices for sales made on 7th and 8th May (invoice 001 and 002) 6 5%
4. Enter May’s transactions into journals 73 25%
5. Post journals into general ledger, debtors ledger and creditors ledger 80 20%
6. Prepare trial balance, debtors schedule and creditors schedule as at May 31st
25 20%
Total Marks 193 95%
Assessment question Total possible marks Weighting Assessment Results
Marks Weighted %
Part B
Question a 2.5 2.5
Questions b 2.5 2.5
Total Marks 5 5%
Convert to a %:
Total A + B / 198 x 100
Grade will be awarded as follows:
Grade Marks from distribution table
Pass (meet competency requirements per the competency evaluation below) 50-64%
Credit 65-74%
Distinction 75-84%
High Distinction 85-100%
Part A
Introduction
Congratulations!!! You have been offered an assistant accountant role with the a boutique local accounting practice - A Counting Firm – owned by Lily Rose. Your first job is to work Lily’s new client, Charlie Morris. The only catch is Charlie doesn’t trust computers at all, so would like all of her books kept on a manual basis, and pays most of her bills with a cheque-book!!!
Charlie Morris is a Chinese Medicine Herbalist and Naturopath. On May 1st 2015, she purchased an existing business, a Naturopathy practice, for $160,000. The assets acquired, at agreed valuation were:
Inventory – Herbs $ 59,000
Inventory – Books and Other $ 3,000
Furniture and Fittings $ 13,000
Delivery Van $ 42,000
Tools and Equipment $ 18,000
Goodwill $ 25,000
Charlie began operations on May 1st trading as “Erbal Remedies”. With the assistance of her brother Michael who is studying accounting, Charlie prepared the following chart of accounts:
Erbal Remedies
Chart of Accounts
Current Assets Cost of Sales
Cash at Bank 1-1100 Purchases – Oil 5-1000
Cash on Hand 1-1110 Purchases – Books and Other 5-2000
Petty Cash 1-1115 Freight In 5-3000
Accounts Receivable 1-2000
Inventory - Herbs 1-3000
Inventory - Books and Other 1-4000
Stationery Stock 1-4500 Selling Expenses
Advertising 6-1050
Non Current Assets Wages 6-1100
Furniture and Fittings 1-5000 Motor Vehicle Expenses 6-1150
Equipment 1-6000
Delivery Van 1-7000
Goodwill 1-8000
Current Liabilities Administration Expenses
Bank Overdraft 2-2100 Electricity and Telephone 6-2050
Accounts Payable 2-2200 Insurance 6-2100
Short Term Loan 2-2300 Postage and Stationery 6-2200
GST - Collected 2-3010 Rent 6-2300
GST - Paid 2-3030 Repairs and Maintenance 6-2400
Proprietorship Security Costs 6-2500
Capital 3-3000 Sundry Expenses 6-2600
Drawings 3-3200
Revenues Financial Expenses
Sales Revenue - Oils 4-1000 Bank Charges 6-3050
Sales Revenue - Books and Other 4-2000 Discount Allowed 6-3100
Service Revenue – Consultation Services 4-3000
Discount Received 4-4000
Other important information:
Charlie keeps a safe on the premises and banks cash received twice a week, on Tuesday and Friday. All payments are made by cheque.
GST is included on all purchases and sales where applicable.
Your instructions from the client:
Charlie’s brother has asked you to take care of the following tasks in this order:
1. Prepare journal entry for commencement of business
2. Complete cheques per the payments for 1st of May only
3. Complete invoices for sales made on 7th and 8th May (invoice 001 and 002)
4. Enter May’s transactions into journals
5. Post journals into general ledger, debtors ledger and creditors ledger
6. Prepare trial balance, debtors schedule and creditors schedule as at May 31st
To complete these' tasks, please use the templates supplied in the ‘Additional Resources’.
The transactions for May are set out below:
May 1 Opened business bank account with Meteor Bank with $5,000 deposit
Paid $1,8000 to Paxton Realty for May rent. Cheque 64001
Paid May insurance to Top Insurance $440 Cheque 64002
Paid radio station 2NNN $330 for advertising. Cheque 64003
Paid $1,320 to Top Fittings for new shelving. Cheque 64004 Note: Fittings account
Bought stationery $38.50. Cheque 64005

2 Commenced trading
Part time sales assistant commenced
Paid $550 to Gifts Galore for door prizes and refreshments. Cheque 64006
Note: Treat as Advertising expense
4 Purchased Books worth $1,760 from Biz-Sys on credit. The invoice added $44 delivery charge. Charlie allocated an account code of 220.001 to Biz-Sys. Inv. J2205.
5 Banked cash receipts of $3,168. This amount is made up of Oil sales $2,750 and $418 from sale of Books.
Full time sales assistant commenced.

7 Parris Personnel opened an account and bought Oils worth $1,320 and Books worth $242. Their account number is 120.001. Inv 001.
Paid $1,320 for a paint job on the premises. Cheque 64007. Note: Treat as Maintenance expense.
8 Cashed cheque of $220 for petty cash. Cheque 64008
Drew cash cheque for wages $640 and drawings $500. Cheque 64009.
Banked cash receipts. These included $2,420 from Herb sales and $374 from Books and other sales.
Opened an account for Pete Rivers Advertising with Oils worth $1,650 and Books worth $363. Account no 120.002. Inv 002.

11 Paid cleaner $66. Cheque 64010. (Cashed cheque from cash register)
Note: Sundry Expense.
Provided service to Parris Personnel $110. Inv 003

12 Paid electrician $242. Cheque 64011. Note: Maintenance expense
Bought Books on credit from Scene In Books (SIS) for $3,520.
Acc. No 220.002. Inv 4406.
Banked cash receipts: Herb sales $2,200
Books and other sales $ 440
13 Sold Books to Parris Personnel, $242. (Inv 004)
Bought advertising material for $66. Cheque 64012.
14 Paid account of Biz-Sys in full. Cheque 64013.

15 Drew cash cheque for wages $740 and drawings $600. Cheque 64014
Banked cash receipts: Herb sales $1,320, Books sales $825, Consultation services $462.
Opened an account with Freedom Fax and bought Books for resale $4,620 and Oils $660 (Account #220.003). Inv 552

18 Paid cleaner $66. Cheque 64015.

19 Opened account #120.003 for Ridgeway Bank. They bought Oils for $3,630 and Books for $880 on account. Inv 005.
Paid Diamond Decorators for window display $132. Cheque 64016
Credit sale to Pete Rivers Advertising for Oils $1,540. Inv 006
Banked cash receipts: Herb sales $3,080
Books and other sales $275
Consultation Services $242
n
20 Provided Consultation Service and minor repairs to All About Canvas. An account was opened and the cost of $220 was entered. (Account #120.004). Inv 007
Sold Oils to Ridgeway Bank $880. Inv 008
Bought Oils from Biz-Sys $7,480. Inv J2421.

21 Opened account #120.005 for Tim Neale Consultation Services with Books sale of $660. Inv 009.
Invoiced Ridgeway Bank for customised Oils $1,540. Inv 010
Bought Oils worth $1,980 and books worth $572 from Freedom Fax. Inv 604.
Paid SIS for Invoice of May 12th less discount of $66. Cheque 64017.

22 Paid $220 for advertising in the local paper. Cheque 64018.
Banked cash receipts: Herb sales $3,410
Books and other sales $495
Drew cash cheque for wages $740 and drawings $600. Cheque 64019
Paid $66 to have advertising fliers delivered. Cheque 64020
Credit sale of paper to Pete Rivers Advertising $308. Inv 011
Returned faulty Oils to Biz-Sys - $990 from Invoice J2421 (Note: No entry is required till the credit note is received)

23 Credit sale to Tim Neale Consultation Services, and Herbs $462. Inv 012

25 Received delivery of Books from SIS $2,420. Inv 4520
Paid cleaner $66. Cheque 64021

26 Received $2,000 part payment from Ridgeway Bank. Receipt 007.
Received credit note C224 from Biz-Sys for $990 for Books returned.
Paid Biz-Sys balance owing from Invoice J2421 less discount of $44. Cheque 64022.
Banked cash receipts: Oil sales $4,180
Books and other sales $ 660
Consultation Service $ 440
Plus receipts from account customers.

27 Received payment from Parris Personnel for Invoices 001 and 003. Receipt 009
Credit sale of Books to All About Canvas $242. Inv 013
Paid Freedom Fax in full for Invoice 552. Cheque 64023

29 Sold Oils to All About Canvas $1,650. Inv 014
Drew cash cheque for wages $1,020 and drawings $600. Cheque 64024
Paid mechanic for repair to delivery vehicle $132. Cheque 64025
Received cheque from Pete Rivers Advertising for $3861 in full payment of account. Receipt 10.
Received from Tim Neale $660.00 as full payment of invoice 009. Receipt 011
Received telephone bill no 94361117/1 $242 from Telet (Account no 220.020)
Received electricity bill no 41.7044 $88 from Atlas Electricity (Acc. 220.021)
Banked cash receipts: Oils sales $2,750
Books and other sales $ 462
Consultation services $ 275
Plus receipts from account customers.

30 Paid plumber to mend leaking pipe $137.50. Cheque 64026. Note: Maintenance expense
Received invoice R1160 from Vault Security for May patrols $660. (Acc 220.022)
Saturday’s cash receipts to be banked on Tuesday:
Oil sales $2,860
Books and other sales $660
Reimbursed Petty Cash for expenditure for month:
Motor Vehicle Expenses (Fuel and oil) $121
Sundry Expenses $85.80
Cashed cheque 64027 for $206.80 in cash register.

Part B: Oral Questions
Oral question – please record your response using the recording tool at http://recordmp3online.com
a) You have been asked to call the Scene in books accounts department and verbally request a copy of their supplier statement to check the balance outstanding. (2.5 marks)
Drag and drop this recording here
http://recordmp3online.com/wp-content/plugins/wppoodll/poodllfilelib.php?datatype=downloadfile&filename=upfile_154558428.mp3&newname=upfile_154558428.mp3
b) You have received the statement from Scene in books and the amount outstanding on the statement reconciles with your creditors schedule in the amount of $2,420, record your request for authorisation from Michael to pay this amount in full. (2.5 marks)
Drag and drop this recording here
http://recordmp3online.com/wp-content/plugins/wppoodll/poodllfilelib.php?datatype=downloadfile&filename=upfile_154558428.mp3&newname=upfile_154558428.mp3

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