ASSESSMENT: PROCESS FINANCIAL TRANSACTIONS AND EXTRACT INTERIM REPORTS

Task 1: Theory Assessment

Question 1 - Question and Answers

Answer the following questions in writing.

1. Explain what source document is. Give some examples.

2. What are different procedures employees can follow when they go to the bank to deposit money for their business to ensure security and safety while banking?

3. When you are filing documents, what factors should be considered when deciding the filing order?

4. How do you ensure that the clerical officer deposited the money to the bank? What would be the possible proof of lodgements?

5. Name the popular accounting software that are in use in Australia. How do you ensure that the data is entered into the accounting software accurately? How do you ensure the currency of the accounting software? Describe the key purposes of Accounting reporting.

6. Money transfer via internet is a popular practice these days. To ensure that there is no fraudulent activity in place, authorising the transfer is a common practice. This authorisation process also ensures sound internal control system of a business. Explain an authorisation process that a business can follow to ensure that the internal control system is working properly.

7. When a staff member presents you with a petty cash voucher, what supporting documentation must be attached? Who is required to approve their petty cash claim?

8. A colleague has had a busy day. Even though it is against organisational policy the colleague has decided to leave the banking until the next day and leaves the money in the cash register overnight. The next morning, when the colleague checks the takings, $100 is missing. Describe two actions the colleague should have taken to help ensure the money was not ‘at risk'.

9. Under GST legislation, what details must be included on a TAX Invoice received from a creditor before you can process it?

10. If the supplier has not provided their ABN, what procedures must Accounts Payable follow?

11. What security safeguards should you consider when you are handling cash?

12. List any acts, regulations, legal procedures and codes of practice that are relevant to the banking industry. Briefly explain why these are necessary?

13. Explain the relationship between a "batch total" for banking purposes and "receipts issued".

14. Describe the banking facilities you should use when performing the business banking procedure.

15. Explain the banking procedures that would be followed when customers pay by credit card or debit card.

16. What items and documentation must be taken to the bank when banking the day's takings?

17. What procedure should be followed by the person who performed the daily banking, after the deposit has been made at the bank?

18. What steps would you take if you found a discrepancy between the bank deposit form signed by the bank and the cash records maintained by the business?

19. Provide at least three reasons why it is important to check financial documents before they are processed?

20. Identify the details you would need to check on an invoice received from a supplier before payment is processed.

21. Outline typical errors that can be made in processing financial transactions.

22. Describe different forms of ‘proof of lodgement'.

23. Describe different types of ‘special transactions'.

24. Explain the security procedures for handling cheques, vouchers and cash.

25. Describe the key features of two end of financial year reports.

Task 2: Case Study and Practical Assessment

Question 1 -Matt Robin

Prepare a compliant tax invoice in accordance with organisation procedures by using the following information and details provided in Appendix related to ‘Case Study - Matt Robin'.

19th November 2012 - Invoiced Smiley Rinaan for lawn mowing services, weeding and rubbish removal services. A ride on mower grass cut took 6 hours to complete. 2 hours were spent weeding. Whipper snipping took 5 hours to complete. In addition 5 loads of rubbish was removed.

Question 2 - J Smith

Process the transactions provided in Appendix related to ‘Case Study - J Smith' in the accounting equation format.All templates has been provided in the appendix.

Question 3 - Jacob Lee

Prepare the General Journals, Ledger entries and Trial balance in date order as per the information provided in Appendix ‘Case Study - Jacob Lee'. All templates have been provided in the appendix.

Role Play

You will meet the senior accountant (your assessor) for organisation ‘Jacob Lee' and undertake the following:

1. Present the Trail balance
2. Provide opportunity to ask questions
3. Respond appropriately to all questions asked
4. Undertake authorisation to complete end of financial year reports and reconciliations

During the roleplay, you will be assessed on your communication skills including:

• Content
• Professionalism
• Clarity
• verbal exchanges
• language and concepts appropriate for the audience
• Handling a questions and answer session
• Uses collaborative and inclusive techniques to build rapport
• Establish and maintain positive relationships with a range of stakeholders
• Asking relevant questions to clarity and confirm information and instructions.

Question 4 - ABC Pty Ltd

Prepare the adjusted trail balance for ABC Pty Ltd based on information provided in Appendix related to ‘Case Study - ABC Pty Ltd'.All templates have been provided in the appendix.

Question 5 - R Stirling

Review the information provided in Appendix ‘Case Study - R Stirling' and answer the following questions. All templates have been provided in the appendix.

a) Identify the journals that would be used to record the following transactions
b) Enter the transactions from part (a) above into the appropriate journals and total each journal.

Question 6 - Bright Limited

Review the information provided in Appendix ‘Case Study - Bright Limited' and prepare the general journal entries to reflect the shown transactions (dates and folios not required).All templates have been provided in the appendix.

Question 7 - WrongLtd

Review the information provided in Appendix ‘Case Study - Wrong Ltd' and prepare bank reconciliation as at 31 December 2015. All templates have been provided in the appendix.

Question 8 - Durable Trading Pty Ltd

Review the information provided in Appendix ‘Case Study - Durable Trading Pty Ltd' and undertake the following. All templates have been provided in the appendix.

a) Record the transactions in the petty cash book
b) Total the columns in the petty cash book to determine total expenditure
c) Determine the amount of the reimbursement
d) Record the petty expense in the organisations general journal.

References / recommended resources

Process financial transactions and extract interim reports - FNSACC301, Enhance Your Future.